self invested personal pensions

Self Invested Personal Pensions, or SIPP’s as they are more commonly known. Recent press coverage has indicated that everyone should have one! Not something that stellar wealth believes in. There is a time and a place as they say and SIPP’s are not for everyone. Why? The cost is £350 for the set up fee, followed by £250 in the second and subsequent years. Rates applicable at Feb 2007, subject to changes. Transaction charges averaging £30 a time, with additional costs for property related investments / purchases.

It is not necessary to have a SIPP to make the majority of investments. These are needed where direct stocks and shares investments are made or direct investment into Commercial Property is required.

Running costs of the SIPP as charged by the SIPP trustees are payable by stellar on combined investments of £500,000 or more or 50% of the cost for combined investments of £250,000 to £500,000

All investments in property should be considered as longer term investments and it should be noted that they are not easily realizable. There is no second hand market for Property Partnerships although it may be possible to transfer at cost value. These types of investment may not be suitable for all.