SIPPS - own choice or IFA ?

EdInvestor

At Sippdeal there is no annual charge either.After set up, you only pay when your trade.

If you're just going to invest your money in shares or funds and leave it there to grow , you can do this yourself quite easily.Online SIPPs are very easy to operate.If you know what you want to invest in, no need for an IFA.

Note you can't put protected rights money into a SIPP.

Paul_Varjak

Dunstonh, I think I am right on this:

Hargreaves Landsdown do not make any charges for most of their funds when held in a SIPP wrapper. However a few funds available through HL attract a management charge whether they are held in a SIPP wrapper or not. So you just have to pay HL on those funds (whether is a SIPP wrapper or not). I know M&S Income Fund is one of them.

Additionally, funds held outside a SIPP often qualify for a rebate of part of the annual commission. But no funds held inside a SIPP qualify for any such rebate. HL tell me this is because they are not allowed to make any rebate within a SIPP.

Those funds which do qualify for a rebate outside a SIPP still qualify for the same rebate when held inside an ISA.

EdInvestor

One problem with the HL SIPP is that it doesn't offer income drawdown at retirement.IMHO the ability to transfer seamlessly from making contributions to getting income within a SIPP without liquidating the fund is one of the main advantages, along with the very low costs in the cheap online ones (which doesn't include Standard Life's SIPP, far too expensive for a small fund such as the OP's).

dunstonh

Those that are drawn towards SIPPS are quite likely to be drawn towards income drawdown as well. Good point Editor.

Pal

Drawdown is one of the few examples where I can see that SIPPS make any sense, which is why I suggest that very few people actually need them. Most people's funds are simply not large enough. That said, if your fund is large enough many ordinary personal pensions will offer drawdown.

Correct me if I am wrong, but investing in pooled funds through SIPPS involves paying the SIPP provider a trading fee, and then paying the normal fund management charges. So why not just use a stakeholder and pay only the fund management charge? Surely it is better to invest in funds through a suitably cheap stakeholder or normal personal pension policy, then transfer to a SIPP or personal pension when close to retirement in order to use income drawdown? If you are investing in funds through a SIPP then surely you are simply paying extra for the trading and administration system that you are not using very often?

deemy2004

Editor wrote:

At Sippdeal there is no annual charge either.After set up, you only pay when your trade.

If you're just going to invest your money in shares or funds and leave it there to grow , you can do this yourself quite easily.Online SIPPs are very easy to operate.If you know what you want to invest in, no need for an IFA.

Note you can't put protected rights money into a SIPP.

Slight correction.
There IS an annual charge of about £17, its called Statutory Money Purchase Illustration, still I can live with £17

dwd_2

If you dont require the property purchase element of the SIPP why not just use a PP with someone such as Scottish Widows, ( 80 odd funds just pay AMC) Skandia 300+. Which is totally feasable to go direct for you just might need to get advice on the occupational transfer but might save you a few £s in charges over a more specialist SIPP provider.

jawa1

Pal wrote:

So why not just use a stakeholder and pay only the fund management charge?

Stakholder restiticted to internal funds and maybe a couple of external funds if you are lucky.

Sipp 800+ funds to choose from.


Hargreaves Landsdown do not make any charges either startup or ongoing for nearly of their funds when held in a SIPP wrapper.

jawa1

dwd wrote:

If you dont require the property purchase element of the SIPP why not just use a PP with someone such as Scottish Widows, ( 80 odd funds just pay AMC) Skandia 300+. Which is totally feasable to go direct for you just might need to get advice on the occupational transfer but might save you a few £s in charges over a more specialist SIPP provider.

To get the 80 funds via Scottish Widows you have to go through a IFA and it's only 80 funds.

Skandia 300+ funds.
I cannot make my mind up between Skandia and SIPP.
The thing what really annoys me about Skandia is they don't give you the AMC / TER in the fund ranges brochure.

EdInvestor

Low cost online Sipp almost certain to be a much better deal than Skandia on charges for the same fund choice.

Stakeholders unfortunately usually don't offer much in the way of the better performing funds and their charges are now going up to 1.5% pa.

With a lowcost SIPP you pay higher setup fees at the start and then a fee to buy the funds/shares.But if you just hold them, without trading, after that your annual fee is nil ( other than the compulsory -and silly - Govt illustration), so you soon recoup the startup costs.

So over time it's a much better deal.

Oh and the service is so much better you will never ever want to go anywhere near a life insurance company again.