H & l sipp

dunstonh

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

Its a dilution levy. Some funds have it in the small print. Others are more upfront. Vanguard are more up front with it and show it as an initial charge on their own documentation and that which they provide to Financial Express (which is Trustnet).

Troy Trojan is another with a dilution levy but they dont declare it as an initial charge.

Which stakeholder pension would be cheaper?

Pretty much all the main ones. Aviva, Scot Wid, Aegon can all come in cheaper than HL on that amount. With the OP planning future contributions, some of the PPPs will come in cheaper than the SHPs. Aviva you can get down to 0.4%.

MoneyBob

Pretty much all the main ones. Aviva, Scot Wid, Aegon can all come in cheaper than HL on that amount. With the OP planning future contributions, some of the PPPs will come in cheaper than the SHPs. Aviva you can get down to 0.4%.

Which Aviva product can you get down to 0.4%? Is that a PPP? I can't find much out from their website. Will call them later.

Can an employer (my LTD co) make employer contributions to a PPP though?

jem16

MoneyBob wrote: »

Which Aviva product can you get down to 0.4%? Is that a PPP? I can't find much out from their website. Will call them later.

It is unlikely that you will get those prices by going direct. Try Cavendish Online who offer both stakeholder and personal pensions.

http://www.cavendishonline.co.uk/pensions/

BLB53

It is unlikely that you will get those prices by going direct. Try Cavendish Online who offer both stakeholder and personal pensions.

The stakeholder charges with Cavendish seem to be -
Aviva 0.55%
Friends 0.70%
Aegon 0.60%

Do you need to arrange a pension via an IFA to get the 0.4% rates?

jem16

BLB53 wrote: »

The stakeholder charges with Cavendish seem to be -
Aviva 0.55%
Friends 0.70%
Aegon 0.60%

The PP with Aviva starts off at 0.7% but drops to 0.45% at £20k and 0.4% at £50k.

Dunstonh did say with the OP planning future contributions you can get down to 0.4%.

http://www.cavendishonline.co.uk/pensions/personal-pensions/aviva/

BLB53

The PP with Aviva starts off at 0.7% but drops to 0.45% at £20k and 0.4% at £50k.

The OP was suggesting starting with £5K in each pension for self and partner so it could be a while before the contributions take them past the 50K mark.

If a comparison is to be made between charges for a DIY sipp using low cost trackers and a personal pension plan or stakeholder, it should be done like for like - what are the costs starting at 5K with one approach and what are the costs starting with 5K using the other approach.

Seems to me there would not be much difference?

dunstonh

The OP was suggesting starting with £5K in each pension for self and partner so it could be a while before the contributions take them past the 50K mark.

Hence why starting on the stakeholder may make more sense and moving to an alternative later when the figure gets higher.

Stakeholder easily beats the HL SIPP on the amount in question.

jamesd

It's not even a dilution levy really, since it's set at a fixed value. A dilution levy should reflect the dilution at the time of the transaction. it's more accurate to consider he Vanguard charge as an initial charge because of it's fixed nature that's isn't related to the actual dilution of a particular transaction. So I prefer the HL approach to displaying it as an initial charge.

The HL SIPP is quite a nice choice for beginners because they are helpful and friendly in all respects except honesty and transparency of how HL gets paid and how much. Their charging via commission is friendly for those who are regularly making additional contributions and buys and also for those with smaller pension pots because they don't have an annual or other periodic charge just to use their service.

Using the Vanguard funds there is not efficient for smaller amounts because the £2 per month per fund platform charge ends up greatly increasing the effective cost of using the fund. Better to avoid the Vanguard ones and use those with a higher reported AMC that pay HL commission with no platform charge added.

Something like the Legal & General International Index Trust Class R Acc with no platform charge and 0.7% AMC, 0.9% TER could work better.

But alternatives like the Aviva one may be cheaper overall, if probably both less flexible and more difficult to use.

simreb

The informaton on moneysaving expert.com concerning SIPPs needs an urgent update. There are so many players in the field and charges vary so much. Try Alliance or Cavendish or many other coming into the market as there is so much competition concerning charges with the FSA review. Go to comparefundplatforms.com or rplan.co.uk. It is the charges that are the all important thing in choosing a platform for your SIPP or ISA, they can make a huge difference to the future investment value. HL is certainly not the cheapest SIPP and is possibly one of the more expensive.

itm2

Interesting...I just entered details of my current H&L SIPP holdings into comparefundplatforms.com and it told me that "none of the platforms offer the combination of funds you've selected". I guess this means they either don't included H&L in their assessment or their logic is flawed. Either way, it caused me to lose a little confidence in it....