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SIPP Flexi-Access Drawdown - Help

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CarlottaelliotCarlottaelliot Forumite
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Sorry for this naïve question. My husband passed away a few months ago and I inherited his Flexi-access drawdown SIPP. From next year I will need a monthly income and I  understand that in order to be able to draw out money I have to make sure that there are enough funds available in the SIPP cash account. Am I right in thinking that I have to sell regularly some of the investments in the SIPP to provide that? As I am new to this scheme I am not very confident in dealing so I wonder if my only option is to get a financial adviser to manage my portfolio. 

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  • uk03878uk03878 Forumite
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    Which provider is it? Some may sell funds for you 
  • dunstonhdunstonh Forumite
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     I  understand that in order to be able to draw out money I have to make sure that there are enough funds available in the SIPP cash account.

    Some providers will auto-sell assets to pay the withdrawal.

    Depending on what drawdown strategy you are running with the investments, you may want to hold around 18-24 months worth in cash.  

    Am I right in thinking that I have to sell regularly some of the investments in the SIPP to provide that?

    Up to you.   You can hold the 18-24 months worth and refloat it less frequently when markets are higher.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • squirrelpiesquirrelpie Forumite
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    It also depends on what type of investments you have, and on what reinvestment policy is in place for dividends. Some types of investment make regular cash payments (dividends and interest) and sometimes that cash is held within the SIPP. Other times it may be possible that the cash is automatically reinvested in new investments. If there is cash building up in the SIPP, then you will be able to withdraw this without selling any investments. If you need more income than has built up in cash, then yes you will need to sell some investments. It's probably best to do this occasionally at opportune times rather than on a regular schedule.
  • AlbermarleAlbermarle Forumite
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    As I am new to this scheme I am not very confident in dealing so I wonder if my only option is to get a financial adviser to manage my portfolio. 

    It is a question asked many times on this forum and lost of different views on the value of IFA advice . However a couple of pointers

    If you do go down this route , a local INDEPENDENT financial advisor is better than going to the bank or a large company.

    You can have a free get to know you chat first, so you can try out two or three and see how you get on. Typical charge is 0.5% to 1% pa for managing your SIPP. They may wish to move it from the current provider to one they use . Possibly a charge for this.

    Alternatively you can continue to DIY the management of the SIPP . There are plenty of resources on the internet ( like this forum ) where you can increase your knowledge if you want to. The SIPP provider will offer generalised guidance but not personal advice.

    It is a personal choice in the end. 

  • edited 3 July at 12:36PM
    CarlottaelliotCarlottaelliot Forumite
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    edited 3 July at 12:36PM
    Hi uk03878 - It is with  AJ Bell
  • edited 3 July at 1:10PM
    ffacoffipawbffacoffipawb Forumite
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    edited 3 July at 1:10PM
    Hi uk03878 - It is with  AJ Bell
    I think you may need to sell investments yourself in this case.


    Retired Cymro

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  • edited 3 July at 1:16PM
    CarlottaelliotCarlottaelliot Forumite
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    edited 3 July at 1:16PM
    Thank you Albermarle: Ideally I would just be very happy to have somebody sitting with me for a few hour to give me a "crash course". Would an IFA do that? Perhaps it would go against his interest. I have seen on the AJBell (my provider) that the procedure for dealing is not so difficult, but it need thinking. Also I wouldn't be happy for the IFA to change provider, as I feel like that I'm going against my husband planning. I know that it may sound silly but... 
  • AlbermarleAlbermarle Forumite
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    Thank you Albermarle: Ideally I would just be very happy to have somebody sitting with me for a few hour to give me a "crash course". Would an IFA do that? Perhaps it would go against his interest. I have seen on the AJBell (my provider) that the procedure for dealing is not so difficult, but it need thinking. Also I wouldn't be happy for the IFA to change provider, as I feel like that I'm going against my husband planning. I know that it may sound silly but... 
    An IFA is not a personal finance teacher but if you engaged them a good one will explain things as they go along . They will not change investments around without your OK as far as I understand. Regarding changing the provider , you would have to discuss that with them.
    This book is often recommended 
    https://www.amazon.co.uk/DIY-Pensions-Simple-Retirement-Planning-ebook/dp/B00B7QN8XM
    This website is a good resource.
    https://monevator.com/
    Also have a look at AJ Bells website for background info ( ignore some of the marketing blather ) 
  • edited 3 July at 1:45PM
    AlanP_2AlanP_2 Forumite
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    edited 3 July at 1:45PM
    I believe AJ Bell only offer a service to retail customers so an IFA wouldn not be able to manage this SIPP for you. They would need it transferred to a provider / platform that conducts business through IFAs.

    I appreciate your point about going against your husband's planing but don't let that lead you into decisions that adveresely impact you. Planning the future based on your requirements should be your focus.

    I know that if I were to pass away my wife would need to rethink and plan on what she needs for the fututure as opposed to our current "joint" plan which assumes things stay as they are.
  • CarlottaelliotCarlottaelliot Forumite
    9 posts
    First Post
    It also depends on what type of investments you have, and on what reinvestment policy is in place for dividends. Some types of investment make regular cash payments (dividends and interest) and sometimes that cash is held within the SIPP. Other times it may be possible that the cash is automatically reinvested in new investments. If there is cash building up in the SIPP, then you will be able to withdraw this without selling any investments. If you need more income than has built up in cash, then yes you will need to sell some investments. It's probably best to do this occasionally at opportune times rather than on a regular schedule.
    Hi Squirrelpie, I understand what you mean. I was hoping for the dividends, but in 6 months I received just over £100. That is another thing that I have to look into. It seems, from the portfolio, that the Dividend option is turned off. The description of some of the investment are also Acc (I believe these are reinvested)  and a couple are B Inc and Z Inc which I supposed it means Income??? 
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