Leave it or move it?

degs88

When I was made redundant a few years ago I opened a SIP with HL mainly for the purpose of reclaiming some income tax. Since the initial transfer it hasn't (and won't) receive any more funding and I haven't withdrawn anything. For the last year or so the SIP been pretty static sitting at about 70k with any gains being cancelled out by charges. 

Just wondering is there a better place for this money or is it reasonably sensible to leave it there?

Thanks for any thoughts. 

dunstonh

Just wondering is there a better place for this money or is it reasonably sensible to leave it there?

You haven't told us where it is.  Or what your objectives are for it.  All we know if the administrator for the pension and that isnt enough.

we need more info

ian16527

What funds are you invested in? 
HL has high platform costs compared to other platforms
If you are using Vanguard funds you would save 0.3% in platform fees a year, £105 compared to £315 for a start

degs88

Sorry, been in a poor reception area so couldn't reply.
I'll check it out and get back.

El_Torro

If it's in one of HL's ready made funds then it's probably best to move it. They're very expensive and the performance doesn't reflect the high cost. 

If the money is in a third party fund then HL do have high platform costs, though I wouldn't be too concerned about that. Just depends what you're invested in.

degs88

Is this the info you require?

All Hargreaves Lansdown Multi Manager:

Special Situations Trust Class M - 45%

Balanced Managed Trust Class M - 38%

Strategic Bond Trust Class M - 17%

El_Torro

degs88 said:

Is this the info you require?

All Hargreaves Lansdown Multi Manager:

Special Situations Trust Class M - 45%

Balanced Managed Trust Class M - 38%

Strategic Bond Trust Class M - 17%

Looks like this is one of those ready made funds that HL do. Essentially it's a trap to make people give more of their money to HL than they need to. Looks like you're paying at least 1.00% annually for the fund and HL's platform charge of 0.45% is on top of that. You could pay less by going with an IFA. You're currently paying more than what an IFA would charge you, with none of the benefits of using an IFA. 

So yes, I would move your money. You have various options. One would be to stay with HL but put your money in a more reasonably priced multi asset fund, where your annual fund charge would be about 0.20%. The HL platform charge of 0.45% would still apply. Another option is to still go with a multi asset fund but in a cheaper platform. HL are about as expensive as it gets when it comes to DIY investments. HL aren't all bad though, they do have good customer service. I use them myself for some of my investments.

I haven't outlined all the options open to you, but to answer your original question: Yes, move your money.

Bostonerimus1

degs88 said:

Is this the info you require?

All Hargreaves Lansdown Multi Manager:

Special Situations Trust Class M - 45%

Balanced Managed Trust Class M - 38%

Strategic Bond Trust Class M - 17%

Nothing terrible about H&L as a platform, but if you are dissatisfied with the performance of your investments inside the pension wrapper then change them. I think it is time for you to learn the basics of investing and how to take care of your money. I'm always amazed that people seem to be so cavalier with some of their greatest assets.

barnstar2077

Picking a fund or two on Vanguards own platform would save you a nice amount over the years.

How old are you?  How long is it until you want to withdraw some money?  Will you take all of the money quickly once you start to withdraw, or will you be taking some out over twenty plus years?  Are you happy if it goes up and down a bit over time, with hopefully more long term gains, or would you struggle to hold your nerve if it dropped over night?

degs88

Thanks for the comments and advice. I think I'll give HL a ring and see what they have to offer. Don't have a problem with talking to Vanguard either. I don't have a desire to swot up on funds etc and much prefer to pay a little more for a managed fund. In terms of the money in the HL SIP that the original Q was about I don't have any plans to access the money for a few years at the earliest though it won't be 20 years. I'm in my late 60's.
Thanks again.

Linton

Just checked the funds- pretty well diversified and a moderately but not excessively high risk portfolio as a whole..  Each fund's peformance looks somewhat mediocre but nothing disastrous.  The past year or two have been somewhat difficult for most people.  A reasonable but different set of funds cdould well have been better but would not have made a life-changing difference.  A different platform could perhaps have given you 0.5-1% return.  Useful, but again not life-changing.

Your problem going elsewhere is what funds do you choose and on what basis.  It will very much depend on what you want - @barnstar2077 is asking the sort of questions you need to be able to answer to make a rational choice.  Appropriateness is more important than returns.