Big mistake with my choice of SIPP

BridgetteB

I'm really unsure what to do. I'm 56 and I've transferred my defined contribution pension into a drawdown SIPP but with a wealth management company. I've so far lost 12K in fees and investment losses in under 6 months. I thought I could transfer money out quite easily but this doesn't seem to be the case as I'm told I have to pay emergency tax. I've looked at transferring to another SIPP provider who don't charge annual fees and can allow me to drawdown but I'm concerned, as I find the terminology difficult and I don't know what questions to ask My husband and I want to invest money in our business which we have developed from scratch and is doing very well and this is all the money we have.

dunstonh

I've so far lost 12K in fees and investment losses in under 6 months.

Which of course you knew would happen in the future. Indeed, seeing as recent losses are only about half a crash or a third of the credit crunch/dot com period, you are probably aware it will be much larger in future.

I've looked at transferring to another SIPP provider who don't charge annual fees and can allow me to drawdown but I'm concerned, as I find the terminology difficult and I don't know what questions to ask

There are no SIPP providers that do it out of love. All will have an annual fee.

My husband and I want to invest money in our business which we have developed from scratch and is doing very well and this is all the money we have.

If it is all the money you have then drawing it out to use on your business is unlikely to be a good idea.

You appear to be lacking knowledge and understanding. It is important not to make rash decisions in that situation as they are likely to be costly mistakes. Perhaps we should start by asking why you think changing SIPP provider will change the situation? And why you are surprised the money has gone down (your previous pension would have gone down by much the same).

xylophone

Did you take advice from an independent financial adviser before transferring from the old provider to the new?

What is the value of the SIPP?

Have you taken the 25% tax free Pension Commencement Lump Sum?

Have you withdrawn other amounts in excess of the PCLS from the SIPP?

Do you wish to remain invested or do you wish to keep a certain amount in cash for a certain period?

https://www.moneyobserver.com/best-sipp-platforms-your-portfolio-2018

Have you and your husband obtained a state pension forecast?

https://www.gov.uk/check-state-pension

LHW99

I thought I could transfer money out quite easily but this doesn't seem to be the case as I'm told I have to pay emergency tax.

This will happen with any drawdown from any provider if you take some of the taxable 75%. You can reclaim it from HMRC.

Linton

BridgetteB wrote: »

I'm really unsure what to do. I'm 56 and I've transferred my defined contribution pension into a drawdown SIPP but with a wealth management company. I've so far lost 12K in fees and investment losses in under 6 months. I thought I could transfer money out quite easily but this doesn't seem to be the case as I'm told I have to pay emergency tax. I've looked at transferring to another SIPP provider who don't charge annual fees and can allow me to drawdown but I'm concerned, as I find the terminology difficult and I don't know what questions to ask My husband and I want to invest money in our business which we have developed from scratch and is doing very well and this is all the money we have.

Most of the money is probably investment losses. The markets have fallen quite a bit in the past few months. That is the nature of investing. You would expect them to recover and go up forther at some stage in the future.


The emergency tax is because this is the first ever payment. Once HMRC realise that you have a new "employer" they will issue a new tax code and everything should sort itself out.


PS I suggest you do not do anything until you have a better understanding.