Cheap SIPP

Not_Me_Officer

Should hopefully be the final thread for a little while as i'm getting towards the end of the tunnel now i think.
I was googling cheap SIPP providers. I remember seeing numerous times (i think linked to S&S ISA providers) Cavendish Online recommended as being quite cheap whereas the 'big boy' that is Hargreaves Lansdown said to be on the costly side.

So i was surprised to see Cavendish Online not appear on a few websites when it came to comparing cheap SIPP providers. Why is this when i've seen them get recommended here? They didn't even appear on the table even though the supposedly expensive HL did. http://www.moneysavingexpert.com/savings/cheap-sipps I don't know if i can link to other websites so i'll just link the MSE one there.

Which online provider do many of the MSE'ers go with here?

bigadaj

The mse articles tend to go out of date quite quickly and aren't frequently updated.

Do a search for snowmans spreadsheet, and you can input your likely investments and compare charges. Some people think hl are worth the extra fees, it's a matter of opinion really as well as a function of the sums involved, paying them an extra £20 a year might be fine once that becomes a few hundreds views might change.

I've currently got sipps with iWeb and bestinvest, the former is larger and so benefits from the flat fee charges, the latter is smaller and percentage charged. Both are fine for me.

dunstonh

MSE is very slow to update articles. It has been known to be over 5 years out of date at one point, listing products that were pulled many years before.

Which online provider do many of the MSE'ers go with here?

I dont use a SIPP. I use a PPP. The others will have a better view of the DIY providers.

kidmugsy

We use HL for SIPPs (but not for ISAs). If our SIPPs were bigger than, say, £40k or so we might use someone else.

Lokolo

Snowman has a link to a spreadsheet where you can calculate this stuff based on your circumstances

https://forums.moneysavingexpert.com/discussion/5583030

Morphoton

An important thing to consider is the type of investments you plan to hold.
I use HL but only invest in IT's, ETF's & individual gilts. I do not hold any funds ( i. e. OEIC's or UT's).
HL cap the charges at £200 for the above,. so on my £325k SIPP I am only paying 0.06%. I consider this to be cheap.
There are dealing charges in addition but I only occasionally rebalance.

philng

I use FIDELITY which has very low charges. £45 per year irrespective of value & only 0.1% commission on sales and purchases (no min).
The above fee only applies if you stick to IT's & EFT's & you can't hold direct shares.
I have found the service fine.

BLB53

I use AJ Bell Youinvest - charges for non-funds capped at £100 (HL £200) and funds charged at 0.25% (HL 0.45%).

Comparison for sipp providers on diy investor
http://diyinvestoruk.blogspot.co.uk/2016/08/selecting-your-diy-pension-platform.html

Recent article in Telegraph
http://www.telegraph.co.uk/investing/sipps/in-tables-the-cheapest-sipp-firms--whether-youre-investing-5000/?WT.mc_id=tmg_share_tw

jamesperrett

I think people tend to go for HL because their charging structure is pretty simple and you can do everything from the one website. I had a look at Cavendish recently as it would work out slightly cheaper to go with them but you need to know exactly which funds you want to buy before investing - I wanted to get the money into a SIPP before the end of the financial year and then take a little time researching which funds to put it in - which is easy with HL.

LHW99

I started my SIPP at HL, then moved to a flat fee provider (II, for my sins) once the value moved above 30k

Not_Me_Officer

I seem to have a habit of not giving enough info. This isn't done on purpose i should add.

After doing some reading what i am looking at making happen is this:

* I was looking at the Vanguard LifeStrategy 80 fund (is it called a fund? I get lost in all this terminology tbh. From what i've read about it anyway it suits me). I am open to alternatives and was looking at some of them also. I was eyeing the similar one from L&G (i'd have to hop back on HL to check the proper name).
I don't want to go fully 100% but i was looking at more than 60% hence me looking at the LS80.

* In this i will put £7,500 as an opener (what i had built in a previous S&S ISA which has been closed) and i would then make contributions of £200pm

* Every half year or even yearly i would also contribute additional amounts that i will have been able to afford over that time period. So i may throw an additional £300 at it after 6 months time but i don't want to commit to a definite £250 per month if you get me? I'd rather say £200 and then (in this example) if i can afford 6 lots of £50 extra then great, if it's only 5, 4, 3 etc then so be it.

* And i would then leave it. I wouldn't be chopping & changing every 5 mins, i'd just leave it.

Am i correct in thinking the Vanguard LS80 is an ETF? See i get lost with these terms. If so then Cavendish does seem reasonably cheap according to that spreadsheet.

And am i also right in thinking that i would not get charged for my £200pm into this fund?