Using same platform for SIPP+S&SISA

noclaf

I currently use Vanguard for my S&SISA and Fidelity for SIPP/JISA, I only just realised the Fidelity S&SISA also has capped fees for ETF's.

At my current S&SISA valuation on Vanguard (using a single Global Equity OEIC fund), I would save on fees by moving to Fidelity and using ETF's, the fees saved will increase next year when I top up the S&S ISA. So it seems a no brainer... However....

Am I introducing more risk by using the same platform for SIPP/S&SISA and by using *ETF's for the vast majority of my investments rather than a combo of OEIC and ETF's?

*I tend to only use large well established ETF's (such as HMWO and VEVE currently) but it's possible in the future I will use smaller less liquid ETF's e.g: regional/country/industry tilts

MX5huggy

Would you be better off using iWeb with its one of £100 platform joining fee? 

noclaf

MX5huggy said:

Would you be better off using iWeb with its one of £100 platform joining fee? 

Good shout, think it would end up being cheaper than Fidelity after 2-3 years. I wouldn't be 'trading' much as prefer to add lumps and invest and will likely use a single cheap global equity ETF.

Any idea how long a transfer would take from Vanguard to IWeb assuming it's done as cash transfer? (I have no interest in trying to transfer 'in speccie').

Albermarle

FYI, the £45 capped fee on Fidelity for ' exchange traded products' is for the whole platform, not £45 for the SIPP and £45 for the ISA.

The platform savings you are potentially looking at are minute, compared to how quickly the value of investments change.
For example if you transferred in cash from Vanguard to iweb, you might be  out of the market for a week or two. If the market went up only a couple of % in that time, your loss would be far higher than any platform fees saved.

Or if you pick one ETF over another, the difference in performance ( good or bad) will probably have hundreds times more effect than small savings on platform fees.

noclaf

Albermarle said:

FYI, the £45 capped fee on Fidelity for ' exchange traded products' is for the whole platform, not £45 for the SIPP and £45 for the ISA.

Thanks, that's quite a good deal overall. Would having both SIPP and S&SISA on a single platform be a concern e.g: hacking or other issue that brings the platform down.....I am at minimum 16 years away from retirement so wouldn't be an issue for SIPP and S&SISA is meant to be a long term investment vehicle too so I would hopefully not need access for a while.... 

The platform savings you are potentially looking at are minute, compared to how quickly the value of investments change.
For example if you transferred in cash from Vanguard to iweb, you might be  out of the market for a week or two. If the market went up only a couple of % in that time, your loss would be far higher than any platform fees saved.

Agreed but if I add up the fee difference over the next 15+ years then it becomes significant between using capped/no fee platform Vs Vanguard's 0.15%...ack my S&SISA is sub 100k value at the mo...though in a few years could go above that value at which point platforms fees become more important?

Or if you pick one ETF over another, the difference in performance ( good or bad) will probably have hundreds times more effect than small savings on platform fees.

for this reason and the fact I am not fully comfortable having investments concentrated in a single fund/etf I don't use the same ETF's across investments e.g: HMWO in LISA, VEVE in SIPP and for S&SISA might go with SWDA fully aware that mixing indices could mess up my allocations due to the differences between FTSEvsMSCI for example

Thanks Albermarle, responses above

EdSwippet

Albermarle said:

For example if you transferred in cash from Vanguard to iweb, you might be  out of the market for a week or two. If the market went up only a couple of % in that time, your loss would be far higher than any platform fees saved.

Or, avoid time out of the market with an 'in specie' transfer.

noclaf

EdSwippet said:

Albermarle said:

For example if you transferred in cash from Vanguard to iweb, you might be  out of the market for a week or two. If the market went up only a couple of % in that time, your loss would be far higher than any platform fees saved.

Or, avoid time out of the market with an 'in specie' transfer.

If I had a fairly significant sized ISA and wanted to retain the same investments then would consider in speccie.... however it's circa £35k currently hence my thinking is to transfer the cash after selling investments and accept the market will be moving around as it always does....with a long term horizon not sure 2 weeks will really make a huge diff either way....unless there is a 30+% drop in the market during the transition period.and it goes back up before I can put my buys through

Aim is to open new account before next April then add the 23-24 allowance to the existing balance and purchase a global equities etf.....it will be one of either VEVE/HMWO/SWDA unless for any reason I decide to change investments to something else etc

LHW99

with a long term horizon not sure 2 weeks will really make a huge diff either way.

There is the possibility with an in specie transfer that 2 weeks is (very) optimistic

noclaf

LHW99 said:

with a long term horizon not sure 2 weeks will really make a huge diff either way.

There is the possibility with an in specie transfer that 2 weeks is (very) optimistic

I've heard some horror stories so keen to avoid in specie....saying that I wouldn't have huge concerns with the big established players such as Fidelity, Vanguard and iWeb (not familiar with iWeb though)
Earlier this year used a cash transfer from an old pension administered by Capita to be transferred to Fidelity....the platform used by Capita was akin to something from the stone ages and surprise surprise when it came to transfer (even though it was straightforward cash transfer for a value less than £30k) it was a slow arduous and painful process that needed lots paperwork that had to be resubmitted etc Compare that to a further pension transfer from SL to Fidelity.. absolutely seamless and quicker than expected, no faffing about with paperwork and inefficient process etc

El_Torro

I currently have 3 platforms. All 3 contain my pension(s) and two of them both have S&S ISAs in them. 

I like having my ISAs split. Since I can access the money whenever I want to (whether I should access the money at a particular given time is another matter) I like knowing that if there's a technical issue (or whatever) in one of the platforms I can still access my money in the other platform.

Pensions are less of an issue today, since I am over a decade away from being allowed to access the money there. I guess I'm planning ahead for when I can access it. 

Sure, having just one platform is probably the most cost effective thing to do, assuming you choose the right platform. I like having contingency though. Also HL is one of the platforms I use, which shows I haven't really put much weight into the amount of fees I'm paying.