SIPP Cash conundrum

mystic_trev

I've been running my SIPP for the past eight years, in which time the value has more than doubled. Last December I decided to convert 75% to cash, so I've insulated myself from recent problems. Bearing in mind the current Banking crisis I'm slightly concerned about keeping over 200k in one Bank! Has anyone suggestions on making it safer? I really want to keep it as 'near' as cash as possible. Should I move it into Gilts?

dunstonh

move into gilts. Transfer it into a personal pension/stakeholder and pick the cash fund. spread it more.

mystic_trev

Hi Dunstoh, I was hoping to get an answer from you!

Thanks again for your advice - I'll sleep a bit better tonight!

purch

If you want to keep it within the SIPP the 'safest' option probably would be to buy a Gilt or Supranational Bond with a short maturity.

However the downside of this is that the Yield for the Gilts maturing in 2009/2010 currently are less than 3 %, and the Supranationals around
3 1/2%

EdInvestor

There are also a number of "near cash" money market unit trusts that may be worth considering. But given today's measures assuming your SIPP's cash account is with one of the big banks, there should be no need to worry.

_macca_2-2

I believe some of the banks in Ireland are offering 100% protection, but imho you really dont know how they will react until the situation presents itself, look as iceland as an example. I agree with others that after cash gilts are about as good as you'll get but they are no guarantee.

I also believe that some of the market leading providers cash funds are infact money market funds which do come with an element of risk so you are not fully protected there either.

I also think there are a few companies who are offering some kind of guarantee, but as usual these come at a cost.