The BEST SIPP ?

averageguy11

i'm with td waterhouse at mo..but looking to trans to sippdeal becos of charges re drawdown etc

dunstonh

A SIPP invested in funds is a commission paying product.

EdInvestor

Gatser wrote: »

I am favouring HL or SIPPDEAL at the moment but just wanted someone to tell me that I am making a silly mistake (and why!)

Either will be fine - HL is cheaper if most is in funds, Sippdeal is cheaper if most is in shares/gilts and also has a higher cash interest rate.Sippdeal (AJ Bell) is arguably the best SIPP administrator in town on the customer service side and is obviously more of a specialist - HL's business is much broader. HL's share dealing service is not rated, but for regular investments in funds, it's much cheaper.


It might be worth having a look at https://www.alliancetrust.co.uk as well. You could also consider starting with HL and then transferring to Sippfeal later closer to drawdown start date.

PR money is likely to be accepted in SIPPs from October.

Gatser

EdInvestor wrote: »

PR money is likely to be accepted in SIPPs from October.

Yes, for others I know...:( ....but not for me.
Std Life confirm that I cannot transfer my Prot Rights in isolation from my With Profits funds (both are within one GPPP) without incurring the wrath of a 25% MVA (Ouch)....you probably remember me mentioning this some months ago. Sad but VERY true. I just have to sit tight for 10 years!

However... I will start to have PR paid into my "NEW" SIPP as soon as they accept PR rebates.

BTW, what happens after 2012 when these rebates are abolished?
Are we all forced back into SERPS?

Gatser

dunstonh wrote: »

A SIPP invested in funds is a commission paying product.

But investment directly in shares can be more risky, I would say, because one would hope that the (better) fund managers are professional stock pickers.

Am I correct?

dunstonh

Gatser wrote: »

But investment directly in shares can be more risky, I would say, because one would hope that the (better) fund managers are professional stock pickers.

Am I correct?

Thats the theory. However, the comment was a response the comment : "I usually get an unbiased and honest answer without a fee, and without me feeling suspicious that I am being steered towards a commission generating product."

If you invest in funds and use say HL or one of the other execution only providers then they keep the commission that would have been paid to an adviser. So, you shouldnt assume that a SIPP is not a commission paying product because with funds it will be. Just look at the HL Sipp and they were they encourage purchasing of funds through their SIPP. The 0.5% fund based trail on 9 billion is a very tasty earner compared to a fixed fee for holding shares.

Gatser

dunstonh wrote: »

If you invest in funds and use say HL or one of the other execution only providers then they keep the commission that would have been paid to an adviser.

So, as you seem to favour SIPPs for "Direct Investments", do you mean SHARES ?

I know you prefer Insurance Company pensions because of the lower costs, but I have found them somewhat inflexible...perhaps I am looking at the wrong ones? So... if I wanted to operate drawdown with investments mainly in Unit Trust funds, where would you tend to go for?
Thanks...

dunstonh

So, as you seem to favour SIPPs for "Direct Investments", do you mean SHARES ?

SIPPs were designed to allow direct investment. That was their purpose. Direct investments are shares, investments trusts etc. The types of investments that were not possible in personal pensions.

I know you prefer Insurance Company pensions because of the lower costs

Not quite. I dont favour any type. When a SIPP is best use a SIPP. When a PPP is best use a PPP. When a SHP is best use a SHP.

but I have found them somewhat inflexible...perhaps I am looking at the wrong ones?

Probably.

So... if I wanted to operate drawdown with investments mainly in Unit Trust funds, where would you tend to go for?

Personally, I would use Selestia but you cant access them without an IFA. There are others but not many will be available without knowing what you want. The online SIPP providers are an advantage to you on that point as they are geared to be sold via the internet. Your case is slightly different to most in that you are looking at drawdown. So if you want that sort of control a SIPP is fine. However, dont be fooled into thinking that there is no commission involved. They are earning identical trail commission to what what be paid to an IFA.

Gatser

dunstonh wrote: »

Your case is slightly different to most in that you are looking at drawdown. So if you want that sort of control a SIPP is fine. However, dont be fooled into thinking that there is no commission involved. They are earning identical trail commission to what what be paid to an IFA.

Thank you.

I am very surprised that I appear to be in the minority ("different") going for drawdown... I was convinced that annuities are a product of the past, with falling rates as they are and the loss of OUR money to the insurance companies, when we die.

Anyway...from the interesting feedback so far: I am still intending to go for a SIPP... either HL or SIPPDEAL (or both ??? .... maybe that would be the best route, then I can directly compare service levels and costs etc)
...and ditch the loser at point of drawdown in 2-5 years.

dunstonh

I am very surprised that I appear to be in the minority ("different") going for drawdown... I was convinced that annuities are a product of the past, with falling rates as they are and the loss of OUR money to the insurance companies, when we die.

Annuity purchase significantly exceeds those taking drawdown. The risks of drawdown dont appeal to most.

with falling rates

annuity rates have been rising for the last 3 years. They are massively down on 80s and early 90s rates but they have been on the rise.

the loss of OUR money to the insurance companies, when we die.

Only if you dont buy capital buy back or take in decent levels of guarantee.

A lot of people lost out on drawdown after the stockmarket decline at the start of the millennium. 5 years of rather large growth without any loses in any area allowed some complecency to set in and some forgot that the value of your investments can go down as well as up. The last 2 years have seen low risk investments drop a fair bit as well (by low risk standards). Although the yields on the low risk end are quite attractive if you pick the right funds (i.e. looking at value against the level of risk and not just going for high yields).

I would personally go drawdown but I accept the risks and the pension wont be my only source of income.