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SIPP providers


Calcutta
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I'm looking at opening a SIPP, anyone got any thoughts on the best, cheapest, most reliable ones? Il be starting at zero and chucking a few grand into blue chips here and there. Tried HL a minute ago and their website won't even let me open one without phoning them. That seems a bit fucked to me. 

 

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I think it depends a bit on what you want.

If I was to start again now I would probably go for a low cost provider,  because I don’t really need a flashy interface,  investor research areas or a “big name”. 
 

On the other hand,  you might want that.

 

There are quite a lot of sites comparing them..  here is a fairly good article,  but there are lots of providers out there.  It’s a bit like asking which bank is best for a savings account..  they all vary a little bit,  but ultimately they are all more or less the same.

https://www.thetimes.co.uk/money-mentor/article/best-self-invested-personal-pension-sipp/

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Napoleon Dynamite

I opened a Vanguard one the other week.  It's all very easy and no frills, was setup in 15 mins.

You're limited on your options of funds with them, but I only intend to use their lifestrategy funds.  

I have a H&L SIPP too. It was fine, phone web app was decent. Fees were high which is the reason for moving away from it.

 

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jamtomorrow

IWeb has been OK. It's effectively a low-fee white label incarnation of the Halifax platform. You get what you pay for though - the range of investments is sometimes a bit limited and quirky compared to the big boys, and it can be hard to access in a hot market.

That said, statements and historical data are 100x better than HL. "Where did my money go" is often a hard/impossible question to answer on HL, and you pretty much have to keep your own accounts if you want that info. iWeb pretty good on that score by comparison.

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I use AJ Bell.  Not too bad, quite a wide range of stocks and funds.  Used to be low cost provider Sippdeal, but he structure has changed and not quite so low cost now.  I'm too lazy to change.

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Talking Monkey
3 hours ago, Heart's Ease said:

I use Bestinvest for my SIPP, HL for partners. Quite a limited range available at BI. Much prefer HL.

I like HL, have the sipp and ISA with them seem good for longterm buy and hold type strategy. 

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Heart's Ease
8 minutes ago, Talking Monkey said:

I like HL, have the sipp and ISA with them seem good for longterm buy and hold type strategy. 

I think I took the sipp recommendation from WICAO. March 2017. Had an ISA with HL but the BI one was better (lower) sipp fees.

Didn't do a lot with the sipp until I tried to buy IBTL. Not offered. Then, iirc Sibanye. Not offered.  I wish I had known then the importance of access to as wide markets as is reasonable.  Also iirc WICAO had a top ten of pukka blue chip stocks in his sipp so would have worked for him on a limited range.

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Talking Monkey
5 minutes ago, Heart's Ease said:

I think I took the sipp recommendation from WICAO. March 2017. Had an ISA with HL but the BI one was better (lower) sipp fees.

Didn't do a lot with the sipp until I tried to buy IBTL. Not offered. Then, iirc Sibanye. Not offered.  I wish I had known then the importance of access to as wide markets as is reasonable.  Also iirc WICAO had a top ten of pukka blue chip stocks in his sipp so would have worked for him on a limited range.

Most of the stuff I wanted has been on HL, plus it's size means it has some stability. Another plus it's not a bank, I wouldn't be comfortable holding an ISA with barclays 

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I've got ISA and SIPP with AJBell and they have a good range.  The only times there's been a lack of access have been when everything everywhere was crazy eg last March and they put up a warning about it.

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I phoned H&L today to try and get my head around what a SIPP is and how it works. 
 

I only started trading in mid March 2020 using £20k ISA allowance - so I am still getting up to speed. Forgive me as well as I am a ‘thick Irish gypsy’ ....

So let me get this this right - SIPP:

https://www.hl.co.uk/__data/assets/pdf_file/0020/36650/SIPP-GUIDE-A5-03-download.pdf

- you can each put up to £40,000 a year into a SIPP (your contribution plus government tax relief contribution).

- if I put £8000 cash into my SIPP holding account tomorrow then within 8 weeks H&L will arrange with the government to put another £2000 cash in there. I don’t have to do anything - no need to buy shares or fill in a form - just deposit the £8000 cash into it. They do the rest.
 

- At the end of the tax year I can ALSO  do a self assessment TAX form and as a higher rate tax payer I can get ANOTHER £2000  reduction in my tax which I can put into my SIPP.

So effectively if I put £28,000 of my own money into a H&L SIPP - in a year - the government will top it up to £40,000 a year and I don’t even have to buy shares just deposit the cash in the SIPP and fill in a Self assessment TAX form by end of that financial year  ?

The downside to all this is that as I am only 45 now I will have to be 57 to take anything out of the SIPP (2028 new rules), and I can only take 25% of my pot (what does this fully mean?) out a year after 57 years old.  
 

So what is to stop me (and my wife) as higher rate tax payers starting at 54 years old putting in £28k a year of our own money each .... to which the government WILL make it up to £40k each - and if we keep doing this for the next 3 years we will end up with £120k each (which only cost us £84k) - which we can take out in £30k lumps from 57 to 61 years old? (We don’t even have to buy shares).

Seems like a no brainer to me. 

Where’s the catch? 

I have been planning on using ISAs to invest - (I am 45), but if I am happy to ‘lock my money away’ for 10years it seems like a no brainer to start A SIPP from 47 years old.
Especially if we enter a protracted bear market and I don’t want to buy shares.

You get 45% on top of everything you put in even before investing!  How is this sustainable? Doesn’t seem possible - unless I am missing something? Am I being a thick twat? 
 

Seriously @DurhamBorn and the rest of you I need some really basic advice here. Is a SIPP sensible? 
 

Is it possible inflation could fuck you up on this? You put your £84k total in each over the 3 years and it gets made up to £120k but is worth a lot less as inflation has eaten it away? (Assuming you keep it in cash)? Sounds unlikely that.
 

A SIPP for 3 years from 54 years old seems like a superb bank account giving 45% a year? 
 

(I’ll post this in the SIPP thread as well).

 


 

 

 

Edited by Vendetta
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Chewing Grass
1 minute ago, Vendetta said:

A SIPP for 3 years from 54 years old seems like a superb bank account giving 45% a year? 

Nope, it doesn't give you anything, it defers the 40% tax you would have paid until you retire (less 25% tax free) but you do get the 5% average growth of an average SIPP.

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2 minutes ago, Chewing Grass said:

Nope, it doesn't give you anything, it defers the 40% tax you would have paid until you retire (less 25% tax free) but you do get the 5% average growth of an average SIPP.

@Chewing Grass


So as you take ‘lumps’ of it out (after you turn 57 years of age) you have to pay tax on it as it is treated as a ‘salary’ by the government. 
 

Can you minimise how much you take out and get it tax free if you keep it under a government ‘tax allowance’ ? 
 

I need a smart accountant ! 

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DurhamBorn

@Vendetta this thread isnt really for individual financial advice.Sipps work as you say,25% is the tax free amount you can withdraw then its taxable at your top rate after that.If you drop from higher to lower rate,or lower rate to zero rate then you gain and thats the real advantage.The main risk is they keep changing the rules.They are very easy to understand once you get your head around them.

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Chewing Grass
1 minute ago, Vendetta said:

Can you minimise how much you take out and get it tax free if you keep it under a government ‘tax allowance’ ? 

Yes.

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Chewing Grass
Just now, DurhamBorn said:

The main risk is they keep changing the rules.

That is my pet hate, and is truly despicable as it prevents people planning for their retirement simply and efficiently.

I just think how my father never had to worry about such stuff as the rules remained virtually unchanged for 40 years.

These buggers can change them every 5-10 years.

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1 minute ago, Chewing Grass said:

Yes.

That would be £12500 no ?

So is that when people talk about drawing down a certain amount a year.  So I’d just take £12500 out a year and use my ISA ollies dividend income tax free to keep me going ....? 

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5 minutes ago, DurhamBorn said:

@Vendetta this thread isnt really for individual financial advice.Sipps work as you say,25% is the tax free amount you can withdraw then its taxable at your top rate after that.If you drop from higher to lower rate,or lower rate to zero rate then you gain and thats the real advantage.The main risk is they keep changing the rules.They are very easy to understand once you get your head around them.

Tbh I’m not after individual financial advice I just want a tax accountant to say what the most efficient tax vehicles are from 45 onwards....how to access them and the best way to minimise tax. 

Edited by Vendetta
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montecristo
13 hours ago, DurhamBorn said:

Am I reading this correct as in the 57 age will be protected from 2028? 

"2.6 - The protected pension age will be specific to an individual as a member of a particular scheme. Protection will not apply to other schemes where there was no existing right held, so an individual could have a protected pension age in one scheme where they have a right to take pension benefits at an age below 57, but for schemes where no such right exists the new NMPA of 57 will apply from 2028."

Edited by montecristo
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