Cheapest Sipp: build yourself a low cost DIY pension article

gadgetmind

Aegis wrote: »

Hence why there would almost always also be equities, bonds, gilts, investment trusts, unit trusts, OEICs, ETFs and cash instruments in such a portfolio.

I'd definitely sort that list into income producing versus dividend yielding and then again into those that are/aren't liable for capital gains when deciding which to hold unwrapped.

However, it is interesting that an IFA would construct such a portfolio: the last IFA I spoke to mentioned ETFs and then gave an explanation of what they were that proved he didn't know what they were!

Come on, don't start sounding like all the other IFA bashers on the forum at the moment, you're usually much better than that.

Given my past experiences with IFAs, I actually pull my punches much of the time, but I do accept that the IFAs hereabouts come across as quite a few notches above average.

Smoked_Haddock

I'm looking for a simple low cost platform into which I can make a one-off payment of £25k, before April, to keep the taxman at bay. I want to be able to hold cash, shares, bonds and gilts.

Any current recommendations?

thenudeone

I'm trying to understand the difference between H-L (which is listed by MSE as a "clear winner" for low charges http://www.moneysavingexpert.com/savings/cheap-sipps#best) and the much smaller site I've just come across (but never heard of before) https://www.jpjshare.com

JPJ rebates back some of the AMC on each fund http://www.jpjshare.com/content/Charges.aspx

Am I correct in thinking that for a fund which shows a "Trail rate" of 0.5% on the JPJ site (which most do), half of that will come back to me, effectively reducing the AMC by 0.25%?

With H=L, AMC reductions are not available for SIPPs (although they are for ISAs and non-ISA funds).

The nett initial charge is nil for both H-L and JLJ.

In this case, would be better to cheaper to invest in a SIPP though JLJ than H-L?
If so, why is H-L listed as "the clear winner"? in the MSE guide?

Does anyone have any comments on JLJ, or any better alternatives? I am looking to make contributions of £3-10k this year.

Apologies if this has been covered before.

gadgetmind

thenudeone wrote: »

In this case, would be better to cheaper to invest in a SIPP though JLJ than H-L?
If so, why is H-L listed as "the clear winner"? in the MSE guide?

Because the guide is out of date and also because it depends on exactly what you want to hold. A platform that's good for funds might be less good for shares, ETFs, bonds, etc.

Does anyone have any comments on JLJ, or any better alternatives? I am looking to make contributions of £3-10k this year.

Do you only want to hold funds? Alliance Trust Savings rebates all trail, but they have dealing charges and annual costs.

BestInvest are also pretty good IMO but don't refund any trail unless you have £50k with them, but this can include all accounts in the family.

dunstonh

I'm trying to understand the difference between H-L (which is listed by MSE as a "clear winner" for low charges http://www.moneysavingexpert.com/sav...eap-sipps#best)

HL is only low cost if you pick a small selection of loss leader funds that they offer. If you pick from the majority of their range then, like most SIPPs, they are more expensive.

Am I correct in thinking that for a fund which shows a "Trail rate" of 0.5% on the JPJ site (which most do), half of that will come back to me, effectively reducing the AMC by 0.25%?

Trail is being abolished in less than 10 months. So, why pick a contract that rebates some trail and does nothing for it when very shortly there will be no trail? Or why not pick a contract that rebates all the trail or has no trail at all?

jamesd

It's worth considering when trades happen:

When must you give an instruction by for a fund purchase to happen at the usual noon valuation point? With HL it's 8AM on the day of the trade. I've seen one where the deadline is late afternoon of the previous day, one more day in or out of the market when you're trying to change that.

purch

gadgetmind wrote: »

Does any SIPP allow holding of structured products?

SIPPs are (generally) for investors who have clue.

Yes.

What securities/products are considered structured is open to debate, and will differ between administrators.

They would also expect you to sign a waiver saying that you are an "experienced" investor too, I would assume.

pthompson

dunstonh wrote: »

HL is only low cost if you pick a small selection of loss leader funds that they offer. If you pick from the majority of their range then, like most SIPPs, they are more expensive.

I was happy with the look of HL's "Vantage SIPP" except for that.

dunstonh wrote: »

Trail is being abolished in less than 10 months. So, why pick a contract that rebates some trail and does nothing for it when very shortly there will be no trail? Or why not pick a contract that rebates all the trail or has no trail at all?

That's a good point. Can you suggest a good alternative? I'm ready to transfer-in £250K to a SIPP (from a Friends Life pension pot) but won't be making any further contributions, and only expect to invest in funds.

shakeyourmoney_2

Hello everyone,
This is my 1st post on here because you guys on MSE were recommended to me, anyways here goes - I'm 45 years old in may & decided to look at my pension situation & found out this is whats on the table ATM (transfer values in brackets). Also i'm currently on JSA (unemployed) & not contributing to any of these pensions or have been for many years.

1. Royal London (United Friendly originally) £30,500 (£30500)
2. Prudential £5,000 (£5,000)
3. GRE £7,000 (£7,000)
4. NPI £3,750 (£3,250)
5. State pension 28 qualifying years
What prompted me to look into things was this e-mail that came last week, after a text message landed on my mobile which prompted me to ask for further INFO.

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Dear Steve

Further to our telephone conversation we confirm your interest in obtaining a commission rebate representing up to 10% of the value of your pension investment. This facility will be administered by the specialist pension transfer companies that Access2Cash act for as an introducer. Please note that Access2Cash are a specialist marketing and packaging company who refer and package enquiries in our capacity as an introducer.

Accordingly, we would be pleased if you would complete and sign the enclosed Client Enquiry Form and return it to us by post as we will require the original. The Independent Financial Adviser who will undertake the pension transfer will also require the current transfer value and the necessary discharge forms from your current pension provider/s therefore can you please contact them and obtain these without delay.


To comply with the Data Protection Act and money laundering regulations in force, it is a legal requirement that certain documents are also supplied and it would help matters proceed smoothly if you could organise the following in readiness:

One document from the following:

· Valid passport
· Valid Photo card Driving Licence (full or provisional)

One document from the following:

· Valid Driving Licence (if not used above)
· Current Council Tax letter or statement**
· Current Bank statement, Credit Card statement issued by a regulated financial sector firm in the UK/EU but not printed from the internet*
· Utility bill, but not one printed from the internet*

**Dated within the last 12 months.
*Dated within the last 3 months.

Please note that photocopies of the above documents certified by your financial advisor, accountant, solicitor, bank manager or an appropriately recognised and regulated individual. It is important that the person signing off the document must include their full name, address, occupation and qualifications on the copy they have certified. Alternatively, you may also go to most larger Post Offices who for a small fee will certify your documents.

We will of course confirm receipt and forward your enquiry onto the Independent Financial Adviser who will deal with your enquiry. Please note that Access2Cash are a specialist packaging and marketing company who refer enquiries in our capacity as an introducer.

We look forward to receiving the completed form at your earliest convenience so that we may pass on your enquiry

Kind Regards



Jason Ludgate
Access2cash
16 Landseer Road
Westbourne
Bournemouth
BH4 9EH

m: +44(0)7727 629885
t: +44(0)1202 545275
e: [EMAIL="adrian@access2cash.co.uk"]jason@access2cash.co.uk[/EMAIL]

Disclaimer: Access2Cash are a specialist packaging and marketing company and do not offer any financial advice and only forward enquiries in their capacity as an introducer

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I'm really unsure of what to do & any advice/pointers would be appreciated

manty thanks

jem16

shakeyourmoney wrote: »

I'm really unsure of what to do & any advice/pointers would be appreciated

manty thanks

First of all avoid any company that contacted you through a spam text message.

Secondly start a new thread rather than reply to a thread that has nothing much to do with what you want. You might get some more useful help that way. If it's an IFA to review the pensions then go to https://www.unbiased.co.uk and search for a local IFA.