Cheapest Sipp: build yourself a low cost DIY pension article

Cottage_Economy

malc_b wrote: »

Fidelity is a notable exception which charges 0 for all "extras" but does have a 0.35% rate. Still better than HL which has 0.45% and also charges too.

That's what I thought, but then I found something in its SIPP key facts document that stopped me. The additional small pension hubby and I are considering building for drawdown will only be around £50K, so Fidelity are out for me if I did go the SIPP route because of this:


In order to be able to take pension drawdown through the Fidelity SIPP
where benefits haven’t been taken before, you must be able to fulfil the
following criteria:

• You must be aged 55 or over
• Your pension account value must be at least £75,000

Cottage_Economy

Spotted in the telegraph from a few days ago - an article on low cost SIPPs with a table of costs by pot size.

The cheapest SIPP fund shops

Not sure why someone chose a tongue twister of a title like that.

After the bit about SIPPs is a similar table for ISAs.

xmfclick

Just got off the phone to Fidelity and thought I'd post this for info:

The table implies Fidelity let you hold shares in their SIPP. However, according to the guy I just spoke to, this isn't exactly the case. In their standard SIPP they only offer funds (not surprising, as they are basically a fund manager/supermarket). They do have another SIPP which will let you hold shares, but Fidelity don't have a share-trading platform so if you want to trade shares it has to be done via an associated broker, and there's a £500-odd fee for setting up the SIPP, plus other fees (but I'd stopped listening by that stage). So, maybe MSE could amend the table to clarify this point?

BTW, I also spoke to Bestinvest, whose nice lady confirmed that the data in the table relating to them is correct.

gkerr4

dave9 wrote: »

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.

the £80 quarterly charge is a bit misleading in the table - it applies across all dealing accounts with III and provides £20 trading credit which you either 'use or lose'

i have an S&S ISA and a regular trading account with III - i get charged ONE SINGLE £20 / quarter charge which gives me £20 commission to pay for dealing costs - i use this easily as i am regular trader .

if i open a SIPP with them - my understanding is that i will STILL only see a single £20 / quarter charge (plus the £80+VAT SIPP annual fee, of course) and that the £20 / quarter credit will apply then across all three accounts (trading, ISA & SIPP) - does that make sense?

its £10 per trade in III - be it ETFs or shares

So my first two trades in each quarter are 'free' covered by the quarterly charge

trade No.3 onwards costs £10 in any of my 3 accounts.

so i guess the total charges are either 'better' or 'worse' depending on if you have other accounts with III and in any case if you intend to make 2 or more trades per quarter - as if you are, then the quarterly charge can be ignored as you'd have spent it anyway buying something.

malc_b

I believe you're right, however in II you can link family accounts too. So for say man and wife you would pay £80 pa for the 2 of you, then £80+VAT for each sipp, £272 all told inc VAT. But the £80 trading credit applies to one person, man or wife, depend who linked to who (so I was told).

gkerr4

malc_b wrote: »

I believe you're right, however in II you can link family accounts too. So for say man and wife you would pay £80 pa for the 2 of you, then £80+VAT for each sipp, £272 all told inc VAT. But the £80 trading credit applies to one person, man or wife, depend who linked to who (so I was told).

ah thats interesting - and very useful. I noted that you can 'view' family accounts on the III webpage - it makes some sense, particularly with ISA limits being 'personal' - not that anyone would use their partners name and then manage it themselves of course - that would be ridiculous!

simonspeakeasy

I'm looking to move funds from an old managed Group Personal Pension Plan (which has no particular benefits and whose returns and fee structure are opaque) to a tracker fund in a SIPP.
I'm doing this as I have come to believe in the 'monkey with a pin' philosophy and would like to minimise management fees.
My plan is to move the money to a low cost SIPP; I just can't work out which is the cheapest provider in terms of minimising fees & would welcome suggestions.
I already have an H&L SIPP with 100% of the assets in an HSBC EFT FTSE 100 Tracker, but my feeling is that there are better (cheaper) providers available.
I only plan on making occasional future contributions when & if I have available £££.
Just to be clear, I don't need advice (from the provider I mean!) and will be transferring a lump sum into one or more tracker fund(s) and don't plan to do much dealing thereafter.
Looking forward to a flood of helpful comments

mgdavid

simonspeakeasy wrote: »

I'm looking to move funds from an old managed Group Personal Pension Plan (which has no particular benefits and whose returns and fee structure are opaque) to a tracker fund in a SIPP.
I'm doing this as I have come to believe in the 'monkey with a pin' philosophy and would like to minimise management fees.
My plan is to move the money to a low cost SIPP; I just can't work out which is the cheapest provider in terms of minimising fees & would welcome suggestions.
I already have an H&L SIPP with 100% of the assets in an HSBC EFT FTSE 100 Tracker, but my feeling is that there are better (cheaper) providers available.
I only plan on making occasional future contributions when & if I have available £££.
Just to be clear, I don't need advice (from the provider I mean!) and will be transferring a lump sum into one or more tracker fund(s) and don't plan to do much dealing thereafter.
Looking forward to a flood of helpful comments

Have you read any of this thread?
There are two highly pertinent links in the latest couple of pages...

dunstonh

I already have an H&L SIPP with 100% of the assets in an HSBC EFT FTSE 100 Tracker, but my feeling is that there are better (cheaper) providers available.

...as well as a lot of better ways of investing than a FTSE100 tracker

Looks like you are putting charges of 0.x% a year ahead of proper investing. It should be where and how to invest first. Charges come later in the decision process.

simonspeakeasy

mgdavid wrote: »

Have you read any of this thread?
There are two highly pertinent links in the latest couple of pages...

Absolutely - I spent an hour or so last night reviewing comments & reading the Telegraph articles.