Question
I'm currently looking at Sipps and have read the article on the candid money website.
My Sipp (in excess of £125k) is currently with HL but I am concerned that this is no longer the best home for it and that this situation may well worsen post RDR.
The analysis you do is excellent on this topic between the potential suppliers of low cost Sipp's but is based on weighted assumptions on where the fund is invested.
I note that for your analysis you use 75% in funds and 25% ETF, is there an easy way to run your spreadsheet with say options based on 50-50, 25-75% or even 100% in favour of etf/equities and then to see if this significantly changes which provider comes out on top for different fund sizes.Answer
Hargreaves Lansdown has a good reputation for customer service, but its discounts/charges look increasingly uncompetitive as other discount brokers and low cost SIPP providers seek to increase their market share with cheaper deals.
I need to give the low cost SIPP page an overhaul, which I'll do over the next couple of weeks, but if you want to predominantly hold ETFs/shares then Sippdeal is likely to be a cheaper option that HL. There's no fee for the SIPP wrapper and dealing costs are fixed at £9.95 per trade.
Even cheaper still is the JPJShare.com e-sipp, with no SIPP wrapper fee and dealing fixed at just £5.75 per trade - they also rebate a decent slug of trail commission if you buy funds (they rebate half and cap their share at £500 a year).
Alliance Trust charges for the SIPP wrapper and has a higher dealing fee, but fares well if you have a bias towards funds as its trail commission rebates are very generous compared to others.
By contrast, Hargreaves Lansdown gives no trail commission rebates on funds held within its Vantage SIPP and charges 0.5% a year (caped at £200 across the holdings) on non-fund investments. It also charges up to £48 a year per fund where no trail commission is paid (typically trackers) and dealing costs for the majority will be £11.95 per trade.
One caveat is that Sippdeal and JPJShare both charge a fee (£150 and £225 respectively) if you want to withdraw income during retirement (while leaving the pension invested), whereas HL doesn't.
Hope this helps and check back in a couple of weeks for the beefed up/updated low cost SIPP comparison, which will incorporate some of your suggestions.
I'm currently looking at Sipps and have read the article on the candid money website.
My Sipp (in excess of £125k) is currently with HL but I am concerned that this is no longer the best home for it and that this situation may well worsen post RDR.
The analysis you do is excellent on this topic between the potential suppliers of low cost Sipp's but is based on weighted assumptions on where the fund is invested.
I note that for your analysis you use 75% in funds and 25% ETF, is there an easy way to run your spreadsheet with say options based on 50-50, 25-75% or even 100% in favour of etf/equities and then to see if this significantly changes which provider comes out on top for different fund sizes.Answer
Hargreaves Lansdown has a good reputation for customer service, but its discounts/charges look increasingly uncompetitive as other discount brokers and low cost SIPP providers seek to increase their market share with cheaper deals.
I need to give the low cost SIPP page an overhaul, which I'll do over the next couple of weeks, but if you want to predominantly hold ETFs/shares then Sippdeal is likely to be a cheaper option that HL. There's no fee for the SIPP wrapper and dealing costs are fixed at £9.95 per trade.
Even cheaper still is the JPJShare.com e-sipp, with no SIPP wrapper fee and dealing fixed at just £5.75 per trade - they also rebate a decent slug of trail commission if you buy funds (they rebate half and cap their share at £500 a year).
Alliance Trust charges for the SIPP wrapper and has a higher dealing fee, but fares well if you have a bias towards funds as its trail commission rebates are very generous compared to others.
By contrast, Hargreaves Lansdown gives no trail commission rebates on funds held within its Vantage SIPP and charges 0.5% a year (caped at £200 across the holdings) on non-fund investments. It also charges up to £48 a year per fund where no trail commission is paid (typically trackers) and dealing costs for the majority will be £11.95 per trade.
One caveat is that Sippdeal and JPJShare both charge a fee (£150 and £225 respectively) if you want to withdraw income during retirement (while leaving the pension invested), whereas HL doesn't.
Hope this helps and check back in a couple of weeks for the beefed up/updated low cost SIPP comparison, which will incorporate some of your suggestions.
Read this Q and A at http://www.candidmoney.com/questions/question576.aspx
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