6 Vital Questions You Should Ask About Any SIPP Or SSAS Investment BEFORE You Part With Your Money
Which SIPP Or SSAS Investment: 6 Vital Questions
Question 1: Does This Particular Investment Fit With My General Strategy?
Question 2: Do You Understand Your Potential Investment Thoroughly, Or Are You Willing To Learn?
Question 3: How Much Of Your Time Does This Investment Require?
Question 4: Do Your SIPP Investments Benefit Your Non-Pension Income Or Taxes?
Question 5: Do You Have A Due Diligence Plan?
Question 6: Do I Need Advisors For Any Portion Of This Investment?
You have decided (or are considering) to invest your own pension money for yourself in a Self-Invested Personal Pension (SIPP). No doubt you have several ideas and offers for investment possibilities. Now the question is this:
How to decide whether a proposed investment is a good one?
I have developed 6 questions that help me in my investments.
The first two take the longest to describe but all are equally as important. This is not advice from my side, certainly not in any legal sense. Ultimately, you are responsible for any decision you make in a SIPP. But I am happy to share some thoughts that I have developed in over 20 years of investing.
When people hear that you are making your own decisions, you will get advice. Some well-intentioned, some not. Some good. Most bad. Certainly there are plenty of people giving advice.
Friends and family can be well intentioned but usually ill-informed.
Many seem to have a definite slant:
“You must not ignore global security markets,” says the global fund manager.
“Property is the only stable investment,” says the property investor looking for funds.
“Annuities are the safest,” says the insurance broker.
Getting advice is easy. Weeding good from bad is harder. This naturally leads to the second question: Do you understand the investment?
Before we discuss that however, there is a first question...
About Dr Matt Modisett
With more than 25 years’ experience, Dr Matt Modisett PhD FIA ASA MMA has spent his career in investments and insurance. He's worked in the USA, Japan, The Netherlands, Spain, Belgium, Hungary, Australia, and the UK. He was formerly a Chief Investment Officer for an insurer, Asset-Liability Manager for three insurers, and has consulted for many years, all for top tier institutions. He has served as Professor of Actuarial Science and also as Professor of Finance.
He holds a PhD in Mathematics, is a Fellow of both the UK Institute and Faculty of Actuaries and the Hungarian Society of Actuaries, and is also an Associate of the USA Society of Actuaries. He has numerous publications to his credit.
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As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
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