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Diligence is always due
There are a lot of investment products out there, as every reader of the business pages know. In the Financial Times markets section, there are no less than six pages devoted to the performance of managed funds. And those pages don’t cover anything like the entire universe of wealth-creating instruments.
So the big question is: How can any single financial services company cover the entire spectrum of wealth-creating opportunities? The answer is no firm can hope to do so, which is why Pacific IFA routinely employs specialist counterparties to perform due diligence on products we feel we need to know about. Although it’s impossible to cover thousands of products, it’s very much part of our obligation to have the most promising instruments checked out because some may prove suitable for the needs of certain of our clients.
Take, for instance, self invested personal pensions known as SIPPs. These tax-advantageous retirement ‘vehicles’ are exciting, versatile products that allow individuals to invest in a much wider range of assets than the conventional, off-the-shelf personal pension. With SIPPs, the Inland Revenue allows people to buy commercial property, land, overseas property, quoted and unquoted shares, and trusts among a wide variety of other assets.
And you don’t have to wait until you’ve got one foot in the grave before you reap the benefits of a SIPP. Under present rules, you may take benefits at any age between 50 and 75. (increasing to 55 from 5th April 2010) Even better, up to 25% of the value of a SIPP can be taken as a tax free cash sum.
There are other useful options. SIPP policyholders can pay themselves an income, if they want, or none at all. They can withdraw a lump sum while leaving the balance invested, or various combinations of the above.
Pacific IFA regularly transact with many varied SIPP providers; from moneyfacts award winning ‘boutique’ specialist providers to the monster international providers that are household names. These SIPP providers constantly evaluate assets from all over the world to assess their suitability to be folded into a SIPP.
As well as creating wealth for the owner, the most important thing is that the asset complies with Inland Revenue requirements. Each Investment is examined on its individual merits. The result is that among other fun assets, some of Pacific IFA’s clients have SIPP investments including a museum, a curry house, a retail outlet, a stud farm and even part of the Bahamas.
Who said investment was dull?
Disclaimer: Please note the views and opinions of the financial journalist Selwyn Parker do
not necessarily reflect those of Pacific IFA Limited.