Interactive Investor SIPP question

artyboy

OP, if you do decide to go ahead with this, try and get someone to refer you and you'll get your first year free of platform charges (link with details below). 

I referred Little Miss Arty a couple of months ago - she was opening her first S&S ISA - so know it works...

https://www.ii.co.uk/recommend-ii/customer

stevc

MetaPhysical said:

I note there is a fee of 12.99 per month.  Is this the II "platform fee"?  You also have to pay a percentage fee - albeit smallish generally around the 0.2% mark - for the various funds that you decide to invest in???
Trying to do the numbers.  My workplace pension offers a fee of 0.3% so by the time the platform fee and fund fee at II are added together it doesn't seem such a good deal.  Am I missing something?

I am not sure if my current pension savings vehicle at my Aviva fund offers UFPLS.  if it doesn't - I will call them to check - then it may be the right time to move the fund now to II.

MetaPhysical said:

I note there is a fee of 12.99 per month.  Is this the II "platform fee"?  You also have to pay a percentage fee - albeit smallish generally around the 0.2% mark - for the various funds that you decide to invest in???
Trying to do the numbers.  My workplace pension offers a fee of 0.3% so by the time the platform fee and fund fee at II are added together it doesn't seem such a good deal.  Am I missing something?

I am not sure if my current pension savings vehicle at my Aviva fund offers UFPLS.  if it doesn't - I will call them to check - then it may be the right time to move the fund now to II.

i pay £ 21 per month Sipp over 50k, ISA stocks and shares and trading account with Interactive Investor

FIREmenow

You need to factor in the exact size of your ISA/SIPP pots to decide if a flat fee or percentage broker is better. 

£49,999 in an ISA with ii has a monthly charge of £4.99.
59.88/49999*100= 0.12% platform fee

Put in a quid more, £50,000 and monthly charge increases to 11.99.
143.88/50000*100= 0.29% platform fee

£500,000 @11.99 = 0.029%

With ii you get one free monthly trade on the 11.99 tier, then it's 3.99 per trade as it is with the 4.99 tier. You can trade for free if you set up regular investing.

I transferred an ISA to ii recently, I'll transfer it to my iWeb ISA when it is nearing £50k to avoid the payment hike. Until then I'm using regular investing at ii to fund it without trading fees, and received £300 cashback, so platform and transaction costs are less than my previous platform Vanguard.

MetaPhysical

I am seriously considering moving out of Aviva at 0.32% charges into II with my DC pension (about 550k at present) and moving the money into a Vanguard 60:40 Equities/Bonds split or maybe 80% in that and the other 20% in an 80:20 split.

It's a big move to make now I am closer to retirement but I like the idea of being able to do exactly what I want with my fund.  I am just very worried that when the transfer happens I will be out of the market for a few weeks whilst all the shenanigans takes place in the background.  Worse still the money goes walkabout for a few weeks/months.

Albermarle

MetaPhysical said:

I am seriously considering moving out of Aviva at 0.32% charges into II with my DC pension (about 550k at present) and moving the money into a Vanguard 60:40 Equities/Bonds split or maybe 80% in that and the other 20% in an 80:20 split.

It's a big move to make now I am closer to retirement but I like the idea of being able to do exactly what I want with my fund.  I am just very worried that when the transfer happens I will be out of the market for a few weeks whilst all the shenanigans takes place in the background.  Worse still the money goes walkabout for a few weeks/months.

IF the 0.32 % is 'all in' ie including platform and fund costs, then this is already quite low, so any savings from moving are never going to be great.
Any small movement in markets during the transfer could make a much bigger difference ( either way ).

On the more positive side, Aviva seem to be generally pretty quick for transfers out, although there are different parts of Aviva. Legacies from past takeovers.

techno12

I transferred my Aviva pension to ii a couple of months ago. Took 4 or 5 days as it was a cash transfer (I wanted to choose my own funds at ii so wasn't interested in an in-specie transfer of the Aviva funds).

The value did go down £2k during this process, but it could have gone up just the luck of the draw with the markets.

I now have half in a MMF and the other I'm trading in/out of a global stocks ETF (I know I know but I quite enjoy it, and if there's a correction or crash I can move the MMF into it)

MetaPhysical

Albermarle said:

MetaPhysical said:

I am seriously considering moving out of Aviva at 0.32% charges into II with my DC pension (about 550k at present) and moving the money into a Vanguard 60:40 Equities/Bonds split or maybe 80% in that and the other 20% in an 80:20 split.

It's a big move to make now I am closer to retirement but I like the idea of being able to do exactly what I want with my fund.  I am just very worried that when the transfer happens I will be out of the market for a few weeks whilst all the shenanigans takes place in the background.  Worse still the money goes walkabout for a few weeks/months.

IF the 0.32 % is 'all in' ie including platform and fund costs, then this is already quite low, so any savings from moving are never going to be great.
Any small movement in markets during the transfer could make a much bigger difference ( either way ).

On the more positive side, Aviva seem to be generally pretty quick for transfers out, although there are different parts of Aviva. Legacies from past takeovers.

Yes, all in at 0.3%. I spoke with Aviva and they said they will continue to honour that employer negotiated discounted rate even after I retire and start taking UFPLS from it.  Consequently,  I am reconsidering now whether it is worth moving because I'm not sure II can beat that by enough to make the move worthwhile.  The fund choice matches what I want with Aviva as well.

I do like the II platform and app and it looks a good medium. 

MetaPhysical

techno12 said:

I transferred my Aviva pension to ii a couple of months ago. Took 4 or 5 days as it was a cash transfer (I wanted to choose my own funds at ii so wasn't interested in an in-specie transfer of the Aviva funds).

The value did go down £2k during this process, but it could have gone up just the luck of the draw with the markets.

I now have half in a MMF and the other I'm trading in/out of a global stocks ETF (I know I know but I quite enjoy it, and if there's a correction or crash I can move the MMF into it)

Hi Techno12, may I ask why you moved from Aviva?  Did you get an employer discounted rate whilst you were with them?  If so why did you move? 

cloud_dog

MetaPhysical said:

Albermarle said:

MetaPhysical said:

I am seriously considering moving out of Aviva at 0.32% charges into II with my DC pension (about 550k at present) and moving the money into a Vanguard 60:40 Equities/Bonds split or maybe 80% in that and the other 20% in an 80:20 split.

It's a big move to make now I am closer to retirement but I like the idea of being able to do exactly what I want with my fund.  I am just very worried that when the transfer happens I will be out of the market for a few weeks whilst all the shenanigans takes place in the background.  Worse still the money goes walkabout for a few weeks/months.

IF the 0.32 % is 'all in' ie including platform and fund costs, then this is already quite low, so any savings from moving are never going to be great.
Any small movement in markets during the transfer could make a much bigger difference ( either way ).

On the more positive side, Aviva seem to be generally pretty quick for transfers out, although there are different parts of Aviva. Legacies from past takeovers.

Yes, all in at 0.3%. I spoke with Aviva and they said they will continue to honour that employer negotiated discounted rate even after I retire and start taking UFPLS from it.  Consequently,  I am reconsidering now whether it is worth moving because I'm not sure II can beat that by enough to make the move worthwhile.  The fund choice matches what I want with Aviva as well.

I do like the II platform and app and it looks a good medium. 

Aviva also doesn't appear (from what I can see as I don't have an Aviva account) to apply a cost for drawdown, which is one of the additional benefits II (and some others have e.g. Fidelity etc).

Albermarle

MetaPhysical said:

techno12 said:

I transferred my Aviva pension to ii a couple of months ago. Took 4 or 5 days as it was a cash transfer (I wanted to choose my own funds at ii so wasn't interested in an in-specie transfer of the Aviva funds).

The value did go down £2k during this process, but it could have gone up just the luck of the draw with the markets.

I now have half in a MMF and the other I'm trading in/out of a global stocks ETF (I know I know but I quite enjoy it, and if there's a correction or crash I can move the MMF into it)

Hi Techno12, may I ask why you moved from Aviva?  Did you get an employer discounted rate whilst you were with them?  If so why did you move? 

I transferred from Aviva, because my ex employer seemed to have not negotiated a discount at all, and I was paying 1%.