Sippdeal reduces charges

cheerfulcat

dh, all of the risks you have listed seem to me advisor-led! The point of a SIPP is that it is self-invested and thus ideally advisor-free. And I question whether an inexperienced investor ( the sort who would leave a pension fund invested in cash for 30 years ) would choose to use a SIPP without prompting. I quite agree that novice investors and those who don't wish to get their hands dirty may not be best served by SIPPs, though.

mystic_trev

I've been using SIPPDEAL for six years. Always found their service very good, and my Pensions doing very nicely thank you!

dunstonh

dh, all of the risks you have listed seem to me advisor-led!

Not really.

Eager enthusiasts can lose interest in investing and end up with new money going into cash funds.

Remember the poster a few months back who put everything into the SIPP with HL and chose HL's balanced managed fund. A fund that was more expensive than the Scottish Equitable fund he had been in before and HLs fund had worse past performance.

They are all risks which apply to advisers and individuals going DIY. In effect, DIY is being your own adviser so you need to know the risks.

wotsthat

Remember the poster a few months back who put everything into the SIPP with HL and chose HL's balanced managed fund. A fund that was more expensive than the Scottish Equitable fund he had been in before and HLs fund had worse past performance.

So what? I don't see the point you are trying to make. If someone can't be bothered to do their own research and won't pay for advice they are liable to make many mistakes (financial or otherwise).This reflects badly on the poster you refer to - people were making financial mistakes before SIPP's came along.

What's the answer? IQ tests before people are allowed to invest? Compulsory with profits funds with 3% bonuses?

This thread was about a reduction in charges which I'm sure most people welcome.

dunstonh

So what? I don't see the point you are trying to make. If someone can't be bothered to do their own research and won't pay for advice they are liable to make many mistakes (financial or otherwise).This reflects badly on the poster you refer to - people were making financial mistakes before SIPP's came along.

Indeed so what? That person is entitled to make a balls up if they want but isnt the idea of forums like this to help people not to make a balls up?

wotsthat

Quote:
So what? I don't see the point you are trying to make. If someone can't be bothered to do their own research and won't pay for advice they are liable to make many mistakes (financial or otherwise).This reflects badly on the poster you refer to - people were making financial mistakes before SIPP's came along.

Indeed so what? That person is entitled to make a balls up if they want but isnt the idea of forums like this to help people not to make a balls up?

I agree but the difficulty is how to prevent such balls up.

Your poster probably read somewhere about SIPP's being 'low cost' and thought they were fashionable. Newspaper columists seem to be dreadfully misinformed about how SIPP's work, there's a tone of general mistrust as far as investment advice is concerned and of traditional pension companies in general.

The real danger, as you point out, is that someone stays in cash but it seems (very) unlikely that someone would make an active decision to start contributing to a SIPP and then suddenly become inactive. This is different to your poster who has made a mistake but at least they were invested in a 'proper' fund albeit their retirement income will be reduced.

The answer isn't to ban SIPP's and, not forgetting that this thread was originally about a SIPP company reducing charges, I don't think it's to point out the dangers of SIPP's in every thread that mentions them.

Personally I think using a SIPP to invest in funds makes no sense at all and will damage your wealth - however, for those who wish to invest directly in shares they might be just the ticket.