Self Invested Personal Pension

Why Self Invested Personal Pension Schemes (SIPPs) will further be attractive?

The freedom to invest in diverse variety of assets and possibility to manage your own retirement savings over time are the two main advantages of Self Invested Personal Pension Schemes (SIPPs). These two simple characteristics allow SIPPs to be always attractive for investors.

Self Invested Personal Pension Schemes are relatively new matter for pension planning theory, regulation and even as investment opportunity. They have been first presented in 1989 and stencilled then with the meaning of pension schemes for the rich people. This common name has been created due to the high risk associated with these schemes.

Nowadays, the high demand on SIPPs and their qualification as a preferred investment tool for pension, show the significant changes in investors’ behaviour and taste for risk.

SIPPs are tools that offer to investors higher flexibility where their pension savings are invested. Any UK resident (or anyone who plans to reside in UK for not less than five years) and who is over the age of 18 has the right to invest in SIPPs.

Why Self Invested Personal Pension Schemes are different than the other schemes?

They allow the investor to invest in such instruments, like shares (international and local), commercial and individual property, government securities, insurance trusts, insurance company funds, bank society deposit accounts and even in exotic investments.

Usually, the first warning to investors in SIPPs is that they should understand that growth is not guaranteed. Although, the rule for the direct proportion between the higher risk and higher earnings leads some investors to choose SIPP and not other schemes.

People choosing SIPPs want to control and manage their own investment choices.

Apart from all aforementioned risks it is good to mention that SIPPs are object of strict financial regulation and investors’ protection. The initiation, marketing and management of SIPPs are under supervision of the Financial Conduct Authority. They are also subject of regulation by The Pensions Regulator.

Furthermore, in case of failure of the SIPPs operator, investors are compensated by the Financial Services Compensation Scheme.

Well with a good financial plan linked to your specific needs we will be able to show you how to prosper even in such an environment. You will still be able to achieve most goals. It will be possible for you to invest for long term growth for your retirement using equities in areas with higher GDP growth. It is also possible to invest your savings and receive rates in excess of 8% and at the same time keep your capital secured with the correct research anything is possible.

Avoiding the Investment Bubble

Hardly anyone talks about real estate these days without uttering the word, “bubble.” Sure, there’s the contrarian view. And that view says, “When everyone believes something will happen, that’s when it won’t.”

But the contrarian view is certainly not infallible. Why, back in the late 90s, even old Greenspan said stock market investors had “irrational exuberance” coming out of their ears. And despite that and repeated market warnings involving the word, bubble, stocks still “popped” with a vengeance. Which brings us back to real estate. And gold.

According to a CNN Money article, “there are about 15 markets (in the U.S.) that are vulnerable to a housing market correction. These represent about 35 percent of gross domestic product, the broadest measure of the nation’s economy.” “A significant correction in consumption spending in these states is bound to have significant effects on national growth,” said Thomas Helbling, an economist at the IMF in Washington.

So…if housing does come tumbling down around us, given the dollar’s weakness, what might the outcome be? No one knows for sure. Logic says it won’t be pretty. And you’d probably be foolish to start riding a “Good Times Ahead” bubble. That’s one bubble that’s likely to have an extremely short life span.

Given the activation of our inbred sense of caution — a wise gift from our Creator, by the way — we should take full advantage of gold’s ability to head north even when everything else is heading south. Things could always be worse: Imagine not having an investment that heads north when everything else is heading south.

Mother of all bubbles

“Bubble talk” is all around. Usually talk like this is the result of some market going up indefinitely or irrationally. Or both. We stand alongside the presumed bubble, shake our heads and make grave pronouncements.

But that doesn’t mean the bubble isn’t about to pop. Take real estate, for example. Probably the most notable of real estate bubbles is found in California. Any housing market that’s 40% higher than it was two years ago probably qualifies for “bubblehood.”

Even so, the “mother of all bubbles” is not real estate. According to Tocqueville Asset Management’s John Hathaway, “the mother of all bubbles” is the U.S. Treasury market. And he has some scary things to say about it. “Rising nominal interest rates in U.S. Treasuries will inflict severe collateral damages on subsidiary bubbles, including housing. He believes gold is positioned to vault ahead of troubled currencies soon. Especially since gold supplies are “extremely, extremely tight.”