Are pensions capital?

r_i_c

xylophone wrote: »

Surely what you want to end up with is a SIPP (which is already set up), a Vantage Fund and Share Account (which you already have) and a Vantage ISA?

It might make your life easier if you just immediately transfer £2880 from your bank account to your SIPP and use it to buy whichever fund/share/IT you require?

With regard to your own ISA, you could sell funds already with HL to the value of £15240 and open your ISA with this cash, buying the funds you want in it?

Don't forget to choose income funds if you want income.

The funds remaining you ask HL to transfer in specie to your own existing Vantage fund and share account?

A telephone call to those helpful people at HL should clarify?

Thanks, yes I did phone. The ISA has now been created out of the newly transferred holdings (funds) which went into my Vantage Stocks & Shares Fund. So £15.24K were taken to create the ISA. I also released £2.88K from this fund to top up my SIPP.

This still leaves me with a considerably boosted VS&SF. Presumably both the Fund and the ISA will now start paying (monthly) interest, if there is interest to be paid? I designated my current bank account for this so will be watching the statement come the 12th of each month.

So, initially there's no need to start worrying about parallel VS&SF accounts since I am already running one with the residue of the estate holdings now in it?

The stocks are unchanged from the earlier post, three income and one accumulation with the majority of the investment under 'income'.

How does this sound please?

Thanks again.

xylophone

Would it not be administratively easier to hold just one Vantage Stocks and Shares Account? HL can transfer the holdings into your pre exisiting Vantage Stocks and Shares Account?

With regard to monthly interest, I am assuming that you mean monthly income?

Are all your funds (Inc) and not (Acc)?

Some pay interest and others pay dividends?

Some pay monthly/quarterly/annually?

If any are (Acc) then income is not paid out.

That said, if you have asked HL to remit income received then they will do so on a monthly basis if there is any to remit.

r_i_c

xylophone wrote: »

Would it not be administratively easier to hold just one Vantage Stocks and Shares Account? HL can transfer the holdings into your pre exisiting Vantage Stocks and Shares Account?

That's in fact what happened - I guess by default.

With regard to monthly interest, I am assuming that you mean monthly income?

Yes, those holdings paid monthly sums into mum's bank account - I used to go through the statements to see how we were doing, the payments were coded 'HL'

Are all your funds (Inc) and not (Acc)?

There are 4 funds, three are (Inc) and one is (Acc). I decided to leave the Acc one as it is because Dad rarely did things without a reason, although he rarely explained anything, not even to poor mum

Some pay interest and others pay dividends?

Some pay monthly/quarterly/annually?

If any are (Acc) then income is not paid out.

That said, if you have asked HL to remit income received then they will do so on a monthly basis if there is any to remit.

Thanks, I stipulated 'monthly' when my bank account was nominated, so some sort of message must have got across. They said they'd 'pay monthly if there was anything to pay' which sounded rather ominous to me, but I must wait and see? I do hope the holdings which served mum well have not taken a tumble in the meanwhile?

Otherwise, I am now in the process of setting up a 123 account, so that wheel is beginning to turn

Thanks again

xylophone

Which is the Acc fund?

r_i_c

xylophone wrote: »

Which is the Acc fund?

HL Multi Manager Balanced Managed Trust Class A.

It represented a little under a tenth of the whole VF&Share Account.

xylophone

It is a Fund of Funds and the charge is high.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hl-multi-manager-balanced-managed-trust-accumulation

Have you thought about whether this is the type of investment you want?

If you require monthly income, might you prefer to sell it and buy a fund that pays a monthly income?

Examples - Invesco Perpetual Distribution
Axa Framlington Monthly Income
Threadneedle Monthly Income
M&G Episode Monthly Income
Premier Monthly Income
Schroders Monthly High Income

r_i_c

xylophone wrote: »

It is a Fund of Funds and the charge is high.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hl-multi-manager-balanced-managed-trust-accumulation

Have you thought about whether this is the type of investment you want?

If you require monthly income, might you prefer to sell it and buy a fund that pays a monthly income?

Examples - Invesco Perpetual Distribution
Axa Framlington Monthly Income
Threadneedle Monthly Income
M&G Episode Monthly Income
Premier Monthly Income
Schroders Monthly High Income

Thanks. Odd, I wonder why my father chose it? He never discussed anything to do with these matters.

'Invesco Perpetual UK Equity Pn 4A' is one of my SIPP investments, there's also a Schroder UK Alpha Plus (Acc )[!]. Anyway, the Invesco name looks familiar to me.

Is there a recommended beginner's guide to stocks, shares & investment please - one that explains all the numbers and percentages involved - not that I want to launch myself into stocks & shares, but I'd like to have at least a lay person's handle on what is going on. This is one of the reasons I stick with the family investments of the past.

Will wait now until the paperwork comes through concerning yesterday's dealing, it may well be that I subsequently move to Invesco

bigadaj

Have a read through the website monevator, there's some good explanation and principles there.

Plenty of books on investing around, smarter investing by Tim hale is often quoted and a good start.

atush

I would imagine your father chose it, as growth is also important for a retirement portfolio so that part was to supply long term growth as a hedge against inflation. While the other 3 funds provided income.

If you want to keep doing this, instead of choosing another income fund, then do so but maybe look for one with lower charges?

Dont find the terms HL gave you about monthly income as ominous. Generally speaking, many funds pay out quarterly or even semi annually. So some months there may not be a payment into your fund- unless you carefully choose funds with payment dates in mind to make sure you get one every month.

xylophone

How did you choose the SIPP investments? And the investments in your own Vantage account?

I gather that you had the SIPP/Vantage before either of your parents died?

Or did you consult an IFA?

It would be open to you to consult an IFA - I seem to remember from a previous post that you had located one that might be suitable?

You have a modest TPS pension and lump sum to come in early 2016 and a state pension around five years after that.

You have a mortgage free property which was the family home.

You might choose to work part time in due course.

As (I gather), you are single, you might decide to downsize and release capital.

A discussion with an IFA might prove fruitful?