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SIPP - Who To Go With and What to Invest In?

2

Comments

  • dunstonh wrote: »
    PPPs can be best. SIPPs can be best. Statistically, most people are better off with a PPP rather than a SIPP (or a stakeholder pension which is the third option)

    Its all about choosing the best that fits what you want to do. SIPPs are popular in the DIY world where there is less regulation there and people are free to make their own mistakes. In the advisory world where regulation is higher, PPPs are more popular as the regulator and ombudsman treat SIPPs as more advanced options.

    SIPPs are geared towards the more experienced investor looking for more advanced investment options.

    From what you are saying I think I'd be swayed more to the Personal Pension Route then if I decided to go down the pension road.
  • atush wrote: »
    If you own your own home, that would be putting all your eggs in one basket.

    Plus you really need more than one rental in a portfolio to sustain retirement. Plus you should have skills and experience in the area. It probably isn't suitable for you to invest that way for income in retirement.

    Thanks for your advice. Why property was an option was I could buy it now, rent it out and sell it in about 12 years time at hopefully an increased price. However, more I think about it, I don't want to lose all my savings and I'd be buying now at peak property prices, plus it's a hassle if you get bad tentants, upkeep of the building, etc.

    I will look into personal pension options now I think. I'll be back to ask what investments they have on offer and your considered opinions of what to choose, if you don't mind !

    Thank you for all your responses so far- it's been a great help :T
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    That increase in priced will be taxed. Growth in a pension isn't as it is sheltered from tax.

    Plus you get tax relief with a pension which means ever 80 you put in becomes 100. It takes time for an 80K property to become a 100K property and half that increase is taxed.

    Plus as you say the hassles can be many.

    If you had though of this 4/5 years ago then perhaps it might have been an idea. But then again, pensions grew strongly after the crash.
  • digannio
    digannio Posts: 335 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    If it's of any use to you in your hunt for investments, one pension pot that I have has the following assets:

    UK gilts 10%
    UK corporate bonds 19%
    UK equities 21%
    US equities 8%
    Japanese equities 5%
    European equities 8%
    Pacific equities 1%
    Emerging markets 6%
    Property 13%
    Absolute returns 6%
    Cash 5%

    Not saying you should replicate that exactly but it will maybe give you some food for thought for further research into trackers, multi asset funds etc.
  • Sun-Is-Fun
    Sun-Is-Fun Posts: 246 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 28 August 2014 at 4:30PM
    How does this sound? A personal pension plan with AVIVA through Cavendishonline to cut costs.

    Looking at Multi Asset Plans: Aviva GLG Stockmarket managed: Both these show good rates of return in the last few years compared to all others - with the GLG slightly infront.

    International Equities
    35.88%
    UK Equities
    27.84%
    Managed Funds
    13.81%
    Cash and Equiv.
    9.48%

    Alternative Trading Strategies
    5.04%
    International Bonds
    4.41%
    UK Corporate Bonds
    1.76%
    Property
    0.96%

    Other
    0.71%
    Investment Trusts
    0.11%



    or Newton Managed Fund?

    International Equities
    53.51%

    UK Equities
    33.77%
    Other
    4.15%
    UK Corporate Bonds
    3.49%
    Investment Trusts
    3.30%
    Property

    0.75%


    Cash and Equiv.
    0.66%
    International Bonds
    0.37%



    Could combine both?
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    digannio wrote: »
    If it's of any use to you in your hunt for investments, one pension pot that I have has the following assets:

    UK gilts 10%
    UK corporate bonds 19%
    UK equities 21%
    US equities 8%
    Japanese equities 5%
    European equities 8%
    Pacific equities 1%
    Emerging markets 6%
    Property 13%
    Absolute returns 6%
    Cash 5%

    Not saying you should replicate that exactly but it will maybe give you some food for thought for further research into trackers, multi asset funds etc.


    That would be impossible to replicate as the percentages add up to 102%. :)
  • digannio
    digannio Posts: 335 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Oops, emerging markets was 4%. Congratulations, you passed with flying colours!!
  • penwise
    penwise Posts: 398 Forumite
    I've been Money Tipped!
    'Looking at Multi Asset Plans: Aviva GLG Stockmarket managed: Both these show good rates of return in the last few years compared to all others - with the GLG slightly infront.'

    Is there a website that allows easy comparison?
    Thanks
  • pip895
    pip895 Posts: 1,178 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    It is always stated that PPs are cheaper than SIPPs

    I have recently set up a SIPP for my daughter - it is invested in VLS 100% - the costs are 0.25% platform charge, 0.29% fund charge/anum and a one off 0.1% initial charge for the VLS fund. This equates to just over 0.54% /anum and I cant see any other charges - are PP's that much cheaper and will this still be the case when the new pension rules come in?
  • pip895
    pip895 Posts: 1,178 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    penwise wrote: »
    Is there a website that allows easy comparison?
    Thanks


    I like trustnet http://www.trustnet.com/


    also HL has nice graphs.
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