An imposed workplace scheme is not the only option for retirement, as more low-cost Sipps come on to the market.
The financial pages have been full of advice on pensions with the launch of auto-enrollment last week. It has thrown a desperately needed spotlight on how and why we should be saving for later life.
But not everyone is happy that the state is stepping in. If you want to take control for your own retirement saving, a self-invested personal pension or Sipp, could prove a compelling alternative.
Sipps are essentially do-it-yourself pensions, offer more flexibility and a wider range of investment choices than most personal pensions. As well as cash, government bonds and funds, you can choose to invest your money in more complicated investments such as individual shares, open-ended investment companies (Oeics), commercial property and commodities.
They still benefit from all the features of a more traditional pension, including up to 50 per cent tax relief on pension contributions, but instead of trusting the provider to pick funds, you decide how to invest your contributions typically with a much wider range of funds to choose from and the opportunity to invest in direct equities by buying and selling shares.
It's true that when they first emerged, Sipps were targeted at experienced investors with substantial pension pots, but as costs have come down they have proven to be an increasingly popular choice among the general population.
"The Sipp market has been revolutionised in recent years with the emergence of low-cost plans, which have made them accessible to the mass market. Sipps are now becoming ISA-like in their appeal," says Jason Hollands of independent financial adviser (IFA) Bestinvest.
Follow the link for further information on SIPPs - LINK
To read the article in full follow the link - LINK
MILLIONS of new pensioners were warned this week that they face a retirement of poverty after weeks of slashed annual payouts.
Pension companies have cut rates offered on their guaranteed annuity incomes 24 times since the start of summer.
Standard Life is the latest to do so, lopping five per cent off the rate offered to the newly-retired and those approaching retirement.
And male pensioners will suffer an extra blow later this year with the introduction of the EU’s new “gender directive” which will further force down annuities for men.
Craig Palfrey, founding partner of independent financial advisers Penguin Wealth, said: “Annuities are in meltdown. We’re way beyond red alert. They have been coming down relentlessly and Standard Life’s decision to take a sword to rates is just the latest example.
Twenty years ago a £100,000 pension fund would have guaranteed an income of £15,640 a year for life for a 65-year-old man. Now it is just £5,140 a year.
And the crisis decimating pensions is set to continue for months, perhaps even years, piling on the agony for the newly-retired.
Experts warn that the situation is likely to worsen as annuity providers struggle with volatility in the stock market and the Bank of England’s quantitative easing (QE) strategy to tackle the recession.
The money-printing policy has been attacked for triggering “a death spiral” in pensions, which some experts say has led to the worst retirement payouts in history.
NOW is the time to take control of YOUR pension before it is too late - SIPP LINK.
Chat show host invests in the 5* Buccament Bay resort on Saint Vincent in the Caribbean.
Link to the information page - HOTEL RESORT SALES
A LIFESTYLE INVESTMENT FROM ONLY €50,000
PURCHASE A LUXURY HOTEL ROOM OR SUITE IN BELLE PLAGNE IN THE FRENCH ALPS
ROOM PRICES FROM €50,000 Euros – (NOT FRACTIONAL OR TIMESHARE).
SELLING PRICES SHOW A 10% SAVING ON CURRENT MARKET VALUE.
ALL MORTGAGE CHARGES AND MANAGEMENT FEES PAID FROM RENTAL INCOME!!
EXIT STRATEGY AFTER 5 YEARS OF 296% or €147,946.
THIS IS A FULLY MANAGED BY ONE OF THE UK’S LEADING TOUR OPERATORS AND IS A NEW BUILD DEVELOPMENT PROVIDING WINTER SKIING AND SUMMER HOLIDAYS.
ADDITIONAL BONUS OF 7 DAYS FREE IN WINTER AND 7 DAYS FREE IN SUMMER (NOT INCLUDED IF PURCHASED VIA A SIPP)
Link to further information - 4* SKI HOTEL ROOMS
Millions will see pensions slashed by up to 20% as new EU rules are set to send annuities plummeting
MORE bad news on pension's!! TIME TO ACT!
Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules.
Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown.
The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of 'safe' Government bonds.
As the bonds - called gilts - have such low rates of return it will drive down the returns on retirement fund annuities, which are used to pension income.
The reforms are designed to make pension funds safer and reduce the risk of them going bust.
Annuities, which set retirement income for life, have already fallen to historic lows because of the impact of quantitative easing.
At present, a pension annuity fund may invest 20 per cent in low-yield gilts and the rest in riskier corporate bonds which have a higher rate of return.
But under the new EU rules, annuity funds will be forced to hold a higher percentage of gilts.
New research by Deloitte suggests annuity rates will plunge by between five and 20 per cent when the directive comes into force in January 2014.
A £100,000 pension pot currently gives an income of £5,837, but once the regulations come into effect they will be between £292 and £1,167 a year worse off.
Take control of your pension by investing in Alternative Investments via a SIPP.
LINK TO SIPP INFORMATION PAGE AND VIDEO - SIPP's LINK
Read more: ARTICLE LINK
According to REIDIN.com who are the leading real estate information company focusing on emerging markets, property in Turkey over the last 12 month has increased in price by on average 11.62%.
Link to article - http://www.reidin.com/blog/en/300-reidincom-real-estate-indices-march-2012-results.html
Harmony Bay is an exclusive 5-star resort from an award-winning developer with prices from £49,000.
Set in more than 10 acres of landscaped gardens, this exclusive 5-Star resort has been carefully planned to provide a private and relaxing environment.
The resort backs onto a protected pine forest with magnificent panoramic views across the beautiful Akbuk Bay and the Aegean Sea beyond, the unrivalled 5-star Harmony Bay Resort and Spa is a relaxed 10-minute stroll from the local Akbuk beaches, shops and restaurants. It has been thoughtfully designed to combine a luxurious lifestyle with a shrewd investment opportunity - convenient for holidaymakers and ideal for investors - including those wishing to purchase through a SIPP (Self-Invested Personal Pension).
We have just found out from the developer that there are only 6 of the units priced at £49,000 left so if you are interested in a safe investment in a growing market giving a guaranteed return then it’s time to act, don’t forget these units can also be purchased via your pension/Sipp and fractional units are available at £12,250.
Harmony Bay further information website – LINK
Contact me for latest availability and information brochure - LINK
Why invest in a hotel resort?
Resort Unit Investments, when selected carefully, can be the perfect
‘passive’ investment – unlike traditional buy-to-lets, you won’t have to get
involved with red tape and form-filling, dripping taps and leaky guttering and phone calls from tenants on Christmas Day morning!
You can buy in at a low entry point…these investments are often
SIPPable – you can put them in your pension and enjoy all the tax breaks, especially if you are a 40% taxpayer!
Most hotel room investments come with a guaranteed rental return of 10% or so for the first couple of years – after that you could see returns at an even higher rate by enjoying up to 50% of the hotel’s earnings from your room – without having to lift a finger to get it!
Benefits of hotel room investments
The managed, turnkey nature of hotel investments allows investors to have a hands off approach to the investment. The hotel company will manage and market the room on behalf of the investor, because it is also in their interest to increase revenue. The investor benefits from industry professionals managing and marketing the hotel unit for them.
Also, investors are less exposed to long term vacancy as they would be in a traditional Buy to Let property investment which can lie empty for months at a time.
An additional benefit to UK investors is that hotel room investment is considered as commercial and not residential so it is possible to place the investment in a Self Invested Personal Pension (SIPP), which allows for tax free capital growth and earnings.
If the investor chooses to place their investment in a SIPP then they are unable to use the hotel room themselves unless they pay a market rate for use of the room, otherwise they would face investigation from the Inland
Revenue and Customs.
Resort investment incorporating Hotel rooms as a pension investment.
Hotel rooms are classed as commercial assets and are one of the very few property types allowed to be purchased directly by a pension/SIPP.
Investors can purchase a room through a Self Invested Personal Pension (SIPP) either individually or in a group and take advantage of the tax relief available upon the income and capital growth.
Resort details of the Caribbean investment - DETAILS
Details of the 5* hotel investment in Turkey - DETAILS
Information on the Scottish investment - DETAILS
General contact page - CONTACT
Are you looking forward to spending your retirement relaxing on a white, sandy beach watching the world go by?
By using your Self-Invested Personal Pension to invest in land or property, you
can sit back, relax and let your pension reap the rewards!
How does it work?
A Self-Invested Personal Pension (SIPP) puts YOU in control. In its simplest form, a SIPP allows you much greater access to the investment markets and provides you with the option of choosing when, where and how you invest the assets of your pension fund. Any contributions that you make to a SIPP will receive tax relief of between 20% and 40%, depending on what the current tax rates are and what personal tax band you are in.
Why should I invest in a SIPP?
Whilst SIPPs can potentially be extremely sophisticated and provide excellent tax planning solutions, they can also be used simply to provide you with more control over your pension planning, by providing a wider range of investment options. In the current difficult financial market, it is essential to have the maximum amount of flexibility when planning your retirement.
Is it a complicated process?
There are of course some rules in regards to borrowing money against your SIPP; for example, you can only borrow up to 50% of the value of your pension fund for a commercial property purchase, but here at Investment Property Worldwide we have been working with SIPPable products for many years now, and can put you in touch with reputable financial advisors who will be able to guide you through the best options, when considering purchasing property through your SIPP.
Investment Property Worldwide has a wide range of land and properties that are eligible for investment under the SIPP scheme.
Contact us today to find out more information about how to make your pension work for you!
Video Introduction to SIPP's
New schemes allowing pension investors to invest in holiday properties via share ownership in companies that own the holiday lets have been described as “toxic”with some self-invested personal pension (Sipp) administrators refusing to allow these assets to be held.
Currently, investors are not permitted to hold direct investments in holiday lets or cottages within a Sipp, as these bricks-and-mortar assets are considered residential, rather than commercial property – and only commercial property is an authorised pension investment.
Holding these shares in Sipps enables investors to benefit from dividends and tax-free growth but many Sipp administrators remain nervous about these schemes – largely due to concerns that the underlying assets could be regarded by HM Revenue & Customs as residential property, and as such expose a Sipp to a large tax charge.
The current regulations state that no single shareholder in the company owning the holiday lets is allowed to hold 10 per cent or more of the share capital, or the voting rights, of the company this proves very difficult for the Sipp administrators to monitor and as such in many cases the administrators refuse to accept the shares into the Sipp but the ones that do are potentially putting the Sipp at risk if they don’t closely monitor the investment.
Another area the Sipp trustees have to consider is ensuring that the member remains detached from the asset, they should not gain any rights to stay at, or use, the holiday complex through having made that investment but a Sipp member is still able to book and stay at the resort on a normal commercial booking basis.
So the warning is if you flout the spirit of the rules then don’t be surprised if the Revenue at some point disallow your investment and you are faced with a large tax bill.
All Investment Property Worldwide alternative investments are fully Sippable and comply with all the current regulations regarding Sipp investment –
LINK TO THE INVESTMENT PAGE.
Wedgwood Museum collection to be sold to pay for company pensions.
At the dawn of the industrial revolution in Britain one of the first global brands created was that of Wedgwood china. Founded in 1759 by potter Josiah Wedgwood, it set standards that others were unable to match. A set of Wedgwood china became the mark of distinction for any aristocratic home and, more importantly, any home of the rapidly emerging middle classes.
At the dawn of de-regulated capitalism, in the 1980's, Wedgwood was acquired by the Waterford crystal company. Not for the first time or the last in this era, the management cultures of the two companies were fatally mismatched, the company went bust in 2008.
At the dawn of the post-crash phase of bail-out capitalism Wedgwood was acquired by a New York private equity firm, KPS Capital Partners. Most of its remaining 1,500 workers were laid off and manufacturing moved to China.
Now, there are reports that to plug a hole in the Waterford Wedgwood pension fund, the Wedgwood Museum, which houses a collection of the company's best work, is to be closed and the china and other artifacts to be sold. This follows a legal ruling by Britain's High Court that the objects are assets of the company.
£129 million pounds is the shortfall ($203.5 million). The collection is thought to be worth around £18million, according to The Daily Telegraph, considerably less than what the average Russian oligarch spends on a mediocre painting at Sotheby's or Christie's auctions these days.
Martin Levy, a London art dealer told The Guardian, "A small gain for the pensioners will be a long-term loss for the country – no more than a pyrrhic victory."
Take control of your pension now! - LINK
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