Self-Invested Personal Pension. A UK pension vehicle that gives the holder wide investment choice. International SIPPs can hold multiple currencies and are commonly used by UK expats in the US.
Qualifying Recognised Overseas Pension Scheme. An overseas pension scheme HMRC recognises as eligible to receive transfers from UK registered pension schemes. Since 2017, transferring to a QROPS outside your country of residence incurs a 25% Overseas Transfer Charge in most cases.
A 25% tax charge levied by HMRC on transfers from UK pension schemes to a QROPS located in a different country to the member's residence. Introduced in 2017.
Passive Foreign Investment Company. A US tax classification applied to many non-US investment funds. US residents owning PFICs face complex tax obligations.
An insurance contract that credits growth based on a market index while protecting principal from market losses. Often used in retirement income planning.
An optional feature added to an annuity contract that guarantees a stream of income for life, regardless of account value or market performance.
A legal standard requiring an adviser to act in the client's best interests, not their own or their firm's. Alexander Peter advisers are affiliated with an SEC-registered investment adviser and held to this standard.
A US employer-sponsored retirement savings plan allowing pre-tax contributions. Often subject to complex decisions when employees leave the US or change employer.
Individual Retirement Account. A US personal retirement savings vehicle with annual contribution limits and specific tax treatment depending on type (Traditional or Roth).
An informal term for money allocated to protected, guaranteed-return vehicles in retirement — typically to cover essential living expenses — as opposed to funds invested in the market.
The risk that the timing of market downturns — particularly early in retirement when withdrawals begin — can permanently damage a retirement portfolio, even if long-term average returns are acceptable.
