SIPP.

GPSWalker

I have a SIPP with Standard Life which is "managed" by a small financial company, I now realise that this arrangement is costing me 0.06% of my total "pot" (around £170,000), which is about £95 a month. Their arrangement costs for visits are a bit extortionate as well, is there any way I can possibly get out of this arrangement, without it costing me a fortune?
Regards. 

ffacoffipawb

Presumably GPSWalker said:

I have a SIPP with Standard Life which is "managed" by a small financial company, I now realise that this arrangement is costing me 0.06% of my total "pot" (around £170,000), which is about £95 a month. Their arrangement costs for visits are a bit extortionate as well, is there any way I can possibly get out of this arrangement, without it costing me a fortune?
Regards. 

Presumably 0.6% as 0.06% of £170,000 is £8.50 per month?

GPSWalker

To clarify, total pot is £175,788.63 and the financial companies fees are 0.65% per annum, I make that £1,142.62 per year or £95.21 a month..... Or am I doing something wrong? 

dunstonh

 I now realise that this arrangement is costing me 0.06% of my total "pot" (around £170,000), which is about £95 a month.

What are they doing for the 0.6%?  If they are running the portfolio for you then that will stop if you exit their service.    You will then have to pick the investments and run the portfolio or move to a more basic investment option.  That could result in lower returns.  So, you may save 0.6% but it could cost you more.

ffacoffipawb

GPSWalker said:

To clarify, total pot is £175,788.63 and the financial companies fees are 0.65% per annum, I make that £1,142.62 per year or £95.21 a month..... Or am I doing something wrong? 

Your original post quoted 0.06% and not 0.65%.

However 0.65% isnt too bad for advice. Perhaps advice is compulsory with this type of SIPP from Standard Life.

You could move it to the likes of AJ Bell Youinvest for a maximum platform fee of 0.25% if you wanted to save some money. Depends if you value the advice provided or not.

GPSWalker

"Your original post quoted 0.06% and not 0.65%." Appologies, I was putting in the numbers off the the top of my head, then found the correct figures. 
"What are they doing for the 0.6%?  If they are running the portfolio for you then that will stop if you exit their service."
Yes they are running my portfolio, the main reason I went with them is that my knowledge of SIPP's and pensions in general is very limited. 

Albermarle

Yes they are running my portfolio, the main reason I went with them is that my knowledge of SIPP's and pensions in general is very limited. 

So it is not clear what the problem is ? You have a SIPP that you do not really understand how to manage, so you pay someone who does . 0.65% pa is a reasonable price for a pot this size. 

GPSWalker

"So it is not clear what the problem is ? You have a SIPP that you do not really understand how to manage, so you pay someone who does . 0.65% pa is a reasonable price for a pot this size."
There may not be a problem, so far posters have thought it's a reasonable price. I was really wondering if I was paying too much for this service but it appears not. 

Notepad_Phil

GPSWalker said:

I have a SIPP with Standard Life which is "managed" by a small financial company, I now realise that this arrangement is costing me 0.06% of my total "pot" (around £170,000), which is about £95 a month. Their arrangement costs for visits are a bit extortionate as well, is there any way I can possibly get out of this arrangement, without it costing me a fortune?
Regards. 

Presumably the costs for leaving this arrangement were documented in whatever you signed when taking up the offer of being managed by the 'small financial company' - though if you feel that you need someone to look after your SIPP then 0.65% looks to me to be a reasonable price (assuming that you are being looked after by IFA). It is also possible that the company is providing discounted access to the platform or funds used, so check that as well.

If you feel that you could look after it yourself then you could certainly save on their fees, but are you confident enough in your knowledge to look after it. Poor decisions (e.g. on what to hold) could potentially end up costing you far more than what this company is charging.