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gruffydd

Sipps - Standard Life Has Aready Taken In

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http://uk.biz.yahoo.com/26092005/17/standa...g-pensions.html

"This month, Standard Life disclosed that it had taken in more than £1 billion in new-style schemes ahead of next year's changes, and others have also disclosed boosts. "

Is this level of investment something to be concerned about? This is one of the reasons I'm not predicting a crash until this time next year.

G

Edited by gruffydd

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The average pension pot in the UK is 30K, under SIPPs you can borrow 50% and buya house so the average house amount would be 45K, what will that buy?

I however have spoken to people who are getting SIPP's and planning to buy houses thinking that the 50% rule has not been fully set.

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http://uk.biz.yahoo.com/26092005/17/standa...g-pensions.html

"This month, Standard Life disclosed that it had taken in more than £1 billion in new-style schemes ahead of next year's changes, and others have also disclosed boosts. "

Is this level of investment something to be concerned about? This is one of the reasons I'm not predicting a crash until this time next year.

G

1 billion, whoopee, ave property cost = £180K, this represents about 5 thousand properties out of 20 Million, or 0.025% of the housing market in the UK, I really wish folks would stop creating a storm in pi$$ pot.

Edited by Dicky

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My grandad died a few years back at 90, he had a pension from when he retired from the police force. I wouldn't have thought he was able to have coped with "managing property portfolios"

So, About all this "property is my pension" malarkey, just how practical is it?

I mean, would you rent from someone who could pop their clogs at any minute & you being subsequently evicted?,

Would you in your old age be senile enough to cope with managing a property fortfolio? be fit enough to cope with a property portfolio?,

Being stressed from managing a portfolio?. yes, maybe you could have it managed for you, but intsead, wouldn't it be a hell of alot easier to have a "normal" pension.

Answers on a postcard please! :D

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You can invest ayear's sincome into your pension each year (regardless of the new rules on residential property) but capped at about £230k pa , I think

Besides that cap you mention, haven't the rules changed on contribution pecentages till next April? Max 17.5% of your income. After April, the % limit lifts. Then its as much as you can up to the 200odd K limit you mention.

I may be wrong, but thats my understanding (according to my adviser!)

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Besides that cap you mention, haven't the rules changed on contribution pecentages till next April? Max 17.5% of your income. After April, the % limit lifts. Then its as much as you can up to the 200odd K limit you mention.

I may be wrong, but thats my understanding (according to my adviser!)

This gives the current limits:

http://www.thisismoney.co.uk/contributionlimits

And this is the new regime:

From April 2006, new Inland Revenue contribution limits will apply. An individual will be able to pay each year an amount up to 100% of earnings, subject to a cap. The earnings cap will initially be £215,000 and there will be fixed increases each year until 2010 when the cap will be £255,000. It is expected that cap will be reviewed again at that stage.

4.2 Limit on Pension Fund Value

In addition, a new Inland Revenue limit on pension fund values will be introduced from April 2006, called the ‘lifetime allowance’.

This is the maximum value an individual’s combined approved pension funds are permitted to achieve without incurring additional tax consequences. Essentially, if at the time benefits become payable the value of an individual’s pension funds exceed his or her lifetime allowance the excess will be subject to tax (called the ‘recovery charge’). The effective rate of tax that will apply is 55%, intended to offset the tax breaks pension scheme monies attract.

The standard lifetime allowance at April 2006 will be £1.5 million, and this will increase each year up to 2010 when it will be £1.8 million. It is expected that the lifetime allowance will be reviewed in 2010 and every five years thereafter.

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I cant help to think that SIPPS will be the equivilant of this years spring bounce. You know the one im on about dont you? well ok, you could be forgiven for not knowing what im on about because for all the talk, all the hype all the hopes , all the reasons why it will revive the market, all the spin... it didnt happen.. just wait til spring..spring bounce... yea.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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