Pension investments 'should be balanced'

Professionals should consider property investment as a way of saving for the future, one expert has said. 

According to Ruth Emery, assistant editor of Pensions Management Magazine, property is a viable alternative to investing in a pension.

However, she warned that it would be unwise to "put all your eggs in one basket" because of the likelihood of falling house prices.

Professionals should ideally have a diverse range of investments, such as Individual Savings Accounts and Self-Invested Personal Pensions (SIPPs).

"More sophisticated investors are investing in SIPPs where you can choose lots of different investments, such as property and hedge funds, and have a diversified portfolio, and also get the tax relief from the Government as it's a pension," stated Ms Emery.

Baring Asset management says that while it is understandable that Brits are enthralled with the property market, it is always a good idea to diversify investments among different asset classes.

Source material: Adfero, October 3rd 2007.

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