What is all this alphabet soup of different accounts?
They sound more complicated than they are! In reality, they all do pretty much the same thing – they are accounts in which you can own shares or funds. The differences are in their tax treatment, so it’s worth making use of them all to get free money or to be shielded from tax.
Because the government want to encourage saving in general, and saving specifically for retirement, we have a tax-sheltered saving account in the form of the ISA, and a tax-sheltered retirement saving account in the form of the SIPP. These are in addition to a general investment account, the GIA.
I’m self employed and thinking of moving my pension to a SIPP, checked out your video on pension funds with Vanguard with recommendations for FTSE Global All Cap accumulative and FTSE Global developed World, at the age of 60 do you still suggest those funds?
Hey Simon, we aren’t financial advisors so can’t make personal recommendations. Have you done the RFS course? coming up to 60 it depends when you want to retire and your plans. The weeks 6-11 are designed to help someone in your situation with all of those decisions… Plus there is a new vanguard Fund out VLL that looks fab, i am working on an article in the next few days… Alan