Transferring SIPP from Hargreaves Lansdown to Vanguard

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82073893#Comment_82073893

If you have one investment fund that costs 0.4% , or five investment funds that cost 0.4%, the end cost is the same.

Luckybonus

I see, thanks for the advice, I didn't realise!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82074442#Comment_82074442

Actually I will amend my post. so it is 100% clear as follows:

If you have one investment fund of £10,000 that costs 0.4% , or five investment funds of £2,000 each that cost 0.4%, the end cost is the same.

Luckybonus

Thankyou so much for making it clear, I really appreciate it. I feel a bit stupid for transferring from Hargreaves Lansdown now as they have sold all in my investments and I am awaiiting the transfer to Vanguard and then I guess i choose my investments, was thinking of picking one of their managed funds as someone here suggested that may be best. I don't know if I have made things worse!

i would be happy picking and monitoring a few funds, it's hard to keep track of things and diversify etc and undertand buying and selling, so maybe i should stick with a managed fund. I thought I could make good investment choices, despite all my learning I still feel a novice in some areas. Maybe a managed fund invested in a few things will be enough for my SIPP £6500 balance for now, I can then leave it with the fund manager and not worry or have to do too much! Thanks for all your pointers

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82080261#Comment_82080261

Your most appropriate option is to buy a single fund. Before you can do that, you need to decide how much risk you are willing and able to accept. Vanguard's Life Strategy funds are the obvious choice, since you are moving to Vanguard. You can then move your fund to another cheaper platform. Other fund mangers offer similar funds, which could do better or worse, but it is not worth fretting about that.

toothdoctor

Vanguard are expensive for low balances. £4 minimum a month or 0.15% whichever is greater. Actively managed funds are generally more expensive. Not advice but I would stay away from an actively managed fund and invest in a low cost global fund such as FTSE global all cap (VAFTGAG) or a global all world ETF such as VWRP drip feed in every month and set to autoinvest. You can then think about transferring (in species) again to a fee free platform such as Freetrade, T212 or InvestEngine depending on what fund\ETF you chose. Again not advice but just an opinion

Luckybonus

thankyou so much everyone, I really appreciate your advice. Have a great day :)

Luckybonus

I thought Vanguard was low cost 0. 15%

GeoffTF

0.15% is not low cost for large accounts. Vanguard caps the charge to £375, but that is still a lot more expensive than the competition. Vanguard's target market appears to be people who do not compare prices.

FT8

I think your move from HL to Vanguard is a good long term move. Personally I would stick with Vanguard as the platform of choice:

• A very low fee / zero fee platform - who's paying for this / why is it free / very low fee? You may be the product, the firm may be building a customer base to sell to another firm to make a profit, fees are then hiked. The spread on ETFs may be wider - a means of making money from you which you aren't aware of. They are making money from you somehow, it isn't obvious.
• Vanguard is one of the largest global platforms. The chances of them going out of business or selling is very low.
• Vanguard was founded in it's customer's interests. I don't think you can say that about other platforms. For me this is a very strong reason to stick with Vanguard.
• Vanguard's platform fee is low fee.
• I've never had a problem with their web site and I wouldn't call it buggy. I've been a customer for many years.
• I once had a problem with delays with a SIPP transfer. They eventually sorted it out and I received a few hundred pounds from Vanguard. They were good to deal with.
• FSCS investment protection: are you covered by the investor compensation scheme? - I suspect smaller platforms are more susceptible to fraud and other issues than larger platforms.

I use Vanguard for my GIA, SIPP and ISA. I also use AJ Bell for another SIPP & GIA for holding gilts. As I approach retirement I'll keep two accounts in case I'm locked out of one in retirement.

Investment wise. If you aren't going to need the money for decades, I'd invest in a global equity fund like FTSE All World or FTSE Global All Cap. If you are risk adverse, maybe add 20% global bonds.