SIPP recommendations

[Fred Bloggs]

This is what I've done too, for myself and my wife. I did briefly consider the £85k FSCS thing, but my logic was:
- the fund providers surely own the underlying shares, so if the fund provider went bust, presumably that's just an admin faff for someone (ie the underlying company shares don't disappear)?
- the fund platform is just a shop front, so if the fund platform went bust, again presumably that's just an admin faff for someone (ie the funds don't disappear)?
- I'm lazy and don't want to spread SIPPs/ISAs across different fund providers and/or platforms.

To my mind the only realistic way a global index fund thing can go pop is if we have some kind of really bad global pandemic, or some dictator starts World War 3, things like that

......and in the case of a SIPP, the assets are held by a third party pension trustee not the platform provider.

Serious fraud is always theoretically possible. But at a leading retail fund platform, is unlikely in my opinion.

[Maslins]

Everything is in FTSE Global All Cap Index Fund Accumulation.

This is what I've done too, for myself and my wife. I did briefly consider the £85k FSCS thing, but my logic was:
- the fund providers surely own the underlying shares, so if the fund provider went bust, presumably that's just an admin faff for someone (ie the underlying company shares don't disappear)?
- the fund platform is just a shop front, so if the fund platform went bust, again presumably that's just an admin faff for someone (ie the funds don't disappear)?
- I'm lazy and don't want to spread SIPPs/ISAs across different fund providers and/or platforms.

To my mind the only realistic way a global index fund thing can go pop is if we have some kind of really bad global pandemic, or some dictator starts World War 3, things like that

[Dark Black]

S&S ISA and SIPP with Fidelity - the SIPP was original managed by Cavendish using Fidelity's platform but was acquired by Fidelity in 2020.

Charges 0.35% up to 250k, 0.20% thereafter.

Happy with them. The website was initially rather basic compared with some of the bigger investor platforms, but has come on in leaps and bounds over the last couple of years.

[gixxer2021]

This is a great report on platform fees but unfortunately ISA based but may have some useful info anyway -
https://langcatfinancial.co.uk/publi...nvesting-2021/

I’m with HL, as stated not the cheapest for funds but I’ve a lot of shares in my SIPP so good value for those, and a great interface so easy to use. Transferred in from an old SL pension and was really easy, simple form and that was it. The other advantage to HL is they appear to be compatible with a lot of umbrellas.

[BigLadFromBeeston666]

Isn’t that rather putting all your eggs in one basket?

The fund is global and highly diversified in terms of region and sectors. It seeks to passively track the companies with the largest market capitalisation.

For small amounts, Vanguard is often the cheapest investing platform. However for larger amounts it isn't, and iWeb and II are often touted by Monevator and the like as being the best. However, I am happy to pay a marginal amount more for the Vanguard brand, customer service and UX.

So I don't see it as putting all my eggs in one basket, because the fund is diversified and Vanguard are an investing monolith.

[Fred Bloggs]

Isn’t that rather putting all your eggs in one basket?

If I might presume to comment - I can see the sense in it. After all, if you know you can't pick stocks or markets to outperform the market, then something that invests in a little slice of everything globally makes a good deal of sense. It's a hands off one stop investment in the entire global economy, pretty much. I think there's far worse things to be invested in to be honest.

Apologies in advance if the original poster has a different take on it.

[cojak]

We use Vanguard for our SIPPs, S&S ISAs and JISAs.

Everything is in FTSE Global All Cap Index Fund Accumulation.

Isn’t that rather putting all your eggs in one basket?

[BigLadFromBeeston666]

We use Vanguard for our SIPPs, S&S ISAs and JISAs.

Everything is in FTSE Global All Cap Index Fund Accumulation.

[Fred Bloggs]

Thanks FB, good to know.

Its my first SIPP so looking to put £40k via salary sacrifice so will work out the running and trading costs.
The costs after several years may differ with a bigger pension pot but I'll address that down the line.

In practice, is it easy to move providers?

Lastly, I already have my ISA with II - if I go down the pension route with them, does that impact the £85k protection limit or are pensions covered separately?

If you already have an ISA at II, then go with them for the SIPP, £10 a month, flat fee.

Yes, it is easy to move providers in principle. But often it isn't a quick process.

I suggest once you have selected your investment platform, you look at the extensive factsheets to be found on any of the large retail investment platforms. Questions like statutory investment protection is best read first hand. Bear in mind that SIPP investment assets are held by an independent trustee on your behalf. ISA investments are held at arms length by the investment platforms so they have no day to day access to your assets. Outright fraud is always theoretically a problem but ask yourself how likely that is at a major retail investment platform.

[Smartie]

If you already have an ISA with II then it will probably be the cheapest. £240/year for both, however much you have in there.

I have an HL account as well as II to spread the risk a bit but to be honest pension funds are pretty well protected and you don't want to end up with 5 or 6 different providers as you increase your pot.

HL have better service and a better app and are possibly easier to get money in from an umbrella if you need that. II is manageable, decent selection of investments and very cheap, especially for larger pots.

Moving SIPPS is a pain - can take months.

[ContractorBanking]

Thanks FB, good to know.

Its my first SIPP so looking to put £40k via salary sacrifice so will work out the running and trading costs.
The costs after several years may differ with a bigger pension pot but I'll address that down the line.

In practice, is it easy to move providers?

Lastly, I already have my ISA with II - if I go down the pension route with them, does that impact the £85k protection limit or are pensions covered separately?

[Fred Bloggs]

Looking to take out a SIPP for the first time, any recommendations for a SIPP provider.

Cost, reliability, flexibility and trading coverage are the main things I'm considering. Will be investing mainly in UK and international funds. Stocks, ETFs and funds.

Any suggestions for a short-list would be great.


thanks

For a per centage charge based SIPP, look at AJ Bell (0.25%). For a flat fee based SIPP, Interactive Investor.

Hargreaves Lansdown are often mentioned. Whilst they are expensive for holding funds (0.45%), they can be a cheap option if you avoid funds. Of course, that rules out the majority of retail investment options. That may or may not be a problem for you.

So, overall, I think you're probably best going with AJ Bell or Interactive Investor, whichever one suits you best.

[northernladuk]

Here is a google search where this has been asked or discussed before.

https://www.google.com/search?q=best...client=gws-wiz

I've used 'best sipp' so mess around with the keywords a bit to find others

[ContractorBanking]

Looking to take out a SIPP for the first time, any recommendations for a SIPP provider.

Cost, reliability, flexibility and trading coverage are the main things I'm considering. Will be investing mainly in UK and international funds. Stocks, ETFs and funds.

Any suggestions for a short-list would be great.


thanks