Moving to a SIPP with a ready-made portolio

[Harpoon]

I'm putting some time into reviewing my pension which is currently with St James Place. From searching, I now know SJP have a reputation for being expensive in terms of charge. I've asked some questions of my SJP advisor so I can understand the charges I'm paying and if any exit fees would apply.

I'm open to options, one of which is moving to a SIPP. However, I don't have the time or inclination to research heavily and monitor things. I'd guess that checking every six months or so is sensible - you're not worrying about daily movements but keeping an eye you've not picked a dog. There's also lots of people in the city who spend their working life trying to make money from the markets and don't get it right, never mind a dabbler.

I see a number of the online SIPP platforms offer ready-made portfolios. I appreciate that financial advice usually costs (either directly or in-directly), but are these ready-made options worth considering?

https://www.ii.co.uk/quick-start-funds - look to recommend the popular Vanguard LS funds. Would be a straight forward choice, perhaps with a split of my money between risks
https://www.hl.co.uk/funds/leave-it-to-an-expert - a choice of three growth portfolios.
https://www.bestinvest.co.uk/our-service/ready-mad... - similar to HL

Thanks!

[xeny]

probably also worth considering https://www.vanguardinvestor.co.uk/what-we-offer/t... which I believe is available directly through Vanguard?

[Harpoon]

xeny said:

probably also worth considering https://www.vanguardinvestor.co.uk/what-we-offer/t... which I believe is available directly through Vanguard?

Thanks - I've been on the Vanguard website and saw they plan to launch a SIPP this year but I hadn't looked at those products.

[Mr Pointy]

Just be a little wary of the HL Multi-Manager fund charges which can be as high as 1.59%. On top of that is the HL platform charge of 0.45% or 0.25% (depending on how much you invest) which could see you paying as much as 2.04% & at least 1.56%. For unadvised investing that's a bit spicy.

There's also a sticky to read through:
https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Harpoon]

Mr Pointy said:

Just be a little wary of the HL Multi-Manager fund charges which can be as high as 1.59%. On top of that is the HL platform charge of 0.45% or 0.25% (depending on how much you invest) which could see you paying as much as 2.04% & at least 1.56%. For unadvised investing that's a bit spicy.

There's also a sticky to read through:
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Thanks.

I've had an answer that I've been paying SJP 1.5% plus the charges of the individual funds in have in my pension.

I've been slowly chewing through the IM thread. Educational, even if I don't understand all of it!

[Derek Chevalier]

Harpoon said:

I'm putting some time into reviewing my pension which is currently with St James Place. From searching, I now know SJP have a reputation for being expensive in terms of charge. I've asked some questions of my SJP advisor so I can understand the charges I'm paying and if any exit fees would apply.

I'm open to options, one of which is moving to a SIPP. However, I don't have the time or inclination to research heavily and monitor things. I'd guess that checking every six months or so is sensible - you're not worrying about daily movements but keeping an eye you've not picked a dog. There's also lots of people in the city who spend their working life trying to make money from the markets and don't get it right, never mind a dabbler.

I see a number of the online SIPP platforms offer ready-made portfolios. I appreciate that financial advice usually costs (either directly or in-directly), but are these ready-made options worth considering?

https://www.ii.co.uk/quick-start-funds - look to recommend the popular Vanguard LS funds. Would be a straight forward choice, perhaps with a split of my money between risks
https://www.hl.co.uk/funds/leave-it-to-an-expert - a choice of three growth portfolios.
https://www.bestinvest.co.uk/our-service/ready-mad... - similar to HL

Thanks!

What are SJP doing for you other than "manage your money"? If all your "partner" does is visit you once a year and discusses fund performance I would suggest you're not getting optimal value for money.

Unfortunately the small independent financial planning firms don't have the marketing clout of some of the vast vertically integrated restricted offerings but offer the service that can change people lives (to the extent that they are referring to friends before the planning process is even complete).

An example of how it should be done.

http://www.serenityfp.com/serenity-methodology/#14...

[Croutons]

As warren buffet said in his annual letter:

“$1M invested in the S&P500 in 1942 has become 5.3bn in 2019.

A 1% annual charge would have reduced the return by half, to 2.65bn.”

You’re paying 1.5% yeah?

[Derek Chevalier]

Croutons said:

As warren buffet said in his annual letter:

“$1M invested in the S&P500 in 1942 has become 5.3bn in 2019.

A 1% annual charge would have reduced the return by half, to 2.65bn.”

You’re paying 1.5% yeah?

Probably closer to 2.2% all in, but most likely a better return after costs than the typical private investor achieves.

[JulianPH]

Harpoon said:

Mr Pointy said:

Just be a little wary of the HL Multi-Manager fund charges which can be as high as 1.59%. On top of that is the HL platform charge of 0.45% or 0.25% (depending on how much you invest) which could see you paying as much as 2.04% & at least 1.56%. For unadvised investing that's a bit spicy.

There's also a sticky to read through:
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Thanks.

I've had an answer that I've been paying SJP 1.5% plus the charges of the individual funds in have in my pension.

I've been slowly chewing through the IM thread. Educational, even if I don't understand all of it!

Yes, the HL portfolios are shockingly expensive.

If you have any questions on IM just ask. It is basically a range of fully managed ready-made portfolios for SIPPs and ISAs at 0.87%. This fee includes everything (platform, fund cost, management and your own named Private Client Account Manager who can assist you with your financial planning).