Vanguard SIPP - Now open!!!

TheTracker

bowlhead99 said:

So vanguard is attractive for those people using trackers with small pots

Also attractive for people using trackers with large pots and looking to have a 2nd or 3rd SIPP provider. 

Opened and done.

Shedman

So as Dazed indicates they don't do drawdown yet so a no go for me. Plus if they intend to in the future then no way of knowing how much they'll charge.  Seems there are still much better options around such as Fidelity at £45 a year (using shares, Investment trusts and ETFs) with no drawdown fees

cloud_dog

SnowMan said:

Dazed_and_C0nfused said:

Looks like they accept DB transfers but only with a positive recommendation.

For DC schemes it is cash transfer only and they don't offer drawdown for the moment.

Quite surprising and a bit disappointing that they don't allow re-registration of Vanguard funds held on other platforms to Vanguard on transfer.

Seems to be a bit against the spirit of the regulations, which while they require providers to offer re-registration as an option when transferring away from a provider they don't require it on transfer to that provider. The FCA rule is here I think, and seems to apply to SIPPs.

SnowMan, I can see the future....I can see you.... dabbling..... with a spreadsheet.

A_T

nothing on drawdown costs so not a good option for those nearing drawdown
strangely unable to invest in many of Vanguard's own ETFs that are available on other platforms
probably a good choice for someone starting out

mcooke999

Is anyone else having issues with their website? I can't get past the first page of the pension transfer process, the 'Let's get started' button won't work?

Prism

k6chris said:

So, all anyone needs to do to meet all their retirement needs is open up an account, put everything in the LS80 fund and then drawdown 4% (SWR) each year.  Job done.   Serious question, on a scale from 1 (utterly reckless) to 10 (best or the best), where would that strategy rank??

Its not terrible however certainly not the best. I'd say about a 5
VLS80 is probably a touch too equity heavy for early retirement. A fixed 4% withdrawal rate is a touch to high to start and variable rates historically work better, although are more complex. Equities and bonds should be in different funds so you can draw from each individually depending on recent market conditions.

SoftCentaur

I've been waiting for the Vanguard Sipp now I have got my Equitable with profits uplift figure. Although drawdown is not available yet, I will be taking my 25% tax free lump sum after April 2021 and continue to invest with Vanguard SIPP.
 Quote from the Vanguard site " Simply put, there will be no additional charges for going into drawdown in the Vanguard Personal Pension. Drawdown is where you can take a tax-free lump sum (usually up to 25%) from your pension, with the balance going into funds that allow you to draw an income."
I'll be going for a Global tracker, FTSE all-share tracker with Vanguard and put some of my 25% into a Fundsmith ISA. Wish me luck !

jsinc

SnowMan said:

Quite surprising and a bit disappointing that they don't allow re-registration of Vanguard funds held on other platforms to Vanguard on transfer...

The Transfers Factsheet says "We only support cash transfers at present" so perhaps that will change in the future.

https://www.vanguardinvestor.co.uk/content/documents/general/170-SIPP-Transfers_1019_Proof-1a-(003).pdf

Dan29

Interesting - my pension from my former company has a limited choice of funds and higher charges, so I'd be interested in moving to Vanguard.

I'll start researching this now, but are there any tips or pitfalls from the experts here please? 

Lungboy

bowlhead99 said:

Really the part of the market where vanguard is going to be most attractive is for people with relatively small pots who can easily see that if they are happy to exclusively use vanguard funds for their pension they could go direct for 0.15% with no transaction fees instead of to HL for 0.45% with no transaction fees.  The latter now looks like an insane move, whereas before HL could have been an ok move because most of the platforms with no (or significantly lower) percentage based fees also had transaction fees which can add up on small pots.

So vanguard is attractive for those people using trackers with small pots, such as people just starting out who come here for guidance; but for those with large fund pots at HL (where HL make a LOT of money), they have already shown that they are not fee sensitive - otherwise they wouldn't hold large fund pots at HL!

Aye this is exactly me. Only 1.5 years' worth of SIPP, all in FTSE Global All Cap, although mine is with Cavendish rather than HL. I'll be switching and forgetting for 15 years or so.