Self -proclaimed personal pension (SIPP) can be something that has matured for decades, which makes it ideal for a long -term approach to investing.

Some investors consider this to obtain dividends. Others believe that long time frames can be an ideal opportunity for a compact but promising companies to explode and show their true potential.

So deciding what to do with SIPP, did the investor consider growth shares, income actions or both?

Do growth actions differ from income?

Helps to recognize that many actions actually offer Both possibilities of growth and income. Sometimes both growth and income potential can have the same share.

To say, tobacco producers are classic examples of what is perceived by many investors as income actions. Mature companies on disappearing markets may have circumscribed opportunities to invest profits in development, so divide them as dividends.

However, a growing company like Nio It still burns cash, but builds a company that, if grows in the right way, can be worth much more than today.

The point is that it is tough to know in advance how good (or otherwise) can be a growth. Some may be next Amazon Or Tesla. Many will not disappear and may disappear without tracking the line.

Setting goals as an investor

In this sense, therefore, it doesn’t make much sense to focus on the investor’s specific goals when it comes to growth or income.

After all, the possibilities of paying income at SIPP are different than, say, ISA shares and shares.

In brief, the goal in SIPP is basically Build a total value in time.

Speaking in this way, I think that buying growth or income shares – or a mix of both – can be an appropriate strategy in SIPP.

Learning from pensioners billionaire Warren Buffett

I see one substantial difference between many growth actions and some known high -performance actions.

While some shares in the growth are doing spectacularly – Hello Nvidia (NASDAQ: NVDA) – Many not.

On the other hand, income actions that have been paying dividends for decades rarely fails to zero within a few months. This can happen, but more often they slowly flow out, reducing dividends in a few years and perhaps finally canceling them completely.

Thus, weighing risk and prize is necessary in assigning SIPP. Quoting Warren Buffetta, the first rule of investing does not lose money, and the second rule is not to forget the first.

By the way, at the right price I would like to buy Nvidia for my SIPP. It is clear. But he throws out huge amounts of cash. While its dividend performance is now compact, I see many possibilities to make it grow over time.

I also think that business growth can be continued thanks to the reserved Chipmaker technology, a immense customer base and powerful demand related to AI.

But crazy competition is a key risk – and I do not think that the price of NVIDIA shares today offers me a safety margin.

If the price drops to the right level, I will gladly add it to my SIPP both due to the proven growth prospects and, potentially, growing streams of income.