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Since the 1995 Finance Act there has been quite a revolution in the personal
pensions market which has manifested itself in a surge of interest in
Self
Invested Personal Pensions
(SIPPs). SIPPs provide an individually managed pot
into which to make eligible annual pension contributions. They are, potentially,
extremely attractive to people who are dissatisfied with the ‘take it or leave
it’ approach to pension provision and would like to be able to control and add
value to their pension arrangements.
BAM specialises in the
investment management of SIPP portfolios. It does not give pensions advice and
therefore there is no conflict of interest.
The advantages
Flexibility
- SIPPs offer a wide range of investment options
and can adapt, thus removing the need to change the pensions vehicle if
circumstances change;
Investment freedom
- you are not restricted to the insurance funds
of one provider - many investments are permitted from securities to commercial
land and property;
Transparency - charges are justifiable and transparent;
Favourable tax treatment
- tax-free contributions, tax-free fund
build up, tax-free death benefit distribution, tax-free cash up to 25% of fund;
Income drawdown
- income can be taken from age 50 and an annuity
need not be purchased until age 75 with the investment funds continuing to grow
in the meantime;
Specialist advice - you have the freedom to appoint (and if
necessary change) your own specialist pensions adviser and investment manager.
Persons for whom
SIPPs may be suitable
Any individual under 75 with sufficient relevant earnings
who likes to control their affairs and understands the value of specialist
advice. SIPPs may be of particular interest to
Company Directors, Partners and the
Self
Employed, and
Corporation
of Lloyd’s Names.
Typical costs
Pensions Adviser - one-off fee and/or 0.5% p.a.
Pension Trustee - c. £1000 take-on and c. £500 p.a.
Investment Manager - 0.5% p.a. & Investment
Administration - 0.25% p.a.
How does it all
work?
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Your
personal specialist
Pensions Adviser (IFA)
will be responsible for providing initial and on-going advice on SIPPs and
any other pension arrangements. |
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If a SIPP is suitable to your
circumstances your Pensions Adviser
will recommend a Pensions Trustee who will deal with
all aspects of your pension’s administration and provide regular updates of
the progress of your pension. |
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You appoint
your own specialist
Investment
Manager (BAM) who will be responsible for the initial selection and
subsequent trading activity of the investment portfolio. |
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The Investment
Administrator (e.g. Adam & Company) will
provide all transaction and record keeping functions together with tax
reclamation and regular valuations. |
For further
information please contact:
Jane Padgett Phone:
015242 72941
Email:
jane.padgett @ borderam .com
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