AJ Bell or Fidelity for drawdown

Alexland

noh said:

What is the other £18 for?

I guess it's £1.50 per trade as part of a regular withdrawal plan?

TBC15

noh said:

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?

Every month Fidelity automatically sells off the required amount of shares to meet my monthly drawdown plus fees, this costs £1.50 per transaction. Bit of a bargain.

Albermarle

noh said:

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?

If you are worried about £18 then maybe you are focusing too much on platform costs 

noh

Albermarle said:

noh said:

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?

If you are worried about £18 then maybe you are focusing too much on platform costs 

I am not worried about £18.
I simply asked what the other £18 was for.
It appears that TBC15 is paying his fees by selling holdings at a cost of £1.50 a month rather than keeping a balance in the cash management account to pay the fees from outside the SIPP.
At present my annual fees with AJ Bell are £240 they would be £45 at Fidelity.

TBC15

noh said:

Albermarle said:

noh said:

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?

If you are worried about £18 then maybe you are focusing too much on platform costs 

I am not worried about £18.
I simply asked what the other £18 was for.
It appears that TBC15 is paying his fees by selling holdings at a cost of £1.50 a month rather than keeping a balance in the cash management account to pay the fees from outside the SIPP.
At present my annual fees with AJ Bell are £240 they would be £45 at Fidelity.

I’m drawing down £1150 per month and this is what it costs me.

MoneySavingGerbil

Albermarle said:

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.

AJ Bell is 0.25% below 250K and then 0.1% on anything above 250K and less than £1m. My maths might be dodgy, but doesn't that make the tipping point where they again become cheaper than Fidelity once you have more than £375K ?

The Fidelity wording is interesting though. It reads to me as if SIPP + ISA funds are treated as one. So if you have a total of more than 250K in SIPP + ISA combined with them then do you get the 0.2% rate applied across the lot? As far as I can tell AJ Bell's ISA and SIPP charging structure is completly separate for each type of investment.

If anyone with Fidelity can confirm that the 0.2% applies across SIPP + ISAs combined then I might be moving funds. I haven't been impressed of late with AJ Bell's lacklustre response times and general efficiency.

Albermarle

The Fidelity wording is interesting though. It reads to me as if SIPP + ISA funds are treated as one. So if you have a total of more than 250K in SIPP + ISA combined with them then do you get the 0.2% rate applied across the lot? As far as I can tell AJ Bell's ISA and SIPP charging structure is completly separate for each type of investment.

Yes with Fidelity they count all funds on the platform together . So if you had £150K SIPP + £75K ISA and £25K in the general investment account , your platform fee drops to 0.2% for all the funds .
Also any family member living at the same address, with a Fidelity account , automatically gets the 0.2% and are registered as a 'Wealth' customer even if they only have a few grand invested .
I think with A J Bell and HL , you need to have £250K in a specific account , like a SIPP . to get the lower rates and these do not apply to funds below £250K which stay on the higher rate.

If any of your investments are 'exchange traded' ( means shares; ETF's & Investment Trusts) the Fidelity fee is capped on those to £45 ,again for all accounts ,  although it is £10 to actually buy them. 

Fidelity have a transfer cashback offer at the moment and it applies to SIPP's or ISA's or a combination of the two. 

Although Fidelity's headline fee of 0.35% looks expensive for larger sums , it starts to look more competitive above £250K and with the £45cap on exchange traded products. Plus no charges for drawdown or almost anything else .
For very large sums and mainly in OEIC funds , then a fixed rate provider , like iweb or ii , will always win out.

Alexland

Albermarle said:

For very large sums and mainly in OEIC funds , then a fixed rate provider , like iweb or ii , will always win out.

iWeb still charge extra for drawdown (despite their underlying SIPP provider AJ Bell dropping the charge for direct customers) so for if the OP really must stick to traditional funds then II would be cheaper although with the recent talk of them being acquired their new owners might want to adjust the charging model again.