when and where to move pensions for drawdown

[Deleted User]

OP, I don`t use any funds for my DH`s pension but I made very sure that asset allocation was spread out into various categories eg various fixed rate vehicles eg standard chartered perpetual bonds, at the time the rolling yield was (and still is) 11% and now its capital value has also increased by 20%. I also invested in big ftse 100 divi earning companies and I have a couple of more exciting stocks but still big ftse companies. His sipp is substantial and has grown a lot since I took it over. The dividends generated enable me to buy more stocks for him and also cover all his yearly pension drawdown, Op it is not something to do on an ad hoc basis, I actually did a great deal of work to understand the sipp workings and also to find suitable investment opportunities. His only cost at present is £90 pa for his drawdown transfer and deals cost £9.95 or seldom a little more maybe £20 when buying prefs or somesuch

My advice is either do a lot of work and learning yourself or get an ifa

snowcat53

gadgetmind wrote: »

Neither does anyone else, despite what they say. And don't go thinking that because you're going for drawdown that you need investments that generate income because it's total return that matters.
...
No, but this isn't something I let concern me. That 30,000* funds are trying to get me to choose them to invest in a far smaller pool of assets just shows that fund management is a good business to be in. I prefer to get closer to the underlying investments, which helps remove both risk and cost.

I currently have most of my investments in trackers (Blackrock and Vanguard) for reasons that will become clear if you poke your nose into the book I mentioned above.

Many thanks. I have just ordered the Tim Hale book.

I guess what I want is to move to less volatile investments with retirement approaching, which is what I assume 'income' funds usually are, including gilts and bonds. Like you I have the bulk of my investments in index trackers in various sectors, and am sceptical about most active funds. I would look at fixed interest funds, gilts, corporate bonds, ETFs, investment trusts (F&C have done well for son's CTF) perhaps still with some equity funds for excitement. I already have L&G index linked gilts and fixed interest funds.

I'm now comparing the charges and rebates on some selected funds in SIPPdeal and Alliance Trust SIPP.

gadgetmind

Moving away from equities and into fixed interest is very important if planning to buy an annuity but less so if using drawdown.

The traditional haven of gilts is somewhat oversubscribed right now, and prices are through the roof (and hence yields low). OK, prices might go higher, but the same could be said of equities in 1999 ...

Corporate bonds are also a little toppy, but yields are still reasonable. I'm also using commercial property and infrastructure funds to add more income. The latter are also on premiums, but look at the price chart of (say) HICL and I think you'll see that it isn't exactly volatile.

Investment trusts are also good as they hold a large cash reserve to give a reliable stream of dividends, but you'd want to hold a selection of them as they vary quite a lot regards current yield versus historical yield growth rates.

Note that any IT with the word "Income" in the name is currently on a premium. Income is the new black!

Linton

If you are planning to go for drawdown then I believe you need an appropriately balanced portfolio - not a strong focus on income. In particular remember that perhaps a third of your pot wont be touched for 15-20 years, certainly long enough to justify some long term higher risk investing.

My intention is to structure my retirement moneys on the basis of a set of time frames. For example, bonds and near to cash sufficient to cover the next 5 years, globally diversified equities with some reinvested income for 5-15 years and higher risk sector equity managed funds for the long term. In parallel with this I will continue my ISA-based income portfolio mainly comprised of dividend paying shares.

snowcat53

gadgetmind wrote: »

Moving away from equities and into fixed interest is very important if planning to buy an annuity but less so if using drawdown.

Thanks gadget (and Linton). I guess I know that, but I think for peace of mind I would prefer to minimise the volatility and risk of large falls (as much as one reasonably can) as i get older. I dont need large gains now.