Cash held in SIPP Portfolio

Aviator1194

Hi 
I am keeping around £50,000 as cash in my SIPP portfolio, as I will need this for income as drawdown over the next 3 years
Obviously didn't want to invest this in my other portfolio funds over such a short timeframe.

What concerns me though, is its £50,000 sat there doing nothing but devalue through inflation.

Does anyone have any advice for a fund which would be safe and at least payout something please?

Thanks

Reg_Smeeton

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Disregard this I’m wrong! https://www.vanguardinvestor.co.uk/need-help/answer/will-i-receive-interest-on-cash-held-in-my-personal-pension

Voyager2002

The stock answer to this issue is to hold Bonds. There is a risk that rising interest rates mean a fall in bond prices, so you might consider something like the Vanguard fund that holds ultra-short dated bonds.

Aviator1194

Voyager2002 said:

The stock answer to this issue is to hold Bonds. There is a risk that rising interest rates mean a fall in bond prices, so you might consider something like the Vanguard fund that holds ultra-short dated bonds.

Not to keen on bonds as I could still loose, I think.

masonic

If you are able to buy individual gilts maturing in 2023, 2024, etc and then hold them to maturity, then you'd get a known return. Not a very good one, but something. Cash at 0% would be the next best option. Even money market funds can lose money over the short term.

Aviator1194

masonic said:

If you are able to buy individual gilts maturing in 2023, 2024, etc and then hold them to maturity, then you'd get a known return. Not a very good one, but something. Cash at 0% would be the next best option. Even money market funds can lose money over the short term.

Thankyou for your suggestion  i will certainly look into that one

Albermarle

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.
Vanguard Asset Management | Personal Investing in the UK (vanguardinvestor.co.uk)

Aviator1194

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.

AJB pay zero, they do have a savings fund but not in the SIPP wrapper

Reg_Smeeton

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.
Vanguard Asset Management | Personal Investing in the UK (vanguardinvestor.co.uk)

I’m sure I saw it somewhere when I topped up my Vanguard SIPP the other day, I remember specifically seeing the bit about “we keep the first 0.2%”.... typically I can’t find it now.....

Albermarle

Aviator1194 said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.

AJB pay zero, they do have a savings fund but not in the SIPP wrapper

Fidelity also pay zero. I think HL pay some very small amount like 0.1 % .

redpete

The small amount I've got in a money market fund is showing some growth after at least a year of flat-lining, currently on approx. 0.8% annual growth.