Stock and Share SIPP - transfer to newco
Posted: April 2nd, 2018, 5:04 pm
I have a Stock and Share SIPP with Standard Life (Aberdeen). The share transactions and portfolio is held by Stocktrade. It is pretty much fully invested in UK Equities.
Firstly I misunderstood SLA's Price structure (my own fault) but it does mean I'm paying about £700 a year for them to manage it even though I am making the decisions and accepting responsibility. They also charge me £12 to cover the admin of a share purchase or sale (on top of Stocktrade's charges). I try and keep these to a minimum.
I've now received a letter telling me that Stocktrade is going to charge £70 year platform fee. Not much in the grand scheme, but enough to trigger a review on top of the above.
1) If I was to look around for a no-frills S&S SIPP provider to cut down on charges, what would happen to the portfolio? Would I have to sell all the shares, transfer the cash and repurchase or could a new provider take possession of the shares?
2) Bearing in mind that I turn 55 in October, would a better option be to open a new low cost SIPP and start contributing to that whilst drawing down my existing one over a couple of years. It's only just into 6 figures and, being self-employed, have flexibility in balancing income streams during this time to minimise taxation.
Happy to get external advice on how best to draw down the pension most efficiently, just want some guidance from the Sages here as to whether I'm on the right track and whether it is actually worth it. Whatever happens, I'm looking forward to that 25% lump sum this autumn.....
Firstly I misunderstood SLA's Price structure (my own fault) but it does mean I'm paying about £700 a year for them to manage it even though I am making the decisions and accepting responsibility. They also charge me £12 to cover the admin of a share purchase or sale (on top of Stocktrade's charges). I try and keep these to a minimum.
I've now received a letter telling me that Stocktrade is going to charge £70 year platform fee. Not much in the grand scheme, but enough to trigger a review on top of the above.
1) If I was to look around for a no-frills S&S SIPP provider to cut down on charges, what would happen to the portfolio? Would I have to sell all the shares, transfer the cash and repurchase or could a new provider take possession of the shares?
2) Bearing in mind that I turn 55 in October, would a better option be to open a new low cost SIPP and start contributing to that whilst drawing down my existing one over a couple of years. It's only just into 6 figures and, being self-employed, have flexibility in balancing income streams during this time to minimise taxation.
Happy to get external advice on how best to draw down the pension most efficiently, just want some guidance from the Sages here as to whether I'm on the right track and whether it is actually worth it. Whatever happens, I'm looking forward to that 25% lump sum this autumn.....