Cheap SIPP

digannio

Shame that Cavendish can't offer any form of drawdown.

coyrls

Not_Me_Officer wrote: »

Am i correct in thinking the Vanguard LS80 is an ETF?

No, you are not correct; it is a fund not an ETF.

AlanP_2

Not_Me_Officer wrote: »

* 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?

VLS80 is not an ETF it is a fund so you won't get charged on your £200 as such as there are no fees to buy/sell units in funds.

You will be charged a %'age fee by Cavendish / Fidelity on the "total pot value" - currently 0.25% p/a for a SIPP. This is paid monthly out of the investments by them selling a number of units to cover that month's fees.

On £7.5k that would be £18.75/12 per month, if value goes up to £8k then it's £20/12 and if it falls to £7k it's £17.50/12 and so on.

There is a minimum of £1000 for lump sum contributions so you couldn't just pay another £200 or £300 in every few months.

My wife's SIPP is with Cavendish / Fidelity and we have been happy with the service, prompt & helpful replies to queries when we've asked them anything.

Not_Me_Officer

Ah so i got that bit wrong but the way it operates is how i thought really so that's fine.

The £1000 cap is a bit of an annoyance really because that will definitely put me on long timeframes. If i'm going to go with the Vanguard product then i'll have to take a look at Vanguard directly or even Hargreaves Lansdown (or anyone else i guess)
to see if there's any such lump sum cap

digannio wrote: »

Shame that Cavendish can't offer any form of drawdown.

Can't you transfer it out of there to somewhere that does like you can transfer money out of one ISA provider to another?

banjodog

Last year AJ Bell YouInvest amended their charges and as a result my annual charges rose from £200 to £500. Am now waiting for Vanguard to launch their low cost SIPP before transferring

banjodog

<<.. 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>>


Surely the whole point of a SIPP is that you decide what funds you invest in!

TBC15

Went with HL on the wife’s bang it in take it out £2880 a year.

Went with AJ Bell on 175K remove it ASAP under personal tax allowance.

jamesperrett

banjodog wrote: »

Surely the whole point of a SIPP is that you decide what funds you invest in!

I realised only a few days before the end of the tax year that I was going to earn more than the higher rate threshold so I was more concerned with opening the SIPP than choosing what to invest it in. HL allow you to open the SIPP and keep cash in it which was the easiest course of action in the circumstances. I also knew, from reading on here, that they were pretty flexible and didn't add on extra charges provided you didn't close the account within a year.

I'm likely to be opening an ISA in the next few months and Cavendish are still a possibility for that but I find HL's website easier to use.

Thrugelmir

I use x-o.

http://www.x-o.co.uk/

No annual fees. Well priced dealing charges.

cloud_dog

jamesperrett wrote: »

...HL allow you to open the SIPP and keep cash....

And also, as far as I am aware, do not charge a platform fee on the cash component.