James Hay: A SIPP can justifiably claim to be the number one 4x4 of pension investment. It offers e...
James Hay: A SIPP can justifiably claim to be the number one 4x4 of pension investment. It offers exceptional investment freedom to respond quickly to short-term opportunities or take defensive action, a fully-switchable range of tariffs and investment options to suit each client's changing needs, and outstanding fund discounts that will allow clients to reap maximum rewards when the first ‘green shoots' of recovery start to appear.
Unlike most 4x4s, however, a SIPP is highly cost-effective, easy to maintain and can be as frugal as you like.
Mary Stewart, Hornbuckle Mitchell: "SIPP sales growth has not been knocked off course in recent months suggesting advisers are already switched on to many of the advantages. Even at times when the value of many assets is falling, others types of investment will be doing well - a good current example might be gold bullion which can be held directly in some (but not all!) SIPPs. The benefit of the ‘true' SIPP is that clients can access this wider range of assets and thus have far more scope for diversification, not only to protect the value of their funds now but to take advantage of opportunities going forward.
"SIPPs also offer some useful tools in difficult times such as the ability to buy property from a business, releasing funds back to help the business through a downturn and potentially protecting the property from creditors. Some SIPPs allow an in-specie contribution of shares, allowing tax relief to be claimed on the value of the transfer into the pension which can help offset recent losses. Finally, there is a major psychological difference. SIPP clients have actively decided to take control so tend to be far more involved and aware of what is going on - they are not just handing over responsibility and hoping for the best."
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November