Self managed QROPS are an ideal vehicle for investors who want to take control of their financial future.
QROPS pensions come as self managed, collaborative or full managed packages allowing the scheme member to take a hands on approach of their investments.
Just how much how much control to take is up to the investor and needs careful consideration and discussion with the financial firm arranging a QROPS transfer as not all QROPS providers allow self managed options.
The benefit of a Self Managed QROPS is that the member has complete control over their investments and can invest themselves, or with the help of an adviser. If set up correctly, Self Managed QROPS solution can avoid the need to continuously go to the QROPS trustees to action the dealings. A Self Managed QROPS can be the most efficient QROPS solution available if correctly constructed. Contact QROPS.net for more information.
Self managed does not necessarily mean taking sole control – the collaborative factor allows delegating agreed management authority to the provider. Two factors are called in to play with self managing a QROPS –
Attitude to risk
Risk to one investor falls well within acceptable caution to another. A QROPS opens up the opportunity to invest in more markets than the limited choices offered by a UK pension scheme, which allows more chances to make gains but also increases the likelihood of stacking up losses.
For a self managed QROPS, any investor must take on responsibility for recognising and accepting risk when making decisions.
Self managed QROPS offer such a wide choice of investments and management options that selecting the right QROPS scheme at the start that matches the scheme member’s financial aims for the fund is crucial.
Like any other investment choice, the global array of almost 1,500 QROPS schemes has to be narrowed down to the right scheme for the investor.
Some QROPS providers have across-the-board investment expertise and some have more narrow specialisation.
Experienced investors with the time and skills to self manage a QROPS can choose from a host of investments like:
- Stocks and shares from markets around the world
- Government or corporate bonds from established or emerging markets
- Pooled funds like OIECs, unit trusts, exchange traded funds and hedge funds, to name but a few collective schemes that QROPS providers are pleased to take in to their schemes.
- Commercial property – but discuss this with a QROPS provider if the property is a hotel or involves any residential use
- Bank or building society accounts in any currency
Some QROPS advisors will also put together tailored investments in a specialist sector, providing the details do not clash with QROPS legislation.
Other factors that affect the QROPS investments are personal circumstances like the age, residence and nationality of the QROPS transferee.
Picking a self managed QROPS is a job for a specialised financial planner.
Contact us today to speak to one of our experts about a Self Managed QROPS scheme. Click here