Stock sell for monthly income

Bikerrick

Hi, I have been told by HL that I have to ho online and sell enough stock to cover my monthly drawdown amount. I thought I could just request a regular payment and they would just sell on my behalf. 

Storcko14

No - you need to have cash available.  Otherwise they'd be choosing what to sell and they're a platform not a discretionary fund manager.

af1963

They manage to choose somehow when they need to take fees though :-) 

I think from memory that in that case they say they'll sell part of your largest holding.

SVaz

It’s hardly a chore and it’s best to have a year or two in cash ( or a money market fund) any way.
Why would you risk having to sell during a big crash?
I’ve already got 3 years income in a money market fund ready to start drawing in 2027,  I would be truly stuffed if I waited 18 months and my funds suddenly dropped 30%.   

I’ve also switched my funds to income ones so the cash pot is being added to without having to sell to get the next lot of 3 years.  Hopefully I’ll only end up having to sell the final year’s worth and I’ll have my eye out looking for a good time to do so. 

SVaz

Another option is buying Treasury Gilts that mature yearly in a ladder,  so you always have a year’s income at hand.  It’s what I’d be doing if I needed a larger income after my first 6 years.

tacpot12

I invested my retirement portfolio in dividend-producing assets for exactly this reason. 

dunstonh

Bikerrick said:

Hi, I have been told by HL that I have to ho online and sell enough stock to cover my monthly drawdown amount. I thought I could just request a regular payment and they would just sell on my behalf. 

With some providers you can. With some you cannot.

Its not a big deal as most people running a SIPP will have the sense to have cash available.

tigerspill

SVaz said:

It’s hardly a chore and it’s best to have a year or two in cash ( or a money market fund) any way.
Why would you risk having to sell during a big crash?
I’ve already got 3 years income in a money market fund ready to start drawing in 2027,  I would be truly stuffed if I waited 18 months and my funds suddenly dropped 30%.   

I’ve also switched my funds to income ones so the cash pot is being added to without having to sell to get the next lot of 3 years.  Hopefully I’ll only end up having to sell the final year’s worth and I’ll have my eye out looking for a good time to do so. 

If you don't mind me asking, what money market account are you using?

SVaz

Royal london short term