Are pensions capital?

r_i_c

xylophone wrote: »

...you mother had an ISA with M&G and held this fund or perhaps the Acc version?

It pays income quarterly.

M&G would be able to sell the fund for you and invest it in one of their bond funds if you so wished.

Thanks, my mother had an ISA with M&G, yes. It was an M&G Global High Yield Bond Fund, "Income Shares". It had XD dates and Payment dates, and they seem to have been more or less monthly. So why must my payments be quarterly? I don't mind that much but I found that quarterly payments can make figure work awkward, if you are feeling your way forward / trying to keep a tight monthly budget.

xylophone

The Global Growth Fund is not the same fund as the Global High Yield Bond Fund

If your mother had the Global High Yield Bond and you wish to keep it, then M&G can simply transfer it into your name (although without the ISA wrapping) and you will receive the income monthly as she did.

xylophone

As you seem to lack confidence in the area of investments, should you be booking an appointment with the IFA mentioned in your previous post?

dunstonh

r_i_c wrote: »

Thanks, my mother had an ISA with M&G, yes. It was an M&G Global High Yield Bond Fund, "Income Shares". It had XD dates and Payment dates, and they seem to have been more or less monthly. So why must my payments be quarterly? I don't mind that much but I found that quarterly payments can make figure work awkward, if you are feeling your way forward / trying to keep a tight monthly budget.

The fund distribution dates dont have to tie in your distribution dates. You just use an income strategy that fits your need. There are various ways to do this.

r_i_c

xylophone wrote: »

The Global Growth Fund is not the same fund as the Global High Yield Bond Fund

If your mother had the Global High Yield Bond and you wish to keep it, then M&G can simply transfer it into your name (although without the ISA wrapping) and you will receive the income monthly as she did.

Thank you - I can confirm that my mother held an M&G Global High Yield Bond Fund (Income). I will now write & confirm to M&G that I wish this transferred to me as a Bond Fund as opposed to an ISA.

r_i_c

xylophone wrote: »

As you seem to lack confidence in the area of investments, should you be booking an appointment with the IFA mentioned in your previous post?

There are still so many things in the air, the property deeds are coming up next week for example, and the 123 account is still to be finalised, again - next week. I probably will approach the IFA eventually.

r_i_c

dunstonh wrote: »

The fund distribution dates dont have to tie in your distribution dates. You just use an income strategy that fits your need. There are various ways to do this.

Thank you, I will mention to M&G that I'd prefer any payment monthly for the sake of my figures.

xylophone

Thank you - I can confirm that my mother held an M&G Global High Yield Bond Fund (Income). I will now write & confirm to M&G that I wish this transferred to me as a Bond Fund as opposed to an ISA.

It is a bond fund and always was a bond fund - whether or not it is held within or without an ISA does not change that fact!

You cannot have an ISA transferred to you.

Thank you, I will mention to M&G that I'd prefer any payment monthly for the sake of my figures.

You don't have any choice as to income frequency- the income in this fund is distributed monthly for all holders!

dunstonh

r_i_c wrote: »

Thank you, I will mention to M&G that I'd prefer any payment monthly for the sake of my figures.

That is not how its done. Use an investment platform with a cash account. Put around x months worth of cash in the cash account (x=a sui.table amount which could be utilised to cover negative periods. e.g 18 months) and have the distributions from the investments paid into the cash account. Set up a fixed monthly withdrawal from the cash account. The monthly amount should be set to equate to the quarterly distriubtions or a bit less to allow some inflation protection.

At the same time, maybe improve the investment holdings so you are correctly diversified and not in one asset class.

xylophone

Use an investment platform with a cash account.

Background summary.

The OP ( who will be 60 next spring and according to what he has previously stated, is financially unsophisticated)) was a full time carer for his mother, recently deceased.

He has obtained his Foundation Amount for NSP for which he becomes eligible at age 66. He has also made enquiries about how this may be increased and will be contacting DWP after April 6 2016.(post105)

When he reaches the age of 60, his deferred TPS pension (around £6000 pa and automatic lump sum, about £18000, becomes payable.
Apparently there are also AVCs with the Pru.

It seems that his late father arranged a Vantage Fund and Share Account for him and a SIPP with HL and chose the investments. (post 148).

As he apparently had little in the way of cash savings when his mother died, he accessed £2500 from the £40,000 in the SIPP (see post 62)

The lump some represented 25% of a quarter of the entire SIPP - a fraction, not a lump sum calculated on the draw down of the entire SIPP. The SIPP itself is not being drawn weekly, monthly or at any regular period at all, until I retire - possibly in the case of the SIPP at state retirement age which is 66 for me.

Probate has now been granted and he has inherited the mortgage free family home and his late mother's savings/investments.

He now has his SIPP (to which he has now made a full non-earner's contribution for this tax year), a Vantage ISA and a Vantage Fund and Share Account. These have been boosted by his inheritance from his mother's HL accounts (also set up by his late father).

The investments in these are all HL's own multi manager funds and mixed asset.

His late mother also had an ISA with M&G in which she held the Global High Yield Bond OEIC - this is being transferred to the OP.

It had previously been explained that it should be possible to move this to HL for ease of administration if he preferred.

For the moment, he is financing day to day living from his JSA (C), his inherited capital and income from his investments.

He prefers monthly income and prefers to stay with the investments previously chosen for him/his mother by his late father.

He has identified an IFA on whom he may call in the future.
Presumably he may seek advice as to how to handle the Pru AVC?