Self Directed Pension
A Self Directed Pension gives you control over how your pension funds are invested. This type of pension arrangement is suited to experienced investors who wish to take an active role in managing their retirement funds and personally selecting the assets their pension fund invests in.
With a Self Directed Pension you can invest in a range of assets including Direct Equities, Government Bonds, ETFs (Electronically Traded Funds) and Direct Property.
Direct Property: It is possible under self directed options to buy individual residential or commercial property. You decide on the property you want your pension fund to invest in. It is possible for a self directed pension to borrow money to purchase assets, such as a mortgage on an apartment, however gearing significantly increases the risk profile of the pension fund.
As the individual is responsible for selecting the assets linked to the Self Directed Pension, this type pension is only suitable for the experienced and “hands-on” investor. A Self Directed Pension can be a high-risk investment, due to lack of diversification, for example if your entire fund was invested in one asset such as shares in one company or an apartment. For more information speak to one of our experienced financial advisers.