Pension Fees Question

[data6789]

Hi,

I've tried googling to find an answer to this, but not got anywhere and can't quite work out the answer for myself. My SIPP provider (BestInvest) debits fees each month. If I don't have any cash on the account, they automatically sell a small amount of my holdings to generate the cash for the fees. I'm wondering, is it better to keep some cash in the SIPP for the fees or let them sell a small amount each month? Or does it probably not matter?

Thanks.

[adubya]

Hi,

I've tried googling to find an answer to this, but not got anywhere and can't quite work out the answer for myself. My SIPP provider (BestInvest) debits fees each month. If I don't have any cash on the account, they automatically sell a small amount of my holdings to generate the cash for the fees. I'm wondering, is it better to keep some cash in the SIPP for the fees or let them sell a small amount each month? Or does it probably not matter?

Thanks.

I keep some residual cash for fees.

[data6789]

I keep some residual cash for fees.

Thanks for your reply.

[syrio]

Avoid paying fees out of your SIPP, and never be in the position where your provider has to sell some investments to cover the fees, while also charging you a dealing fee to sell in the investment.

Perhaps your provider may allow you to keep cash outside the SIPP for fees, or pay by direct debit or standing order or debit card.

[Lance]

My SIPP is with Hargreaves Landsdown. They have an amount they suggest you keep as cash. It’ still in the SIPP but not invested. It’s a small amount to cover fees. Something like 0.01% of the whole sum.

[DallasDad]

I have a DD setup with II
Last thing I want is them messing about with my investments
Cos that would totally bugger up the nice round numbers I have in lovely graphs in umpteen spreadsheets to keep Swmbo engaged.

[BR14]

I have a DD setup with II
Last thing I want is them messing about with my investments
Cos that would totally bugger up the nice round numbers I have in lovely graphs in umpteen spreadsheets to keep Swmbo engaged.

yep, there's lies, damned lies, and spreadsheets. - worked for arthurs androids have you?

[DallasDad]

How did you know that?

I was with AC to be precise back in 1996 but I left to do a stint at Fedex long before it all went tits up.

[jmo21]

My SIPP is with Hargreaves Landsdown. They have an amount they suggest you keep as cash. It’ still in the SIPP but not invested. It’s a small amount to cover fees. Something like 0.01% of the whole sum.

+1