H & l sipp

dunstonh

HL are very popular and also Sippdeal - the main factor over the long term is to avoid high charges so Vanguard trackers are popular.

For reference, I was using a Vanguard fund in my cost comparison to show it was more expensive than a typical stakeholder (and possibly some personal pensions).

MoneyBob

Thanks for all the helpful replies. Likely will be regularly adding to it from the start of the new tax year after April 6th anyway, so that 0.48% will approx half by the end of next tax year.

I can't find any mention of this 0.25% setup fee for the Vantage SIPP you mention Mr IFA. Has that changed since you last looked, or am I missing something?

http://www.hl.co.uk/pensions/sipp

jem16

MoneyBob wrote: »

I can't find any mention of this 0.25% setup fee for the Vantage SIPP you mention Mr IFA. Has that changed since you last looked, or am I missing something?

It's not a SIPP setup fee that dunston was talking about. It's the Vanguard initial fee for the actual fund.

As an example;

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-40-equity-accumulation

BLB53

For reference, I was using a Vanguard fund in my cost comparison to show it was more expensive than a typical stakeholder

The costs will vary according to provider - with Sippdeal there is no 0.25% dilution levy/initial charge with Vanguard LifeStrategy funds but there is the £12.50 quarterly custody charge which equates to the £2 monthly fee with HL so I think over the longer term Sippdeal would work out cheaper.

Which stakeholder pension would be cheaper?

grey_gym_sock

BLB53 wrote: »

The costs will vary according to provider - with Sippdeal there is no 0.25% dilution levy/initial charge with Vanguard LifeStrategy funds

i think the dilution levy is set by vanguard, so it applies whoever you buy vanguard lifestrategy through. perhaps sippdeal just don't display it as prominently as HL do?

C_Mababejive

I keep thinking about SIPPs but then i think,there are too many restrictions and also dont i have to pay tax when i draw money from it? My current thinking is just to invest in ISA'able products.

grey_gym_sock

you can take 25% out as a tax-free lump sum, then the rest is taxable income. with restrictions on how much you can take out when.

it depends a lot on what rate of tax relief you'd get on contributions, and what rate you might be paying on the taxable pension at the other end. it looks good if you get relief at 40% on contributions now but might only be paying 20% on the pension. or if you get relief at 20% now but won't pay any tax on the pension (which may be true for the first bit of pension income - since the state pension doesn't use up the full personal allowance - obviously depending on what other income you'll have).

BLB53

i think the dilution levy is set by vanguard, so it applies whoever you buy vanguard lifestrategy through. perhaps sippdeal just don't display it as prominently as HL do?

Here's a link to Sippdeal charges page
http://www.sippdeal.co.uk/Sipp/ChargesandRates/

The funds list clearly shows there is no initial charge - if there was, they would show it surely?

grey_gym_sock

well, it's technically a dilution levy, not an initial charge ... so if you have a column for initial charge, but no column for dilution levy, should you put the dilution levy in the initial charge column? ... i dunno, but apparently HL reckon yes and sippdeal reckon no.

https://www.vanguard.co.uk/uk/mvc/investments/mutualfunds is vanguard's page, including extra purchase and redemption costs for all their funds - between 0.22% and 0.27% on purchase for lifestrategy (depending on which lifestrategy fund you pick).

actually, sippdeal (or morningstar, providing their funds list) are showing initial charges for some vanguard (ireland) funds, but not for any vanguard (UK) funds - which seems inconsistent.

dtaylor84

BLB53 wrote: »

Here's a link to Sippdeal charges page
http://www.sippdeal.co.uk/Sipp/ChargesandRates/

The funds list clearly shows there is no initial charge - if there was, they would show it surely?

The dilution levy is not an initial charge, but it certainly does apply when LifeStrategy funds are bought on sippdeal (I've just bought some!).

The important difference, as I see it, is that an initial charge is paid to the fund manager, whereas the dilution levy is paid to the fund.