Crystallising Next Summer, drawdown in another 2 years

ffacoffipawb

I have a £700k SIPP outwith my work scheme,

I intend to crystallise next year and am gradually moving £200k into cash to fund this. Half way there so far.

I am looking at what to do with the remaining £500k.

I currently hold a mish mash of 15 investment trusts but am wondering if 4 funds would do the job, at the cost of a higher platform charge with Youinvest.

Multi Asset
World Equity
Fixed Interest
Anything else

I have a DB of £15k approx kicking in from age 60 so am pretty close to LTA.

Does anyone have a simple portfolio for their SIPP that they could share for information.

Perhaps direct investment in a HYP would do for half the SIPP, I don't know.

I have 30 Investment Trusts in my ISA and am happy to keep those and maybe draw the tax free income at some point instead if building the ISA as wont be able to fund it much in retirement, except perhaps from some of the PCLS for a few years.

Triumph13

Two questions:

1. Why are you moving the TFLS portion of the SIPP to cash? Do you have something you are planning to spend it on?
2. Do you actually have an investment strategy? If so why do you need to change it just because you are moving funds between wrappers?

ffacoffipawb

Triumph13 wrote: »

Two questions:

1. Why are you moving the TFLS portion of the SIPP to cash? Do you have something you are planning to spend it on?
2. Do you actually have an investment strategy? If so why do you need to change it just because you are moving funds between wrappers?

(1) Bird in the hand. Also LTA problem will only get worse. Have plans for half the PCLS - new kitchen and car. And possibly teeth, don't ask!! Also next year's S&S ISA.

(2) Strategy is middle of the road I guess, happy to be 80% equity. Wish Vanguard would launch their overdue SIPP!!

EdSwippet

ffacoffipawb wrote: »

(2) Strategy is middle of the road I guess, happy to be 80% equity. Wish Vanguard would launch their overdue SIPP!!

Vanguard's platform only offers Vanguard OEICs and ETFs. If you're happy to stay inside that set of investments (and no reason not to be!), then you don't need to wait for Vanguard to launch a SIPP. You can already hold all of these cost-effectively enough on other platforms' SIPPs -- Interactive Investor, iWeb, and so on.

It remains to be seen what Vanguard will charge specifically for a SIPP. For now though, the current flat-fee platforms are often cheaper than Vanguard's own for both ISAs and unwrapped trading accounts, the controlling element being whether the balance is large enough that Vanguard's 0.15% exceeds the other platforms' flat fees.

ffacoffipawb

What I have at the moment are the following 15 ITs pretty much originally £37.5k in each one (currently £35k to £45k as some have performed better than others) plus £100k in cash ...

Aberdeen Asian Income Fund Ltd.
City of London Inv Trust
Dunedin Income Growth Inv Trust
F&C Capital & Income Inv Trust
Henderson Far East Income Ltd.
Invesco Income Growth Trust
JPM Global Mkts Emerging Income Trust
JPMorgan European Investment Trust
Merchants Trust
Murray Income Trust
Murray International Trust
Schroder Income Growth Fund
Standard Life Equity Income Trust
Temple Bar Inv Trust
Troy Income and Growth Trust

Dunedin and Invesco are the biggest dogs.

Not sure if keep it like this or consolidate a bit down to say 10 trusts or even just 5, not sure which ones to keep and which to bin.

I did hold SCAM but sold that for a 50% profit and Aberdeen Diversified Income and Growth, sold for a 15% loss, hence the £100k in cash so far.

I guess dunstonh would be horrified with this asset allocation!

AnotherJoe

A My experience and I think that of many others is that specific income trusts (trusts or other pooled investments) provide lower growth long term (including income) than non income because they are constrained as to what investments they hold by the natue of needing to pay income.
And a very high % of your investments are income.
I think the general consensus here is that a better option is to provide income by selling units. Non income trusts will accumulate any income they generate internally so it's not as if you are missing out.
So when you do rebalance, and I suggest a 100% potential replacement not being influenced by any of your existing investments, don't pick income investments unless it's a investment that has an acc and a inc option where there is no bias as to what they invest in..

Prism

ffacoffipawb wrote: »

IDoes anyone have a simple portfolio for their SIPP that they could share for information.
.

I don't have the same cash buffer that you do as I am not yet retired but my intention is to do something like this

30% cash/bond ladder/bond funds/p2p
40% global equities (2-3 funds)
20% smaller companies funds (either a global fund or several regional ones)
10% emerging markets(1 fund)