HL SIPP - Fund for Cash

ffacoffipawb

kidmugsy wrote: »

You could always try a variant on Harry Browne's Permanent Portfolio. 25% cash, 25% (index-linked?) gilts, 25% the cheapest global equity tracker you can find, and 25% gold. Rebalance once per year and otherwise ignore.

The first three are probably easy, what would you suggest for Gold? The "PHGP" ETF?

NorthernGeezer_2

Wonder what L&G charge to be in their cash fund?

gnash101

If intent on keeping that much cash in sipp I think the close brothers suggestion might be worth looking at.

First glance if looking to drawdown say 15k per year

As far as I can see the cost is 0.25% p.a. for sipp so £300 for £120k and a £50 drawdown setup.

£2k cash to cover fees for 5 years

Year 1 £15k fix term deposit @ 1.8% = £270 p.a.
Year 2 £15k @ 2.05%=£307 p.a.
Year 3 £30k @ 2.2% = £660 p.a.
Year 5 £58k @ 2.6% = £1508 p.a.

Total return over £10k for 5 years. Once year 5 matures recycle into other short term deposits until fund depleted.

Anyone got cash only in close brothers sipp and do my assumptions add up. If so, and if wishing to stay in cash then surely a far better return than keeping cash with HL.

RD42

Its my pension; I expect to start using it at around 60 (I am 43).

Total pot is about £350K - Just over £100K currently in cash.

RD42

They won't charge for holding it as cash, but they will not pay much interest. I was looking for a "Fund for cash" that would pay, for example 0.5%, but is it was pointed out this is not worth doing, since then I would incur a fund charge (0.45%) meaning an effective rate of 0.05% .

RD42

Come the next stock market crash (or large dip) it will go in. Or if I don't have the patience for that then I will drip it in over 12 months.

RD42

Thanks, this is just about my ash position, which is approx 1/3 of total pensions. I will happily put it into equities at what I judge to be the right time, but for now it would be nice to get some return as cash, but there clearly is not a good option.

kidmugsy

ffacoffipawb wrote: »

The first three are probably easy, what would you suggest for Gold? The "PHGP" ETF?

I don't know enough to distinguish one ETC from another. There are (or used to be) ETCs that held their gold in Switzerland and in Singapore.

The counsel of perfection might be to hold a SIPP with a specialist provider that allows holdings of bullion. (Jim, lad!)

Thrugelmir

Have you looked for short dated gilt funds? As a temporary home for your cash.

RD42

Thrugelmir wrote: »

Have you looked for short dated gilt funds? As a temporary home for your cash.

That's the type of thing I am looking for I guess, pretty secure but with a non negative return. I will investigate and post back here if I find anything that looks decent.