Self Directed Pension Plan Information
For some individuals, the self-directed pension is a better alternative to ordinary fund managed pension packages available. The types of individuals most likely to gain from self directed pensions [http://www.quinn-life.com] are those who are wishing to manage their pension portfolios themselves, as they are able to control where and how their contributions are invested.
It may be that the person already has a pension, of which they have little control, and are interested in obtaining a pension with which they can have greater input into how it is managed.
Account must be taken of the amount of time, effort and expertise needed to invest funds intelligently. Self-directed pensions carry higher risk than your standard pension as you are investing your contributions in more specific assets and without the input or advice from a financial advisor or fund manager.
Self-directed pensions are suitable for those who want to build and self-manage their own portfolio of pension assets. Self-directed pensions provide greater control over investment decisions, than is the case with a standard pension package, they allow for greater control, flexibility and choice in deciding on the type of assets into which their pension fund will be invested. Broadly speaking, these assets can include; corporate and government bonds, exchange traded fund's and listed equities.
Common charges incurred with a self-directed pension include annual management fees, which cover administration and service costs, other charges which also apply are one-off set-up costs and third party charges which include commission based fees to be paid to stockbrokers. The pension provider will normally permit the policyholder a specific number of free trade transactions, after which there is a charge deducted from your pension fund.
If you already have a pension plan and are looking to start a self-directed pension plan, then most providers will generally allow you to transfer funds out of your existing pension and into the self-directed pension. Keep in mind that some providers may have transfer-out penalties with which you should consider prior to completing the transfer.
As with standard pension packages, there is no upper limit to the amount that may be invested in a self-directed pension although tax relief is capped to a specific limit.
It may be that the person already has a pension, of which they have little control, and are interested in obtaining a pension with which they can have greater input into how it is managed.
Account must be taken of the amount of time, effort and expertise needed to invest funds intelligently. Self-directed pensions carry higher risk than your standard pension as you are investing your contributions in more specific assets and without the input or advice from a financial advisor or fund manager.
Self-directed pensions are suitable for those who want to build and self-manage their own portfolio of pension assets. Self-directed pensions provide greater control over investment decisions, than is the case with a standard pension package, they allow for greater control, flexibility and choice in deciding on the type of assets into which their pension fund will be invested. Broadly speaking, these assets can include; corporate and government bonds, exchange traded fund's and listed equities.
Common charges incurred with a self-directed pension include annual management fees, which cover administration and service costs, other charges which also apply are one-off set-up costs and third party charges which include commission based fees to be paid to stockbrokers. The pension provider will normally permit the policyholder a specific number of free trade transactions, after which there is a charge deducted from your pension fund.
If you already have a pension plan and are looking to start a self-directed pension plan, then most providers will generally allow you to transfer funds out of your existing pension and into the self-directed pension. Keep in mind that some providers may have transfer-out penalties with which you should consider prior to completing the transfer.
As with standard pension packages, there is no upper limit to the amount that may be invested in a self-directed pension although tax relief is capped to a specific limit.
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