Starting a new SIPP, with a pension transfer Starting a new SIPP, with a pension transfer
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  1. #1

    Nervous Newbie


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    Default Starting a new SIPP, with a pension transfer

    Hi guy's I've been contracting for 3 and a half years now, and looking to start a pension, most likely a SIPP. I have a previous pension with Fidelity when I was a permanent employee, which I will probably transfer into a SIPP with HL. The pension with Fidelity is just sat there earning 3.9% interest.

    So I would have a lump sum, and will contribute monthly straight from my limited company.

    To be safe I will start on the portfolio recommendations of HL to start with, and start making my own decisions as I learn more.

    Question is, would you it make sense to keep my previous pension pot with Fidelity and open a SIPP with them to hopefully avoid any transfer fees. Or would I be better off in the long run to move it over to HL?

    Any help from anyone that's made a similar move would be greatly appreciated. .

  2. #2

    Super poster


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    HL was recommending Woodford's fund until it blew up. Don't be quick to assume their recommendations are 'safe'.

    You have to decide how you are going to invest it and look at the comparative fees, vs the transfer fee. You have to consider HL's fee vs Fidelity's, plus the effect of discounts on fund fees for the funds you want to use. It partly depends on how much money we're talking, too. Figure out how much you'll save in fees each month with HL, and find out what the transfer fees will be, and compare the two to see how long it will take you to recover the transfer fee.

    Without knowing how much you are talking and how much you will put in each fund there's no way anyone can answer all this. You have to decide how you want to invest. Once you've decided that, presumably you can manage to compare the two courses of action.

  3. #3

    More time posting than coding

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    Interactive Investor is a cheaper platform for increasing pension values.

    Also, please do read/view the Lars Kroijer book/videos before you start to throw your money around.
    ---

    Former member of IPSE.

  4. #4

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    My current pension pot is £50k, and would be looking to contribute about £500 monthly directly from my limited company.

    Thanks for the advice, I'll check out the video link...

  5. #5

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    I did similar. Moved 2 pensions from 2 different providers from previous permie work and start making monthly contributions from my ltd company. At the time from my research the best in terms of costs seemed to be HL, end up going with AJ Bell as for self managed investments was about the same as HL and the account opening process seemed much easier!

    Check if fidelity charges anything for transfers first, AVIVA and Legal & General didn't charge me a thing. Even if they charge you, check how much you save yearly in fees as most of the time any transfer costs can be surpass for the savings on yearly fees pretty quick!
    "The boy who cried Sheep"

  6. #6

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    Quote Originally Posted by CryingSheep View Post
    end up going with AJ Bell as for self managed investments was about the same as HL and the account opening process seemed much easier!
    IIRC (and I did this very recently) for HL I filled in an online form and my account was open by next day. I think it was open within an hour but the emails went to spam. Then I posted them a chq to their freepost address and a few days later it showed up in my account. I thought it was very easy.

  7. #7

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    Quote Originally Posted by Platypus View Post
    IIRC (and I did this very recently) for HL I filled in an online form and my account was open by next day. I think it was open within an hour but the emails went to spam. Then I posted them a chq to their freepost address and a few days later it showed up in my account. I thought it was very easy.
    I recall there was no option for online submission and would have to send paper by post what seemed quite old school, maybe things changed or I miss understood at the time.

    Was there another option for first deposit other than sending a chq? Some business accounts don't offer chq anymore...
    "The boy who cried Sheep"

  8. #8

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    I've used HL's SIPP service for about 6-7 years and by and large they are very efficient but they are not cheap. I've considered moving to another provider as I've gradually been moving from individual shares and managed funds to index trackers.

    I would take all lists of recommended funds with a pinch of salt and do your own research, no matter who they are provide by.

  9. #9

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    Quote Originally Posted by edison View Post
    I've used HL's SIPP service for about 6-7 years and by and large they are very efficient but they are not cheap. I've considered moving to another provider as I've gradually been moving from individual shares and managed funds to index trackers.

    I would take all lists of recommended funds with a pinch of salt and do your own research, no matter who they are provide by.
    There are significant savings to be made by moving away from HL if one's pot is going to grow.

    The break-even point for my son's Junior ISA was at around the £30k mark... after that HL was basically stealing from him.

    Take a look at other providers; you'll be glad that you did.

    -- Edit --
    I'd attach a simple spreadsheet to show you by example, but I don't seem to be able to attach files to posts.
    Last edited by wattaj; 16th September 2019 at 21:36.
    ---

    Former member of IPSE.

  10. #10

    Nervous Newbie


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    Quote Originally Posted by wattaj View Post
    Interactive Investor is a cheaper platform for increasing pension values.

    Also, please do read/view the Lars Kroijer book/videos before you start to throw your money around.
    Interesting videos, thanks for the link.

    I think this approach would suit me, I'm looking for long term investments for retirement, not short term.

    I'll do more research on the best platforms to use, and also need to check the current market situation still aligns with Lars's strategy.

    Out of interest, is anyone on here doing the same with government bonds and world index tracker?

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