You are here:
Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Your profile
• Your age and desired retirement date
• Your desired income in retirement
• The current size of your pension pot
• The necessary pension pot at retirement
• Your monthly contribution ability
• Preference between annuity purchase and income drawdown
Advertising
Objectives
1. Risk Tolerance
• Ability Determined by your existing levels of wealth and your stage of life. Risk-taking ability is positively related to the size of your net worth, and inversely related to your age.
• Willingness Determined by your emotional comfort levels with risk taking. Advisors should respect willingness ahead of ability.
2. Return requirement
• Determined by the current size of your pension pot and your ultimate target
• It is essential to consider inflation and take a total return approach here
Constraints
• Time horizons: the stages of your path to retirement. This could include periods of paying education costs, other major expenses, semi-retirement and so on.
• Liquidity requirements. Includes any current spending requirements that will affect your contributions, any large significant expenditures in the future.
• Taxation. Your current tax bracket and your expected bracket in retirement.
Unique circumstances
• Restrictions on holding certain investments on the grounds of personal beliefs.
• Likely developments that could affect your savings and wealth levels.
Assets outside of SIPP
• Your SIPP plan should take full account of your entire personal wealth.
• Other significant assets and liabilities outside of the SIPP should be considered. These might include ISAs, other pensions, your primary and secondary residences, assets held in trust.
• Next scheduled IPS review date.
Click on the links below to read other articles written on Sipps:
Your designer pensions
Confessions of a Sipp investor
Dress your Sipp differently
High-definition returns
Gear up your Sipp
For more investment guides, see www.investorschronicle.co.uk/InvestmentGuides
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.10.5 running on www.investorschronicle.co.uk
