Interactive Investor SIPP Help

MallyGirl

Once you know the tax relief arrival lag you will be able to set up a regular investment for that amount ongoing.

dreamypuma

MallyGirl said:

Once you know the tax relief arrival lag you will be able to set up a regular investment for that amount ongoing.

I think that's the key.

In my case I generally invest a variable amount (usually +/- £200 of my average, depending on what is going on in life that month), and sometimes ad-hoc deposits depending on bonuses etc. 

I guess its part and parcel of being methodical and disciplined from now on, so as to be able to forecast payments, or weighing up the value of paying the ad-hoc trade fee.

It's going to be a learning curve getting into a steady cycle.

How intuitive and useful is the app? I notice it doesn't have great reviews. Does it effectively make web access redundant or is it merely for information?

coyrls

dreamypuma said:

jay_ftw said:

Very interesting deamypuma, I guess have some of the same/similar questions.

My assumption was that I was only entitled to one 'free regular investment' but providing the cash is there in the account and the investments are requested accordingly I suppose multiples can work?

Layman example...

If add £1000 cash, and instruct £950 to invest in the S&P500, and £50 to invest into the FTSE100, would that work?

Another one is the added tax relief, 20% for basic tax payer? So in theory my investment would be £1,200. So should the example be £1140 and £60 respectivly?

From my discussions with them this morning, I believe this should work. The Free Regular Trade element, should allow you to fund multiple funds in your portfolio - The agent mentioned up to 25 but couldn't explain or direct me to the mechanics of doing so without incurring trade fees.

It's this level of ambiguity that is causing me some inertia around transferring. I've had it good with Vanguard with ad-hoc free trades, but I guess this comes at a cost.

I expect re-investing the tax relief would have around an 8 week delay, and then be included (if instructed) on the next cycle of dates they place orders (I believe 12th of each month). So no more getting smart and trying to time the market.

Ultimately I guess were in it for the long run, so requires a new mindset or paying a small and infrequent fee.

I'm still undecided after this mornings experience.

Free regular investing is a feature for all ii plans, not just the SIPP.  I guess you don't have access to the user interface if you don't have an account yet but there is a separate regular investing selection, so there is no question about the mechanics of setting up a regular investment vs a one-off purchase.  I quite often use the regular investing feature for a one off purchase to avoid the trading fee, you just set it up and after the transaction has happened you delete it.  The  main constraint is that the transaction happens on fixed dates.  See https://www.ii.co.uk/help/using-your-account/investing/regular-investing-service

j_netprofit

MallyGirl said:

Once you know the tax relief arrival lag you will be able to set up a regular investment for that amount ongoing.

But if the lag is variable, that would mean constantly altering the amount for the regular saver, right?

dreamypuma said:

jay_ftw said:

Very interesting deamypuma, I guess have some of the same/similar questions.

My assumption was that I was only entitled to one 'free regular investment' but providing the cash is there in the account and the investments are requested accordingly I suppose multiples can work?

Layman example...

If add £1000 cash, and instruct £950 to invest in the S&P500, and £50 to invest into the FTSE100, would that work?

Another one is the added tax relief, 20% for basic tax payer? So in theory my investment would be £1,200. So should the example be £1140 and £60 respectivly?

From my discussions with them this morning, I believe this should work. The Free Regular Trade element, should allow you to fund multiple funds in your portfolio - The agent mentioned up to 25 but couldn't explain or direct me to the mechanics of doing so without incurring trade fees.

It's this level of ambiguity that is causing me some inertia around transferring. I've had it good with Vanguard with ad-hoc free trades, but I guess this comes at a cost.

I expect re-investing the tax relief would have around an 8 week delay, and then be included (if instructed) on the next cycle of dates they place orders (I believe 12th of each month). So no more getting smart and trying to time the market.

Ultimately I guess were in it for the long run, so requires a new mindset or paying a small and infrequent fee.

I'm still undecided after this mornings experience.

The  main constraint is that the transaction happens on fixed dates.  See https://www.ii.co.uk/help/using-your-account/investing/regular-investing-service

Thanks for the link, OK this is quiet annoying...well for my OCD anyway.

So my direct debit gets sucked out on the 12th of every month. However the regular investment is only made on the first Wednesday of each month. So todays (the 12th) DD goes in and sits in the cash account for another 17 business days before it's automatically invested!

Ciprico

You're overthinking it.

It is a great feature and one I will miss as I transfer to HL.

You can have multiple free purchases per month
You can add, delete, alter at any time before they've executed
You can add spurious "Extra" one off purchases to mop up any dividends/spare cash 
You can set the regular purchase for just one month - so essentially a free one off purchase,
(but in that case you can't choose the time or set a limit price.)

Dividends arrive as cash in their own time  - you would need to deal with those separately yourself

II publish the free regular trade purchase dates on their website - there are two per month

All this means you never have to pay to purchase - only to sell

dreamypuma

coyrls said:

dreamypuma said:

jay_ftw said:

Very interesting deamypuma, I guess have some of the same/similar questions.

My assumption was that I was only entitled to one 'free regular investment' but providing the cash is there in the account and the investments are requested accordingly I suppose multiples can work?

Layman example...

If add £1000 cash, and instruct £950 to invest in the S&P500, and £50 to invest into the FTSE100, would that work?

Another one is the added tax relief, 20% for basic tax payer? So in theory my investment would be £1,200. So should the example be £1140 and £60 respectivly?

From my discussions with them this morning, I believe this should work. The Free Regular Trade element, should allow you to fund multiple funds in your portfolio - The agent mentioned up to 25 but couldn't explain or direct me to the mechanics of doing so without incurring trade fees.

It's this level of ambiguity that is causing me some inertia around transferring. I've had it good with Vanguard with ad-hoc free trades, but I guess this comes at a cost.

I expect re-investing the tax relief would have around an 8 week delay, and then be included (if instructed) on the next cycle of dates they place orders (I believe 12th of each month). So no more getting smart and trying to time the market.

Ultimately I guess were in it for the long run, so requires a new mindset or paying a small and infrequent fee.

I'm still undecided after this mornings experience.

Free regular investing is a feature for all ii plans, not just the SIPP.  I guess you don't have access to the user interface if you don't have an account yet but there is a separate regular investing selection, so there is no question about the mechanics of setting up a regular investment vs a one-off purchase.  I quite often use the regular investing feature for a one off purchase to avoid the trading fee, you just set it up and after the transaction has happened you delete it.  The  main constraint is that the transaction happens on fixed dates.  See https://www.ii.co.uk/help/using-your-account/investing/regular-investing-service

Thanks for this. That's correct, I downloaded the app, hoping there was demonstration. But with no account I couldn't try it. This is quite re-assuring. I am sure this will only be an issue during the initial bedding in period after transfer.

dreamypuma

jay_ftw said:

MallyGirl said:

Once you know the tax relief arrival lag you will be able to set up a regular investment for that amount ongoing.

But if the lag is variable, that would mean constantly altering the amount for the regular saver, right?

dreamypuma said:

jay_ftw said:

Very interesting deamypuma, I guess have some of the same/similar questions.

My assumption was that I was only entitled to one 'free regular investment' but providing the cash is there in the account and the investments are requested accordingly I suppose multiples can work?

Layman example...

If add £1000 cash, and instruct £950 to invest in the S&P500, and £50 to invest into the FTSE100, would that work?

Another one is the added tax relief, 20% for basic tax payer? So in theory my investment would be £1,200. So should the example be £1140 and £60 respectivly?

From my discussions with them this morning, I believe this should work. The Free Regular Trade element, should allow you to fund multiple funds in your portfolio - The agent mentioned up to 25 but couldn't explain or direct me to the mechanics of doing so without incurring trade fees.

It's this level of ambiguity that is causing me some inertia around transferring. I've had it good with Vanguard with ad-hoc free trades, but I guess this comes at a cost.

I expect re-investing the tax relief would have around an 8 week delay, and then be included (if instructed) on the next cycle of dates they place orders (I believe 12th of each month). So no more getting smart and trying to time the market.

Ultimately I guess were in it for the long run, so requires a new mindset or paying a small and infrequent fee.

I'm still undecided after this mornings experience.

The  main constraint is that the transaction happens on fixed dates.  See https://www.ii.co.uk/help/using-your-account/investing/regular-investing-service

Thanks for the link, OK this is quiet annoying...well for my OCD anyway.

So my direct debit gets sucked out on the 12th of every month. However the regular investment is only made on the first Wednesday of each month. So todays (the 12th) DD goes in and sits in the cash account for another 17 business days before it's automatically invested!

I like things in boxes too, so feel your pain. I guess you pays your monies...

I'm a bit surprised grouped trades aren't weekly. A bit like Moneybox ISA payment collections. (even that bugs me, but at least its cash not equity / bonds)

This is really dollar cost averaging in it's truest form. Just don't check the app.

dreamypuma

Ciprico said:

You're overthinking it.

It is a great feature and one I will miss as I transfer to HL.

You can have multiple free purchases per month
You can add, delete, alter at any time before they've executed
You can add spurious "Extra" one off purchases to mop up any dividends/spare cash 
You can set the regular purchase for just one month - so essentially a free one off purchase,
(but in that case you can't choose the time or set a limit price.)

Dividends arrive as cash in their own time  - you would need to deal with those separately yourself

II publish the free regular trade purchase dates on their website - there are two per month

All this means you never have to pay to purchase - only to sell

I think your right. Thanks for sharing that dashboard. It makes a bit more sense now. I'll be selling at the end of May, so expect a few trading fee charges. Think I can wear that. Hopefully that's me for the long term then

Steve_666_

MallyGirl said:

I don't make a regular investment to my SIPP with II but I do to my ISA. DD is taken on the 12th and they buy my chosen fund with it approx 5 working days later.
I am sure that the gov 'top up' will happen automatically - and will likely be invested in the same funds/proportion as the regular contribution that you make - but I am sure someone with actual experience will be along to confirm that.

"old" as in long term customers trade "regular investment" on the 3rd Wednesday of the month, "new" as in recent trade on the first Wednesday. All customers DDs take place about the 12th. You would think "new" DDs would occur about
 the 26th, but they dont.

Steve_666_

Troxy said:

I believe ii add tax relief approx 5 to 6 weeks later

My experience is about 10 weeks.