Wanted - Framework for thinking about a SIPP question

purch

But this is not a SIPP surely?It only offers funds.
H-L's SIPP also offers direct investment options.

Yes I agree, but I asked the question to get some context to this on-going and seemingly never ending argument about costs with regard to low-cost online SIPPS and a Fund Supermarket Hybrid whateveryouwanttocallit Pension.

I am sure Dunstoh is correct in that a large number of people have gone down the SIPP route, but are utilising only Fund investments at the moment. I also think that once people have taken the 'plunge' and taken control of their pension they are likely in the future to branch out into other Investments as they become more comfortable with making these decisons, but at least now we have some numbers rather than just the 'Yes it is' :j ....'No it's Not' :mad: ......argument.

Ozymandius

To everyone who has contributed thank you for your time and consideration of my question

After reading (and re-reading) the posts made so far, the following process is starting to take shape:

1. Based on my retirement goals, assess the rate of growth I need.

2. Based on my required rate of growth, assess whether or not I need to invest outside of the funds that are available to me through a standard pension product (i.e. non SIPP).

3. If I don't need the higher rate of growth (and associated risk) then I am better off with a "cheaper" non SIPP pension product

4. If I do need the higher rate of growth I might be better of buying a SIPP, and managing it myself (or through an IFA fund) as this will allow me (or my IFA) to invest in a wider range of instruments (i.e. equities, property etc).

Therefore I need to go back to my IFA and ask them to show me why I need to invest outside of the funds available through the "standard" pension products to achieve my goals.

During this discussion another point has been raised over the value of using funds vs active "self investment". IMHO, for the vast majority of people becoming a sufficiently savvy investor to be truly independent, simply isn't an option. As this thread's conversation has adequately demonstrated there is enormous complexity (read choice) in investments. To become familiar with the products/funds/legislation and then to keep track of them over time requires considerable knowledge, experience and most importantly, time.

As with many areas of complexity, most people are being rational and not lazy when they delegate this to a suitably qualified and regulated third party. So whilst I recognise the risks that placing trust in a third party has (fraud, conflict of interests etc) I think the risk of "doing it yourself" and getting it badly wrong are higher.

(BTW - I haven't yet worked out how to thank contributers through the site in the way that counts against their score but my thanks to everyone anyway!)