AJ Bell or Fidelity for drawdown

ian16527

I have a SIPP with each at the moment, Fidelity has £150k in and AJ Bell has £50K.
In June I will be transferring another £50k in from my employers DC fund and go into drawdown.
I have all funds so AJ Bell would be 0.1% cheaper in fees, which would save £250 a year in fees initially if I transferred it to them. 

Is there any disadvantage in using AJ Bell over Fidelity with regards the drawdown functionality? I know its not a great deal to save but its better in my pocket so to speak.

Alexland

If you held it all with Fidelity then you would get to £250k to become a Wealth customer and pay their reduced 0.20% platform rate for holding funds. Still I guess you would need to make sure you are not dropping below that valuation. Fidelity are currently offering transfer cashback and would assign a relationship manager for occasional 121 'not quite advice' sessions. Those £1.50 trade fees at AJ Bell are annoying. Still it depends if you feel comfortable holding that proportion of your wealth with a single platform.

MallyGirl

with those figures a fixed fee provider would probably be cheaper

Alexland

MallyGirl said:

with those figures a fixed fee provider would probably be cheaper

Yes or switching some/all of the investments into ETFs/ITs for capped charges.

MallyGirl

ian16527 said:

I have a SIPP with each at the moment, Fidelity has £150k in and AJ Bell has £50K.
In June I will be transferring another £50k in from my employers DC fund and go into drawdown.
I have all funds so AJ Bell would be 0.1% cheaper in fees, which would save £250 a year in fees initially if I transferred it to them. 

Is there any disadvantage in using AJ Bell over Fidelity with regards the drawdown functionality? I know its not a great deal to save but its better in my pocket so to speak.

another thread on here seems to indicate that Fidelity holds crystallised and uncrystallised fund in separate 'pots' which has significance if LTA is looming. AJ Bell, I believe, do not.

ian16527

I really wanted to simplify it all into one platform.
I have though about having it split into 3 but it would make drawdown a bit more confusing and tax wise I suppose. 
Not confident using ETF's as I am not a hardened investor so use multi asset funds for simplicity again

MallyGirl

The separate comment is only important if you might get near LTA and want to employee strategies to manage that (such as crystallising some early and keeping the crystallised pot in lower risk funds to temper growth).

Albermarle

ian16527 said:

I really wanted to simplify it all into one platform.
I have though about having it split into 3 but it would make drawdown a bit more confusing and tax wise I suppose. 
Not confident using ETF's as I am not a hardened investor so use multi asset funds for simplicity again

The difference between Fidelity and AJ Bell in terms of fees is relatively small . If you stick with multi asset funds and  you have over £250K , Fidelity is cheaper at 0.2% but may go back up again to 0.35% when if the pot goes down .
With less than £250K , A.J Bell is cheaper but they have some added charges to watch out for - £1.50 for each fund buy or sell 
A £10 fine if they have to sell an investment to pay their fees .
If you transfer in to them and then out again after 12 months , another fine of £290 . 

Probably comes down to which you prefer to deal with based on recent experience.

Alexland

Albermarle said:

Probably comes down to which you prefer to deal with based on recent experience.

Although with Fidelity once you get to Wealth even your normal secure messages are handled by a different team. Holding a multi asset fund is fine for accumulation but in drawdown I would want more control especially if needing to sell something to maintain income when the prices of some assets are low.

TBC15

Alexland said:

MallyGirl said:

with those figures a fixed fee provider would probably be cheaper

Yes or switching some/all of the investments into ETFs/ITs for capped charges.

Fidelity does a fully functional SIPP in monthly drawdown for £63 per year if your SiPP is held in ETFs, hard to beat. My SIPP is with Fidelity.

noh

TBC15 said:

Alexland said:

MallyGirl said:

with those figures a fixed fee provider would probably be cheaper

Yes or switching some/all of the investments into ETFs/ITs for capped charges.

Fidelity does a fully functional SIPP in monthly drawdown for £63 per year if your SiPP is held in ETFs, hard to beat. My SIPP is with Fidelity.

I'm thinking of moving to Fidelity from AJ Bell.

I thought the only fee would be the custody charge of £45.
What is the other £18 for?