self administered pension
- Thread starter rob1
- Start date
Old John
Member
- Location
- N E Suffolk
Yes.
what do you think of them and is it cost effective? Just worked out that had I put my contributions into a bank and it earnt 2.8% interest per year it would be worth more than my legal and general one is and going on current annuities I would need to draw it for nearly 32yearstojust get the value of the fund out, no wonder these pension companies have such plush offices and pay their employees so well
Old John
Member
- Location
- N E Suffolk
I bought land in 1996 and 2006 in a SIP. You could borrow quite a bit within the SIP in those days, I think you can only borrow about 50% of the cost now. I put any spare cash into paying off the borrowing, tax free. The land is now worth three to four times what I paid for it. I can take 25% of value, tax free and the rest if the value as an annuity( not going to happen) or draw down. It's worked well for me. Costs of trustees seems high but what legal stuff doesn't seem high? What I've done is a bit more complicated than this as I've turned it into a SSAS now but I'm not going into that on here.
Thats why I want to do a ssap not a sipp. Selling a house to family and will be liable for a whack of cgt as its not PPR so thought I would invest in a ssap to get some income tax back but still be able to use the cash in the business, really want to buy a family holiday pad for the whole lot of kids/grandkids to use but the rules are very tight on that and as yet cant find a way round it
Lazy Sod
Member
- Location
- Warminster Wiltshire
What is a ssap? I've just googled it, but it's all about "Statements of Standard Accounting Practice" which doesn't sound like what is being referred to.
Old John
Member
- Location
- N E Suffolk
Try looking up SSAS. That's a Small Self Administered Scheme, for a maximum of 12 people.
Its a pension thats mainly used by small companies that can be used to save tax but be invested in your own business, devil in the details and finding a way to run them cheaply, like normal pensions the benefits can be wiped out by ridiculous charges
- Location
- Buckinghamshire
We have SSAS and it works very well for us and you can change who the trustees are and that controls the cost.
Best thing we did
Best thing we did
jcb360
Member
- Location
- Dark side of the bog................
Good luck finding one who is truly independent and not motivated by selling you whatever earns him the biggest commission!
certainly will do that but need to know good or bad before I do as knowing the right questions to ask is important.
If thursday goes pear shaped wont need to worry much as no one will have any cash left
Pieces_of_Eight
Member
I have a friend who has never been an employee and has no pension scheme.
He has bought commercial property (office space in town etc) and intends to use it as a pension, either through the income off it or by selling it gradually.
He started small and has been fortunate to be able to buy and sell at the right times.
Thrings are a good firm of solicitors. I've used them in the past. They don't sell finance products so perhaps they might be worth a call to start with?
http://www.thrings.com/
http://www.thrings.com/
We used them for our planning battle. But my family used what is now porter dodson for many years so they know the farm set up which like many is a tad complicated
outofthefryingpan
Member
- Location
- South Devon
There is a world of difference between a SIPP and a SSAS - notably the costs involved as with the SSAS. You effectively have your own pension scheme to run with all the associated duties and costs. If the rules are not followed then there can be some absolutely massive fines levied, hence the need for a decent trustee to stop this. A modern SIPP or personal pension can have some very low charges especially if you don't need a adviser looking after it for you.
Just reading between the lines Rob but it seems that you might be trying to get a non-allowable investment into the SSAS hence the not being able to get around it problem! Residential property and pensions do not mix. Also, I'm sure you are aware but there are limits on the annual contributions you can make into the pension so it may take sometime to get the proceeds of the house sale into the pension. Its also not going to do anything to help your CGT position - there is another option that a decent IFA would discuss with you I am sure. I would suggest go and see one, a decent IFA will have a lot of connections to deal with different situations and yours seems like it needs more of a team approach to achieve what you want.
Just reading between the lines Rob but it seems that you might be trying to get a non-allowable investment into the SSAS hence the not being able to get around it problem! Residential property and pensions do not mix. Also, I'm sure you are aware but there are limits on the annual contributions you can make into the pension so it may take sometime to get the proceeds of the house sale into the pension. Its also not going to do anything to help your CGT position - there is another option that a decent IFA would discuss with you I am sure. I would suggest go and see one, a decent IFA will have a lot of connections to deal with different situations and yours seems like it needs more of a team approach to achieve what you want.
outofthefryingpan
Member
- Location
- South Devon
Independent advisers do not take commission .................. the downside is possibly that I am going to want quite a large cheque in my hand before I do anything .............. but anything I do is completely for my clients benefit as they are the ones paying
No I am all too aware that residential property isnt allowed in pensions,mores the pity, didnt word it very well, we are looking into buying a holiday flat in a family investment company using the funds from the sale, then run a ssas within that company to transfer the current pension in and use up some extra pension relief to claim back some income tax which will effectively offset some of the cgt we have to pay on the house, early days yet and trying to get good advice on the best way forward for the long term and finding the right way to invest the pension contributions is taking up some serious thinking time
Tread carefully , wouldn't ever trust a " financial advisor " have tried on 3 occasions , a big let down every time ,