Cheapest Sipp: build yourself a low cost DIY pension article

Lowtrawler

Michael_Nottingham said:

I am 3.5 months into an ISA transfer from Fidelity to iWeb of Shares / UT in specie. As you say all done by paper.

Everytime I want an update I have to phone, wait for 20-30 minutes to speak to someone who sounds completely bored and doesn't seem to care that it's taking so long. Last time they said they were waiting to hear back from Fidelity (for a couple of months). I told them Fidelity were waiting to hear from them. Turns out iWeb are meant to chase if they haven't heard after x weeks but hadn't.

Still haven't got a ETA when it will be complete. 

My wife's ISA move from Fidelity to II happened within a couple of weeks with online updates at II on status.

So clearly an iWeb issue. Time for another complaint I think

Why can't the FCA get a grip on Platform transfers. If your energy switch is delayed you get automatic compensation.

Yes, I initiated 2 transfers to II. The iWeb transfer is still in motion. The other completed 2 weeks ago even though I commenced that transfer later.  II give regular updates and they turn their part of the paperwork around within 48 hours and then spend weeks chasing iWeb. I had to nudge iWeb at one point because they hadn't responded to multiple requests from II.

Personally, I think it's a sign iWeb haven't invested in new infrastructure for a decade or more and so have fallen so far behind the times that they struggle with basic admin. In my view, iWeb only have 1 thing going for them - price.

Lowtrawler

wiggers said:

Lowtrawler said:

I'm transferring to II because I already have a SIPP with them and so there are no extra fees for me to hold my ISA there. It means I can manage everything through 1 portal rather than 2. I also find the II customer support to be excellent.

Funnily enough I did the opposite. I had both an ISA and a SIPP with II, but wanted to spread the risk a bit. I transferred the ISA to iWeb, but that turned into a fiasco as they failed repeatedly to carry out the in-specie transfers of overseas stocks. It eventually went through, but the Cost Price in the Valuation was blank or some random number. Very difficult to keep track of gains and losses. Eventually they agreed to enter them manually after I sent them the appropriate cost prices from my records.

I find II's customer support to be rather poor and the platform very difficult to use. The multi-currency side is a nightmare and some funds you buy in GBP but the divs are paid in USD. So you have to convert the currency to reinvest, but they keep the 1.5% fee carefully hidden. So you end up with less than you thought. Trying to do a simple UFPLS is a nightmare too, they treat you as if you're accessing your pension pot for the first time on every occasion, with reams of forms to fill in. They keep promising to simplify the process but I've given up hope of that ever happening. So I raise a formal complaint every year!

I agree with you on II's overseas trading. It's not something I do very often but the currency conversions are a nightmare to keep track on. However, I have always had good customer service from II. I'm not at the point of drawing down any pension and so look forward to the UFPLS challenges!

VikingFjordIFA

Lowtrawler said:

wiggers said:

Lowtrawler said:

I'm transferring to II because I already have a SIPP with them and so there are no extra fees for me to hold my ISA there. It means I can manage everything through 1 portal rather than 2. I also find the II customer support to be excellent.

Funnily enough I did the opposite. I had both an ISA and a SIPP with II, but wanted to spread the risk a bit. I transferred the ISA to iWeb, but that turned into a fiasco as they failed repeatedly to carry out the in-specie transfers of overseas stocks. It eventually went through, but the Cost Price in the Valuation was blank or some random number. Very difficult to keep track of gains and losses. Eventually they agreed to enter them manually after I sent them the appropriate cost prices from my records.

I find II's customer support to be rather poor and the platform very difficult to use. The multi-currency side is a nightmare and some funds you buy in GBP but the divs are paid in USD. So you have to convert the currency to reinvest, but they keep the 1.5% fee carefully hidden. So you end up with less than you thought. Trying to do a simple UFPLS is a nightmare too, they treat you as if you're accessing your pension pot for the first time on every occasion, with reams of forms to fill in. They keep promising to simplify the process but I've given up hope of that ever happening. So I raise a formal complaint every year!

I agree with you on II's overseas trading. It's not something I do very often but the currency conversions are a nightmare to keep track on. However, I have always had good customer service from II. I'm not at the point of drawing down any pension and so look forward to the UFPLS challenges!

II is a good and solid SIPP platform, and being part of abrdn is reassuring. The fee structure is reasonable (£12.99/month for SIPP). However, with low fees come relatively bare-bones service levels. I have in a previous post talked about the pretty basic analysis provided my their X-Ray. Also, the site is a mess when it comes to messages, documents, and other types of communication with the investor/account holder. 

I see a preference for using an IFA to do a portfolio review and recommendation, and for the client to make their own investments in a DIY platform like II to save costs. This requires me to cover the costs with hourly or fixed charges for the review, but provides overall good benefits to a savvy/interested client.

Most clients will still want ongoing management by their advisor though.

VikingFjordIFA

wiggers said:

I had both an ISA and a SIPP with II, but wanted to spread the risk a bit. 

Out of interest, what risk are you thinking of? As long as you own funds/shares/ETFs/etc the risk is the same regardless of the platform. Cash is protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). 

Exodi

VikingFjordIFA said:

wiggers said:

I had both an ISA and a SIPP with II, but wanted to spread the risk a bit. 

Out of interest, what risk are you thinking of? As long as you own funds/shares/ETFs/etc the risk is the same regardless of the platform. Cash is protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). 

FYI, these posts are over 2 years old.

VikingFjordIFA

True, but I am still interested in knowing what risks the poster perceives they are exposed to.

dunstonh

Stanleyis8 said:

wotsthat said:

The most cost effective way to run a SIPP is to hold shares directly and make sure that the SIPP provider doesn't charge an annual fee. i.e. choose sippdeal or alliance trust.

I can't any sense in investing in funds within SIPP's - there's still a fund providers annual fee to pay.

I've been blindly putting money into a pension for years and only just realised that I would have been better off using ISA's which would have given me more control over capital as well.

I'm now using ISA's for retirement saving and a SIPP (invested in shares) as a home for my old pension fund. I'd only consider contributing more cash to my SIPP if I'd used all my ISA allowance.

wotsthat said:

The most cost effective way to run a SIPP is to hold shares directly and make sure that the SIPP provider doesn't charge an annual fee. i.e. choose sippdeal or alliance trust.

I can't any sense in investing in funds within SIPP's - there's still a fund providers annual fee to pay.

I've been blindly putting money into a pension for years and only just realised that I would have been better off using ISA's which would have given me more control over capital as well.

7

EdInvestor said:

Try A.J.Bell (owners of Sippdeal).

Any reason you have bumped a 2006 thread (quotes above are from 9th Dec 2006)?  They are out of date and you haven't added anything except copy and paste.  As such, I have pressed the spam button.