What's your drawdown percentage and how much of that do you spend on financial fees?

Albermarle

SouthCoastBoy said:

Good to know regarding fidelity, what is their UI and customer service like?

In the past the website was apparently seen as a bit behind the times and clunky . However they have improved it a lot in the last couple of years. Probably best you have a try out with it .
I have probably asked them questions only about 5 times and seemed easy to get through on the phone ( pre Covid anyway ) and e mails get answered within 48 hours .

pip895

SouthCoastBoy said:

pip895 said:

SouthCoastBoy said:

I don't have the inclination to work out my exact fee percentage,

I do have a relatively small SIPP (around 225k) with H&L and platform fees are 0.45% + fund fees so expensive, also have stock ISAs (around 200k) with them on same fee structure.

I'm not sure what my company DC pension costs are, but have no way of changing it so irrelevant. Once I retire I need to move the DC pension as they don't provide drawdown, so will need to research where to put it, fees will be one of the considerations, may move my H&L pots at the same time. Some of the quotes above are for very low platform fees.

I am with HL for my SIPP - I am gradually moving over to ITs and etfs.  When/if I complete that process the platform fee could come down to just over 0.02%.  However I am struggling to justify sacrificing some of my active funds on the alter of lower fees. 
TB Amati UK Smaller Companies is a fund I have held for over 5 years - it is among - if not my most expensive funds at a cost of nearly 0.9%.  Despite these costs it has returned over 150% over the 5 years.  I also hold VMID a UK midcap tracker etf with one of my lowest charges of 0.1% and attracting effectively no platform fee.  It has returned around 50% over the same 5 years.  Swapping from TB Amati to VMID might have saved platform charges of a few percent but at what cost!  It is not all about the charges!

p.s. HL also make no charges for moving funds into drawdown adjustments or one off lump sums etc- I think they are pretty good value for me.

Don't etfs held in a H&L SIPP still have a 0.45% charge?

Capped at £200 though..

Stargunner

Albermarle said:

pip895 said:

SouthCoastBoy said:

I don't have the inclination to work out my exact fee percentage,

I do have a relatively small SIPP (around 225k) with H&L and platform fees are 0.45% + fund fees so expensive, also have stock ISAs (around 200k) with them on same fee structure.

I'm not sure what my company DC pension costs are, but have no way of changing it so irrelevant. Once I retire I need to move the DC pension as they don't provide drawdown, so will need to research where to put it, fees will be one of the considerations, may move my H&L pots at the same time. Some of the quotes above are for very low platform fees.

I am with HL for my SIPP - I am gradually moving over to ITs and etfs.  When/if I complete that process the platform fee could come down to just over 0.02%.  However I am struggling to justify sacrificing some of my active funds on the alter of lower fees. 
TB Amati UK Smaller Companies is a fund I have held for over 5 years - it is among - if not my most expensive funds at a cost of nearly 0.9%.  Despite these costs it has returned over 150% over the 5 years.  I also hold VMID a UK midcap tracker etf with one of my lowest charges of 0.1% and attracting effectively no platform fee.  It has returned around 50% over the same 5 years.  Swapping from TB Amati to VMID might have saved platform charges of a few percent but at what cost!  It is not all about the charges!

p.s. HL also make no charges for moving funds into drawdown adjustments or one off lump sums etc- I think they are pretty good value for me.

If you like the flexibility of HL and the fact that there are almost no hidden or extra charges , you could have a look at Fidelity.
Their charging structure is very similar to HL except they are cheaper.
0.35% standard but if you have over £250K ( in total on the platform) then 0.2% on all of it, not just the amount over £250K ( discounts with HL only apply above the £250K ) 
Shares /ETF's/IT's cost capped at £45 , again over the whole platform , not each individual account.
As Alexland details above , it is possible to have a SIPP ( and in drawdown ) for £51 pa 

Unable to delete 

pip895

Albermarle said:

pip895 said:

SouthCoastBoy said:

I don't have the inclination to work out my exact fee percentage,

I do have a relatively small SIPP (around 225k) with H&L and platform fees are 0.45% + fund fees so expensive, also have stock ISAs (around 200k) with them on same fee structure.

I'm not sure what my company DC pension costs are, but have no way of changing it so irrelevant. Once I retire I need to move the DC pension as they don't provide drawdown, so will need to research where to put it, fees will be one of the considerations, may move my H&L pots at the same time. Some of the quotes above are for very low platform fees.

I am with HL for my SIPP - I am gradually moving over to ITs and etfs.  When/if I complete that process the platform fee could come down to just over 0.02%.  However I am struggling to justify sacrificing some of my active funds on the alter of lower fees. 
TB Amati UK Smaller Companies is a fund I have held for over 5 years - it is among - if not my most expensive funds at a cost of nearly 0.9%.  Despite these costs it has returned over 150% over the 5 years.  I also hold VMID a UK midcap tracker etf with one of my lowest charges of 0.1% and attracting effectively no platform fee.  It has returned around 50% over the same 5 years.  Swapping from TB Amati to VMID might have saved platform charges of a few percent but at what cost!  It is not all about the charges!

p.s. HL also make no charges for moving funds into drawdown adjustments or one off lump sums etc- I think they are pretty good value for me.

If you like the flexibility of HL and the fact that there are almost no hidden or extra charges , you could have a look at Fidelity.
Their charging structure is very similar to HL except they are cheaper.
0.35% standard but if you have over £250K ( in total on the platform) then 0.2% on all of it, not just the amount over £250K ( discounts with HL only apply above the £250K ) 
Shares /ETF's/IT's cost capped at £45 , again over the whole platform , not each individual account.
As Alexland details above , it is possible to have a SIPP ( and in drawdown ) for £51 pa 

I get 0.25% on all my funds at HL so the saving isn’t that great.  At the moment I also have a few funds in special discounted classes that may not be available on fidelity.  I think it’s not worth the hassle moving but if I was just starting out I would probably be interested.  Incidentally do they also allow you to swap up to 90% between funds without being out of the market?

bostonerimus

I think this is really encouraging. Fees seem to be mostly just a few tenths of a percent and withdrawal rates are less than 4% and where they are higher there's a plan to taper down when events like SP starting happen. Of course we need to be careful as people with sensible withdrawal rates and sensible fees are probably the ones most likely to respond...or even know their numbers.

Alexland

Albermarle said:

As Alexland details above , it is possible to have a SIPP ( and in drawdown ) for £51 pa 

Although Fidelity don't charge extra for drawdown there probably would be the occasional £10 trade charge to sell down ETF etc units unless you were just taking the natural yield in which case the account would only cost £45.

[Deleted User]

In the US brokerages have been offering no-commission trading for quite some time.  In August one of Canadian brokerages has joined them.  There is no “fee” for having the “platform” either.  https://www.nbc.ca/en/about-us/news/news-room/press-releases/2021/20210823-Premiere-canadienne-BNCD-annonce-sa-nouvelle-tarification-0-de-commission.html

Maybe a free U.k offering in a couple of years? 

Commissions and “platform fees” don’t cost a lot unless you are a frequent trader, but I find there are additional cost impacts.  X-O SIPP charges me 6 quid per trade.  I refuse to pay more than a fraction of 1% of the trade value which means dividends only get reinvested once a year.  Not a huge deal but the resulting losses do add up.

Albermarle

Incidentally do they also allow you to swap up to 90% between funds without being out of the market?

Fidelity do offer a funds switch facility , so no need to sell, wait for the cash and then buy. I think though they sell one day and buy the next . 

Ibrahim5

I retired at 50 with a DB pension of just over £20k a year and investments with total fees of 0.175%. I am not very professional with the DC side but then I don't really think I need to be. I would be terrified if it was all DC. I might even pay an IFA. Or maybe not.

pip895

bostonerimus said:

I think this is really encouraging. Fees seem to be mostly just a few tenths of a percent and withdrawal rates are less than 4% and where they are higher there's a plan to taper down when events like SP starting happen. Of course we need to be careful as people with sensible withdrawal rates and sensible fees are probably the ones most likely to respond...or even know their numbers.

In my case I am only withdrawing funds at all because I am concerned about hitting the LTA.  Up until a month back I was like you, not even drawing down from the SIPP.  I guess you aren't troubled by such issues being in the US?