advice on regular payments into a SIPP please

ColdIron

kinger101 said:

For a start, there's a minimum purchase requirement.  And if you purchased 6 ETFs, even at £1.50 per trade, that's 9% of your money down the drain in acquisition costs

For completeness:

The minimum purchase with Monthly Savings is £25. Not an issue for open ended funds as you can buy fractions of a unit to many decimal points. Fine for most shares/ETFs but an issue if the share price is above £25

Open ended funds are free to trade and the £1.50 fee for ETFs was scrapped quite some time ago now

sadexpunk

"Fidelity's would be capped at £90."

just had a look and it would appear they have other fees on top. 
"In addition to our service fee, there may also be charges set by the company managing your funds, and there will be additional charges for any share dealing you engage in. "

i should really have checked first tho, i have a low value ISA with fidelity too, so would have been 'neater' to have had everything in the same place.  no worries, done now, transfer to II is in progress.

NoMore

please learn how to use the quote function. Bottom left of every post there's a quote button, this will copy the post into your own with the quote box, you can also edit this quote if you don't want to quote everything. 

It will make your posts easier to read as its the format everybody else uses to quote, it makes it easy to go back to the original quote to see more context if required and by default if makes it easy to see who the original quote is from.

sadexpunk

NoMore said:

please learn how to use the quote function.

done

i think i went with the speech marks cos i initially just wanted to quote a small section of a post and then just carried on doing it that way.   thanks for the heads up, its not toooo difficult to do so ill continue to quote properly.

thanks

LHW99

"ETF's" are Exchange Traded Funds, frequently index trackers offered for example by iShares and others.

Scottish Mortgage is a particular type of "fund" known as an investment trust (IT). These are treated similarly to shares and ETF by many platforms.

just had a look and it would appear they have other fees on top. 
"In addition to our service fee, there may also be charges set by the company managing your funds, and there will be additional charges for any share dealing you engage in. "

The "charges set by the company managing your funds" is telling you that whatever type of fund (OIEC, IT, ETF) you buy, the company that manages it (eg Blackrock, Invesco etc) also has to be paid. The "OCF" number, generally from ~0.1% up to >1%, tells you something about this, but the value of your investment, as shown by HL / II etc is the value taking these into account. You are not paying the OCF separately.

Cash savings accounts also have charges, but these are never spelled out, so no-one considers it.

kinger101

sadexpunk said:

"Fidelity's would be capped at £90."

just had a look and it would appear they have other fees on top. 
"In addition to our service fee, there may also be charges set by the company managing your funds, and there will be additional charges for any share dealing you engage in. "

i should really have checked first tho, i have a low value ISA with fidelity too, so would have been 'neater' to have had everything in the same place.  no worries, done now, transfer to II is in progress.

I was referring to the platform fee.  The fees charged by the fund tend to be the same across the platforms.  

sadexpunk

just had a secure message from II regarding my transfer from HL.

We have reviewed the valuation of assets from your current provider. Unfortunately, we don’t support the following investments on our platform. Please review the options available going forward.

 

Uncrystallised: (not in drawdown)

 

LINDSELL TRAIN LIMITED GLOBAL EQUITY D NAV IE00BJSPMJ28 - Alternative share class available: IE00B3NS4D25

GLOBAL VALUE EQUITY X GBP ACC UNHGD GB00BF5DRJ63 - Alternative share class available: GB00BF5DS374

 

You can choose from one of the following options:

 

1) Keep the investments with your current provider

2) Sell and transfer as cash (GBP)

3) Convert the investments to another class

whats the best option here?  sell, then transfer as cash?  especially if im looking at maybe cashing in my 6 funds and starting those 3 recommended earlier?  so start from scratch once the transfers done?

i dont really understand option c, and dont particularly want a small SIPP left with HL (2 sets of fees).

thanks

Dazed_and_C0nfused

sadexpunk said:

just had a secure message from II regarding my transfer from HL.

We have reviewed the valuation of assets from your current provider. Unfortunately, we don’t support the following investments on our platform. Please review the options available going forward.

 

Uncrystallised: (not in drawdown)

 

LINDSELL TRAIN LIMITED GLOBAL EQUITY D NAV IE00BJSPMJ28 - Alternative share class available: IE00B3NS4D25

GLOBAL VALUE EQUITY X GBP ACC UNHGD GB00BF5DRJ63 - Alternative share class available: GB00BF5DS374

 

You can choose from one of the following options:

 

1) Keep the investments with your current provider

2) Sell and transfer as cash (GBP)

3) Convert the investments to another class

whats the best option here?  sell, then transfer as cash?  especially if im looking at maybe cashing in my 6 funds and starting those 3 recommended earlier?  so start from scratch once the transfers done?

i dont really understand option c, and dont particularly want a small SIPP left with HL (2 sets of fees).

thanks

I think in simple terms it means those funds (might) have other variations, for example the Global Value is an Accumulation fund and they might support the Income version (if there is such a version).

But you have really answered your own question, if you don't want to leave anything with HL and won't necessarily be keeping the existing funds anyway selling them seems the way to go.

sadexpunk

But you have really answered your own question, if you don't want to leave anything with HL and won't necessarily be keeping the existing funds anyway selling them seems the way to go.

thank you.  i seem to remember them saying i can either sell them myself (cheapest) or get them to do it for a larger fee.  do you know how id actually do it myself?  it might make sense to find out what the fee would be first i suppose.....

LHW99

"Converting" just means you would end up with the offered alternative fund class at II.

Were these ones you have held for a long time? If so, they are probably ones that were available before RDR (retail distribution review) so are no longer current for investment, although you could keep them if you weren't transferring.