Cheapest Sipp: build yourself a low cost DIY pension article

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  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    edited 12 August 2014 at 5:12PM
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    dunstonh wrote: »
    You may get it wrong, you may get it right

    How do people mitigate against getting this wrong?
    you are not picking one from most but a shortlist you have narrowed down.
    I wonder how much past performance is part of this filtering.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • dunstonh
    dunstonh Posts: 116,577 Forumite
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    How do people mitigate against getting this wrong?

    How do people mitigate when picking trackers and get less? It is just part of the decision process.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • malc_b
    malc_b Posts: 1,083 Forumite
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    BTW a sort of useful link is this http://www.comparefundplatforms.com .

    I say sort of because from my research some of these numbers seem wrong to me (i.e. a II sipp with 2 trades a year comes out cheapest at £204 where as I think the total is £176 (£80 for investing which includes 8 free trades per year, £80+VAT for SIPP). Still it is useful to see who is cheap and who is expensive.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    dunstonh wrote: »
    How do people mitigate when picking trackers and get less?

    Other than tracker error, you don't "get less", you get the return of that index.

    To answer the question for you, there are two approaches I see commonly used to "avoid" big loses due to picking what turns out to be "a dog". 1) hold multiple funds in each sector (welcome to high fee pseudo-tracker land), 2) monitor investments and try to exit a fund when performance loses its shine (welcome to sell low, buy high).

    Even if someone can convince me that they have ninja skills in fund picking, they then need to convince me that their technique can make up for blowing 40% of their expected returns on fees.

    That's a big ask.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • dunstonh
    dunstonh Posts: 116,577 Forumite
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    Other than tracker error, you don't "get less", you get the return of that index.

    Which may be less than around half the funds in the sector in that discrete period.
    That's a big ask.

    its not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    dunstonh wrote: »
    Which may be less than around half the funds in the sector in that discrete period.

    And over much longer periods?
    its not.
    Feel free to provide links to peer-reviewed papers providing rigorous proof. And yes, I do have a multitude of references that strongly suggest the opposite is true.

    And, of course, you can also get much lower fees than 1.9% pa when using "quality" (define how you want) active funds, or at least you can if you go DIY.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • mgdavid
    mgdavid Posts: 6,706 Forumite
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    spam reported
    The questions that get the best answers are the questions that give most detail....
  • malc_b
    malc_b Posts: 1,083 Forumite
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    Just FYI, I find myself leaning towards II as my SIPP provider. As myself and my wife both have sipps then cost comes down to 80 + 2 x 80 +VAT, £272 or £136 each. Web site doesn't look too bad (unlike iWeb which lack a professional look to me). II will transfer free for a year so not a big risk if I don't like them. And we'll get a home for ISAs for free too.
  • wiggers
    wiggers Posts: 83 Forumite
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    Anyone here with SippDealXtra? The charges don't look too bad.
    https://www.sippdealxtra.co.uk/charges.asp
    If your outgoings exceed your income, your upkeep will be your downfall.
    -- Moe Howard of The Three Stooges explaining economics to brother Curley
  • dave9
    dave9 Posts: 10 Forumite
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    Hello, I'm looking for a SIPP platform. My current favourite is Interactive Investor. My ISA is with HL but like many people I don't like their uncapped 0.45% fee for funds (I mostly hold Investment Trust shares to avoid it).

    The MSE article price table (sorry I'm not allowed to post a link) seems to have an error for II, unless I've misunderstood their fees. The II website says for a SIPP I pay £20 per quarter, plus £80+VAT (£96) per annum - effectively £176 pa (if I don't have other linked accounts). This is regardless of what I invest in. But the MSE table says the £20 per quarter is for fund investment only (column 3) and doesn't apply to shares (column 4). Which is correct please?

    The II charges are similar to YouInvest and Alliance Trust, but it lets you escape for free in the first year if you change your mind, seems to have a good website and complete range of investments. The two free trades per quarter is nice too.

    I am at least 10-15 years from drawdown so I haven't looked too closely at those fees - I'm assuming they'll all have changed by then anyway.

    Can anyone tell me how well the II trading platform works, compared to the others I've mentioned?

    Many thanks.
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