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SIPP - Self Invested Personal Pension

 

We introduce advisors who ensure your SIPP is fit for purpose.
Put simply, a Self invested Personal Pension Plan or SIPP is a personal pension plan which provides more individual control through greater flexibility and increased investment choices. Whether you’re looking to review your existing arrangement or set up a new SIPP, we have a qualified professional SIPP advisor for you.

 

 

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How do I maximise my SIPP investment?

A specialist SIPP advisor will take the time to ensure no stone is left unturned and along with the following factors will help you to consider what’s important:

Begin by exploring your purpose in having a SIPP! For example, having access to a wider selection of investment choices through a SIPP is no good if you don’t use them.

Your number of years or term to retirement should greatly influence your investment strategy and the content of the portfolio contained within the SIPP. Your advisor can help you understand the impact of years to retirement as well as the corrosive effects of inflation.

Discuss your risk profile with your advisor before purchasing your SIPP investments. Taking a more cautious approach may require you to work a year longer while being too adventurous might mean never retiring at all.

Performance and performance reviews as with any pension remains a vital ingredient. If your SIPP underperforms you will need to either alter your investment strategy or increase contribution levels. A SIPP advisor can provide updates and recommend strategies that are designed to keep you on track.

All SIPPs receive the same favourable taxation treatment on contributions, provided you and your trustee operate within the HMRC guidelines. Failure to comply with the guidelines including investment in to unauthorised assets and can lead to significant taxation consequences.

Charges in your SIPP can be as a transaction cost (buying and selling shares), as a fixed amount, a percentage of the asset value or both. Take time to explore the charges with your advisor who will be able to pinpoint the best charging structure for you

Choosing your Trustees can take time because every trustee operates slightly differently. Their rigidity or flexibility will influence your SIPP’s ability to invest more widely into areas like private equity or individual share purchase. Specialist SIPP advisors will have a practical working knowledge and will often be on first name terms with trustees.

 

The Cost of good SIPP advice:

Good SIPP advice and paying for it should really be viewed as a worthwhile investment that keeps you on track with your retirement planning goals. There is a cost of not taking advice and who knows what that disaster fund could amount to as well as a cost for advice which will be disclosed to you by your SIPP advisor.

The best SIPP advisors will save you more than they would even cost over the term to retirement when combining improved investment performance and reduced costs.

You are really investing in a professional who will tell you directly the way it is, pointing out in good times that you can have a contribution holiday and conversely telling you to put more money in when performance is lacking.

Take the next step with your SIPP enquiry today and let us introduce you to a suitably qualified advisor – complete our form today

 

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Do You Need A SIPP?
February 15th, 2011 | Your SIPP

SIPP ControlIt would be wrong to suggest that SIPPs are the perfect solution for everyone. For example, the enormous choice of funds may prove confusing for those looking for something simple. There is also the possibility that you already have a work pension that will give you more than enough security. You also may not be comfortable with the prospect of taking control of your own pension which is the main reason why anyone invests in SIPPs.

Stakeholder Pensions
Before taking the plunge and investing in a pension, make sure you look at all the options. Those who are unlikely to be placing large amounts of money into their pension and are not concerned with investment choice should look at stakeholder pensions. These offer little in the way of choice but their charges are small in comparison to personal pensions. There are SIPPs available that do not cost a huge amount and enable you to deal with top quality fund managers. After all, a SIPP is designed for those seeking to take control of their financial affairs.

Terms And Conditions
One common mistake that thousands of people make is to remain content with their current pension be it stakeholder or personal. There is no reason not to at least review your current arrangement and see if a SIPP would be a better idea. This is especially pertinent when you consider the relative ease with which you can transfer money to SIPPs from other pensions. Most people are happy to continually review their car insurance or mortgage but fail to do so with something as important as a pension.

It is a fact that many personal pensions are outdated and offer terms that are detrimental to a person’s retirement fund. As well as being charged fees that are ludicrously high, investors also find that their fund performs abysmally. It should be noted that certain companies will charge you fees and penalties for transferring money from their account. Make sure that the extra amount you will make from the SIPP is greater than the sum you will lose during the process of transferring.

High Performance
Insurance companies are the chief provider of pension plans and have a bad track record in terms of fund performance. Although specialist companies have a better record than most insurance companies, you should never assume that a good past performance guarantees a profitable future. SIPPs also offers investors access to the funds of specialist companies and charge much lower fees than personal pensions. There are SIPPs that are on the expensive side but with a large choice of lower cost SIPPs available, smaller investors have no need to panic. For example, you may elect not to invest in property which is one of the more expensive investments available. These types of investments attract the highest fees. If you are in any doubt as to your SIPP suitability, contact a financial advisor.

If you haven't found all the answers that you are looking for you can find similar content in the Your SIPP sections, contact an adviser at the top of the page, or you could try these related posts:

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