Vanguard SIPP - Now open!!!

ratechaser

Albermarle said:

If you are adding new money (which you can do by debit card) it takes one business day  for it to clear/  settle before you can spend it on investments. 

With my SIPP, if you add new money by debit card , it is immediately available for investment.

Yes, talking about new new money. Further to my earlier posting, and having now done the sums, it looks like Mrs RCs taxable income comes out at about 125k for the year, so intending to open a Vanguard SIPP and stick 20k into it...

(sadly her salary sacrifice scheme doesn't allow lump sump additions, as that would have been even better)

bowlhead99

Albermarle said:

If you are adding new money (which you can do by debit card) it takes one business day  for it to clear/  settle before you can spend it on investments. 

With my SIPP, if you add new money by debit card , it is immediately available for investment.

Same with mine (which is not with Vanguard) but the Vanguardinvestor FAQ says 'You can add up to £100,000 using a debit card – but you'll need to wait 1 business day for the money to clear before you can invest it'. In practice, the time taken might typically be less. Either way, ratechaser is right to, "assume that if you just deposit new funds, it doesn't take weeks for them to show up?"

Mick70

hi, sorry I hadnt seen this thread before i posted mine,  if i make a debit card payment today will it clear for this years allowance would you know ?
also,  you get the option to select either of -
Target Retirement Fund   or   Select your own Funds ?   (we are pretty much novices)
The purpose if for my spouse pension, I already have about £60k savings set away for her and has a very old scot widows £12k pension but we have been unable to contact scot widows to resume payments into that .  I wanted to pay in lum sum £5k today if could and then start £500pm from next month to get in 6k pa .
She hopes to retire in 7 years (age 60 then) so ideally i want 50k built up in this sipp , to add to the savings etc to try get a pot of 150k 
When I selected target retirement fund it automatically says it assumes you retire at 2030 though , but she wants retire age 60 at 2027 ?  should that be a concern, or not ?

thanks help,
mick

Dazed_and_C0nfused

Are you sure she is eligible to "pay in lump sum £5k".

From memory haven't you previously said her profit (pensionable income) was only £5k?

Mick70

Dazed_and_C0nfused said:

Are you sure she is eligible to "pay in lump sum £5k".

From memory haven't you previously said her profit (pensionable income) was only £5k?

2018/19 profit was only 5k yes  ,  and i think you said i cant pay in allowances relating to the two prior years to that ? even if the IFA had said i could ?

Mick70

any advice on the other points i raised also ?   im online halfway through application

Dazed_and_C0nfused

Dazed_and_C0nfused said:

Are you sure she is eligible to "pay in lump sum £5k".

From memory haven't you previously said her profit (pensionable income) was only £5k?

2018/19 profit was only 5k yes  ,  and i think you said i cant pay in allowances relating to the two prior years to that ? even if the IFA had said i could ?

Has she made £6,250 profit in the 2019:20 tax year?

If not how is she paying £5k?

Mick70

so does the amount she (I) pay in before 6th april 2020 relate to profit made for 2019/20 ?
sorry, i thought it related to profit made in 2018/19  as normally she wouldnt do her books/tax returns until june

Dazed_and_C0nfused

Mick70 said:

so does the amount she (I) pay in before 6th april 2020 relate to profit made for 2019/20 ?
sorry, i thought it related to profit made in 2018/19  as normally she wouldnt do her books/tax returns until june

Her taxable profit in 2018:19 is irrelevant.

If she pays in £5,000 then that is £6,250 with the basic rate tax relief.  Surely she has some idea of her profit?

Mick70

Dazed_and_C0nfused said:

Mick70 said:

so does the amount she (I) pay in before 6th april 2020 relate to profit made for 2019/20 ?
sorry, i thought it related to profit made in 2018/19  as normally she wouldnt do her books/tax returns until june

Her taxable profit in 2018:19 is irrelevant.

If she pays in £5,000 then that is £6,250 with the basic rate tax relief.  Surely she has some idea of her profit?

she has rough idea and is sitting going through books now , normally her books would not be fully completed until May or even June