portfolio planner -SIPP

averageguy11

Totally agree Ed

averageguy11

Ed...i'm just preparing the paperwork to transfer my ''protected rights'' pension to sippdeal...and wil b looking to leave this in cash until investment opportunities arrive. Then b4 my 50th birthday due in march (ouch) transferring over my investments in another sipp..do u happen to know if everything is amalgamted? So tht i can take the 25% cash from the PR funds, rather than cash in a few investments from the sipp i am transferring?

Also, re inc drawdown...i intend to take my income on a yearly basis..so i take it i wud hav to wait until 2010 b4 i can draw any..is tht correct.

Hope the above makes sense

TIA

EdInvestor

averageguy11 wrote: »

Ed...i'm just preparing the paperwork to transfer my ''protected rights'' pension to sippdeal...and wil b looking to leave this in cash until investment opportunities arrive. Then b4 my 50th birthday due in march (ouch) transferring over my investments in another sipp..do u happen to know if everything is amalgamted?

Up to you, you can have them amalgamated or in 2 separate SIPPs.

So tht i can take the 25% cash from the PR funds, rather than cash in a few investments from the sipp i am transferring?

You can take the 25% TFC from each fund regardless of whether they are in the same or separate SIPPs.

Also, re inc drawdown...i intend to take my income on a yearly basis..so i take it i wud hav to wait until 2010 b4 i can draw any..is tht correct.

As soon as you are 50, ie next March you can go into drawdown at which point you can take the 25% TFC and the first year's income in advance in one lump.(the income bit is taxable of course).Thence, every year you can take out another year's income in advance on the anniversary date. 2010 is not relevant to you.

The fund(s) will be valued for income purposes at the time you go into drawdown, and the max income level set at that time will last for 5 years before any compulsory review.You can request a review at any time before then though, eg is markets recover and your fund goes up a lot.The income is set on 3 bases: size of fund, your age, and the 15 year gilt yield (aka the annuity rate - you can take out 120% of this).

Many people like to take the max income out and then reinvest any surplus in their maxi ISA so that future income from the capital is tax free nd not subject to the regululatory risk which historically affects pensions..

averageguy11

Thanx Ed...re the tfc..if i amalgamated the 2 'pots' then it wud b possible to use the pr money which wil b just held as cash when transferred...let me use the following as an example

PR money to be transferred 10k (held as cash wen transferred)

Current sipp totally invested
in bonds and equities

averageguy11

Thanx Ed...re the tfc..if i amalgamated the 2 'pots' then it wud b possible to use the pr money which wil b just held as cash when transferred...let me use the following as an example

PR money to be transferred 10k (held as cash wen transferred)

Current sipp totally invested 30k
in bonds and equities

25% .....10k..take from pr element...is this possible?