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SIPPS

Hello

I'm 51 and have a significant proportion of my personal pension fund in Standard Life w/p funds - though I stopped paying any more into those funds several years ago. Having seen growth drop to just 3.9% last year (compared to 13-15% in my tracker and com' prop' funds) I think I should take the one-off penalty and get out. I'm now considering moving all my pp funds (including from other companies) into a single SIPP and I wondered if anyone could recommend any good providers and also give me some general advice on the details of how these schemes work.

In particular, can I move monies between different funds as often as I like during the year and can I do this over the internet? What sort of charges do companies make and how do these arise? Am I limited to funds and products from the SIPP manager or can I go wherever the law permits? Any good internet articles?

Yes, I know I'll probably need to see an IFA before I take the plunge but I'd like to get gen'ed up first.

Many Thanks Fred

Reply to
Fred
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X-No-Archive: yes In message , Fred writes

Rathbones. Some information on SIPPs on their website at

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Advisory only is about GBP1000 per annum.

Why would you want to move monies in a SIPP about? Most of it will be in stocks, bonds etc. The portfolio manager will have a cash account for divis etc but trading dealing charges can be a bit of a downer. Also, of course, there are IR regs governing your draw-downs. About 6 per cent per annum of the SIPP's total value is, I believe, a rough rule of thumb. Others may be a lot more precise.

Much depends on your circumstances but I believe SIPPs only make sense with a pot of around GBP100K +.

Reply to
JF

Many thanks for that.

When I stopped investing further monies in w/p, I started looking more closely at fund performances and now actively monitor trends and move monies around. Standard life let me make 2 changes per annum without any charge - but of course I can only move my Standard Life monies between Standard Life funds. Even allowing for this limitation I've managed to do much better that the w/p fund - so much so that I believe I can easily make up the redemption penalty.

But I'd like to have greater flexibility to be able to change investments more easily and maybe more often - I understood Sipps gave me this flexibility. Maybe I've misunderstood?

Yes, that's my understanding.

Thanks again Fred

Reply to
Fred

Make sure he doesn't take a percentage rather than a fixed fee

Search the archive as it's a FAQ.

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SIPP forum here -

Daytona

Reply to
Daytona

No, I would suggest you check what charging options he offers. The percentage could be cheaper than a fixed fee. Some may charge an hourly rate but then collect it by way of a reduced percentage commission.

Reply to
john boyle

The last time I used an IFA I was persuaded to take this route rather than stick with my initial intention of going for a fixed fee. I found it very opaque and was left feeling very confused about what exactly I had paid. In future I will insist on an up front fee based commission.

Fred

Reply to
Fred

In message , Fred writes

New FSA rules, introduced from 1 June, now re-define the word 'independent' and introduce other disclosure requirements that must be declared at the outset. This is intended to remove the opaqueness you have previously experienced.

Reply to
john boyle

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