sipps are they a no brainer?

[petemurphy]

so dont have a sipp - should i open one is there any reason not to?

is it worth opening one for my daughter aged 9?

thanks

[Mr Pointy]

For many people: yes. For some people: no.

You'd need far more information about your general financial situation before being able to say one way or the other.

[petemurphy]

Mr Pointy said:

For many people: yes. For some people: no.

You'd need far more information about your general financial situation before being able to say one way or the other.

any major reasons not to? thanks

[911pleb]

Early withdrawal fees are mental. If you need/want access before you are 55 years old, you can say goodbye to half of it.

Sort of. Its complex. But essentially if you are happy to leave it untouched until you are 'of age' then its a decent tax workaround.

Im no expert though.

[Meeten-5dulx]

A tax shelter?
This monies will then be for the child.
Have you utilised their annual JISA?

Do you have your own SIPP that is fully funded?

[Mr Pointy]

petemurphy said:

any major reasons not to? thanks

Well it locks the money away until you are 55, which may be ok but it's all about balance. Generally you need three pots:

Some for instant access so you can live if you have a major life event
Some in an ISA which will provide tax free growth but can be accessed if needed
Some in a SIPP/pension which has good tax advanatges on the way in but is taxed on the way out

Whilst a SIPP for a child is a great start it might well be that the money would be of more use to them when they are looking for a first house for example, in which case an ISA would be better. If you have enough, contribute to both. As I said, it's about balance.

[The Leaper]

petemurphy said:

so dont have a sipp - should i open one is there any reason not to?

is it worth opening one for my daughter aged 9?

thanks

Why do you think you should have a SIPP?

R

[TCX]

The Leaper said:

petemurphy said:

so dont have a sipp - should i open one is there any reason not to?

is it worth opening one for my daughter aged 9?

thanks

Why do you think you should have a SIPP?

R

See what royal London n re assure do with workplace pensions lol
Have me £800 n lost £2000 in 4 months last year respectively.took out sipp this year shadowing share fund mostly 64% up

[anonymous-user]

SIPP is brilliant for kids,

• You put in £2,880 and it's immediately worth £3,600. Where else can you get £720 for free?
• 50 years of tax free cumulation will build up to a great start on pension
• They can't spend it early
• They should get a big financial benefit at times when money is short (i.e. when they are trying to buy a house and have their own kids) because they don't need to be starting to save for a pension at the same time.

[chip*]

I appreciate the SIPP benefits, but the access restriction (age 55) does play on mind as I can only see this extending out, and it's pot luck when your kid could access this fund in 50 years time. Nevertheless, I have invested the maximum into my daughter's SIPP this year, but the bulk of her future saving/inheritance will be in her JISA.

If you are totally unconvinced with a SIPP, maybe consider a LISA where the proceed could be used to either fund a house purchase or a pension.

[petemurphy]

chip* said:

I appreciate the SIPP benefits, but the access restriction (age 55) does play on mind as I can only see this extending out, and it's pot luck when your kid could access this fund in 50 years time. Nevertheless, I have invested the maximum into my daughter's SIPP this year, but the bulk of her future saving/inheritance will be in her JISA.

If you are totally unconvinced with a SIPP, maybe consider a LISA where the proceed could be used to either fund a house purchase or a pension.

ooh can you start a lisa now? thanks

[Mazinbrum]

rockin said:

SIPP is brilliant for kids,

• You put in £2,880 and it's immediately worth £3,600. Where else can you get £720 for free?
• 50 years of tax free cumulation will build up to a great start on pension
• They can't spend it early
• They should get a big financial benefit at times when money is short (i.e. when they are trying to buy a house and have their own kids) because they don't need to be starting to save for a pension at the same time.

After 2028 they won’t be able to access it until 10 years before SPA plus who knows what changes are lined up.