Are pensions capital?

r_i_c

xylophone wrote: »

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!

Thanks, but please remember I have only been faced with these investment decisions since probate was granted, and that is very recently.

You cannot have an ISA transferred to you.

I have not asked for any ISA to be transferred to me. A while ago, I had a new ISA created for me by HL.

The old M&G ISA bond fund is now being transferred to me 'outside the ISA wrapper' which is I believe the terminology to use here?

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

Well. this is good news indeed, earlier posts mention 'quarterly payments' for some types of investents, which I do not want. I know that HL paid quarterly up until about a year ago, then switched to monthly, which I think is a much better idea

Many thanks again.

xylophone

I know that HL paid quarterly up until about a year ago, then switched to monthly, which I think is a much better idea

One of my relatives takes regular income from both Vantage ISA and Vantage Fund and share and it has always been managed as here




http://www.hl.co.uk/investment-services/isa/frequently-asked-questions

"Your Vantage Stocks & Shares ISA can be set up to treat income in one of three ways:

Reinvestment: Income will be held within your account and accumulated until it reaches or exceeds £10 per holding, when it will be automatically reinvested, or you can choose your own reinvestment level between £10 and £1,000. Reinvestments are made between the 11th and 21st of each month (or as soon as practicable thereafter). A dealing commission of 1% (£1 minimum, £10 maximum) will apply.

Held on account: Income will be held on your account pending your further investment instructions.

Paid out to your nominated bank account: Income will be paid out directly to a nominated bank/building society account. This payment will be made within ten working days of the end of each month.

The instruction you give will apply to all income paying holdings within your Vantage Stocks & Shares ISA."

The income on the Vantage S&S is similar

http://www.hl.co.uk/investment-services/fund-and-share-account

Obviously income can only be paid as it arises - if a fund pays quarterly then you receive it in that quarter.

xylophone

Another thought - you do realise that you need to check each fund you buy for dividend/interest frequency?

You might find monthly, quarterly, half yearly or annually.

r_i_c

xylophone wrote: »

Another thought - you do realise that you need to check each fund you buy for dividend/interest frequency?

You might find monthly, quarterly, half yearly or annually.

Thanks, this was one of the reasons I stuck with mum's arrangement wherever possible, because I noticed her holdings paid regularly. Of course, mum inherited dad's holdings, but I'm a bit unclear as to which stocks those were - whatever they were, they would have gone over to mum. Possibly the stocks & shares they invested in were identical?

r_i_c

xylophone wrote: »

With regard to yield I notice that the Income and Growth Trust Inc offers 3.61%.

Thanks, for my ISA I have now sold the HL MM Balanced Managed Trust (Acc) & bought the HL MM Income & Growth Trust (Inc) with the proceeds.

xylophone

Have you yet looked into the AVC with the Prudential?

https://www.teacherspensions.co.uk/news/employers/2014/12/redesigned-teachers-pension-scheme-avc-website.aspx

r_i_c

xylophone wrote: »

Have you yet looked into the AVC with the Prudential?

https://www.teacherspensions.co.uk/news/employers/2014/12/redesigned-teachers-pension-scheme-avc-website.aspx

Thanks. The Pru is quite a small amount, there was basically a "misunderstanding" when I asked the Pru salesperson if they were backyears & they weren't, so I didn't continue with them for very long. I've been thinking though that since the Pru and TPS (backyears) were fairly contemporaneous that I ought to buy an annuity for the Pru AVC when the TPS begins in March. How does this sound please? The HL SIPP I am inclined to let (hopefully) grow until the state pension comes in.

xylophone

If the amount is small is an annuity worthwhile?

https://www.atl.org.uk/pay/pensions/teacher-prudential-avc.asp
shows some options - had you considered transfer to your SIPP?

r_i_c

xylophone wrote: »

If the amount is small is an annuity worthwhile?

https://www.atl.org.uk/pay/pensions/teacher-prudential-avc.asp
shows some options - had you considered transfer to your SIPP?

That sounds like an excellent idea, their 'fully to withdraw the whole TAVC in one go, with 25% as a tax free lump sum and the rest as a taxable lump sum' then transfer it to the HL SIPP.

However, despite the Pru forecast at June this year being £9.88K presumably I could only add £2.88K of this to my SIPP over any one tax year?

xylophone

As the AVC is it itself a pension fund, would it not be possible just to arrange for transfer to the SIPP in its entirety, if that was what was required?

Or take the 25% lump sum and transfer to the SIPP?

You would need to check with Prudential/Hargreaves Lansdown.