SIPP: a word you shouldn’t be scared of
When bankers start using their jargon and other acronyms it can go scary because financial world overall can be confusing and everything is important.
For instance you wouldn’t like to sign a document before checking it over and over to make sure all is fine with the terms and conditions.
About a year ago, some people were concerned over mis-sold SIPP. The issue was mainly related to paying over the odds for a product they didn’t need.
Sipps typically have higher fees as they give more flexibility for investors, allowing them to put their money in a wider range of assets. A conventional pension wouldn’t have such assets.
Of course, when a product gives better options people jump on it without actually checking whether it is beneficial for them. Consequently, this is not in the best interests of the majority of people and there is a danger that many Sipp customers are in the wrong product.
Consulting experts is essential to get what you need for your Self Invested Personal Pension.
But anything related to pensions can be complex to understand. Adam Bank which also gives the option to clients of private banking in London – thanks to their branch on 22 King St SW1 6QY – is able to guide and support account holders interested in future plans for their placements.
The first question you should/could ask yourself: why choose a SIPP?
SIPPs permit a much wider choice of investment assets than other pensions, including:
- Funds, equities, corporate and government bonds
- Commercial property
- Specialist investments, such as hedge funds and debt instruments.
But things have to be checked to match your needs and not go for it. Knowing the coverage or pros and cons about the service in question is where things should start from.
However, sometimes asking can be seen as being ignorant but in this case, this should be put aside because looking ridiculous once all is signed and dated could be rather annoying.
Personal bankers and experts are here for that: answering your questions to deliver a second-to-none customer service.
Selling such services is not always an easy task. But this makes it a real challenge to actually explain clearly, in depth what it is all about and the difference with traditional pensions.
Everyone works hard and when it is time to pick the right option, it can be a headache. Some don’t bother because of the vast choice. But the best advice is to make an appointment with a financial expert who should be able to clarify doubts and uncertainty.
Conrad Benson is a freelance writer – main topics being health and finance - sometimes even travel.