Frequently Asked Questions
Q. Can this method be used for short term trading?
A. No, the strategies discussed in my SIPP book are only suitable for long term investment. Short term trading by its very nature is always speculative and therefore carries very high risk.
Industry experts reckon that around 90% of private investors lose when speculating in the markets, and this certainly includes the stockmarket day-traders. However short term trading is an interesting topic for thought because what brings most investors down is not that they get their market calls wrong, it is rather that their costs (daily commissions and paying away the bid-offer spread) are such a tough handicap to overcome.
Brokers of course love short term traders because they give them excellent business.
Q. Will I need a computer to implement the investment strategies in The SIPP Book?
A. No, but it will really help. A computer is an invaluable tool for record keeping, analysing the market, and of course entering trades.
Q. Is your strategy a kind of system relying on charting or technical analysis for pumping out the trades?
A. No, the investment strategy does not rely on charting or technical analysis at all. Charting is where investors/traders base their buying/selling decisions on such things as the shape of the chart (is it trending up/down etc) and whether it is overbought/oversold (gone up or down too quickly) etc.
Q. Can I keep the book if I ask for my money back?
A. Sadly no, we only offer the money back guarantee if you send the book back. But the guarantee is for 104% (£26) so the extra pound we refund you will pay for the postage. This means that you will not lose a single penny.
Q. Is it a problem if I don't know anything about the stockmarket?
A. No, not at all. Long term investing (10 years or over) is all about catching the mega trends in the market and compounding these over the years. Having a good understanding of the markets or economy is therefore not required.
Q. Can I put property in my SIPP?
A. Yes and no. Under current pension law residential property is not allowed to be placed in a SIPP but commercial property is. Many Doctors and Dentists for example own the building where their practices are located via their SIPPs.
However property is an important part of a mixed portfolio, so the investment strategies in the book do strongly advise that you invest in this sector via property funds.
Q. Can the investment strategies be used for investors of all ages?
A. Yes, and the earlier one starts a pension the more reward you will gain when you reach retirement age. This is because the compounding of returns over many years is so critical. The best time to start a pension is therefore as soon as you start work even if you just deposit a small amount of money per month.
For people in their 40s or 50s The SIPP Book methods can still pay excellent dividends because it shows you a way where running costs can be dramatically slashed and the money thereby saved is reinvested back into your SIPP.
Q. If I already have a pension can I either switch to a SIPP or run a SIPP in conjunction with my present deal?
A. Yes, on both counts. However if you have a current pension with the firm you’re working for or you’ve taken out a private policy you must tread very carefully when transferring to a SIPP.
My advice is therefore simple - if you presently have a company or private pension take professional advice before you consider transferring it to a SIPP.
Q. What makes you an investment expert?
A. I have worked in the financial markets since the early 1990s specialising in private client broking in the stockmarket, CFDs and Futures & Options. One of my strengths is therefore knowing the kind of problems that many private investors struggle with.
In my experience most private investors either lose money or don’t get the results they deserve because they do two things wrong -
- Trade far too much, which leads to
- Paying away too much money in costs
When it comes to costs you must never make the mistake of thinking that they are just commissions. Commissions these days are much cheaper than they once were, but often the main costs of doing business is the difference between the bid-offer spread. These costs can really add up if one does enough trading.
But the strategies discussed in my SIPP book mean that overall costs are kept to a absolute minimum and the money saved is reinvested (and compounded) back into your fund.
Q. I have a good relationship with my current stockbroker, can I run my SIPP account through his firm?
A. Yes, but the question you should be asking is what kind of charges are they levying. If they bill themselves as a ‘full service stockbroker’ then the costs are likely to be far too high.
You don’t need to pay for advice when building the investments in your SIPP fund so it’s best to open an account with one of the cheaper SIPP providers.
Q. Who is The SIPP Book written for?
A. Anyone that either has or is looking to open a SIPP and who wants the best chance of success for their pension money. And in my mind one of the best strategies to manage money over the long term is to slash costs at every opportunity. This will mean that more money is actually invested in your SIPP rather than middlemen continually taking their yearly cut.
The SIPP Book offers a simple, logical and above all easy to understand strategy to achieve this goal.
Q. What computer programs does The SIPP Book use?
A. None, you won’t have to buy any specialist software although using the spreadsheet program Excel would be useful. If you don’t have this or don’t want to pay £300+ then consider the excellent 100% free Office software called www.openoffice.org).
As for buying/selling on the stockmarket all online brokers offer their software for free.
