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A simple Sipp from TD Waterhouse

The TD Sipp is designed as a simple and lost cost self-invested personal pension for investors that want control over a wide range of investments excluding commercial property.

The Sipp is available with a minimum investment lump sum of £400, £1,000 for transfers in from other pensions or a monthly contribution of £40 for individuals and £50 for employers. It uses the same online trading platform as the firm’s trading account, providing easy access to Sipp qualifying investments such as UK and international equities, bonds and gilts, investment trusts, unit trusts, Oeics, Reits and Exchange Traded Funds. The platform also allows investors to see the value of their Sipp at any time and provides access to market and research tools from Morningstar, including an asset allocator tool and fund screening tool.

Cash can be held in nine major currencies and existing pension benefits, including protected rights, can be transferred in to the Sipp. However, investments in property, land, unquoted shares and other assets such as futures and options are not allowed.

The plan has no set-up fee or transfer in charge, has a half yearly admin fee of 0.25 per cent which is subject to a £40 minimum and £100 maximum, plus VAT. There are also charges if investors want to use options such as additional income withdrawals, unsecured pension and alternatively secured pension.

This Sipp may appeal to advisers with clients who want a low-cost Sipp and who are able to accept the limitations this will entail, such as no access to assets that are difficult to trade online, such as unquoted shares. Advisers may feel that having AJ Bell as the scheme administrator is a comfort factor due to its vast Sipp experience. The ability for clients to instruct the Sipp to pay IFAs for their advice may also be appreciated.

However, some investors may want access to the asset classes that are unavailable under the scheme and they would need to look at alternative Sipps that may charge set-up fees.

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