Vanguard to launch UK's cheapest SIPP
Discussion
Will be looking very closely at this. My SIPP costs are IRO 1-1.2%. I have been waiting for this for a good while but I need to really consider performance of my existing supplier first.
I don't have a massive pension but if the difference is 0.6% saved and I still have 15 ish years before I can touch my SIPP its still a very nice new car or probably 5 nice long haul holidays. The only question is performance, if my current supplier can out perform Vanguard by 0.6% then its pointless to move.
Hmm.
I don't have a massive pension but if the difference is 0.6% saved and I still have 15 ish years before I can touch my SIPP its still a very nice new car or probably 5 nice long haul holidays. The only question is performance, if my current supplier can out perform Vanguard by 0.6% then its pointless to move.
Hmm.
My real worry with transferring from HL to Vanguard is the fact that regardless of what funds you hold with HL (even if they are already Vanguard) they will be sold and transferred in cash, then bought back in once that cash has reached Vanguard.
In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
BlackG7R said:
My real worry with transferring from HL to Vanguard is the fact that regardless of what funds you hold with HL (even if they are already Vanguard) they will be sold and transferred in cash, then bought back in once that cash has reached Vanguard.
In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
My understanding is they are done as in specie transfers (i.e. the assets are transferred without conversion into cash). Transfers of ISAs from HL to Vanguard proceed in specie, and I see no reason this wouldn't apply to a SIPP.In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
webstercivet said:
BlackG7R said:
My real worry with transferring from HL to Vanguard is the fact that regardless of what funds you hold with HL (even if they are already Vanguard) they will be sold and transferred in cash, then bought back in once that cash has reached Vanguard.
In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
My understanding is they are done as in specie transfers (i.e. the assets are transferred without conversion into cash). Transfers of ISAs from HL to Vanguard proceed in specie, and I see no reason this wouldn't apply to a SIPP.In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
[url]
|https://thumbsnap.com/4hxBGMKa[/url]dmahon said:
Tempted to move mine but I worry Im too concentrated with Vanguard.
I have around 70% of my savings with them now but keep SIPP, ISA and a stocks and shares account with HL.
I know Vanguard are a whale, but should I have any concerns about putting all of my assets with them?
Because of what I do for a living, I see plenty of instances of punters who put all their eggs in one basket. I stop and think quite often about not just the wisdom of that but the mentality that says that's a good idea - when I grew up the most common saying was about not "putting all ones eggs in one basket" yet this has, for many it seems, just gone out the window and investors are actually seduced into thinking one basket idea is the greatest thing since sliced bread.I have around 70% of my savings with them now but keep SIPP, ISA and a stocks and shares account with HL.
I know Vanguard are a whale, but should I have any concerns about putting all of my assets with them?
Yes, in the confined arguments about economies of scale it might be tempting, but say you'd backed only one horse, and that was Neil Woodford? Would that be a sane decision pre-meltdown?
Only you know your own views/risk tolerances on this one - YMMV / Do your own DD etc etc
webstercivet said:
BlackG7R said:
Fair enough, I stand corrected! Don’t know why they support in specie transfers for ISAs but not SIPPs.They are 3 years behind in launching this and in a bid to get it live ASAP have cut corners big time to get it out.
It is not really being ready and has no ability to take in specie transfers and no ability to actually pay you any tax free cash or income drawdown.
I believe Vanguard to be one of the good players out there, so it is a shame they felt they should launch with a botched half job of a pension/SIPP.
In fact, the whole "Vanguard launches UK's cheapest SIPP" line is incredibly misleading (not just the focus on the 0.15% fee without taking into account all the other costs) as it is not even a SIPP (it has absolutely no SIPP functionality) and depending on your circumstances there are cheaper options available (so it is also certainly not the UK's cheapest).
There is quite a bit of misleading marketing hype going on for a half cocked product launch, which I would not have expected from Vanguard.
JulianPH said:
webstercivet said:
BlackG7R said:
Fair enough, I stand corrected! Don’t know why they support in specie transfers for ISAs but not SIPPs.They are 3 years behind in launching this and in a bid to get it live ASAP have cut corners big time to get it out.
It is not really being ready and has no ability to take in specie transfers and no ability to actually pay you any tax free cash or income drawdown.
I believe Vanguard to be one of the good players out there, so it is a shame they felt they should launch with a botched half job of a pension/SIPP.
In fact, the whole "Vanguard launches UK's cheapest SIPP" line is incredibly misleading (not just the focus on the 0.15% fee without taking into account all the other costs) as it is not even a SIPP (it has absolutely no SIPP functionality) and depending on your circumstances there are cheaper options available (so it is also certainly not the UK's cheapest).
There is quite a bit of misleading marketing hype going on for a half cocked product launch, which I would not have expected from Vanguard.
BlackG7R said:
My real worry with transferring from HL to Vanguard is the fact that regardless of what funds you hold with HL (even if they are already Vanguard) they will be sold and transferred in cash, then bought back in once that cash has reached Vanguard.
In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
^^^ This is a major problem with switching and a shame there isn't any strong legislation that fines or penalises companies for this. Only last week my daughters HSBC CTF has completed the transfer - lost approx £1000 in the process - gave instructions to transfer on 1st Nov 2019. I'm currently in the process of transferring 3 x Standard Life portfolios consisting of ISAs and a SIPP. Started it on 1st Nov 2019 and still hasn't completed (showing as sold to cash), so yes I am out of the market as I type this..In other words you are out of the market, which could cost you literally thousands of pounds on a rising market, as they say the transfer process can take anything between 30 days and 8 weeks !!
JulianPH said:
red_slr said:
Well the have 15 years to get it sorted till I am 55
You might have to wait a bit though, as it is being reported their online application is not working.
red_slr said:
JulianPH said:
red_slr said:
Well the have 15 years to get it sorted till I am 55
You might have to wait a bit though, as it is being reported their online application is not working.
Whilst I am critical of its faults and marketing hype, I do think Vanguard are an excellent provider.
My SIPP account was showing in my main dashboard pretty much straight away along with my predicted balance (which you have to manually input during the set up process).
You select what funds (if any) you want to invest the incoming money into and also add on a beneficiary in case of death and that's pretty much it.
I will report back once something interesting happens!
You select what funds (if any) you want to invest the incoming money into and also add on a beneficiary in case of death and that's pretty much it.
I will report back once something interesting happens!
To be fair it does say "at present" regarding accepting transfers as cash only, so hopefully this will change in the near future. But as much as I would like to transfer a large chunk of my pension from HL to Vanguard there's no way I'm going to take the risk of being "out of the market" for upto 8 weeks, it could cost me thousands. It will have to stay where it is for the moment. I'll let the system bed in, and see what other people's experiences are.
I'm transferring a very small pension fund with Aviva to Vanguard. I already have a Vanguard ISA. I like their website. I'm really just transferring for simplicity to reduce by one the number of companies I'm dealing with. I'll wait until April though just to make sure I'm not needing to make any pension payments to avoid 41% tax. I'm going to be near the Scottish threshold.
As for diversity I agree its a good idea never to have all eggs in one basket not matter how good that basket is.
I'm in the process of selling up 1/3 of my L and G tracker ISAs and putting it into Vanguard. After which my split will be roughly 25% L and G UK tracker, 25% Vanguard Life 80, and 50% Fundsmith.
Quite heavily into Fundsmith but its been a good place to be these last 10 years :-)
As for diversity I agree its a good idea never to have all eggs in one basket not matter how good that basket is.
I'm in the process of selling up 1/3 of my L and G tracker ISAs and putting it into Vanguard. After which my split will be roughly 25% L and G UK tracker, 25% Vanguard Life 80, and 50% Fundsmith.
Quite heavily into Fundsmith but its been a good place to be these last 10 years :-)
red_slr said:
JulianPH said:
red_slr said:
Well the have 15 years to get it sorted till I am 55
You might have to wait a bit though, as it is being reported their online application is not working.
Word of warning all.
Vanguard do not allow LTD company contributions by DD.
Must be by debit card only and you have to do it per transaction so log in, load cash, invest into whatever funds.
You cant just set up DD of £n to e.g VLS100 on 1st of the month.
Not the end of the world but just something to be aware of.
Vanguard do not allow LTD company contributions by DD.
Must be by debit card only and you have to do it per transaction so log in, load cash, invest into whatever funds.
You cant just set up DD of £n to e.g VLS100 on 1st of the month.
Not the end of the world but just something to be aware of.
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