SIPP Advice

berbatov10

Guys I have read a lot of posts and posted some of my own on the subject of SIPPS. Some say they are quite complex and only for experienced investors though I have read articles on 'Monevator' saying that a VLS60/40 fund can be used as a SIPP and can be left alone 'to do its thing' as such/ What is the consensus on that?

berbatov10

Still open to views!

xylophone

http://www.thisismoney.co.uk/money/pensions/article-1712426/How-cheapest-low-cost-Sipp.html

A SIPP can hold basic as well as more esoteric investments.

That said, those I know who have them seem to run them as they would the S&S ISA on a platform.

berbatov10

Thanks xylophone I was thinking more about my choice of fund, a VLS as opposed to platform

sandsy

If you're holding standard investment funds, there's no reason why they are any more complex than a personal pension. SIPPs become complex when the assets become more complex.


Indeed, it could be considered to be an advantage to hold investment funds directly rather than to hold the life insurance's company's version of the fund, as happens in a personal pensions. Such funds can lag the funds they are invested in.


On the other hand, SIPP fees are generally taken from the cash account, so there is a need to manage the cash account to ensure funds are available there or be prepared to have assets liquidated to meet those fees.


Direct offer SIPPs have become very keenly priced recently and frequently seem better value than some of the direct offer personal pensions.

xylophone

But you would take out the SIPP through a platform and buy the VLS within the SIPP?

http://monevator.com/cheapest-pension-diy/

berbatov10

Hi xylophone thanks for taking an active interest. I read the attachment, which unless I read it wrong suggested using Best invest at a charge of 0.30%. As I have to have a platform I was looking to Fidelity as they are waiving their annual 0.35 fee for 12 months if SIPP is taken out with them. On top of which Quidco will give me £100.

Gram_Parsons

I've got a S&S Isa and SIPP both with Fidelity. Just the same one fund in both of them: Vanguard LifeStrategy 80% equities.

Very early days though. About six weeks for the ISA with £1200 and the Sipp started two weeks ago with 26K transferred in. Paying £100/month into the ISA and £160 into the Sipp bumped up to £200 via tax relief.

berbatov10

Did they waive the charges Gram?

berbatov10

I am still interested in what xylophone said

Kendall80

I elected to start up a SIPP with Bestinvest. They are the cheapest for my personal circumstances upto a certain balance. Roughly 10 years from now I may need to transfer.


All VLS options are available if that's the route you are going down.


I started mine off with the Vanguard dev world ex UK tracker and added a few well regarded active funds later on (Woodford and FS AP Leaders)