advice on regular payments into a SIPP please

MallyGirl

sadexpunk said:

isn't there a box on the form to say transfer in cash? I can't remember as I did mine years ago

i cant see the form now.  im looking in my account for any progress on my transfer request but all i can see is my SIPP thats worth £0.  the only record of my transfer request that i can see is just in my messages.  maybe im missing something obvious?

it looks like i need to tell II to change from an 'in-specie' transfer to a cash transfer, but dont know how.  should i just do it by sending them a secure message?

thanks

Yes - secure message is the way. You may get sent new forms to fill as a result 

DRS1

Just a thought, you said you have Scottish Mortgage in your six holdings.  That is an investment trust and not a fund (ie not an OEIC).  So you might just want to check if there are fees for selling that one.

sadexpunk

Yes - secure message is the way. You may get sent new forms to fill as a result 

well not having much joy with II.  theyre taking their time to reply to each message, and just had another one through along the same lines as their previous message.  "this fund cant be transferred over, what do you want to do etc...."
at least this one IS actually in my portfolio....

ive just asked them whether they actually read my messages, as the last one i sent asked them to do a cash transfer, not in specie..  

its dragging on a bit :-/ 

sadexpunk

well..... looks like im finally fully transferred over to II.  now have 130k in a SIPP waiting to be invested.

i assume that money just sits there and wont accrue any interest until its invested because well, its not invested so i need to get a wiggle on and invest.  is it now just as simple as instructing II to invest in a plan such as any of @MallyGirl's suggestions maybe ("vanguard life strategy/HSBC global/blackrock are commonly mentioned") or of course something different.  i realise i cant get recommendations, its just the method im after.  "II, please chuck it all in lifestrategy80" or something like that.....

and future investing....... ive probably got around £10,000 to also put in.  so just bank transfer into that SIPP and ask them to invest that in the same?

and my intended £100 p/m say..... set up a DD into SIPP and instruct them to invest immediately in the same plan?  or wait until theres a larger sum and invest just the once per year say?  much difference in fees?

thank you

MallyGirl

there are no fees for regular investing so no need to wait.
When you set up a regular investment in ii it is tied to a DD so you do it all at the same time. You just say the amount and how to invest and it takes the money via DD automatically.

Do you have sufficient earnings to support paying that £10k in. If so then you can use a debit card to deposit the money or there is some new instant bank payment functionality (never tried this).

sadexpunk

Do you have sufficient earnings to support paying that £10k in. If so then you can use a debit card to deposit the money or there is some new instant bank payment functionality (never tried this).

this isnt money from my wages, its some of the money i made from matched betting over the last 2 years.  ive quit now so wanted to use some on our family, and then put this 10k into my pension.
if thats of no relevance, then i earn just short of 50k gross, paying into my work pension via the usual deduction from pay.  does that all sound ok?  i could just pay it into II by debit card?

thanks

MallyGirl

I mention it as you cannot contribute more gross (your contribution plus tax relief) to pensions in a year than your gross salary.As long as you aren't making massive contributions to your workplace pension then that plus the new regular £100/month (plus £25 tax relief) plus the £10k plus £2.5k tax relief shouldn't exceed £50k so you will be fine.

You just can't be on £20k a year and contribute £40k into a pension (from savings, winnings, wherever).

sadexpunk

understood, thank you :-)

LHW99

i assume that money just sits there and wont accrue any interest until its invested because well, its not invested so i need to get a wiggle on and invest.

II does pay interest on cash. https://www.ii.co.uk/investing-with-ii/cash-interest-rates

bjorn_toby_wilde

I can’t remember whether this is mentioned earlier in the thread, but for many funds there are two versions: A or Acc (accumulation) and I or Inc (income).

Acc funds take the income and reinvest it in the fund for you. Inc funds pay it to you as cash. You’ll need the Acc version if you’re building your pension.

The name of the fund will tell you which it is, for example - HSBC FTSE All-World Index C Acc

Take care when searching as there are many funds with quite similar names.

Just thought I’d mention this as it can easily catch you out. I can’t help you with the mechanics of buying the funds on ii but most of the apps and websites are pretty user friendly.