Evil Diaries: The Economics of SIPP Plans

I do not know whether I was alone in picking up Paul Johnson (of the IFS) warnings on SIPP limits both on sums going in and reduced access on favourable terms when the SIPP is drawn upon.

But I am now most unclear as to what has been imposed and what the limitations will prove to be. For instance, I handled £200,000 for a relation of mine and twelve years later it is now £2.5m. The relation will not draw upon this SIPP for another fifteen years at least. By which time inflation may well have taken the pot up to £5m or a great deal more.

Clearly, it is going to be tougher and tougher to justify the straitjacket imposed by a SIPP and of course the trustees’ fees. These will probably tot up to 0.7% p.a. compound.

If any reader would care to telephone me with their incisive views, I will gratefully listen.

As matters stand, I see the way forward as lying in ISAs. A.J.Bell charge 0.25% p.a. to hold these funds and I suspect that this is reasonable even though it can be increased.

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Astonishingly, an advertising slot during Super Bowl featured a short video inserted by an opponent of Tesla (TSLA) showing that TSLA’s Fully Self Driving cars could hit air-filled mannequins despite TSLA claiming that this impossible. What the truth is I do not know.

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Coro (CORO) is chewing through its problems in Italy and the stock now stand at 0.28p offer. It is impossible for me to assess that valuation of this stock. So I am just sitting there waiting for developments.

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Why Julian Dunkerton continues to buy SuperDry (SDRY) stock at around 120p is not obvious. He already has a shedload. But I would not follow him.

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The Simon Thompson tip for Checkit (CKT) is written in such a way that one cannot tell whether it is Benjamin Graham-compliant as an investment. This is important. That noted, I am hoping to get an update from the company itself as soon as I can find the suitable bod to answer for the company.

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I have bought more Polarean (POLX) at around 40p. This might be a very successful investment. However, these are early days and although the refinancing plan seems both reasonable and indeed inevitable it seems to have frightened the horses.

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Finally, Logistics Development Group (LDG) have today announced a major buy back programme and the share price has advanced to 16.2p offer. Still time to get aboard.