Hargreaves Pension Cashback

Albermarle

ColdIron said:

bownyboy said:

NedS said:

The cap for a HL SIPP is £200/year (£16.66/month) for shares, ITs and ETFs. 

HL ISAs are capped at £45 for shares, ITs and ETFs.

There is no combining of accounts like some other platforms, so you will pay fees as appropriate on each individual account.

Thanks. I'd just read this too. So total cost of £245 a year for and ISA and SIPP compared to £263 for ii.

Yes, as long as you avoid funds

Even if you had a couple of funds as well and the total cost was £500 a year, you would still be quids in.

Ciprico

In so far as flexibility, ease of use and features when in draw down are the any obvious differences between ii and hl.

I am tempted, but could well start drawing within the year

My SIPP contains CSH2, SWLD, and Gilts

So HL, would provide slightly lower fees, and cash-back - no brainer..?

I appreciate the transfer has to complete first...

DavidT67

Ciprico said:

In so far as flexibility, ease of use and features when in draw down are the any obvious differences between ii and hl.

I am tempted, but could well start drawing within the year

My SIPP contains CSH2, SWLD, and Gilts

So HL, would provide slightly lower fees, and cash-back - no brainer..?

I appreciate the transfer has to complete first...

HL charges separately for the SIPP drawdown account which holds your crystallised funds.  So that's potentially another £200 platform fee each year. 

II doesn't charge additional fees for drawdown.

michaels

bownyboy said:

I've recently seen this offer and have decided to take it up. Me and my wife both have an ISA and SIPP with ii both in Vanguard FTSE Global All Cap.

As part of the transfer options we can sell the OEIC fund and reinvest in the Vanguard Global All Cap ETF instead to cap costs at £45 p/a as I understand it.

Seems like a no brainer and means we can get £2,500 cashback each.

Does this risk spending a length of time out of the market?  What will II charge to sell the OEIC during the transfer?

More generally are any implications on holding the same fund as an ETF rather than a traditional fund - different protection? 

bownyboy

michaels said:

Does this risk spending a length of time out of the market?  What will II charge to sell the OEIC during the transfer?

More generally are any implications on holding the same fund as an ETF rather than a traditional fund - different protection? 

No charges to exit from ii. Time out of the market? Maybe a few days?

Difference between OEIC and ETF? Nothing that I can see apart from the obvious such as OEIC having a bid / sell price once a day vs ETF being real-time. Also ETF prices per share vs OEIC being open-ended.

jamesd

DavidT67 said:

Ciprico said:

In so far as flexibility, ease of use and features when in draw down are the any obvious differences between ii and hl.

I am tempted, but could well start drawing within the year

My SIPP contains CSH2, SWLD, and Gilts

So HL, would provide slightly lower fees, and cash-back - no brainer..?

I appreciate the transfer has to complete first...

HL charges separately for the SIPP drawdown account which holds your crystallised funds.  So that's potentially another £200 platform fee each year. 

II doesn't charge additional fees for drawdown.

Ii charges a trading fee every time you sell something to get the cash to withdraw. HL doesn't have this charge for funds.

HL can also be cheaper, potentially free, in drawdown because it has no fixed monthly cost to pay.

jamesd

Remember this doesn't have to be an all or nothing situation. You can do something similar to what I do:

1. Have a core account, a Standard Life former work pension with big cost discount in my case, maybe something like Ii for others.

2. Transfer some money periodically to HL to get the cheap to free fund and cash drawdown. No monthly charges even when drawing down, no trading charges for funds and the 0.45% HL platform charge matters little if most of your money is in cash to avoid investment volatility while awaiting drawing.

A mixture like this can get you a best of both worlds situation by avoiding the transaction costs of sales to generate the cash you're drawing down without paying potentially high percentage costs if you want to use funds.

Ciprico

Its a bit of a specific question, does anyone know if you can do a partial withdraw from II to HL.

My company pays directly into II by salsac and it will a hassle to change that over...

granta

Ciprico said:

Its a bit of a specific question, does anyone know if you can do a partial withdraw from II to HL.

My company pays directly into II by salsac and it will a hassle to change that over...

I have previously done a partial in specie transfer from ii to HL. I think it required a little extra paperwork to sign and give clear instructions of what holdings I wanted transferred but was otherwise quite straightforward

Ciprico

Thank you, I also confirm partial transfers out are allowed by II after speaking to them.

I plan to transfer all the assets, and sell the few bombed out funds I have once they arrive at HL, as they sell funds at no charge.

The amount HL use for the cash back is the amount that finally settles in the new HL SIPP, so if there is a market reduction and the value falls, you may find yourself in a lower cashback bracket than you expected....