as of 25/03/2021 at 4:17 pm
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The Robo-adviser that has taken the market by storm, Moneybox was the first to offer the idea of rounding up your regular investment based on what you spend on a linked account. It encourages people to build their wealth – they don’t just manage it.
The Moneybox Pension currently has three investment options: The Fidelity World Index Fund, Old Mutual World ESG Index fund and the BlackRock LifePath fund. All three are passive, cheap options with the BlackRock fund notably a ‘Lifestyle’ fund that changes the risk level of your investments as you get closer to your retirement date.
Moneybox’s platform fees for their SIPP differ to their ISA fees; there is no regular £1 per month subscription fee. Instead, it is a 0.45% charge on the first £100,000 in the account. This is reduced to a 0.15% charge for any balance above £100k. You’ll also be charged the fund provider fee, for example the Fidelity option is just 0.12%.
Moneybox do not provide any drawdown options currently, so anyone approaching retirement would need to transfer their pension to a different provider, should they wish to access it. Not a pensions specialist, this option is best for those for whom pensions remains ‘a bit on the side’.
Small start-up but has some big friends under the bonnet
"I've got a Stock and Shares ISA with Moneybox. I recently invested a £5000 lump sum with them, and I'm making regular weekly investments of £75. When I invested the £5000, the share price was quite high based on the performance of the fund. I'm just wondering whether I made a mistake investing the lump sum in one go, and whether I should have drip fed it into the account in the same way as my weekly deposits? If so, should I withdraw and start to drip feed it back in?"
Tim, West Midlands
05/04/2019Read our reply