Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Archna
    • By MSE Archna 8th Dec 06, 5:55 PM
    • 1,874Posts
    • 6,140Thanks
    MSE Archna
    Cheapest Sipp: build yourself a low cost DIY pension article
    • #1
    • 8th Dec 06, 5:55 PM
    Cheapest Sipp: build yourself a low cost DIY pension article 8th Dec 06 at 5:55 PM
    This discussion relates to the
    Last edited by Former MSE Andrea; 09-10-2014 at 12:57 PM.
    Report inappropriate posts: forumteam@moneysavingexpert.com




Page 21
    • chrisst170
    • By chrisst170 13th Oct 18, 10:41 AM
    • 11 Posts
    • 1 Thanks
    chrisst170
    Just had confirmation Bestinvest will have 25 quarterly fee from November and I can leave penalty free for this reason. Just looking at my options again I guess its between AJ Bell/HL?
    Originally posted by Futuristic

    Hi,
    I have also received the e-mail and I now want to move.


    How did you find out you could leave penalty free?


    I just spoke to them and was advised that the transfer fees were 125+VAT for investments, 75+VAT for any cash in the SIPP... plus a 175+VAT closing fee because the account is less than 2 years old!


    I was thinking of opening a SIPP with Fidelity instead, unless there are other suggestions which are suitable for a small SIPP pot?


    Thanks!
    • cjv
    • By cjv 13th Oct 18, 6:32 PM
    • 477 Posts
    • 260 Thanks
    cjv
    I was thinking of opening a SIPP with Fidelity instead, unless there are other suggestions which are suitable for a small SIPP pot?
    Originally posted by chrisst170
    My SIPP is on the Fidelity platform via Cavendish, it can be cheaper than going direct:

    https://www.cavendishonline.co.uk/pensions/
    • dunstonh
    • By dunstonh 13th Oct 18, 8:10 PM
    • 98,305 Posts
    • 66,559 Thanks
    dunstonh
    Fidelity via Cavendish doesnt do drawdown.
    Fidelity software is old and clunky. Its not a bad price but it is lower quality than other options.

    Be aware that many SIPP providers are going to be increasing their costs as the solvency requirements start to hit and the increased regulatory requirements start to take hold. There is also an ongoing court case which could potentially push some SIPP providers under if it goes against them. Those not affected directly will still have the increased costs going forward. sooner or later those costs will be passed on.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • chrisst170
    • By chrisst170 14th Oct 18, 9:33 AM
    • 11 Posts
    • 1 Thanks
    chrisst170
    My SIPP is on the Fidelity platform via Cavendish, it can be cheaper than going direct:

    https://www.cavendishonline.co.uk/pensions/
    Originally posted by cjv

    Thanks, do they also offer to pay the exit fees like Fidelity appear to? I can't see any mention of it on Cavendish's website.


    Fidelity via Cavendish doesnt do drawdown.
    Fidelity software is old and clunky. Its not a bad price but it is lower quality than other options.

    Be aware that many SIPP providers are going to be increasing their costs as the solvency requirements start to hit and the increased regulatory requirements start to take hold. There is also an ongoing court case which could potentially push some SIPP providers under if it goes against them. Those not affected directly will still have the increased costs going forward. sooner or later those costs will be passed on.
    Originally posted by dunstonh

    Thanks, I'm only in late 30s, so the draw down limitations of Cavendish are probably less of a concern at this point (who knows if the pension freedoms will be the same in 20-30 years time!).


    My wife has a SIPP with Fidelity and I find their platform broadly fit for purpose. I use iWeb for my S&SISA; their website doesn't look like its been touched since about 1995, so Fidelity is positively space age to my eyes!


    Thanks
    • cjv
    • By cjv 14th Oct 18, 5:13 PM
    • 477 Posts
    • 260 Thanks
    cjv
    Fidelity via Cavendish doesnt do drawdown.
    Fidelity software is old and clunky. Its not a bad price but it is lower quality than other options.

    Be aware that many SIPP providers are going to be increasing their costs as the solvency requirements start to hit and the increased regulatory requirements start to take hold. There is also an ongoing court case which could potentially push some SIPP providers under if it goes against them. Those not affected directly will still have the increased costs going forward. sooner or later those costs will be passed on.
    Originally posted by dunstonh
    Really not keen on the Fidelity platform. It shows my returns as 0% and if I want to simply see how much I have contributed I have to search through the transactions and add them up myself.

    The transaction details are not very informative either, I have lots of little amounts for a few pence which do not state what they are for which I assume are fees.

    I am keeping an eye out for the Vanguard SIPP, but would prefer to be able to also hold non Vanguard funds. I think It is time to start searching for a new platform.

    Another part of me thinks just keep it cheap and cheerful while I build up to a more substantial pot.
    Last edited by cjv; 14-10-2018 at 5:19 PM.
    • dunstonh
    • By dunstonh 14th Oct 18, 6:14 PM
    • 98,305 Posts
    • 66,559 Thanks
    dunstonh
    I understand Vanguard are using FNZ as their software supplier. FNZ now dominate the software provision with many of the big platforms already using them or in process of moving to them.

    I do like the FNZ software but it is prone to errors.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • martinpike
    • By martinpike 7th Nov 18, 10:15 AM
    • 353 Posts
    • 121 Thanks
    martinpike
    Fixed Interest Investment?
    Hi,

    Hopefully, a very easy question - although as I'm asking it I've obviously failed to find the answer myself...

    I've got a SIPP where the investments are held in the ex CoFunds / now Aegon platform.

    I've got a sizeable 5 figure lump sat in cash, earning 0.7% interest (0.05% below BoE base), less the 0.29% platform fee, so net 0.41%.

    Is there a 'fixed interest' investment where I can improve on this return? I'm happy to tie the money up for 12 months at a time.

    I can see several 'fixed interest' investments on their research platform, but they all mention things like 'our aim is to achieve X%' and the like, which doesn't sound like a fixed interest rate to me.

    I appreciate that these are funds, so are probably a constantly changing blend of underlying fixed interest investments - is that the reason for them not just saying 1.5%, or whatever?

    Thanks for any feedback.
    • dunstonh
    • By dunstonh 7th Nov 18, 10:50 AM
    • 98,305 Posts
    • 66,559 Thanks
    dunstonh
    I can see several 'fixed interest' investments on their research platform, but they all mention things like 'our aim is to achieve X%' and the like, which doesn't sound like a fixed interest rate to me.
    Fixed interest securities can have a fixed yield. However, they can be traded and the capital value can be higher or lower than the redemption price.

    An investment fund made up of a collection of fixed interest securities will have a variable yield due to its very nature and what it invests in.

    It is important to realise the difference between bonds and fixed term deposits. Even though many fixed term deposits refer to themselves as bonds nowdays.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • martinpike
    • By martinpike 7th Nov 18, 11:04 AM
    • 353 Posts
    • 121 Thanks
    martinpike
    Thanks dunstonh.
    • BlueTewk
    • By BlueTewk 8th Feb 19, 4:43 PM
    • 3 Posts
    • 0 Thanks
    BlueTewk
    Protecting tax free cash
    I have two Defined Contribution pensions that I'd like to start drawing down. The smaller one allows partial crystallisation, the larger one doesn't.

    I had thought that I could transfer both pensions to a Drawdown product without taking the tax free cash and then get 25% tax free on each drawdown. But it seems that this is not available with some Drawdown products e.g HL.

    So it seems I need to transfer the pensions to a SIPP first and then either:
    a) move small amounts from the SIPP to a drawdown product taking the 25% tax free cash on the way, and then drawdown from the drawdown product
    OR
    b) just take money direct from the SIPP and take the 25% tax free cash with each withdrawal

    What I don't understand is what purpose there would be in using a Drawdown product (i.e. option a above). Are the charges lower with option a)? or is there some other advantage in using a Drawdown product?

    I'm currently not paying tax and not in receipt of state pension so I'd like to start taking withdrawals below my annual tax threshold.

    Any help provided would be much appreciated. Apologies in advance if this is not the right place for posting this...
    • dunstonh
    • By dunstonh 8th Feb 19, 8:02 PM
    • 98,305 Posts
    • 66,559 Thanks
    dunstonh
    I had thought that I could transfer both pensions to a Drawdown product without taking the tax free cash and then get 25% tax free on each drawdown. But it seems that this is not available with some Drawdown products e.g HL.
    Phased flexi-access drawdown is available on virtually every SIPP or personal pension that supports drawdown. I am sure HL support it.

    What I don't understand is what purpose there would be in using a Drawdown product
    I am not sure that there are many or even any drawdown plans left nowadays. Most providers have the functionality built into their accumulation product nowadays.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • nickcheatle
    • By nickcheatle 14th May 19, 1:48 PM
    • 1 Posts
    • 0 Thanks
    nickcheatle
    SIPPs for beginners
    hi
    Advice sought please.
    My wife and i have 5 various sized company pensions from early years of work before we both settled for long term employers.
    We want to move them to a single SIPP.
    Firstly is this possible and secondly, what do we recommend, advise?
    Thanks in advance
    Nick
    • cloud_dog
    • By cloud_dog 14th May 19, 2:07 PM
    • 4,241 Posts
    • 2,609 Thanks
    cloud_dog
    hi
    Advice sought please.
    My wife and i have 5 various sized company pensions from early years of work before we both settled for long term employers.
    We want to move them to a single SIPP.
    Firstly is this possible and secondly, what do we recommend, advise?
    Thanks in advance
    Nick
    Originally posted by nickcheatle
    Firstly, what are the pensions? Are they all DC (pot of money/no guarantee) pensions, or might they have some guarantees attached to them?

    If they have guarantees, what are they?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • cathybird
    • By cathybird 22nd May 19, 12:33 PM
    • 3,774 Posts
    • 15,728 Thanks
    cathybird
    I would like some advice. I am in the process of setting up a SIPP. I have run various scenarios through comparefundplatforms and invariably iWeb is coming out the cheapest, followed by Halifax Sharedealing (which provides iWeb's platform). However, my Isa is currently with Lloyds sharedealing, and Halifax is a subsidiary of Lloyds'. Is it worth paying a little bit more to Interactive Investor (which is third cheapest) to diversify providers? I know I would own the underlying assets anyway, but if my SIPP and Isa were both in effect with the same provider (Lloyds/Halifax) I would feel very much as though I had all my eggs in the one basket - though there is no reason at this point to doubt the ongoing health of Lloyds as an organisation, but even so. Unless it's not quite as simple as that? ...
    15 in Save 12K: -1,011.85/12K. MNSDs: 9/12 YNSDs: 50/TF Tilly: 403.56
    May AFDs: 20/21 2019 AFDs: 122/260 2018: 303/260
    • funkyronster
    • By funkyronster 22nd May 19, 2:13 PM
    • 7 Posts
    • 2 Thanks
    funkyronster
    hi
    Advice sought please.
    My wife and i have 5 various sized company pensions from early years of work before we both settled for long term employers.
    We want to move them to a single SIPP.
    Firstly is this possible and secondly, what do we recommend, advise?
    Thanks in advance
    Nick
    Originally posted by nickcheatle
    First I would suggest that you get an idea of how they have been performing. If you have kept your annual statements, then you should easily see how they have each performed year on year. You will either be surprised or disappointed - it all depends!

    You can easily transfer them all to a SIPP, but remember that once they are in a SIPP, you will be responsible for what the money is invested in, so think twice before transferring any that are performing well - anything about 5% a year is decent. If you already know what you want to invest in within the SIPP, then all well and good. Many SIPP providers like HL and Bestinvest have model portfolios which you can choose depending on your age and attitude to risk. My SIPP is with Bestinvest and generally I have no complaints, although this is not a plug for them. HL seem to be the market leaders, but i think their fees are a bit high.

    You can call up all your existing pensions and ask for a transfer value, and also ask if there is any penalty for transferring. There usually isn't, but you should ask.
    • funkyronster
    • By funkyronster 22nd May 19, 2:16 PM
    • 7 Posts
    • 2 Thanks
    funkyronster
    Depends on how much you have and whether you think there might be a catastrophe or not. The govt guarantee is 85k per institution (I believe), so it would make sense to spread it around if you have more than this.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,058Posts Today

6,009Users online

Martin's Twitter
  • Mini MSE is on half term next week, so I'm excited to be taking the week off to be daddy. As normal I'm signing of? https://t.co/G3366shWh1

  • I once blurted out on @gmb "Theresa May hasn't been given a poisoned chalice - she's been given a poisoned chalice? https://t.co/onfRbY3XVg

  • It'd be fascinating to know how history will judge Theresa May's premiership. Currently, it is hard to see it as a? https://t.co/eH77G0O9LA

  • Follow Martin