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    • ian.smith7
    • By ian.smith7 13th Apr 18, 4:27 PM
    • 11Posts
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    ian.smith7
    Draw Down SIPPs Fidelity vs Interactive Invester
    • #1
    • 13th Apr 18, 4:27 PM
    Draw Down SIPPs Fidelity vs Interactive Invester 13th Apr 18 at 4:27 PM
    hi all
    i have a Prudential pension in the with profits fund that I am moving into draw down. i have more or less decided not to go with a Prudential Retirement Account and have identified Fidelity or Interactive Investor (II) as the two most likely recipients of my pension.
    I have a works DC pension with Fidelity and I like the platform and to avoid MPPA I will not take more the 25% from my pension until I actually stop work.
    I noticed on the II platform there are a few extra charges for accessing drawdown and trades (which I probably would use). But there are No such charges on the fidelity platform
    The Fidelity SIPP is funds only (I think). does this mean Investment like Scottish Mortgage are not available?
    What would be your opinions on the merits of these two platforms.
    Cheers
    ian
Page 1
    • cloud_dog
    • By cloud_dog 13th Apr 18, 8:46 PM
    • 3,645 Posts
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    cloud_dog
    • #2
    • 13th Apr 18, 8:46 PM
    • #2
    • 13th Apr 18, 8:46 PM
    The Fidelity SIPP is funds only (I think). does this mean Investment like Scottish Mortgage are not available?
    Originally posted by ian.smith7
    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.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • ian.smith7
    • By ian.smith7 14th Apr 18, 12:33 AM
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    ian.smith7
    • #3
    • 14th Apr 18, 12:33 AM
    • #3
    • 14th Apr 18, 12:33 AM
    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?
    • dunstonh
    • By dunstonh 14th Apr 18, 10:51 AM
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    dunstonh
    • #4
    • 14th Apr 18, 10:51 AM
    • #4
    • 14th Apr 18, 10:51 AM
    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?
    Originally posted by ian.smith7
    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 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.
    • Alexland
    • By Alexland 14th Apr 18, 11:19 AM
    • 2,230 Posts
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    Alexland
    • #5
    • 14th Apr 18, 11:19 AM
    • #5
    • 14th Apr 18, 11:19 AM
    I wouldn't worry to much about the age of the software as some of the best investment products have old software.

    Fidelity also cap their platform cost at 45 for exchange traded instruments such as ITs and under certain circumstances are offering cashback and to cover the cost of transfers.

    https://www.fidelity.co.uk/investing/fees
    https://www.fidelity.co.uk/transfer/cashback

    Personally if going for a Baillie Gifford IT then my preference is for Monks over Scottish Mortgage as it is less concentrated. I also like Bankers from Hendersons and the multi manager / self managed Witan.

    Brunner managed by Allianz might also have potential now that an onerous gearing facility from the 90s is finally expiring. Not sure the market has priced this in yet as it is still trading at a good discount.

    Alex
    Last edited by Alexland; 14-04-2018 at 12:57 PM. Reason: Added IT comments
    • dunstonh
    • By dunstonh 14th Apr 18, 12:01 PM
    • 92,147 Posts
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    dunstonh
    • #6
    • 14th Apr 18, 12:01 PM
    • #6
    • 14th Apr 18, 12:01 PM
    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.
    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.
    • ian.smith7
    • By ian.smith7 14th Apr 18, 3:31 PM
    • 11 Posts
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    ian.smith7
    • #7
    • 14th Apr 18, 3:31 PM
    • #7
    • 14th Apr 18, 3:31 PM
    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
    Last edited by ian.smith7; 14-04-2018 at 3:51 PM.
    • StellaN
    • By StellaN 15th Apr 18, 9:42 AM
    • 210 Posts
    • 73 Thanks
    StellaN
    • #8
    • 15th Apr 18, 9:42 AM
    • #8
    • 15th Apr 18, 9:42 AM
    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
    Originally posted by ian.smith7
    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.
    • ian.smith7
    • By ian.smith7 16th Apr 18, 10:46 AM
    • 11 Posts
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    ian.smith7
    • #9
    • 16th Apr 18, 10:46 AM
    • #9
    • 16th Apr 18, 10:46 AM
    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.
    Originally posted by dunstonh
    Which is your preferred platform and why?
    ian
    • dunstonh
    • By dunstonh 16th Apr 18, 11:04 AM
    • 92,147 Posts
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    dunstonh
    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.
    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.
    • Reluctantpensioner
    • By Reluctantpensioner 16th Apr 18, 11:27 PM
    • 13 Posts
    • 3 Thanks
    Reluctantpensioner
    Dunstonh, you say: "Fidelity has some of the worst platform software out there"
    I'd certainly bow to your experience, most of us consumers only get experience with one.
    I only know the one SIPP platform. Fidelity is certainly 100* better than the company pension platforms I use, but perhaps the bar there is low.
    Could you list a few of the "things it should have that it doesn't"?

    RE: the list of investments supported by Fidelity. They certainly do have shares now too.
    Have a look at the website. (I can't paste links, so navigate to: fidelity/investing/investment finder )
    • cloud_dog
    • By cloud_dog 17th Apr 18, 9:48 AM
    • 3,645 Posts
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    cloud_dog
    We are still in the accumulation phase so I can only comment from that perspective but, as a recent mover from HL to Fidelity and having had a YouInvest (AJ Bell) account I'll offer some comments.

    SIPP platforms are really no different than normal GIA / ISA S&S accounts other than managing the tax relief element of the contribution.
    1. You don't have the ability to click a buy button, you have to click on switch. Once you've done it and understand then it is fairly intuitive but not initially.
    2. Fidelity seem to have retained the concept of your cash as being within a deposit fund rather than just being cash; see point 1
    3. Changing a regular investment fund or amount requires you to go through the entire process of setting up and completing a direct debit mandate rather than just amending the salient aspects
    4. Some sites treat the regular contribution and the regular investment as two distinct activities, Fidelity doesn't have that concept

    These are a few of the things I have picked up on since switching to them, it makes the user experience clunky at best and not as intuitive as perhaps it should be. Having said that once the portfolio is set up then these things will not really worry me.

    Have only been with them for 3 months so will see how it goes.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • ArchBair
    • By ArchBair 17th Apr 18, 11:22 AM
    • 88 Posts
    • 31 Thanks
    ArchBair
    I wouldn't worry to much about the age of the software as some of the best investment products have old software.

    Fidelity also cap their platform cost at 45 for exchange traded instruments such as ITs and under certain circumstances are offering cashback and to cover the cost of transfers.

    https://www.fidelity.co.uk/investing/fees
    https://www.fidelity.co.uk/transfer/cashback

    Personally if going for a Baillie Gifford IT then my preference is for Monks over Scottish Mortgage as it is less concentrated. I also like Bankers from Hendersons and the multi manager / self managed Witan.

    Brunner managed by Allianz might also have potential now that an onerous gearing facility from the 90s is finally expiring. Not sure the market has priced this in yet as it is still trading at a good discount.

    Alex
    Originally posted by Alexland
    From a personal perspective, I like the concept of holding SMT with Bankers as my two core global holdings.

    SMT gives you a a more concentrated growth fund (around 37 listed equity holdings and about the same total in unlisted equities) whereas Bankers is a lower risk income & growth IT which broadly covers most regions and sectors therefore complimenting SMT.

    I've not heard anything about the gearing with Brunner but must look into this purely out of interest as I'm now happy with SMT & Bankers.
    • StellaN
    • By StellaN 17th Apr 18, 3:03 PM
    • 210 Posts
    • 73 Thanks
    StellaN
    From a personal perspective, I like the concept of holding SMT with Bankers as my two core global holdings.
    Originally posted by ArchBair
    Nothing wrong with that in my opinion, however, you could equally hold either Witan or F&C to compliment your SMT holding but Bankers is also good.
    • MPN
    • By MPN 18th Apr 18, 11:28 AM
    • 251 Posts
    • 86 Thanks
    MPN
    If you are only investing in IT's or ETF's in your SIPP then I would go with Fidelity as the fees are so low (45 per annum) and no drawdown or transfer out charges therefore even if you were not happy it will cost you nothing to transfer out.
    • cloud_dog
    • By cloud_dog 18th Apr 18, 12:46 PM
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    cloud_dog
    If you are only investing in IT's or ETF's in your SIPP then I would go with Fidelity as the fees are so low (45 per annum) and no drawdown or transfer out charges therefore even if you were not happy it will cost you nothing to transfer out.
    Originally posted by MPN
    But, they do charge their fee on holding cash.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • MPN
    • By MPN 18th Apr 18, 2:58 PM
    • 251 Posts
    • 86 Thanks
    MPN
    But, they do charge their fee on holding cash.
    Originally posted by cloud_dog
    Agreed, but they do pay interest at 0.35% which equates to the custody fee that they charge for holding cash so therefore they cancel each other out. The benefits are obviously much better if you are invested in your chosen IT's or ETF's rather than cash.
    • ian.smith7
    • By ian.smith7 19th Apr 18, 7:17 PM
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    ian.smith7
    Thank you all for your replies.
    It seems I have opened a SIPP with interactive Investor.
    I have not transferred my pension in yet and I am still in the 30 day period.
    i chose ii mainly for 2 reasons
    1. The Low fee structure.
    2. A comment dunstonh made in another thread about the underlying software Platform being modern and robust.
    "III apparently use FNZ. FNZ has some of the best software on the market for platforms. However, it is highly configurable (so features/options can be enabled/disabled) and FNZ just controls the backend and trading. They do not code the frontend (how info is displayed)."

    hope i have made the right decision

    Would anyone disagree with ii being cheaper than Fidelity for a 160K SIPP in Drawdown that holds a mixed bag of about 10 - 15 Funds And ITs with about 4 trades a year after the initial set up and no money taken out of the fund for the next 5 years.
    Rereading the last few replies they seem to favour Fidelity. Still 30 days to change my mind!

    Thankyou once again for all your comments
    Ian
    Last edited by ian.smith7; 19-04-2018 at 7:36 PM.
    • cloud_dog
    • By cloud_dog 19th Apr 18, 9:43 PM
    • 3,645 Posts
    • 2,168 Thanks
    cloud_dog
    Would anyone disagree with ii being cheaper than Fidelity for a 160K SIPP in Drawdown that holds a mixed bag of about 10 - 15 Funds And ITs with about 4 trades a year after the initial set up and no money taken out of the fund for the next 5 years.
    Rereading the last few replies they seem to favour Fidelity. Still 30 days to change my mind!
    Originally posted by ian.smith7
    Sometimes, you can't get past "You get what you pay for".

    You are always going to get many many different and probably opposing opinions on providers and platforms. For me, I have spent the last 10+ (maybe 15) years running away from II (III as was). Recently moved the OH GIA and ISA away from TD Direct (who have been brilliant) because they were taken over by II.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • kidmugsy
    • By kidmugsy 19th Apr 18, 10:22 PM
    • 10,348 Posts
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    kidmugsy
    For small SIPPs HL are good. At 160k I can see why you are using a different provider.

    We shall probably move a small S&S ISA away from II - for that they are too expensive.
    Free the dunston one next time too.
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