Hi folks,
I opened a SIPP witH Hargreaves Lansdown some months ago, but having read a similar thread on the subject, I'm conscious that HL may not be the most cost effective provider.
Is there any independent research available to compare charges of providers as I'm considering switching if there are more cost effective providers with lower aggregate charges?
Grateful for any advice that you have.
Thanks
I don't have a comparison site for you I'm afraid but FWIW I was moved to Fidelity from Transact due to low costs, especially of fund switching.
Surely it is very dependent on how you will contribute to it and what you are intending to hold inside it.
My SIPP is with Fidelity because it is capped at £45 per annum on ETFs and that’s all I hold there.
Funds/OEIC are held elsewhere as it works out cheaper.
The more you can elaborate then more you can be advised.
A SIPP is only the wrapper.
Anyone got any info on whether Vanguard are any nearer to launching their delayed SIPP?
Maybe post over on the PH Finance forum as this topic has been covered a number of times:
https://www.pistonheads.com/gassing/forum.asp?h=0&f=206
AJ Bell, Fidelity, Interactive Investor all have low cost options.
Comparison spreadsheet available from “snowman” here - https://forums.moneysavingexpert.com....php?t=5583030
Also another comparison site - http://www.comparefundplatforms.com
HL are not good for larger funds and their name somewhat tarnished by the close relationship with Neil Woodford.
Apologies, maybe should have provide more detail, looking to invest in small number of managed funds as I have a broad range of investment trusts, ETF's/ETC's and individual shares in my ISA.
I'm looking at funds such as Lindsell Train UK/Global Equity, Vanguard life Strategy, Bailie Gifford Managed etc.
Just had an email from Vanguard who are finally launching their SIPP, although they are still vague about the exact date...early 2020.
0.15% annual account fee capped at £375 annually across all your Vanguard accounts, so if you plan to only hold Vanguard funds this is pretty competitive.
I was just about to take advantage of the Fidelity cash back offer to move across from HL, but I’ll hold out for this now.
I've got quite a bit in HL in a Vanguard LS 80. Is it possible to move that across to the Vanguard Sipp in isolation?
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I expect HL will react to the new Vanguard SIPP with a cut in their fees.
I can’t for a second imagine HL just sitting back and letting droves of their core “investors” wave goodbye.
I complained about the fee increase a number of years ago and HL were good and out a few cap on my accounts to keep me as a customer. I’m pretty sure my cap is lower than £375.
i Have thought about moving some of my SIPP over to the Vanguard if only to have the pension invested with two different brokers in case one of them ever has a fall from grace.
I keep meaning to look into what would happen to my SIPP and savings money if HL went pop.
Sure.
It was a number of years back when HL changed their fee structure to what it is now. Prior to that, when they were a lot smaller, they were cheaper.
I got the letter, sent them a snotty message via the secure message portal and they messaged back to say they would cap my annual fee, so that I didn’t see any increase in my costs.
I think I was one of the lucky ones while they tried to deal with the fall out of the fee hike.
No idea how you’d get on now, but if you called them and said you’re planning to take your SIPP elsewhere due to their fees being higher, they might well offer you a cap. No different to what we all do with our Sky TV subscription each year.
The Vanguard SIPP just went live this morning, finally.
I want to transfer my Lifestrategy 80 Portfolio from HL to Vanguard due to lower fees. I'll keep the rest of my funds in HL as they aren't offered on Vanguard I don't believe (Fundsmith, Baillie Gifford etc). Is it possible to just transfer part of the portfolio?
Maybe. Just ask HL. Take 2 seconds. More reliable info than those on here surely ? ?
I'm having trouble opening an account with Vanguard, be sure to use the Transfer link on their website if you are moving a pension in as that's not included in the general 'open a new SIPP'.
EDIT: Got it to work. From the "What we offer" menu select "transfer a pension". Other links (within pages) did not work for me.
Last edited by T1ckT0ck; 19th February 2020 at 14:08.
Think I’ll wait a couple of days for any teething problems to be resolved - it’s taken them this long to set the thing up you’d think it would be well tested, but let’s see...
Yes, I’d say for the sake of a month or two it’s probably worth waiting for the dust to settle.
I would also imagine the other platforms to respond when they’ve had a chance to gauge how many of their Vanguard investors are looking to jump ship.
I expect if you call HL, for example, and tell them you’re moving to vanguard, they may well agree to cap your fees, rather than lose you as a customer, meaning you get the same rate without the hassle of moving platforms.
I can’t imagine the other platforms just sitting still and letting VG take a huge chunk of their customers away.
I have contacted HL and there email response was effectively “we have recently changed / removed charges, market leader, support, excellent platform, etc”.
I think you may be right but they will definitely sit on their hands for a while.
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can someone explain the subtle difference between a SIPP and a SASS, there are two of us and we have always had a SASS rather than SIPP's
I think.......a SSAS usually gets done for you via a company you own or work for.
SIPP is fully self administered and not bound to a company or business.
So if you decided to move your SSAS to Hargreaves Landsdowne, for example, it would become a SIPP.
I'd google it and read the link below rather than listen to me.
https://www.onlinemoneyadvisor.co.uk.../sipp-vs-ssas/
Unfortunately HL won't let you do an 'in specie' transfer, i.e. moving the Vanguard units over like for like. Instead they would liquidate your position (= convert it into cash), then transfer the cash over to Vanguard, then you would need to buy units again for cash.
Still worth it IMHO - HL don't have a great track record for being cost efficient.
That's a gerat question Ryna, and a fair point. Unfortunately (and I hope I got that one wrong, but my research/knowledge would indicate that I didn't) it's pretty much 'all or nothing' with transferring these SIPPs from one provider to another.
What does HL charge your for the Lifestrategy 80 from Vanguard, as opposed to holding those directly with Vangaurd in a SIPP?
It's not HL that won't let you transfer in-specie: it's a defect of the Vanguard SIPP platform. Apparantly you can't yet take cash-free or income drawdown either so calling it a SIPP is pushing the definition a bit. Maybe they hope they have a few years to get it right before any of the new clients want their money out.
Well you would think that Vanguard will have sorted it out by then but if they haven't then yes you would.
Anyone switching now as cash should be aware they could be out of the market for some weeks - some have reported SIPP transfers can take 8 weeks (that's a general point, not just a Vanguard issue).
I have opened a Vanguard Sipp and initiated a transfer from a secondary smaller Aviva pension, before moving some/all of my HL holdings.
I will update once completed, so as a guide to timelines.
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I have an older Aviva stakeholder Pension consisting of a few general tracker funds - did you have to speak to Aviva about transferring to cash, transfer and closing the account etc before you started the transfer to Vanguard? I'll be interested in how long this will take - thanks
I opened the Vanguard SIPP via the Transfer option which means no cash deposit is required to open it beforehand.
That process creates a transfer request document that is sent Aviva by Vanguard but on my behalf, I get a copy held on the Vanguard platform.
Aviva receive it, sell my funds creating cash, then transfer that cash to Vanguard who put into into the fund(s) I nominated or held as cash if you want to distribute it to funds at a later stage.
Aviva will give you a transfer value (via My Aviva if you are registered) which is only valid at that time so the cash value may be more or less depending on the market at the time the funds get sold.
Some pension providers may apply charges to transfer out but in my case no fees, although I still would have.
So far i'm quite impressed with Vanguard online platform, bit less clunky than HL which has obviously evolved over time.
Moving my Vanguard holdings to HL will be a similar process as Vanguard only accepts cash transfers at the moment.
Hope that helps.
Morning all,
hope you are all staying healthy.
I'm planning to open a new SIPP with Vanguard on April 6th and just wanted to get any additional feedback on how any of you have found the platform and customer service provided by Vanguard.
I'm asking this as I recently opened a SIPP with II and I've been distinctly unimpressed with their level of customer service.
Last edited by klunk; 26th March 2020 at 11:59.
In general the Vanguard platform works quite well, but then it doesn't have to cope with thousands of different stocks & funds given that you can only invest in Vanguard funds (there are 77). I've used the secure message facility a couple of times & generally received an answer in a couple of days.
Be aware the SIPP currently has very limited facilities - there are reports you cannot setup recurring payments for instance & there's no mechanism for drawndown or the like. Presumably these will be added in time but at the moment it's all a bit basic. They did manage an in-specie transfer in from another provider but it took a few weeks.
Is there a particular reason for selecting Vanguard?
Thanks for the reply - yes, I opened my II SIPP about 3 months ago and began investing in the Vanguard Lifestrategy 80 fund.
I'm planning on transferring that and further investments into the Vanguard SIPP because of the lower charges on Vanguard funds.
I was aware of the issue with drawdown, but when you say that you can't set up recurring payments, do you mean such as a monthly direct debit payment?
- - - Updated - - -
I've looked up the source & it seems that you can make personal DD contributions but not employer ones from a company account:
https://www.pistonheads.com/gassing/...t=1852627&i=40