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  • FIRST POST
    • ScoobyZ
    • By ScoobyZ 1st Dec 19, 10:32 AM
    • 417Posts
    • 144Thanks
    ScoobyZ
    Vanguard SIPP Announced
    • #1
    • 1st Dec 19, 10:32 AM
    Vanguard SIPP Announced 1st Dec 19 at 10:32 AM
    Early 2020:

    https://www.vanguardinvestor.co.uk/articles/latest-thoughts/retirement/get-ready-for-the-vanguard-personal-pension?cmpgn=ET119UKCESIP0003
Page 2
    • Mordko
    • By Mordko 1st Dec 19, 8:52 PM
    • 720 Posts
    • 533 Thanks
    Mordko
    Definitely no extra fees for drawdown. The only fees on the Vanguard Sipp are the account fee, fund fees, transaction fees and charges for buying & selling ETFs if you don't want to wait for bulk trades.
    Originally posted by Fiendarina
    Their bulk dealing approach is a bit strange. Do they permit limit orders on bulk deals?
    • Thrugelmir
    • By Thrugelmir 1st Dec 19, 9:28 PM
    • 65,939 Posts
    • 58,048 Thanks
    Thrugelmir
    Definitely no extra fees for drawdown. The only fees on the Vanguard Sipp are the account fee, fund fees, transaction fees and charges for buying & selling ETFs if you don't want to wait for bulk trades.
    Originally posted by Fiendarina
    No fees payable in the drawdown phase?
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • Radiantsoul
    • By Radiantsoul 1st Dec 19, 10:34 PM
    • 2,020 Posts
    • 2,000 Thanks
    Radiantsoul
    Their bulk dealing approach is a bit strange. Do they permit limit orders on bulk deals?
    Originally posted by Mordko
    No, they don't.
    It is not so different to funds.
    • Mordko
    • By Mordko 1st Dec 19, 10:41 PM
    • 720 Posts
    • 533 Thanks
    Mordko
    No, they don't.
    It is not so different to funds.
    Originally posted by Radiantsoul
    Do they exchange at mid-point? No spread? Any number of shares?

    Thanks.
    • Radiantsoul
    • By Radiantsoul 2nd Dec 19, 8:27 AM
    • 2,020 Posts
    • 2,000 Thanks
    Radiantsoul
    Do they exchange at mid-point? No spread? Any number of shares?

    Thanks.
    Originally posted by Mordko
    I am not totally sure. I suspect that as they only sell their own EFTs they are able to fairly close match buys and sells on a daily basis. So they might not have to deal much in the market at all. So the actual spreads are likely to be tiny. Not sure what would happen with real turbulence though.
    • Fiendarina
    • By Fiendarina 2nd Dec 19, 8:33 AM
    • 6 Posts
    • 2 Thanks
    Fiendarina
    No fees payable in the drawdown phase?
    Originally posted by Thrugelmir
    No extra fees in drawdown phase. Just continues as 0.15% a year account fee, max £375, plus ordinary fund fees and transaction costs, whether you go for income drawdown or lump sums.

    Do need to have a minimum of £50,000 to start drawdown though, although that's a total across everything invested in your name, so would include anything in a Vanguard ISA or General Investment account, not just the SIPP.
    • Notepad Phil
    • By Notepad Phil 2nd Dec 19, 8:54 AM
    • 62 Posts
    • 43 Thanks
    Notepad Phil
    Do need to have a minimum of £50,000 to start drawdown though, although that's a total across everything invested in your name, so would include anything in a Vanguard ISA or General Investment account, not just the SIPP.
    Originally posted by Fiendarina
    I've looked through the page and can't see that being mentioned, is that £50k minimum detailed somewhere else?
    • Mistermeaner
    • By Mistermeaner 2nd Dec 19, 10:20 AM
    • 2,703 Posts
    • 3,218 Thanks
    Mistermeaner
    does anyone know if they will offer this as a junior Sipp? I've started Sipps for all my kids with HL as they were the only ones I found offering this
    Left is never right but I always am.
    • SonOf
    • By SonOf 2nd Dec 19, 10:58 AM
    • 1,921 Posts
    • 2,166 Thanks
    SonOf
    does anyone know if they will offer this as a junior Sipp?
    There is no such thing as a Junior SIPP apart from a certain provider marketing their pension that way.

    I've started Sipps for all my kids with HL as they were the only ones I found offering this
    Pretty much all pension providers were available to you.
    • Mistermeaner
    • By Mistermeaner 2nd Dec 19, 11:14 AM
    • 2,703 Posts
    • 3,218 Thanks
    Mistermeaner
    There is no such thing as a Junior SIPP apart from a certain provider marketing their pension that way.



    Pretty much all pension providers were available to you.
    Originally posted by SonOf
    OH! thanks

    more fool me for fooling for the marketing

    Amounts are very low at the moment (all sub 10K) so I won't stress about it for now but may review in due course
    Left is never right but I always am.
    • uk03878
    • By uk03878 2nd Dec 19, 12:06 PM
    • 146 Posts
    • 111 Thanks
    uk03878
    AFAIA, FNZ do not code a phone app. However, they do code for web portals.
    Originally posted by SonOf
    As an aside, based on this, I looked at their stack and development tools (via the job specifics in their vacancies website). It looks to be all non cloud Microsoft, so app development would be possible but not native
    • SonOf
    • By SonOf 2nd Dec 19, 12:16 PM
    • 1,921 Posts
    • 2,166 Thanks
    SonOf
    As an aside, based on this, I looked at their stack and development tools (via the job specifics in their vacancies website). It looks to be all non cloud Microsoft, so app development would be possible but not native
    Originally posted by uk03878
    FNZ codes the backend. The platform provider codes the frontend.
    However, FNZ does support API and that allows third party software to show valuations and fund data etc. It wouldn't be live as its subject to a once a day snapshot. IFAs use that to display the data in their own portal/mobile apps.
    • Lungboy
    • By Lungboy 2nd Dec 19, 1:04 PM
    • 1,841 Posts
    • 2,094 Thanks
    Lungboy
    Finally! My current SIPP is with Cavendish and only holds a single Vanguard fund, so this is what I've been waiting for.
    • swindiff
    • By swindiff 2nd Dec 19, 2:23 PM
    • 603 Posts
    • 342 Thanks
    swindiff
    So my wife has a HL SIPP with £250/month going into it, this all gets invested into Vanguard Lifestrategy 80. current value is £8000. Can someone just confirm my thinking on the charges here.

    HL Platform fee of 0.45% + Fund fee of 0.22% Total 0.67%, charges of £53.60/year on £8k
    Vanguard Platform fee of 0.15% + Fund fee of 0.22%. Total 0.37%, charges of £29.60/year on £8k
    Saving of £24/year which will obviously increase and the pot grows.

    Do I have this right?
    • Albermarle
    • By Albermarle 2nd Dec 19, 3:44 PM
    • 1,878 Posts
    • 1,200 Thanks
    Albermarle
    Do I have this right?
    Yes you do, but you could have changed to a cheaper alternative SIPP already . For example an established player - AJ Bell You invest, platform fee is 0.25% and this has been available for a long time.
    • swindiff
    • By swindiff 2nd Dec 19, 3:58 PM
    • 603 Posts
    • 342 Thanks
    swindiff
    If the pot was much larger we would have probably done so by now, but considering the pot size up until now we are only talking about very small sums of money. We have been waiting for the Vanguard platform as she only had Vanguard funds. I do like the layout of the HL platform its very easy to access via phone or PC and their customer service has been very good. However, if the Vanguard platform is similarly easy to access it will probably be worth switching.
    • Retired Minky
    • By Retired Minky 2nd Dec 19, 9:32 PM
    • 81 Posts
    • 149 Thanks
    Retired Minky
    My SIPP with II is £30 a month including drawdown or £20 without. So for me cheaper and I get non- Vanguard choices. Will suit some people though.
    Originally posted by shinytop
    Me too. I pay £20 a month. Was hoping to switch but I’ll stick as the fees are lower where I am.
    • Thrugelmir
    • By Thrugelmir 2nd Dec 19, 10:10 PM
    • 65,939 Posts
    • 58,048 Thanks
    Thrugelmir
    No extra fees in drawdown phase.
    Originally posted by Fiendarina
    There's no announcement on the drawdown phase yet. That's to follow. Currently only "accumulation" will be launched. Vanguard will have to recoup the outlay for the investment they are making along with the overheads of running a sizable backroom support service.
    Last edited by Thrugelmir; 02-12-2019 at 10:12 PM.
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • Mordko
    • By Mordko 3rd Dec 19, 12:24 AM
    • 720 Posts
    • 533 Thanks
    Mordko
    From the website:
    Simply put, there will be no additional charges for going into drawdown in the Vanguard Personal Pension
    Vanguard’s model is to sell huge quantities cheap. Backroom support costs are nothing to a company with $5.3 trillion under management.

    I don’t understand why British brokers feel they can charge you for taking your own money.
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