Best SIPP for passive investor?

madeinireland_2

Ok guys - I understand where you are coming from now.

In my own situation I probably do want to do more - such as ISA, shares etc as well as the SIPP so I think something that covers more than just a personal pension is required - but I will look at the options you have presented. From what I can tell ii covers the range of options I want at a reasonable price but I won't be rushing in to it. I do also want to perhaps link several family accounts so I think that makes them quite cheap too. I kinda like the vanguard life strategy range of funds for the investment choice as they will handle all the balancing for you and are quite cheap.

Thanks all

dunstonh

In my opinion, at the moment the best pension in terms of Cost + Performance + Service = Scottish Life pension portfolio

Its a good product with good investment options. Rarely the cheapest but usually in the top 5 or 6 for cost. Great for a lazy investor and a good blend of managed funds with good governance and index trackers. Service is very good as well. One snippet of often unknown information is that Scot Life is the biggest drawdown provider. Yet many consumers would not name them as a recognisable brand.

In my own situation I probably do want to do more - such as ISA, shares etc as well as the SIPP so I think something that covers more than just a personal pension is required - but I will look at the options you have presented.

In which case you will pay more for it. However, do you really need platform/SIPP services if you are just going to use a single asset tracker fund on one wrapper?

I kinda like the vanguard life strategy range of funds for the investment choice as they will handle all the balancing for you and are quite cheap.

100% global equity is nothing new. I like vanguard. Indeed, I get a personal vanguard representative as I have above a certain amount invested with them (as an adviser). However, the 100% LS fund is the least viable option when compared to alternatives. Indeed, I do not have a single person in that fund.

I like platforms and I like the benefits but it seems pointless paying for platform services if you are going to invest in a 100% global equity fund unless you get that family linking and make use of multiple tax wrappers and make use of other investments. Maybe keep only the ISA on platform assuming you are not going to be a "lazy investor" on that as well.

racing_blue

Thankyou all for the advice.

I have checked out some of the options mentioned, however all those providers seem to charge a % of the value of the holding similar to HL.

For me a flat £ annual charge would be more attractive than a % charge.

For example, here is a link to a provider offering a single flat fee of £150 per year including 1 free trade, which is all I need. Am I on the right lines here? Or are there other things to consider?

http://www.ftadviser.com/2013/11/13/pensions/sipps/liberty-sipp-merges-plans-into-single-flat-fee-sipp-i1K2h4h8bnI4u1fCg8pO3M/article.html

jem16

racing_blue wrote: »

For me a flat £ annual charge would be more attractive than a % charge.

That is going to depend on the amount you have in the SIPP. How much do you currently hold?

For example, here is a link to a provider offering a single flat fee of £150 per year including 1 free trade, which is all I need. Am I on the right lines here? Or are there other things to consider?

That is the fee for holding the SIPP itself. It does not include the annual charge of the fund.

When you put both together is it more or less than the fund value of your SIPP times the percentage charge of the PP which includes the fund charge?

madeinireland_2

Interactive investor don't appear to charge a percentage fee ??? - it's £20 a quarter and that covers some trading fees. Not sure about the others as I have not checked them yet - but I think you need to look a bit more closely.

Dunstonh - I may well have more that one fund and really don't want to box myself in and then incur fees to move etc. - how does one invest in one of the vanguard funds without using a platform may I ask ? Can you go direct to them ?

I probably would describe myself as a lazy investor - but that good isn't it as you don't want to be chopping and changing too much as it all cost money.

racing_blue

jem16 wrote: »

That is the fee for holding the SIPP itself. It does not include the annual charge of the fund.

When you put both together is it more or less than the fund value of your SIPP times the percentage charge of the PP which includes the fund charge?

Thanks Jem16. It is significantly less.

To share in the long term growth of global equities, I am currently paying HL's charge of £24 per year and Vanguards annual management charge of 0.33%. A very fine deal but the terms are changing.

From 1st March HL will charge 0.45% per year. The total cost of holding the Vanguard Lifestrategy 100 fund in a HL SIPP will rise to 0.78% per year, rather than (0.33%+£24).

I have read that global equites have historically returned around 3 or 4% in real terms. 0.78% is a big bite out of that 3% or 4%, which is why I'm looking hard at other options.

There must be other people in my position- looking for the lowest cost global equity fund & pension provider combo. Can anyone beat 0.78% total annual expense? Lets say the SIPP is more than £50k but less than £250k.

zagfles

Have a look at http://www.comparefundplatforms.com for SIPPs.

Cavendish seem to have good deals for pensions http://www.cavendishonline.co.uk/pensions/

Bear in mind for SIPPs investing in funds there's the platform charge plus the fund charge, which as above will likely be higher than a PP but will give you more freedom to choose investments and chop and change contributions

zagfles

racing_blue wrote: »

Thanks Jem16. It is significantly less.

To share in the long term growth of global equities, I am currently paying HL's charge of £24 per year and Vanguards annual management charge of 0.33%. A very fine deal but the terms are changing.

From 1st March HL will charge 0.45% per year. The total cost of holding the Vanguard Lifestrategy 100 fund in a HL SIPP will rise to 0.78% per year, rather than (0.33%+£24).

I have read that global equites have historically returned around 3 or 4% in real terms. 0.78% is a big bite out of that 3% or 4%, which is why I'm looking hard at other options.

There must be other people in my position- looking for the lowest cost global equity fund & pension provider combo. Can anyone beat 0.78% total annual expense? Lets say the SIPP is more than £50k but less than £250k.

HL are actually very good value for SIPPs of about £50k, for higher amounts they become less competitive.

Download Snowman's spreadsheet, link here: http://monevator.com/online-broker-price-scramble/comment-page-2/#comments in comment 51.

racing_blue

madeinireland wrote: »

Interactive investor???

Nice suggestion, looks like a goer maybe. £120+VAT per year is the annual administration charge. There is an initial £120 rebate which would cover HL's £75 transfer out fee.

http://www.iii.co.uk/trading/share-dealing/step-step-guide-transferring-your-investments

Holding Vanguard FTSE All-World ETF (VWRL.L) with an AMC of 0.25%

Quick calculation on a SIPP worth £50k this would give a TER of 0.54% after the first discounted year. On a SIPP worth £250k, 0.31%

- so thankyou very much!

Anyone beat that?

racing_blue

zagfles wrote: »

Have a look at http://www.comparefundplatforms.com for SIPPs

Thanks for that, perfect. Confirms that interactive investor and Bestinvest are pretty much top of the pile and gives net annual cost of 0.38%-0.54% based on similar assumptions to above.