Self Investment Pension Plans (SIPP's) - Commercial investments that make sense!
A SIPP is basically an investment plan that allows you to save in a tax efficient manner for your retirement. They can be a fantastic way to help you achieving a more comfortable lifestyle in retirement. You can invest in a wider range of funds and investments than with other types of personal pensions, including stocks and shares, unit trusts, OEICS (open ended investment companies), Insurance company funds, unlisted shares and Commercial Property to name but a few.
It is not an exclusive club and it quite common for individuals who hold existing pension arrangements to transfer them across to a SIPP so that they can invest in some of the assets allowed, as detailed above.
It is important that under a SIPP arrangement, the trustees will have carried out their due diligence to see what is acceptable for investment purposes, thus ensuring that all investments held in the plan conform to Government regulation.
It is quite possible for a SIPP plan to borrow money and this is set up to a maximum of 50% of the fund total. As an example a fund worth £100,000 could borrow a further £50,000, thus enabling an investment of up to £150,000.
You can make contributions into your pension and the maximum perosnal contribution for the tax year 2009/10 is £245,000, which may only cost a higher rate taxpayer £147,000, due to 40% potential tax relief and all contributions paid by a basic rate taxpayer receive 20% tax relief.
Pensions and in particular SIPP's can be quite a complex area and usually require professional advice. That is why we have teamed up with a specialist Independent Financial Advisory practice who can help you achieve your goals.
Investors should feel much safer with investments that have been approved for SIPP's, knowing that SIPP providers have carried out their own extensive compliance work.
If you are interested to see whether you can purchase one of Millionaire-Investors properties through a tax efficient SIPP then please contact a member of the team at Millionaire Investors who will help organise either a telephone appointment or a personal meeting with a qualified Independent Financial Adviser at a time that is convenient to you.
Click here to pre register your interest, and receive independent financial advise from our FSA registered partner.