New Post Advanced Search

Finally moving the SIPP

71 replies 9.6K views
cloud_dogcloud_dog Forumite
5.2K posts
Part of the Furniture 1,000 Posts Name Dropper Photogenic
✭✭✭✭
Ok, so after a lot of research and way too much procrastinating, I have finally decided on the course of action for the OH SIPP, currently with HL and invested in OIECs.

I had tried long and hard to convince myself to transfer it to X-O (Jarvis) SIPP but, even though I have my ISA with them I couldn't quite convince myself to move it there (even though I would have saved having to pay any SIPP annual charges).

I have probably mentioned on other threads that I was looking to go down the route of non-OIEC investments.

I have opened a SIPP with AJ Bell/YouInvest. They will also reimburse any transfer costs (up to £500), which is nice and takes that as a consideration out of the equation.

As touched on above currently the money is invested in OIECs but it will be re-invested in ITs. My dilemma is trying to work out whether to sell all the OIECs and transfer as cash or transfer as OIECs and sell/re-buy in ITs as appropriate.

If I transfer as cash then I would imagine the transfer time will be significantly quicker than as OIECs; Youinvest indicate approximately 2 weeks to transfer cash. But, I would be out of the market. If I transfer as OIECs then I remain 'in the market' but this (apparently) can take up to 2 months (6 to 8 weeks).

Am hedging towards selling and transferring as cash.

Anyone else done a HL to YouInvest SIPP transfer recently, any comments on time scales etc?
Personal Responsibility - Sad but True :D

Sometimes.... I am like a dog with a bone
«1345678

Replies

  • EdSwippetEdSwippet Forumite
    1.2K posts
    Sixth Anniversary 1,000 Posts
    ✭✭✭
    Personally I always transfer holdings intact and never as cash. Over the years I have moved SIPP three or four times, and none has completed inside two months, with the record being eleven months. But with no time 'out of the market', and not currently either drawing or contributing, it was much easier to stay relaxed about the delays. In practice I may have come out slightly ahead, since for at least part of the most egregious slowdown neither SIPP provider was applying their charges.
  • IanStIanSt Forumite
    366 posts
    ✭✭
    If it were the SIPP and funds that I own then I'd definitely transfer the funds rather than cash.

    It might never happen, but I'd be gutted if there was a dip just as they were being sold and then the market recovered before I got back into my desired funds.

    The only reason I might decide to transfer in cash was if the SIPP was relatively low value and there was some substantial savings to be made by not having to sell on YouInvest.
  • Sue58Sue58 Forumite
    262 posts
    Third Anniversary 100 Posts
    ✭✭
    cloud_dog wrote: »
    Ok, so after a lot of research and way too much procrastinating, I have finally decided on the course of action for the OH SIPP, currently with HL and invested in OIECs.

    I had tried long and hard to convince myself to transfer it to X-O (Jarvis) SIPP but, even though I have my ISA with them I couldn't quite convince myself to move it there (even though I would have saved having to pay any SIPP annual charges).

    I have probably mentioned on other threads that I was looking to go down the route of non-OIEC investments.

    I have opened a SIPP with AJ Bell/YouInvest. They will also reimburse any transfer costs (up to £500), which is nice and takes that as a consideration out of the equation.

    As touched on above currently the money is invested in OIECs but it will be re-invested in ITs. My dilemma is trying to work out whether to sell all the OIECs and transfer as cash or transfer as OIECs and sell/re-buy in ITs as appropriate.

    If I transfer as cash then I would imagine the transfer time will be significantly quicker than as OIECs; Youinvest indicate approximately 2 weeks to transfer cash. But, I would be out of the market. If I transfer as OIECs then I remain 'in the market' but this (apparently) can take up to 2 months (6 to 8 weeks).

    Am hedging towards selling and transferring as cash.

    Anyone else done a HL to YouInvest SIPP transfer recently, any comments on time scales etc?

    If you are only investing in IT's in the new SIPP then why not Fidelity? They have a capped charge of only £45 per annum and no other charges for drawdown etc.
  • cloud_dogcloud_dog Forumite
    5.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Sue58 wrote: »
    If you are only investing in IT's in the new SIPP then why not Fidelity? They have a capped charge of only £45 per annum and no other charges for drawdown etc.
    Initially, they had a very limited list of ITs available. I think this has improved since the new platform but the feedback on the new platform has been pretty dire.

    I think what really sold me on YouInvest was the ease of access to, and clarity of information. As an example they provide an interactive web page to check what ITs (or ETFs) are available via regular investing (as opposed to direct purchase). Everything just seemed more easily accessible. I felt 'comfortable' with them :)

    The final nail in the X-O coffin was how they have implemented the latest MiFID II regulations; when you want to buy an IT you need to ring them to confirm your understanding. I'm sure they will sort it out eventually but, I've been dragging this out for far too long now.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Sue58Sue58 Forumite
    262 posts
    Third Anniversary 100 Posts
    ✭✭
    cloud_dog wrote: »
    Initially, they had a very limited list of ITs available. I think this has improved since the new platform but the feedback on the new platform has been pretty dire.

    I think what really sold me on YouInvest was the ease of access to, and clarity of information. As an example they provide an interactive web page to check what ITs (or ETFs) are available via regular investing (as opposed to direct purchase). Everything just seemed more easily accessible. I felt 'comfortable' with them :)

    The final nail in the X-O coffin was how they have implemented the latest MiFID II regulations; when you want to buy an IT you need to ring them to confirm your understanding. I'm sure they will sort it out eventually but, I've been dragging this out for far too long now.

    OK, fair enough but out of interest how much more will it cost you with AJBell including drawdown charges?
  • edited 11 January 2018 at 1:50AM
    cloud_dogcloud_dog Forumite
    5.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    edited 11 January 2018 at 1:50AM
    Sue58 wrote: »
    OK, fair enough but out of interest how much more will it cost you with AJBell including drawdown charges?
    Hi, the annual cost during the growth phase will be a max of £100pa (max £25 per quarter). No charges on holding cash.

    Drawdown is another question for another day (year) but their charges web page shows:
    • One-off payment of a tax free lump sum, income payment, uncrystallised funds pension lump sum or small lump sum... £25
    • Regular income drawdown payments or regular uncrystallised funds pension lump sum payments... £100 pa
    • Crystallised funds where no income is paid... No charge
    • Purchase an annuity... £150
    • Review of capped drawdown (includes triennial/annual reviews and reviews when additional funds are moved into drawdown)... £75

    It is likely to be the first one we would utilise (£25); if the pot is left with YouInvest.

    The idea will be to pay as much in to the SIPP over the coming years (decades; plural just), and then withdraw the maximum amount, up to the personal income tax allowance.

    As the OH will not have significant pension earnings before SP (67), poss £1.2kpa from 60. We will commence drawdown (one way or another) of the SIPP money, making full use of personal tax allowance. The money will be deposited in to S&S ISA.

    As yet we do not have a definitive retirement schedule (ages). I will probably continue to work until 65 (company DB pension kicks in) but I'd like the OH to continue to work until 60. The idea then is to withdraw as much as possible from the SIPP over 7 years (from age 60 to 67). With her small pension and SP we will then still be in a position to transfer part of her personal income tax allowance to me (every little helps). Her ISA(s) will provide additional income (as will mine).

    At some point in the comings years I need to check if it would be more advantageous to do this as an uncrystallised or crystallised withdrawal/drawdown.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • edited 11 January 2018 at 8:14AM
    pip895pip895 Forumite
    827 posts
    Sixth Anniversary 500 Posts Combo Breaker
    ✭✭✭
    edited 11 January 2018 at 8:14AM
    If you are transfering to IT's HLs charges are caped at £200 for a SIPP and only £45 for an ISA. Why move? You could potentially loose far more than this in the transfer. Also will you move again when the platform you move to ups its charges?
  • cloud_dogcloud_dog Forumite
    5.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hi
    pip895 wrote: »
    If you are transfering to IT's HLs charges are caped at £200 for a SIPP
    Yes, but that is still 100% more. Always manage your costs.
    pip895 wrote: »
    and only £45 for an ISA.
    I've never paid a platform fee for any of our ISAs.
    pip895 wrote: »
    Why move? You could potentially loose far more than this in the transfer.
    As mentioned, YouInvest (at the moment) will reimburse any transfer costs.
    pip895 wrote: »
    Also will you move again when the platform you move to ups its charges?
    Possibly (always manage your costs). Have YouInvest confirmed any price increases that are not currently in their charging structure? If I may borrow your crystal ball and check who is going to then that would be very helpful ;)

    I am happy with the choice, a little annoyed I didn't go back over the Fidelity changes, as they may very well have been a contender but, I had discounted them previously due to their lack of IT choices.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • EdSwippetEdSwippet Forumite
    1.2K posts
    Sixth Anniversary 1,000 Posts
    ✭✭✭
    cloud_dog wrote: »
    Possibly (always manage your costs). Have YouInvest confirmed any price increases that are not currently in their charging structure?
    This isn't intended to change your mind, and you probably remember all this anyway, but just a note here -- YouInvest is so far the only platform that has unilaterally raised charges without also offering a limited-time free transfer away. Not once, but twice. For some customers their revised charges were multiples of the old fees.

    Right now, YouInvest's transfer out charges are only slightly higher than HL's, so your leap from HL to YouInvest doesn't put in a much worse position than currently when it comes to transferring elsewhere if you need to move again. However, there aren't many platforms these days that cover transfer out charges for you (possible clue there under the 'no free lunch' meme?!).
  • Sue58Sue58 Forumite
    262 posts
    Third Anniversary 100 Posts
    ✭✭
    EdSwippet wrote: »
    This isn't intended to change your mind, and you probably remember all this anyway, but just a note here -- YouInvest is so far the only platform that has unilaterally raised charges without also offering a limited-time free transfer away. Not once, but twice. For some customers their revised charges were multiples of the old fees.

    Right now, YouInvest's transfer out charges are only slightly higher than HL's, so your leap from HL to YouInvest doesn't put in a much worse position than currently when it comes to transferring elsewhere if you need to move again. However, there aren't many platforms these days that cover transfer out charges for you (possible clue there under the 'no free lunch' meme?!).

    Yet again, another reason to go for Fidelity with IT's only in a SIPP because there are also no transfer out charges as well as no drawdown charges. The only platform charge is capped at £45 per annum to hold IT's in a SIPP.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support