SIPPs - is there anything really wrong with HL?

CannySaver_2

gadgetmind wrote: »

I am prepared to pay for *very* good financial advice, but it would have to be *very* good and fully-costed to show the advantage of this approach versus the DIY approach.

If there is no financial advantage (to me!) then no deal and it's time to vote with my feet.

Fair enough, a financial adviser has to add value otherwise why are you paying them.

Agree the scope of the work, agree the fee and when it is payable, is my preferred route. Much the same as the way one would work with a Solicitor or Accountant.

The Canny Saver

gadgetmind

CannySaver wrote: »

Agree the scope of the work, agree the fee and when it is payable, is my preferred route. Much the same as the way one would work with a Solicitor or Accountant.

Crikey, you mean you don't just pay your accountant 4% of your income plus a 0.5% trail commission on your bank interest like I do?

jamesd

westy22 wrote: »

And that £250 would buy you about 30 minutes of annual advice from an average IFA (probably only a short chat on the phone)? Of course, if you had also paid an initial advice fee of about £2,000 to the IFA to set up the pension in the first place it would take about 7-8 years to amortise that, at £250 per annum.

No reason to pay £2,000 for an initial advice fee or anything ongoing unless you want advice, though. Just buy execution only for a one off fee. No advice from HL and if that's OK, no reason to pay an IFA for it either.

westy22 wrote: »

I am very happy with HL and with over £150,000 in my SIPP, all invested in a range of HSBC trackers at 0.30 TER average and no platform loading, I pay about £0 to HL per annum!

That's one of the use cases where HL can be inexpensive for larger amounts. You can probably get trackers elsewhere at 0.1-0.2% but the saving of 0.1% annual charge is £300 a year so you might consider it not worth doing. Say the Blackrock institutional trackers that are available on some platforms.

On the other hand, someone using managed funds that typically pay say 0-2-0.3% platform commission and 0.5% IFA commission, combined into one at HL, could save the 0.5% IFA commission by going elsewhere. On your £150,000 that 0.5% is £750 a year. That's ample to cover the cost of getting an alternative set up via an IFA. Say Skandia with £68.50 annual charge, annual saving on HL £681.50. Have to pay the one-off IFA fee as well.

Or buying Skandia via ClubFinance with them keeping 0.125% instead of 0.5% would cut it from £750 to £187.50 plus the £68.50 Skandia annual charge = £256, annual saving on HL of £494.

But not a lot of point in anyone who doesn't have a strict time limit switching now with the FSA's platform review paper and potential significant offering changes coming soon.

competitionscafe

Weird that this thread is reproduced here: http://moneysaving.talkwhat.com/view/EmNEmNBxLsGlqYezRyqYe.html

Seems to be some kind of content stealing for a site driven by adsense ads??

From MSE terms and conditions:
7. Your content

7.1 Just so that you know, you own any copyright in the text that you post to our forums. However, when you post text, you expressly grant us a perpetual, unlimited free license to republish that text on our site and to redistribute/make available and/or sell that text in print or electronic form anywhere in the world as part of an edited compilation or otherwise.

However I doubt the site linked to above falls into any of those categories - looks more like they nicked it!?

competitionscafe

gadgetmind wrote: »

If I wanted a SIPP, I'd look elsewhere, but recent changes mean that holding ITs and shares in an ISA is OK with HL as the 0.5% has a £45 cap. Dealing costs are also OK as you can pay £12.50 a quarter and then get all trades at £9.95. I do nearly all of my large investing in April-June, so I just register as an active trader for a single quarter.

You can get a no fee ISA from xo for shares and ITs or I think idealing is £20 per year if you want more bells and whistles. xo dealing fee is lower than HL too at £5.95 per deal while idealing is £9.90

AndyJ52

Does anyone know anything about James Hay as a SIPP provider?

atush

If they do, you won't find out on an HL thread.

try starting a new one with the name in the title.