Imterest on cash within a mainly shares SIPP

kidmugsy

fiesta04 wrote: »

You will need to pay an IFA to sign off a Final Salary Pension for a transfer to SIPP. ...

Saying that I did the same earlier this year and bought an annuity with it and I am only 55. Many people will say I was unwise to do it, but I considered it to be the correct move for me.

F4

Is there anything about your position to explain this decision that you feel you can tell the rest of us, and might be of general interest?

fiesta04

kidmugsy wrote: »

Is there anything about your position to explain this decision that you feel you can tell the rest of us, and might be of general interest?

Yes I will share my reasoning.

I was offered an enhancement of £23,000 making a Transfer Value of £100,000.

I consulted IFAs on the matter and to my amazement they agreed with me to transfer. I also spoke to 3 friends who were also offered the same deal, also with similar pots. They were advised, by same original IFA, to remain in FS Pension. I then consulted other IFAs.

One reason for opting out of FSP was I did not need the Spouse Pension as default. Secondly I had no death payment due to leave to my kids.

My older family members, Parents and their Siblings along with my Brother and several cousins have All died before age 65.
All with different causes.

I got an Enhanced Annuity with 10 year guarantee. So at least some money for kids along with my house, investments and savings and life insurance.

Hopefully they don't get it too soon:rotfl::rotfl:

Well that's my reasoning behind it all.

F4

DRSMITH

gadgetmind wrote: »

I think that James Hay and Standard Life let you hold cash with external banks, but you need a bank that provides accounts for pension trustees.

However, note that trying to time the market is notoriously difficult and most people lose out by trying it.

James Hay have SIPP set up charge of £495 plus retrospective 'ongoing' charge, so that's near £1k for the first year. Gulp. I'll leave them alone.

Standard life use levels from 1 to 3 which are portrayed as in order of simplicity. The synical would say in order of commission they get.To include equities it has to be level 3 for which you pay £339 one-off charge plus (for fund £100k-250k) £291 p.a. if I've read it correct.

So both above are too costly for execution only service, and if they do offer linked interest I doubt ir will offset the bulk of their fees.

In Summary:

I expect an execution only service to be low costing.
Receiving a fair interest rate (directly or indirectly) is reasonable.

I am therefore still looking for a SIPP provider that offers such a service.
Are there such entities out there?

gadgetmind

DRSMITH wrote: »

I am therefore still looking for a SIPP provider that offers such a service.
Are there such entities out there?

If you don't get an answer here, then you could try this board.

http://boards.fool.co.uk/pensions-practical-problems-50065.aspx?sort=collapsed

The MF forum software is rubbish but it's worth fighting it because of the breadth and depth of knowledge you'll find there.

DRSMITH

gadgetmind wrote: »

If you don't get an answer here, then you could try this board.
...
The MF forum software is rubbish but it's worth fighting it because of the breadth and depth of knowledge you'll find there.

Thank-you gadgetmind.
I did loads of googling for pension or sipp forums and it took a while to find this one - haven't seen the other, so I'll check it out.

kidmugsy

fiesta04 wrote: »

Yes I will share my reasoning.

I was offered an enhancement of £23,000 making a Transfer Value of £100,000.

...

One reason for opting out of FSP was I did not need the Spouse Pension as default. Secondly I had no death payment due to leave to my kids.

My older family members, Parents and their Siblings along with my Brother and several cousins have All died before age 65.
All with different causes.

I got an Enhanced Annuity...

F4

Thank you for that: I can't fault your reasoning.

moneyfoolish

gadgetmind wrote: »

HL are pretty good in this regard but they do have that 0.5% (capped at £200 pa) for holding anything other than funds in a SIPP.

They are advertising no charge at all for setting up a SIPP holding just cash with a 2% interest rate. I telephoned them yesterday and they told me that is correct. I asked them if they were sure and they confirmed. Seems very strange to me that they could have no charge at all!

DRSMITH

russell_anderson wrote: »

They are advertising no charge at all for setting up a SIPP holding just cash with a 2% interest rate. I telephoned them yesterday and they told me that is correct. I asked them if they were sure and they confirmed. Seems very strange to me that they could have no charge at all!

Sounds like good news for HL customers.
I've now signed up with SIPPdeal, so interesting to note, but can't personally take up unless SIPPdeal have also introduced a like facility.

moneyfoolish

DRSMITH wrote: »

Sounds like good news for HL customers.
I've now signed up with SIPPdeal, so interesting to note, but can't personally take up unless SIPPdeal have also introduced a like facility.

I've just checked again and the Fixed Rate Offers started on December 20th and are now closed! They were 1.5% for 3 months, 1.75% for 6 months and 2% for 12 months. After that time, they revert to their variable rate which is a pittance. They are probably going to come up with another fixed rate offer as they asked interested people to register. However, I don't know if you can move from one fixed rate offer to the next one.

atush

DRSMITH wrote: »

I beg to differ. If advice is for their needs, they can pay.
They are free to insist on it and I am free to decline to spend £500+vat for a service for which I get no return. If I did pay to cover HL's back, then that proves I'm not fit to make financial decisions....IMO. :-)

Anyone transferring a Final Salary/Defined benefit pension to a Sipp seems to me to be unfit to make financial decisions.