Cheapest Sipp: build yourself a low cost DIY pension article

EdInvestor

stormyrider wrote: »

Thanks EdInvestor. I'm working under the assumption that this is the order of events that need to occur for me to transfer my pensions into Sippdeal:

1. Open a Sipp with Sippdeal with £0 investment initially.
2. Instruct current pension trustees to sell my fund holdings within my pension accounts. (The funds they are invested in aren't listed by Sippdeal as they are mainly institutional versions of retail funds so I guess that's my only option).
3. Once liquidated then fill in Sippdeal transfer forms and send them back.

The forms you need to fill in are on the Sippdeal website.You need to instruct the trustees to transfer the pension out, they will then proceed with cashing in the funds and instruct Sippdeal to open an account to receive the incoming pension.The forms are pretty clear..

I've got my eye on a share that I currently hold as a direct holding outside of pensions that I am so keen to fill up on my SIPP!

If it's not a listed share make sure the SIPP can accept it.

mongeese

stormyrider wrote: »

Anyone have any experience of A J Bell with their Sippdeal product. I'm looking for a low cost Sipp product where I can primarily purchase shares (and secondly funds) and will be transferring in 4 plans.

From my first look in the market, looks like there are 3 providers that would fit my needs:

TDW - £12.50 a trade (£9.95 >6 trades per Q), 0.5% admin charge (£200 max), £80 in per plan
Sippdeal - £9.95 a trade (from 1st Dec), 0 admin charge, £50 per plan
Hargreaves L: £9.95 - £29.95 a trade, 0.5%+VAT admin (£200+VAT max)

From this looks like Sippdeal comes out tops - will cost me £200 to transfer the plans in and then just trading costs from there on in.

Any others I've missed, or is Sippdeal the best of the bunch for a low-cost execution only Sipp?

I run SIPPs with both Sippdeal and Hargreaves, so why not consider doing this? I don't contribute on an ongoing basis though, prefering ISAs for my monthly contribution.

Put the amount you wish to invest into funds into H-L and the amount you wish to invest into single stocks into Sippdeal.

H-L is better for funds; Sippdeal better for direct investment in stocks.

I did find that H-L were a bit cheeky when I wanted to transfer an old company pension - they wanted me to spend £200+ for mandatory "advice". Sippdeal, did no such thing and got the money

You also then benefit from better guaranteed protection.

EdGasket

If I invest with both H-L and SippDeal as you suggest, wouldn't i end up paying double the fees on any drawdown arrangement? Isn't it better just to have the one pension when it comes to drawdown?

EdInvestor

http://www.citywire.co.uk/personal/-/retirement/news-and-features/content.aspx?ID=369939&re=7717&ea=156896&Page=1

Useful article on how to choose the right SIPP for your needs.

EdGasket

Yes a good article but doesn't cover drawdown though one of the posters did touch on it. I would still like an answer to my question if anyone can i.e.
If I invest with both H-L and SippDeal as you suggest, wouldn't I end up paying double the fees on any drawdown arrangement? Isn't it better just to have the one pension when it comes to drawdown?

EdInvestor

You need to tot up the different fees and charges at alternative providers.Depending on how you want to invest your fund, there could be different answers for different people.

funkyronster

Hi everybody

I have been reading this entire section for hours and hours, and I thank you all for the info, especially edinvestor and dunstonh!! I now feel much better equipped to make the decision I have been thinking about for the last year - to ditch my useless IFA and take my battered SIPP pension that is now worth 30% less than it was 2 years ago away from a well known insurance company, and roll up my sleeves and do it myself.

I have decided that as my pension fund is quite small and that therfore my projected pension is going to be also small, I have very little to lose by adopting a medium risk attitude.

My main question is this - can I trade US quoted shares etc from within a UK SIPP, say with Sippdeal or HL, or should I have an execution only account elswhere?

The reason I ask is that I have been recieving and researching a certain US based advice and tip service who seem to have an excellent track record. In fact I can't google anything bad about them, and what they say often reflects my own attitudes, so I have decided to stick my toe in the water. But it means I have to trade US stuff, hence the question.

I have asked the two SIPP companies mentioned above also, but would appreciate a view from this forum.

Kind regards

Ron

GTG

Hi Ron,

It's a while since I looked at what HL and Sippdeal have to offer but I think you will find that you can deal on any stocks quoted on the major US exchanges through them both. It is certainly allowable as far as the regulations are concerned. Depending upon your trading style you may nneed to place stop loss and limit orders and if I recall correctly these type of orders were not available with the two you suggest. It was a while ago when I last looked though.

You need not confine yourself to HL or Sippdeal, although they are popular and quite cost effective there are many other SIPP administrators out there. Probably best to choose an execution only broker suitable for your needs and then marry them up with a SIPP administrator. Having said that, most if not all SIPP administrators have existing arrangements with brokers. My SIPP administrator is European Pensions Management Ltd who I have been very impressed with, they have arrangements with several brokers. They are particularly attractive to me as it's possible to hold physical gold and silver with Bullion Vault, a gold and silver storage company. My broker with them is Moneycorp markets whom I can also recommend and especially for newbies to investing, I've found them to be a very helpful lot and they have a wide range of investment vehicles should you wish to "up your game" in the future e.g CFDs, futures, forex and forex options and futures. I have traded all the instruments except forex futures and options including US and UK stocks. I have to say that I could find a broker with less expensive dealing commissions but I'm happy with them for the time being and they are not the most expensive on that front. You may like to check them out, you will certainly be able to deal in just about any US share and place stop loss and limit orders as well as stocks on about 21 other worldwide exchanges.

The link below will take you to a page showing the list of brokers etc that EPML have arrangements with, you can click through any ones that look interesting to you. It's probably a good place to start:

https://www.epml.co.uk/trading-links/investment-links/

Although I don't subscribe to any of the pay US investment newsletters/share tipping services I am familiar with what's on offer through being a subscriber to some of the free emails they send out as teasers to the paid services. If you'd care to let me know who they are I may know something about them or alternatively there is a good US review site here

http://www.stockgumshoe.com/reviews/

Finally, there is one broker whom with which I had a dismal experience in the past and that is T D Wasterhouse.

Good luck with your research.

ossian

Hi,

Is there any reason not to transfer my 40k SIPP from iii.co.uk to SippDeal? I am keen to cut the AMC.

I invest in shares including ITs and occasionally ETFs.

Thanks,
Ossian

jg-ms

I've been reviewing this thread as I consider moving some of my pension investments to a SIPP. The question of security has come up a few times and there seems to be some confusion. Here's a good, short article from the pensions advisory service on the different situations and risks. Hope it's useful to others coming this way !

http://www.pensionsadvisoryservice.org.uk/security-of-pensions

From their About section: "The Pensions Advisory Service (TPAS), is an independent voluntary organisation that is grant-aided by the Department for Work and Pensions (DWP) " so hopefully a reliable source of information.

Regards,
JG.