vanguard sipp - clueless advise please

xylophone

Contributing to the SIPP does have the tax relief advantage.
You are over 55 so will be able to access the SIPP before your LGPS NRA if you wish.

gele

Yes. I think the best option may be to pay in a monthly rather than a lump sum at this stage. When my regular savers mature in April I do not intend continuing with both of them so I will have £200pm available which I think I will pay into the SIPP instead. Thank you all.

Clive_Woody

gele said:

My other option with this 8k is to put it in a 90 day notice ISA where I would get 1.4%. This wouldn't build up my SIPP though and a my pension forecast through LGPS isn't great, I thought I needed to try to increase my pension pot more. I have made enough contributions to get full state pension according to govt website. 

Do you have an emergency cash reserve? If not then reconsider how much you might need and set that aside "just in case" before considering moving it all into a pension.

gele

I have brought this thread back to life as I have another question regarding the Vanguard Sipp. I have not added any additional funds since its inception, til today, when I have just added £3k [a matured regular saver.] I can see that in the holdings section it now states the initial pension transfer monies in the Lifestyle60 and the new monies, this £3k as 'cash'.
It gives me an option to invest. Am I correct in assuming if I click invest, the £3k goes into VLS60 along with the other monies. I apologise if this seems a silly question to the long time investors out there but I am a novice and still learning and don't want to do anything til I'm sure
Thanks for any help forthcoming.:)

ian16527

If it works in the same way as their ISA, then you can add either existing investments or new ones, then select the value for each investment

AlanP_2

As you are in the LGPS take a look at the AVC scheme that runs alongside it.

It allows you to contribute through payroll into a "SIPP equivalent" where you choose what it is invested in. The advantage over a standard SIPP is that you can take it tax free as your 25% lump sum when you start your LGPS pension. WIth your Vanguard SIPP you will be liable for tax on all withdrawals over and above the 25% Tax Free Lump Sum.

The disadvantage of the AVC is that you MUST take it at the same time as main LGPS pension to benefit from the tax free aspect.

[Deleted User]

If I was in your position, I would put everything I possibly can into VLS 60 and keep adding monthly. Your investment time horizon is longer than 10 years unless you are planning to die or withdraw everything in 10 years.

AlanP_2

Deleted_User said:

If I was in your position, I would put everything I possibly can into VLS 60 and keep adding monthly. Your investment time horizon is longer than 10 years unless you are planning to die or withdraw everything in 10 years.

Why do you discount the AVC option with the tax free benefit?

Twice2

ian16527 said:

If it works in the same way as their ISA, then you can add either existing investments or new ones, then select the value for each investment

Yes, the SIPP works exactly the same as the ISA. The cash sits in your SIPP account, you then click the button and select which fund you want and how much to invest.

macman

You select the fund or funds you want to invest in, give the percentage in each, and they then purchase accordingly. The blends are in 20% increments, so if, for example, you wanted a 50/50 equities to bonds blend, you just put half into 60/40 and half into 40/60.
The lump sum you can invest in any one tax year is limited by your taxable income and the amount already being contributed via your LGPS scheme.