best SIPP in year 2020

happypie

hi guys,
i am planning to start SIPP with 500 pounds a month.
i already have workplace pension with 'the people pension' provider and i have opted for '100% share' investment in that. the fund i have chosen in that has .50% charge and the people pension has 0.50% charge so overall it's 1% annual.
now i can either just ask my employer to increase my own pension contribution - so i don't have to claim tax back - and it gets invested in same fund with the people pension.
or i can open SIPP account with other providers.
i was looking at other providers so have some diversification, though i want to invest in 100% share only - and also if i can save some management cost - claiming back tax isn't very complex so i can do that in self assessment.

could you guys pls suggest some good pension providers for SIPP?
i don't want to buy individual shares, should allow me to setup direct debit each month, platform should invest money in fund or some ready made portfolio. should have low charge preferably.
i have looked at AJ Bell, Hargreaves Lansdown, Nutmeg so far.
Nutmeg offers ready made portfolio with multiple funds at low cost.
HL offers ready made portfolio with multiple funds at high cost. HL also offers funds at low cost - so i could select one fund which has enough diversification of shares and invest in same fund each month.
AJ Bell only offers funds.

I have Lifetime ISA with nutmeg so not very keen to have SIPP with them for diversification purpose.
what do you guys think? any other suggestions? which option is best suited for me? 500 pounds each month so total 12 buy transactions each year.
thanks so much in advance.

mcooke999

I would wait a few months until Vanguard deliver their own SIPP.  Their fee is going to be 0.15% which beats most other platforms. You'll only be able to invest in Vanguard funds but that's enough for 99.9% of people.

happypie

mcooke999 said:

I would wait a few months until Vanguard deliver their own SIPP.  Their fee is going to be 0.15% which beats most other platforms. You'll only be able to invest in Vanguard funds but that's enough for 99.9% of people.

that does look very good.
have registered my email.

happypie

any idea which vanguard fund is recommended?
if aim is high return, high risk.

mcooke999

Based on your original post, providing you're happy with the volatility of equities and plan on investing for the long term (10Yr+ at least) then you can't go wrong with the Vanguard Lifestrategy100 or 80 funds (100% equity & 80% equity respectivley)... The fee is 0.22% so the total fee would be 0.37% including the platform fee.

Malthusian

happypie said:

hi guys,
i am planning to start SIPP with 500 pounds a month.
i already have workplace pension with 'the people pension' provider and i have opted for '100% share' investment in that. the fund i have chosen in that has .50% charge and the people pension has 0.50% charge so overall it's 1% annual.

Are you sure? Auto-enrolment schemes have a 0.75% charge cap, so I'm wondering if you're counting the same 0.5% charge twice.

If you pay more into the employer scheme will the employer increase their matching contributions?

Does the employer offer salary sacrifice, so you get National Insurance relief as well as income tax relief?

SonOf

happypie said:

hi guys,
i am planning to start SIPP with 500 pounds a month.
i already have workplace pension with 'the people pension' provider and i have opted for '100% share' investment in that. the fund i have chosen in that has .50% charge and the people pension has 0.50% charge so overall it's 1% annual.

You are mistaken.  The peoples pension has a 0.5% p.a. charge.    There is not an additional 0.5% charge on top.  
Plus, the closest fund in your workplace pension in risk to VLS60 has beaten it after charges.  Plus VLS60 on the Vanguard personal pension (when it comes) will have an additional 0.15% charge to deduct from it.   I havent checked what VLS80 or 100 compare like.  

Username999

mcooke999 said:

You'll only be able to invest in Vanguard funds but that's enough for 99.9% of people.

Who says that?

Lomcevak

mcooke999 said:

I would wait a few months until Vanguard deliver their own SIPP.  Their fee is going to be 0.15% which beats most other platforms.

Careful - although the percentage fee is low, the fee cap only kicks in at £250,000 (which at 0.15% is a fee of £375 per year), so under some circumstances it can be much cheaper to hold Vanguard products elsewhere. For example, I hold almost £250k of Vanguard funds in a Fidelity SIPP at a cost of £45 per year, almost £330 a year less than Vanguard's announced fee for the same holding.

(Vanguard looks slightly cheaper on trading fees, but not nearly enough to close the gap unless you're continually trading many times a month)

mcooke999

Username999 said:

mcooke999 said:

You'll only be able to invest in Vanguard funds but that's enough for 99.9% of people.

Who says that?

I do lol. What else would anyone need to invest in that Vanguard don't provide?

mcooke999

Lomcevak said:

mcooke999 said:

I would wait a few months until Vanguard deliver their own SIPP.  Their fee is going to be 0.15% which beats most other platforms.

Careful - although the percentage fee is low, the fee cap only kicks in at £250,000 (which at 0.15% is a fee of £375 per year), so under some circumstances it can be much cheaper to hold Vanguard products elsewhere. For example, I hold almost £250k of Vanguard funds in a Fidelity SIPP at a cost of £45 per year, almost £330 a year less than Vanguard's announced fee for the same holding.

(Vanguard looks slightly cheaper on trading fees, but not nearly enough to close the gap unless you're continually trading many times a month)

Yes ok for relatively large sums you'd be better off with a fixed fee platform rather than a % based one. 

I think the OP was talking about starting from scratch and investing monthly though. Maybe they could clarify the amount?