How to Investigate a SIPP

Pensions can be fairly limiting when you choose to go with certain companies. SIPP is a pension which give you more control over the arrangements of your pension. Either you or a manager chooses your investments. Here's how to learn more about it.

Difficulty: Moderate

Instructions

1. To decide whether an SIPP is for you, ask yourself a few questions. How long you want to invest for? What do you think of taking risks? What kind of return do you expect from your investments?

2. When looking at an SIPP, consider a Flexi-SIPP which allows you to save either 100% of your earnings or just over £3,500 of your gross earnings, depending upon which is greater. Your employer can also contribute towards a Flexi-SIPP.

3. One option which you have when looking into an SIPP is purchasing commercial property. You also choose to purchase investment funds which offer access to a portfolio of commercial properties.

4. If you are investing in property as part of your SIPP, then you should appoint a managing agent who can minimise the risks and maximise the returns on it.

5. Review the range of investment options open to you as part of an SIPP. You should find that you can invest in shares with an open ended investment company; you also can invest in CFDs as well as stocks and shares which are traded on a recognised exchange.

Tips & Warnings

• As attractive as it might seem to have an SIPP, if you rush in and get too excited by it all, you could end up losing everything. So it always pays to do your research before you invest your money.