Cheapest Sipp: build yourself a low cost DIY pension article

dunstonh

but would it be worth considering a move to a SIPP for my old/frozen plan?

You would need to get an IFA to sign off on it as no SIPP provider will allow you to do it yourself. Statistically, its unlikely that an IFA would sign off on it as its probably a bad move. You would need justification for doing it.

shopping_queen_2

I'm looking to consolidate various pension arrangements into a SIPP on the advice of an IFA - he's recommended James Hay. Does anyone have any experience of this Company? There's seemingly no set-up fee on their eSIPP - overall though, I'm wondering if they're dearer than HL?
Thanks!

dunstonh

James Hay are one of the big guns when it comes to SIPPs. Not the cheapest as that isnt their focus. Quality is. You also tend to find James Hay reputation is that they get involved in more of the complex SIPP investments that many SIPP providers wouldnt want to deal with.

I'm wondering if they're dearer than HL?

Virtually the same. Mainly the cost of advice should be the difference. Depending on the assets you invest within the pension, it could be cheaper or it could be more expensive.

EdInvestor

If you don't want/need advice in the long term (ie you're just using the IFA to do the admin sorting the pensions), don't go with James Hay, choose an execution only provider and pay the IFA a fee..

dunstonh

EdInvestor wrote: »

If you don't want/need advice in the long term (ie you're just using the IFA to do the admin sorting the pensions), don't go with James Hay, choose an execution only provider and pay the IFA a fee..

What is that going to achieve?

Lets assume you give your usual HL recommendation, that would mean HL get paid for doing nothing instead of the IFA who will be servicing. No money will be saved and you just end up potentially burning your bridges with that IFA.

EdInvestor

The point would be that he wouldn't be servicing.This is the problem with using an IFA when you don't want his advice long term.He will put you into a product (as here)that is then difficult to manage yourself and usually more expensive.

Better to be IFA free from the start, by paying a fee if you just need the admin work done and choosing an execution only provider, not an advice based one..

MikeJones_2

There's an interesting article about the compensation available to Sipp holders in the press today. See:

- Regulators must act now to safeguard Sipp savers from a dangerous loophole

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

The point would be that he wouldn't be servicing.This is the problem with using an IFA when you don't want his advice long term.He will put you into a product (as here)that is then difficult to manage yourself and usually more expensive.

How do you know that servicing is not required? Even if it isnt required on an ongoing basis, why move it to another SIPP provider who gets paid the money for doing nothing?

If ongoing servicing isnt required then pay on fee, do it on execution only and get it cheaper than going to a direct provider.

Better to be IFA free from the start, by paying a fee if you just need the admin work done and choosing an execution only provider, not an advice based one..

And instead pay exactly the same amount in charges to a company that does nothing for you.

I know you dont like people using IFAs but when the charges are the same then why be so negative?

stphnstevey

Would the H+L SIPP except commercial property in anyway?
(Not an essential, but possibly something I would like to consider in the future)

Been deliberating over Skandia or H+L SIPP
- after searching for funds I wanted to invest in (I am really only intersted in funds for now), H+L seemed to have maybe a couple that Skandia didn't.
- I know the H+L platform, where as I wouldn't know how to setup a Skandia pension thhrough a IFA and the increased complexity of setup could lead to error and more commision

Amanita_2

What worries me about the DIY option is that it is all very well whilst the investor is keen and enthusiastic and will spend the time on research etc.

Life happens though and I see far too many personal pensions and ISAs which were initially set up with an intelligent fund choice but have been neglected since with expensive consequences.