Draw Down SIPPs Fidelity vs Interactive Invester

ian.smith7 wrote: »

The Fidelity SIPP is funds only (I think). does this mean Investment like Scottish Mortgage are not available?

Fidelity SIPP provides for funds, most Investment Trusts (like SMT), and some individual stocks.

I reviewed the IT offering prior to moving a SIPP from HL to Fidelity and invest it in to ITs. I've found the website to be more clunky, less user friendly than I would like but once the SIPP is up and running and for the minor tinkering I will be doing going forward it will be acceptable.

Apparently, they are in the process of expanding access to stocks etc.

ian.smith7 wrote: »

Looking at the cost comparisons I thought that HL was too expensive but the platform charge at Fidelity is the same as the Pru Retirement Account (0.35%). Is the HL site that much better?

Fidelity has some of the worst platform software out there. (not that I would use Pru either). From a software and functionality point of view, HL is far superior. However, HL is one of the most expensive platforms. There are others in between.

I wouldn't worry to much about the age of the software as some of the best investment products have old software.

Equally, most of the worst and obsolete products run on old software. However, its not so much the age that is the issue (it is commercially and for the future of the platform). The key issue is what the software can and cant do. Fidelity started promising upgrades on the software over a decade ago. They aborted that in 2014 and went with Bravura to bring in totally new software to launch in 2016. Still not here.

Honestly, you do want to worry about it. If you buy any product and it doesnt do what you want it to do then you are going to end up disappointed.

You may not realise the limitations that exist at the start but some event may occur that stops you or delays you from achieving an objective. When that happens, the limitations will frustrate you and when you find out that it would not have been an issue elsewhere, it will frustrate more.

That said, features and options not used or will never be used will not be missed whether they exist on the platform or not. So, you need to filter these things carefully and not rely on price alone.

If you accept limitations and reduced functionality or the issues are not in an area that is going to impact on you then that is fine.

ian.smith7 wrote: »

I have a Stocks & Shares ISA with Charles Stanley and find that site a bit clunky they also charge for ITs as well.

Is there a fee for moving into drawdown with Fidelity ( I understand not). I assume that i will have to transfer my pension into a Pensions saving sipp then change to drawdown (uncrystalised to crystalised, is that the correct terminology?).

I just wondered if Fidelity's Platform only fee (as in no charges for draw down money) worked out cheaper and less hassle than II's model where you seem to pay for every transaction including getting your money out of drawdown.

i could easily have all my assumptions wrong as this is my first go at being a pensioner!!

Ian

If you only hold IT's in your SIPP portfolio (as I do), then Fidelity are hard to beat cost wise. The cap is £45 per annum and there are no extra charges for setting up drawdown etc. Also, if you ever change your mind there is no cost to transfer as well so its a winner for me.

Some people have had problems with the website and the selection of IT's available to invest in but as a lump sum investor I have had none of these problems and there are enough IT's for me to select from. The number of IT's available keeps improving though it was around 90 to choose from and now its over a 100 so I think they will continue to add more.

Which is your preferred platform and why?

It wouldnt help the thread as I use different platforms to those available via DIY. Fidelity is one of those rare ones that brought in some DIY functionality to their intermediary platform. The bulk of the rest focus on either DIY or intermediary.

So, the platforms I would use would not be the ones you would use if you DIY.