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Searching for SIPP platform for my wife - Thoughts and Experiences?
royalewithcheese
Posted: 08 August 2017 09:40:57(UTC)
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Hey Forum,

Asking for thoughts on and general experience with SIPP platforms -

I am currently looking into potential SIPP platforms for my wife. She is currently paying into a pension scheme through her employer, but would like to expand into a SIPP, as she has a limited availability of funds to select in her employer scheme. In the SIPP, she would not invest in individual stocks, but only funds, trusts and index trackers.

I am with Bestinvest (Share & Stock ISA & SIPP) and am quite happy with the charges and service I am getting - have just started last year so the pot is still quite small. However, I don't want to just blindly open the same thing for her at Bestinvest before browsing around and researching a little more.

Hence I was wondering what your SIPP provider of choice is? I'm reading a lot about Cavendish being a very good low-cost option, any experience with these guys? Or are you with one of the established players like Hargreaves, Fidelity or AJ Bell ..?

Cheers for the help!
PaulSh
Posted: 08 August 2017 10:25:17(UTC)
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My wife and I both have SIPPs with HL. OK, their charges can be on the high side, but this depends on what sort of investments you hold, how often you trade and how large your portfolio is. HL actually works out very well for us with our IT/ETF portfolios so we pay less than 0.1% pa in charges.

Drawdown fees are zero too, unlike some of the supposedly cheaper platforms. And the icing on the cake is that I can manage both SIPPs from a single login and switch between them at will.
5 users thanked PaulSh for this post.
royalewithcheese on 08/08/2017(UTC), Jon Snow on 09/08/2017(UTC), Pulpos on 10/08/2017(UTC), Mickey on 10/08/2017(UTC), Catch The Pigeon on 10/08/2017(UTC)
Captain Slugwash
Posted: 08 August 2017 11:01:30(UTC)
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Hello Royale

I am with AJBell, and very happy.

That being said, I don't do funds, and from memory HL was a cheaper option for funds when I looked a few years back.
If your wife stuck to IT's, they are treated as shares and the charge is a maximum of £25 per quarter depending on pot size.
2 users thanked Captain Slugwash for this post.
royalewithcheese on 08/08/2017(UTC), Guest on 10/08/2017(UTC)
royalewithcheese
Posted: 08 August 2017 12:13:09(UTC)
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Cheers fellas!

It would be a brand new pot, probably starting with £1k and then switch to monthly direct debit, so the pot is for now as small as can be ;-)

We'd probably buy 4-5 broad index's and IT's in total, throw money at them every month and let them accumulate. So not really any active trading going on.

Given that is the case, would you still recommend HL due to their offerings and general usability ? AJ Bell might not be that suitable for a small pot? Or is it only a 0.25% charge on the whole portfolio?

Thanks!

EDIT: My Bestinvest is at 0.3% for under 250k portfolio at the moment, and also no drawdown fees later on afaik.
markus
Posted: 08 August 2017 12:53:17(UTC)
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royalewithcheese;49622 wrote:
Hey Forum,

Asking for thoughts on and general experience with SIPP platforms -

I am currently looking into potential SIPP platforms for my wife. She is currently paying into a pension scheme through her employer, but would like to expand into a SIPP, as she has a limited availability of funds to select in her employer scheme. In the SIPP, she would not invest in individual stocks, but only funds, trusts and index trackers.

I am with Bestinvest (Share & Stock ISA & SIPP) and am quite happy with the charges and service I am getting - have just started last year so the pot is still quite small. However, I don't want to just blindly open the same thing for her at Bestinvest before browsing around and researching a little more.

Hence I was wondering what your SIPP provider of choice is? I'm reading a lot about Cavendish being a very good low-cost option, any experience with these guys? Or are you with one of the established players like Hargreaves, Fidelity or AJ Bell ..?

Cheers for the help!


...left field suggestion...

given you dont seem to be talking very large sums... £1k & then montly dd..


drip it into a Vanguard ISA (0.15% on everything; max £375 charge a yr; no charge for dealing on funds or ETFs - if non-real time ETF purchases) ...then move it across to their SIPP when it comes in 6months or so
.
obviously restricts you to Vanguard funds/ETFs.
assumes your wife has enough salary to claim the tax relief available when swinging it from ISA->SIPP.


AJ Bell is 0.25% for stocks/IT/ETF upto a max of £25 a quarter *plus* 0.25% for funds (& steps down on portfolios >£250k)

you mention investing in 4 or 5 elements per month - AJ Bell that would be £1.50 per element a month - soon adds up & could be a highish percentage of smallish monthly subs.
2 users thanked markus for this post.
royalewithcheese on 08/08/2017(UTC), Guest on 10/08/2017(UTC)
Captain Slugwash
Posted: 08 August 2017 12:53:20(UTC)
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royalewithcheese;49631 wrote:
Cheers fellas!

It would be a brand new pot, probably starting with £1k and then switch to monthly direct debit, so the pot is for now as small as can be ;-)

We'd probably buy 4-5 broad index's and IT's in total, throw money at them every month and let them accumulate. So not really any active trading going on.

Given that is the case, would you still recommend HL due to their offerings and general usability ? AJ Bell might not be that suitable for a small pot? Or is it only a 0.25% charge on the whole portfolio?

Thanks!

EDIT: My Bestinvest is at 0.3% for under 250k portfolio at the moment, and also no drawdown fees later on afaik.


For comparison I started a SIPP for my daughter with some money she had left for her (forward planning freak :D ). It is about £1300 now, and the 2nd quarter custody charge was 61 pence if that is cheap enough for you?
Just 2 IT's for now until it grows. I do top ups on the £1.50 dealing day on the 10th of the month if there are enough funds.
1 user thanked Captain Slugwash for this post.
royalewithcheese on 08/08/2017(UTC)
chazza
Posted: 08 August 2017 16:54:37(UTC)
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YouInvest (A J Bell) is good for larger SIPPs (above 200k), since it has a flat fee of £25 per quarter.
But HL is much better for smaller sums because HL's charges are a percentage of the total value of the SIPP with no minimum (and for the same reason, not so good for larger SIPPs).
AJB's dealing charges on shares / ITs are lower than HL's, but unlike HL, AJB charges for each transaction in funds.
I'd go with HL, but make fewer/less frequent purchases to keep transaction costs down.
3 users thanked chazza for this post.
royalewithcheese on 08/08/2017(UTC), Guest on 10/08/2017(UTC), AngryfromManchester on 14/08/2017(UTC)
royalewithcheese
Posted: 08 August 2017 16:58:42(UTC)
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chazza;49643 wrote:
YouInvest (A J Bell) is good for larger SIPPs (above 200k), since it has a flat fee of £25 per quarter.
But HL is much better for smaller sums because HL's charges are a percentage of the total value of the SIPP with no minimum (and for the same reason, not so good for larger SIPPs).
AJB's dealing charges on shares / ITs are lower than HL's, but unlike HL, AJB charges for each transaction in funds.
I'd go with HL, but make fewer/less frequent purchases to keep transaction costs down.


Thanks for this - stupid question, a monthly direct debit into existing portfolio holdings does count as a new transaction on HL, correct? Or is it like Bestinvest, where funds are free but an IT/shares/ETF will cost me £7,50 per transaction ?

royalewithcheese
Posted: 08 August 2017 16:59:52(UTC)
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Captain Slugwash;49634 wrote:
royalewithcheese;49631 wrote:
Cheers fellas!

It would be a brand new pot, probably starting with £1k and then switch to monthly direct debit, so the pot is for now as small as can be ;-)

We'd probably buy 4-5 broad index's and IT's in total, throw money at them every month and let them accumulate. So not really any active trading going on.

Given that is the case, would you still recommend HL due to their offerings and general usability ? AJ Bell might not be that suitable for a small pot? Or is it only a 0.25% charge on the whole portfolio?

Thanks!

EDIT: My Bestinvest is at 0.3% for under 250k portfolio at the moment, and also no drawdown fees later on afaik.


For comparison I started a SIPP for my daughter with some money she had left for her (forward planning freak :D ). It is about £1300 now, and the 2nd quarter custody charge was 61 pence if that is cheap enough for you?
Just 2 IT's for now until it grows. I do top ups on the £1.50 dealing day on the 10th of the month if there are enough funds.


Lucky her for such forward planning parents! :)

Is it £1,50 even more direct debits into funds?
royalewithcheese
Posted: 08 August 2017 17:03:02(UTC)
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markus;49633 wrote:
royalewithcheese;49622 wrote:
Hey Forum,

Asking for thoughts on and general experience with SIPP platforms -

I am currently looking into potential SIPP platforms for my wife. She is currently paying into a pension scheme through her employer, but would like to expand into a SIPP, as she has a limited availability of funds to select in her employer scheme. In the SIPP, she would not invest in individual stocks, but only funds, trusts and index trackers.

I am with Bestinvest (Share & Stock ISA & SIPP) and am quite happy with the charges and service I am getting - have just started last year so the pot is still quite small. However, I don't want to just blindly open the same thing for her at Bestinvest before browsing around and researching a little more.

Hence I was wondering what your SIPP provider of choice is? I'm reading a lot about Cavendish being a very good low-cost option, any experience with these guys? Or are you with one of the established players like Hargreaves, Fidelity or AJ Bell ..?

Cheers for the help!


...left field suggestion...

given you dont seem to be talking very large sums... £1k & then montly dd..


drip it into a Vanguard ISA (0.15% on everything; max £375 charge a yr; no charge for dealing on funds or ETFs - if non-real time ETF purchases) ...then move it across to their SIPP when it comes in 6months or so
.
obviously restricts you to Vanguard funds/ETFs.
assumes your wife has enough salary to claim the tax relief available when swinging it from ISA->SIPP.


AJ Bell is 0.25% for stocks/IT/ETF upto a max of £25 a quarter *plus* 0.25% for funds (& steps down on portfolios >£250k)

you mention investing in 4 or 5 elements per month - AJ Bell that would be £1.50 per element a month - soon adds up & could be a highish percentage of smallish monthly subs.


Interesting thought..!!

I am a big fan of Scottish Mortgage IT, which has given me great growth over this first one year, so I wanted to put some of her money in it as well, which would unfortunately not be possible on Vanguard I suppose..:-(

So, looking at the fee structure of AJ Bell if I have SMT and a few Vanguard Funds, I would look at 0,5% ?
Law Man
Posted: 09 August 2017 16:55:14(UTC)
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A supplement to PaulSh's comment, with which I agree.

HL's platform fe is 0.45% p.a. but subject to a maximum of £200 if you do not hold OEIC funds. Thus if you hold over £44,444 you pay nothing on the excess.

This suggests you do well with HL if you have a total notably over £44,444 with no, or few, OEIC funds.

For myself, I do hold a few OEIC funds for assets where an Investment Trust is not available and attractive. My platform fee is a very low % of the total.

I like the concept of few additional fees e.g. nothing for draw downs.
3 users thanked Law Man for this post.
royalewithcheese on 09/08/2017(UTC), Mike L on 09/08/2017(UTC), Guest on 10/08/2017(UTC)
DCB
Posted: 09 August 2017 17:21:47(UTC)
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Very satisfied with Youinvest for SIPP / ISA and Dealing.
Able to speak to a real person on the occasions I have needed to.
1 user thanked DCB for this post.
royalewithcheese on 14/08/2017(UTC)
Andrew McDonald
Posted: 09 August 2017 17:41:34(UTC)
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2nd leftfield discussion.

Why start a new SIPP? Why not just add to yours, assuming you have the allowances available (both annual limit and you have paid enough tax)

Especially beneficial if you are at higher tax rate than your wife ( greater tax relief)

It would push you down the tiered % charges faster.

Only advantage to doing in separate names is if your expected marginal rate of tax will be higher than your wife in retirement...but with flexible drawdown could possibly be managed.

Personally I use iii. Flat annual charge (£130ish) which is great for me but given your proposed contributions not something I would recommend for you.

Thoughts?
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royalewithcheese on 14/08/2017(UTC)
Andrew Collier
Posted: 09 August 2017 21:33:38(UTC)
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royalewithcheese on 14/08/2017(UTC)
Dave Harrington
Posted: 09 August 2017 22:08:11(UTC)
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Anyone except Interactive Investor.

I currdntly use Alliance Trust and Charles Stanley. Have use HL who are also good but a little experience for me.
1 user thanked Dave Harrington for this post.
royalewithcheese on 14/08/2017(UTC)
Joe Soap
Posted: 10 August 2017 00:47:03(UTC)
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I have a couple of suggestions from my own experience-

For fixed fee SIPP I recommend II.

For % based SIPP I recommend Close Brothers.

In my opinion, once the SIPP is set up you will have few problems, most of the problems I have experienced are related to set up and/or transferring SIPPs. HTH but DYOR is vital.
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royalewithcheese on 14/08/2017(UTC)
Dave Harrington
Posted: 10 August 2017 07:18:10(UTC)
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Dave Harrington;49690 wrote:
Anyone except Interactive Investor.

I currdntly use Alliance Trust and Charles Stanley. Have use HL who are also good but a little experience for me.


Predictive text and lack of attention....

experience = expensive
currdntly = currently
David @ Peterlee
Posted: 10 August 2017 11:28:07(UTC)
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For a new SIPP I'd suggest you check out www.x-o.co.uk, which is the brand name of Jarvis Investment Management Ltd (Jarvis).

They've recently brought out a new SIPP, administered by Gaudi. It has has no annual charge and dealing charges are at the flat rate of £5.95 per deal.

I've been using their no-frill service for nearly ten years now for my ISA and SIPP and I've had no problems (touch wood).

Regards
David

Bellabeck
Posted: 10 August 2017 11:34:44(UTC)
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I use Interactive Investor for my (largish) SIPP, but Charles Stanley Direct for my younger sons ISA & SIPP. II good for larger portfolios as platform fees are fixed but for small SIPP I think CSD offers an excellent user experience etc online
Pensioner
Posted: 11 August 2017 21:52:30(UTC)
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2 yrs ago I researched a SIPP for my daughter who now runs her own business sine 2002, she wanted to invest in two pensions from former employers. I felt HG was the best, their charges are clearly explained on their website. The research you can do is excellent without being logged on. As a result of this as a PI I closed my stockbroker account with Barclays with whom I had been for many years. My daughter and I have been pleased with HG. Too many people are concerned with costs. The importance is making the RIGHT OEIC or IT, don't do shares unless you have the interest and commitment and time. So, go for HL.
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royalewithcheese on 14/08/2017(UTC)
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