Hi all, I could do with a little advise.

I've just signed up for a SIPP (got the grand total of 250 quid in it now )
I am not a S/M expert but like the idea of controlling my pension and making my own investments, I'm sure I will learn a lot over time and hopefully make some good investment choices.

On one of the main threads someone referred to SIPPs as being subject to a lot of propaganda.. have I made a mistake?
What is wrong with SIPPS?

Any advise on the subject would be gratefully received!

Thanks,


Lib

(Edited for SPG)

Check the fees they charge. The main advantage of a SIPP is that if you lose all your money you don't have to look far when placing the blame. One thing I've learnt from holding a SIPP, don't use it to trade and try to beat the market. Either buy a decent fund or "dollar cost average" indices, ETFs or mega caps every six months or so. But hey! What do I know?

Hi Dom,

I think over the internet it costs £12 per transaction. This doesn't seem too bad as I would probably not invest less than £1000 at a time.

As for my investment strategy I'm not looking to get-rich-quick. I expect to buy largely into investment trusts to start with and then expand into other areas if I feel they are secure with good future prospects. I may now look into some of the things you have mentioned too.

I will presume from the lack of horror story replies that there is nothing fundamentally wrong with SIPPs.

Dom, thanks for your advise and for taking the time to put my mind at ease.


Lib

Nothing wrong with SIPPs at all. If you're going to have a pension then in my opinion you might as well have the flexibility to decide what it's invested in, and at least you can have some idea as to the amount of commissions you're paying out. Non-SIPP pension providers tend to be very coy on exactly how big a slice of your wealth they're taking. Dom's comments are sound.

I'm currently debating whether to build up a form of pension via my S&S ISA allowance or whether to start contributing to a SIPP. As I'm self-employed the already confusing world of pensions only serves to confuse me further.