Make ISA's Taxable!

Mar 11, 2009 22 Replies
J

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There's a difference between these and buying units in a cash fund.

A SIPP bank account is an actual bank account with Lloyds or RBS or whoever, and you get statements that look just like the ones I get, and the account is in the name of the SIPP.

Buying units in a cash fund is a bit like buying units in the FTSE 100 tracker fund, except that you expect the units to remain at a constant value of £1 per unit, and you expect income from the fund in a similar order of magnitude to bank interest. This is the type of pension cash investment that has lost money recently.

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A

Who said anything about buying units in a cash fund? I wrote "It's FA to do with pensions, you can have a cash SIPP". The whole point was that people constantly dismiss pensions because the underlying investments haven't done well, or have less security, as if that's something to do with the pension itself rather than the underlying investment.

Which is what I meant by a cash SIPP. Not units in a "cash fund", which you can usually buy outside of a pension as well.

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J

Fair enough, but people need to understand the difference, otherwise they might think the capital value of their pension fund is safe when it isn't.

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