sipps and financial advisors

woody191222

I want to set up a SIPP. I have a share account that i manage myself, but I should be maximising my pension contributions so wanted to put the extra money into a SIPP. Is this something I can do without consulting an IFA? Is there somewhere that I can read up on different funds to invest in rather than just doing the same as I do in my share account? can I keep money as cash in a SIPP, and what interest rate could I expect. My apologies for so many questions, I am just trying to learn the best approach.

xylophone

You can open a SIPP without the advice of an IFA.

https://www.moneyobserver.com/best-sipp-platforms-your-portfolio-2018

https://www.amazon.co.uk/DIY-Pensions-Simple-Retirement-Planning-ebook/dp/B00B7QN8XM may be worth a read.

Linton

woody191222 wrote: »

Is this something I can do without consulting an IFA?

Yes, just choose a platform for your SIPP, go to their website and sign up. Having transfered in a contribution you are free to buy and sell from a wide range of shares and funds

Is there somewhere that I can read up on different funds to invest in rather than just doing the same as I do in my share account?

Your chosen platform will have information on funds. The best source of detailedf data is probably https://www.trustnet.com which allows you to sort funds on various performance figures.


You will probably need guidance on what type of funds to buy and how you should structure your portfolio. It isnt simply a matter of buying an interesting and historically high performing but essentially random set of funds.There is a wide range of information on the internet of varying quality, others can come up with a reading list. And/or talk to an IFA. Be wary of US oriented sites as the advice they give may not be applicable to the UK. And as always on the net (or anywhere else), learn from what your read but question everything that is said.

can I keep money as cash in a SIPP, and what interest rate could I expect?

There is no problem with holding cash in a SIPP, but for the mainstream platforms the interest rate is virtually zero. There are niche providers who do give access to bank accounts, NS&I etc but I would doubt they have the fund dealing facilities you want and I expect them to be more expensive - otherwise everyone would use them and they would not be niche.

dunstonh

Is this something I can do without consulting an IFA?

yes

Is there somewhere that I can read up on different funds to invest in rather than just doing the same as I do in my share account?

yes. The internet.

can I keep money as cash in a SIPP, and what interest rate could I expect.

You can but typically foolish for doing so other than for short term needs. Expect less than a typical savings account. In many cases, the SIPP charges will exceed the current interest.

OldMusicGuy

You might want to also read these very helpful books:

"DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning" and "DIY Simple Investing: A Guide to Simple but Effective Low Cost Investing", both by John Edwards.
"Investing Demystified" by Lars Kroijer.

They will give you lots of good information which will then allow you to start using a lot of the free resources on the internet more effectively.