Fidelity SIPP in drawdown costs

TBC15

Albermarle said:

The £500 cashback will mean you have 8 years for free effectively . Happy days 

Life is good.

garmeg

TBC15 said:

Well, I just got of the phone with the Fidelity pensions advisor and life is good

Once I transfer my pension over as cash I’ll invest it in Smithson IT this will cost £10 (+ stamp duty). Once fully invested there is a £45 pa service charge. Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Not the full £150k in Smithson, surely?

(Nothing wrong with it, just seems a bit brave to have it all in one investment trust)

TBC15

garmeg said:

TBC15 said:

Well, I just got of the phone with the Fidelity pensions advisor and life is good

Once I transfer my pension over as cash I’ll invest it in Smithson IT this will cost £10 (+ stamp duty). Once fully invested there is a £45 pa service charge. Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Not the full £150k in Smithson, surely?

(Nothing wrong with it, just seems a bit brave to have it all in one investment trust)

Yes, don’t worry I have other stuff as well.

StellaN

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Albermarle

StellaN said:

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Ot just hold a bit of cash in the SIPP itself. 

TBC15

The chap on the phone said the fees would come out on a monthly basis with my drawdown. I’ll probably take that information with a pinch of salt as he had to ring me back with confirmation of the £45 and £1.50 charges.

That will be 3 reps on the phone that didn’t have the figures at their fingertips.

I did think of the bit of cash in the SIPP to cover charges, but that would get wiped out every month when the drawdown payment came out.

TBC15

StellaN said:

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Cash management, tell me more.

MPN

TBC15 said:

StellaN said:

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Cash management, tell me more.

From this month Fidelity introduced a cash management account for clients so that they could keep some separate cash in this account to pay platform fees. Therefore, if you put some cash into this account there will be no need to sell any of your IT’s. In your case you would only have to put in £70 to cover your platform costs for the whole year!

Albermarle

MPN said:

TBC15 said:

StellaN said:

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Cash management, tell me more.

From this month Fidelity introduced a cash management account for clients so that they could keep some separate cash in this account to pay platform fees. Therefore, if you put some cash into this account there will be no need to sell any of your IT’s. In your case you would only have to put in £70 to cover your platform costs for the whole year!

It only was planned to start yesterday I think . 

garmeg

MPN said:

TBC15 said:

StellaN said:

TBC15 said:

Every month Fidelity will sell ITs to the value of my drawdown, as this is a withdrawal plan it will cost £1.50 per month.

Fully functional £150000 SIPP in drawdown for £63 pa

Now that Fidelity have a cash management system in place, would it not be better to put some cash into this rather than Fidelity sell your IT's to pay the platform fees?

Cash management, tell me more.

From this month Fidelity introduced a cash management account for clients so that they could keep some separate cash in this account to pay platform fees. Therefore, if you put some cash into this account there will be no need to sell any of your IT’s. In your case you would only have to put in £70 to cover your platform costs for the whole year!

A portfolio of investment trusts should accrue enough dividends over a year to pay fees of £70 though.