Vantage SIPP query

JFC_2

Hello

Apologies if this has been answered before, I am new here and just feeling my way round.

Like a lot of people who have been attracted to this forum, I have financial concerns, in particular about the future.

I opted out of the State pension in 1986/7 and went with Equitable life instead. After this was realised to be a bad move, I opted back in after 18 months. I took 9 years out as a stay at home mum to raise my 3 children then returned to working part time. I am not married, but live with my partner (the childrens father) My own father was concerned that I would have insufficient income on retirement set up a Vantage Sipp with Hargreaves Lansdown. He paid in a regular amount each month on my behalf. He calculated that I should be able to retire at 55 (I am 43). Sadly my dear father passed away Christmas 2007. My mum still contributes to my pension (half the amount...something to do with being within the boundaries of the amount she is allowed to pay out each year without it affecting inheritance tax etc.)

Anyway, I have checked my Vantage Sipp online recently and it is now worth far less than it was in October 2006. I used to consult my dad about money issues, but am at a loss as to whether to leave it building up or to switch to a different pension plan. I have a small company pension as well, but envisage working until I am in my 80's at this rate.

I am very lucky to have such kind and caring parents and appreciate this, and I want to ensure that the money they have invested is put to the best use

Any advice appreciated

Jennyx

dunstonh

Investments go down as well as up. We have recently had a down period. Hence the drop in value. Quite normal and to be expected. Not desired but it happens and you know its going to happen.

I'm not going to go into any more detail at the moment as there is a ton of information and it would risk overload to someone who doesnt understand investments. However, you are paying into a SIPP which is desgined for experienced investors. Its not a cheap option and is indeed, more expensive than a stakeholder and most personal pensions, even with advice. Is a SIPP really the best move for you given your limited knowledge of investments?

jem16

JFC wrote: »

Hello

Apologies if this has been answered before, I am new here and just feeling my way round.

Like a lot of people who have been attracted to this forum, I have financial concerns, in particular about the future.

I opted out of the State pension in 1986/7 and went with Equitable life instead. After this was realised to be a bad move, I opted back in after 18 months.

You didn't opt out of the state pension - you opted out of the state 2nd pension. In most cases under a certain age this was a good move. You should still get a state pension depending on your NI contributions.

My mum still contributes to my pension (half the amount...something to do with being within the boundaries of the amount she is allowed to pay out each year without it affecting inheritance tax etc.)

Your mum can give away what she likes. It's only if she were to die within 7 years of the gift that it would be counted for IHT purposes and only if her estate was over the IHT threshold.

Anyway, I have checked my Vantage Sipp online recently and it is now worth far less than it was in October 2006.

That's normal. Investments go up and down not just up.

I used to consult my dad about money issues, but am at a loss as to whether to leave it building up or to switch to a different pension plan.

It's not the pension plan that makes or loses money - it's the investments within. At the moment you are buying units cheaper than in the last year. However that said there are Personal pensions that would work out cheaper than H-L's SIPP if all you are using are funds.

Remember H-L's SIPP comes with no advice. If you are not sure whether it is right for you perhaps you should see an IFA?

EdInvestor

What funds did your father choose within the SIPP?

JFC_2

I will have a look later tonight, I know when it was initialy taken out 40% was put into property.

JFC_2

oh and thanks for all your responses you have been most helpful.

My mum had a IFA after my dad passed away to help sort out her investments. He recommended a Stirling account but after chatting to some investors on Interactive investor they warned her off this as at her age (she is nearly 72) it would tie her money up for to long with little return. They told her the advisor was after his commision (fair enough as he has to earn money) but not by passing on the wrong advice. After decided not to do anything for a little while longer the advisor contacted my mum offerring to do this for half the commision! She is quite confused now as to what she should do...thats the trouble I suppose, everyone has an opinion and they all differ from someone elses..what complicates things is when its from an IFA ...where do you go then for advice

I appreciate all your replys and I aggree its true, I am hopeless with investments. My dad was very wise on these things so I think he probably made the best choice at the time and will leave it for a while too.

Thanks again.

dunstonh

but after chatting to some investors on Interactive investor they warned her off this as at her age (she is nearly 72) it would tie her money up for to long with little return.

She is only 72 and Sterling have a death guarantee on their product to return all capital on death if it has dropped in value.

They told her the advisor was after his commision (fair enough as he has to earn money) but not by passing on the wrong advice.

So, unqualified individuals, who sound as if they have a chip on their shoulder over remuneration, gave advice that countermanded somone who is qualified to give advice?

where do you go then for advice

An IFA. Even if you get the wrong advice (which only occurs in a tiny minority) you get consumer protection. Take the advice of friends, who often impose their beliefs on what they say rather than take your situation into account, and you get no consumer protection.

I think he probably made the best choice at the time and will leave it for a while too

40% in property was too high for that asset class. Also, by using an HL SIPP you are using a product and investment that needs regular reviews and rebalancing. Leaving it and hoping for the best is not a good move.

JFC_2

Hello

Sorry for taking so long to come back with this information. These are the products on my SIPP

Artremis Income
Aviva Property Trust
Jupiter Global Managed Fund
Schroder UK Alpha Plus