Discussion
I have a SIPP with Standard Life managed by a financial advisor (also my accountant).
I'm really not happy with the performance of the funds and have seen hardly any growth in the last year. I am drawing 3.6% which I would have thought is not too demanding.
Thinking of moving the SIPP to a cheaper platform and self managing.
Has anybody here done anything like this?
I'm really not happy with the performance of the funds and have seen hardly any growth in the last year. I am drawing 3.6% which I would have thought is not too demanding.
Thinking of moving the SIPP to a cheaper platform and self managing.
Has anybody here done anything like this?
Well I now have a response from my FA and it seems that I was mistaken regarding the fees. The reduction in yield still looks high though:-
[i]
[The charges for the Standard Life plan will vary depending upon the fund selections used, the charges are not separated out as this plan was arranged prior to the current set of rules but expressed as one overall charge. We have a range of internal and external funds and have included some multi manager options, the current reduction in yield quoted is 1.3% per annum, our adviser charge is 0.2% per annum. There are no exit penalties, the full value of your funds would be transferred to a new provider if you wish to proceed with a transfer.
Your Standard Life plan uses a drip feed drawdown system to provide you with your regular payments. Part of these payments is taxable income and part tax free cash as your funds are moved from the pre-retirement pot to the post-retirement drawdown pot each month depending upon the balance of payment needed. This creates a tax efficient income stream and also maximises death benefit options. Not many providers are able to offer this process as a monthly automatic phasing which is one of the reasons I selected Standard Life. If you do transfer to an online trading system I would suggest you check the process for providing your regular payments and whether any changes may be needed to your strategy[/i]
Any further thoughts?
Thanks for the responses to date.
[i]
[The charges for the Standard Life plan will vary depending upon the fund selections used, the charges are not separated out as this plan was arranged prior to the current set of rules but expressed as one overall charge. We have a range of internal and external funds and have included some multi manager options, the current reduction in yield quoted is 1.3% per annum, our adviser charge is 0.2% per annum. There are no exit penalties, the full value of your funds would be transferred to a new provider if you wish to proceed with a transfer.
Your Standard Life plan uses a drip feed drawdown system to provide you with your regular payments. Part of these payments is taxable income and part tax free cash as your funds are moved from the pre-retirement pot to the post-retirement drawdown pot each month depending upon the balance of payment needed. This creates a tax efficient income stream and also maximises death benefit options. Not many providers are able to offer this process as a monthly automatic phasing which is one of the reasons I selected Standard Life. If you do transfer to an online trading system I would suggest you check the process for providing your regular payments and whether any changes may be needed to your strategy[/i]
Any further thoughts?
Thanks for the responses to date.
Mr Trophy said:
BC,
Could I trouble you to let me / us know the funds you're currently in?
Sure, what bothers me is that ALL of these funds are Standard Life:-Could I trouble you to let me / us know the funds you're currently in?
My Folio Market 111 Pension Fund
M&G Optical Income Pension Fund
North American Equity Pension Fund
M&G Global Dividend Pension fund
Threadneedle American Select PF
Invesco Perpetual Corporate Bond
SLI UK Opportunities
SL My Folio Multi Manager 111
SL Individual Property
SLI Global Absolute Return Strategies
SL UK Equity High Income
The same funds are held as pre and post pension if that helps?
Thought I would bump this thread for an update. My FA is moving my SIPP from Standard Life to Aviva as apparently SL have a restricted number of funds available and Aviva offer more.
While reviewing all this I am starting to think about my drawings. I am currently drawing 3.2% which on the low side to me. What would a reasonable % be? Obviously I want to draw enough to do what I want but on the other hand I would hate to get 'old & poor'.
While reviewing all this I am starting to think about my drawings. I am currently drawing 3.2% which on the low side to me. What would a reasonable % be? Obviously I want to draw enough to do what I want but on the other hand I would hate to get 'old & poor'.
Mr Trophy said:
BC, did your IFA give you anymore reason's for the move? Is he charging you a percentage to the move the fund value and changing the on-going rate?
No there is no charge to move the funds. The ongoing rate is slightly cheaper but Mrs BC and I have large pensions and offshore trusts (Standard Life WRAP) so that's probably why.Does the drawing percentage seem reasonable?
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