Vanguard Selling/investing time

VXman

I have a drawdown pension with Vanguard and a life strategy 20. I also have a work pension as my main income.

I  want to withdraw some of the drawdown each  financial year but just enough stay under the 40% bracket. 

I decided to withdraw £30K this week. When done I intend buying some more Life strategy 20 where it will stay until needed probably later this year. 

What's annoying is that it could take 6 days to access the cash from the drawdown pension and then I guess it will take a few days to buy the VLS 20. Meanwhile any potential rises in the market are lost. (Already lost a potential £170 from the pension) 

Am I missing something - is this there a better way to move money from a drawdown pension account to another investment account in Vanguard or is this just one of those things?

dunstonh

If you are in VLS20 then does it matter if you spend a few days in cash?
Indeed, someone as defensive as that would be expected to hold some in cash to water down the gilt/bond allocation.

Normally people that defensive are more concerned above losses than gains.

VXman

dunstonh said:

If you are in VLS20 then does it matter if you spend a few days in cash?
Indeed, someone as defensive as that would be expected to hold some in cash to water down the gilt/bond allocation.

Normally people that defensive are more concerned above losses than gains.

That wasn't the point really. i can afford to lose money - it's no big deal. I have plenty on savings in cash anyway. It just strikes me a a long process to cash in and buy again. Just wondered if there was a quicker way. Even though I am reasonably well of and can cope with much bigger losses than this is likely to occur I still find any loss of capital annoying!

jimjames

Can you explain what you're trying to achieve? If you're buying the same fund, couldn't you just leave it in the Vanguard SIPP?

Albermarle

I decided to withdraw £30K this week. When done I intend buying some more Life strategy 20 where it will stay until needed probably later this year.

Why not just leave it in the pension until you actually need it ?

VXman

jimjames said:

Can you explain what you're trying to achieve? If you're buying the same fund, couldn't you just leave it in the Vanguard SIPP?

Because If we leave it in the pension until after April it becomes a new tax year, then if we take anymore out next year that will be subject to 40% tax. Trying to minimise tax.

VXman

Albermarle said:

I decided to withdraw £30K this week. When done I intend buying some more Life strategy 20 where it will stay until needed probably later this year.

Why not just leave it in the pension until you actually need it ?

We will need it this year. By taking some now and some post April we will minimise tax. If we take it all in May we will pay 40% tax on it.

VXman

8 days now and still not recieved the cash. According to documents it's been sold. Pay slip/Tax info also issued but it is sitting in my account at the pre tax amount and not accessible. Tried to contact Vanguard yesterday but didn't have time to stay on the phone for that long!

VXman

jimjames said:

Can you explain what you're trying to achieve? If you're buying the same fund, couldn't you just leave it in the Vanguard SIPP?

Will need the cash later this year. Spreading withdrawals over 2 financial years (pre and post April 2024) so I don't go into 40% tax bracket.