Posted August 23rd, 2010
In my last blog entitled “Self Invested Personal Pensions – What are the risks?” I set out the wide range of investments into which a SIPP can invest.
With some divorces taking years to conclude it is important to consider what risks are being taken within the SIPPs.
One of the highest risk investments that could be encountered is private equity or unquoted shares. This is an investment into a private business often one which the SIPP member has a stake in privately or an interest in.
The key here is that this is usually a small business with a closed shareholding which are not quoted on a recognised stock exchange.
Unquoted shares
The attraction of holding unquoted shares in a SIPP is that any profits (which can be high given the high risk being taken) are free from capital gains tax. However, the risk of failure is very high and so for many SIPP providers this is an investment which is to risky for them to allow.
The main issue for the providers is the lack of liquidity and the difficulty of obtaining a valuation. Just like business valuations such investments need to be handled with care and the use of an accountant who specialises in business valuations is highly recommended.
If you would like an impartial review of the SIPP involved in your divorce, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Business valuations, Divorce, Divorces, highest risk, Investments, Pensions, Pensions & divorce, Private Equity, Risks, Self Invested Personal Pension, SIPP, Small business, Unquoted shares | Posted in Self Invested Personal Pensions |
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Posted August 20th, 2010
Self Invested Personal Pensions (SIPPs) are designed to allow individuals to control their pension, using a wide range of investments. Their popularity has soared in recent years and they are becoming more and more common when dealing with pensions on divorce.
However, they have only recently (April 2007) become regulated and there are risks associated with SIPPs which are worth knowing. This is especially so if you know that the financial aspects of your divorce will take time to be agreed.
The list below illustrates the broad range of investments available.
• UK and overseas shares
• Gilts and overseas securities
• OEICs and unit trusts
• Exchange Traded Funds
• Investment Trusts
• Insurance Company Funds
• Unquoted shares
• Warrants
• Hedge funds
• Deposit accounts
• Commercial Property
With such a wide range of investments available and the potential for these to fall in value over time, it would be prudent to understand what lies beneath. I will expand on this issue in future blogs so watch this space.
If you would like an impartial review of the SIPP involved in your divorce, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Commercial property, Deposit accounts, Divorce, Exchange Traded Funds, Financial aspects, Gilts, Hedge funds, Insurance Company Funds, Investment Trust, Investments, OEICs, Overseas securities, Overseas shares, Pension, Pensions & divorce, Pensions on divorce, Personal Pensions, Self Invested Personal Pension, SIPPs, UK shares, Unit trusts, Unquoted shares, Warrants | Posted in Self Invested Personal Pensions |
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Posted August 4th, 2009
A change is as good as a rest they say, but the credit crunch and market volatility of recent months illustrate just how quickly our economic environment can change. Your personal circumstances can change quickly too – moving house, changing jobs or having children. Sometimes, things just don’t happen quite the way you planned.
Planning for change
Any significant changes in life should always prompt you to reconsider your investments – divorce is no different. A well planned portfolio will toil away on your behalf for years, working towards your objectives and riding out most of what the market can throw at it.
However, when your circumstances change, your needs and objectives can change too – and your portfolio may no longer be able to keep up. Such changes can mean you change your attitude to risk or need to reconsider the use of certain asset classes.
Even if your core investments might remain the same, there could be some higher risk holdings which need to be assessed. Or it could simply be time to take profits and move on to better opportunities.
Helping you meet your needs
A review of your portfolio will not take up a lot of time but every minute could more than pay for itself in money saved – or be put to better use. As independent investment advisers, we can help minimise the time but maximise the opportunity for you.
Here at The Divorce IFA, our portfolio review service is built on years of investment experience and comprehensive knowledge of what this industry can offer you. For more information, call us today on 01204 663904.
Tags: Children, Credit Crunch, Divorce, Economy, Investments, Personal circumstances, Portfolio, Risk, Volatility | Posted in Investment Advice |
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