Self-Invested Personal Pensions (SIPPs)

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1 Self-Invested Personal Pensions (SIPPs)

2 What is a SIPP? pproved Investments SIPP is a flexible type of personal pension plan. Ultimately it is a tax-free trust fund under your control which you can build up to provide for you and your next of kin in retirement. SIPPs were first introcuded in the early 1990 s and have rapidly grown to become one of the most popular products for pension planning. Pensions have become unpopular due to well-publicised shortcomings in the financial services industry leading many to question whether they are worthwhile. However SIPPs allow you to avoid these problems due to the greater flexibility allowing you to choose your own investments. By taking out a SIPP, you will be involved in deciding where the funds are invested and therefore, you will need to be fully aware of how they are performing and what it is costing. Funds from your SIPP can be invested into a wide range of investments permitted by HMRC without tax charges. These investments allow a tax free return in your SIPP. Below are a few types of approved investments allowable: Shares in companies listed on the main UK stock exchange or aim markets Shares in overseas companies listed on a recognised overseas exchange Unit trusts, investment trusts, open-ended investment companies ( oeics ) Government securities, quoted debentures and loan stocks We develop long-term relationships with our clients based on transparency, trust and integrity. Price is what you pay. Value is what you get. Warren Buffet,

3 Why have a SIPP? For many years pension plans have been a traditional way of saving thanks to the wide range of tax reliefs through: Tax relief on contributions paid in. Tax free growth on investments, both income and capital gains. Up to 25% of the fund is tax free when benefits are drawn. Who is SIPP suitable for? Generally you would choose a SIPP to take control of your pension and therefore choose which investments to hold. The following may help decide whether a SIPP is suitable for you: Most SIPPs have fixed costs, meaning that they are not suitable for very small pension funds. You would choose a SIPP if you wanted to make use of the wide range of investments available, and either make your own investment choices or invest in the stocks we recommend. Many SIPPs are set up to consolidate existing pension plans, so that the entire pension fund can then benefit from the control and flexibility. SIPPs are more flexible when benefits are drawn than many other pension products and many people switch their pensions into SIPPs as they approach retirement. 4 5

4 How can Templeton Securities help manage my SIPP? Fs key advantage of SIPPs is that they can be invested in a wide and varied selection of financial instruments. Templeton Securities will be able to provide assistance in choosing suitable investments covering the majority of approved underlying asset types, however we would recommend that you consult your pensions adviser when you are considering investments into property or private company shares. The risks associated with your SIPP may increase for certain categories of underlying assets chosen by you or recommended by Templeton Securities. It may take time to realise the value of certain underlying assets and when investing in equities they should be considered as long term investments. The value of your investments may fall and this may reduce the retirement benefits you receive and any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. specific investment strategy at the outset. The tax-efficient nature of investments within pension plans means that we will be able to make the most appropriate investment decisions without the need to consider taxation. This allows for much greater flexibility in investment strategies. Our Investment analysis is supported by in-depth research from both in-house and external sources. Stock selection meetings occur daily and input is gathered from the wider financial industry through our established market relationships. This ensures investment decisionmaking based on the latest information available. The overall aim is to provide clients and their advisers with greater flexibility and control, paired with our expert analysis and rigorous investment process to ensure that your SIPP funds will be advised effectively. How do I invest my SIPP through Templeton Securities? You need to contact your SIPP provider, then complete and return our application form which is available online at Can I transfer an existing SIPP? You can transfer an existing SIPP, you must first notify your current investment manager and SIPP provider, we will then organise the transfer of assets. What can I invest in? Your SIPP provider will be able to provide you with a list of approved assets this should include equities, bonds and funds. How do I know how my investments are doing? You can access your SIPP portfolio through our website and log in at any time to check its most recent valuation. How can I contact you? You can contact us by phone on , [email protected], or in writing to: Templeton Securities Limited. 50 Fenchurch Street, London, EC3M 3JY. How can I make a complaint? If you are not satisfied with any aspect of the service that you have received from us, or you would like information regarding our formal complaints procedure, please contact us using any methods detailed in How can I contact you?. We understand that your financial needs are unique, and this is especially so when it comes to SIPP strategies. The planning options available within a SIPP mean that the accompanying investment strategy has to be both flexible and suitable to suit your needs and thus we will tailor the portfolio to help meet your individual objectives. STOCKS BONDS MUTUL FUNDS s every clients investment objectives and risk appetite differ, we take care formulating and agreeing your Most Commom Types of Investment Next step ll investments are speculative and will fluctuate in value. It should not be assumed that the value of investments will always rise. Past performance will not necessarily be repeated and is no guarantee of future success. Please see our full Risk Disclosure Notice. If you would like to know more about SIPPs or any other investment service, please contact us on or alternatively please visit our website: 6 7

5 8 Templeton Securities Limited, 50 Fenchurch Street, London, EC3M 3JY E: May 2015