Trying to find a SIPP platform and fund that can be essentially hands off in retirement?

Linton

bjorn_toby_wilde said:

Linton said:

I do not think you can get a largely hands off drawdown process solely using a SIPP.

To minimise effort  and avoid money worries I suggest you do some or all of the following:

1) Cover basic essential expenditure by guaranteed income - annuity, SP or DB pension.
2) Only withdraw money from the SIPP once a year at most as part of rebalancing
3) Don’t use SIPP withdrawals to directly finance expenditure but rather to top up significant near to cash holdings or to build up an income generating ISA. Generally it seems that you can get an ISA to automatically pay out all generated income tax free into the linked cash account.

We are now in the position that none of our expenditure comes from SIPPs. The SIPPs have been largely drained and now just hold long term Wealth Preservation funds. Our 100% equity growth funds are also held in ISAs but are only rarely accessed, perhaps every 2-3 years, to rebalance the near to cash and income portfolios.

So would you hold dividend funds/shares in the ISA to generate the income? Where would those dividends go? Into a linked bank account?

Yes to both: dividend/interest funds in an ISA and automatic immediate payout into the linked bank account. The linked bank account is tregarded as part of the near cash buffer rather than purely as the means of paying short term bills. 

Working in this way is particularly beneficial if your income would otherwise be taxed at higher rate.

bjorn_toby_wilde

Linton said:

bjorn_toby_wilde said:

Linton said:

I do not think you can get a largely hands off drawdown process solely using a SIPP.

To minimise effort  and avoid money worries I suggest you do some or all of the following:

1) Cover basic essential expenditure by guaranteed income - annuity, SP or DB pension.
2) Only withdraw money from the SIPP once a year at most as part of rebalancing
3) Don’t use SIPP withdrawals to directly finance expenditure but rather to top up significant near to cash holdings or to build up an income generating ISA. Generally it seems that you can get an ISA to automatically pay out all generated income tax free into the linked cash account.

We are now in the position that none of our expenditure comes from SIPPs. The SIPPs have been largely drained and now just hold long term Wealth Preservation funds. Our 100% equity growth funds are also held in ISAs but are only rarely accessed, perhaps every 2-3 years, to rebalance the near to cash and income portfolios.

So would you hold dividend funds/shares in the ISA to generate the income? Where would those dividends go? Into a linked bank account?

Yes to both: dividend/interest funds in an ISA and automatic immediate payout into the linked bank account. The linked bank account is tregarded as part of the near cash buffer rather than purely as the means of paying short term bills. 

Working in this way is particularly beneficial if your income would otherwise be taxed at higher rate.

That fits very well with my plans. Excellent, thanks 

Exodi

I won't comment on the plan as other posters are discussing this brilliantly, however I just wanted to chime in on this bit:

RogerPensionGuy said:

 the platform would just sell units during markets highs

RogerPensionGuy said:

 and avoid selling units in any market dips.

It sounds like a simple enough request, but in reality it doesn't work.

Firstly there doesn't seem to be any instruction to buy units?

The market generally trends upwards, and as such generally spends a of time near or at ATH's. A 'rule' that stipulated that your portfolio is liquidated when the market is 'high' would probably see you sitting in cash pretty much permanently.

Then the second part doesn't make sense - as presumably the instruction would only sell when it needs to (e.g. you are running out of cash or SSTMMF units to sell). Do you mean it should buy units in a market dip? In any case this is still a problem because no-one really knows where the bottom of the dip was until we're out of it. This is better considered under the common phrase "Don't try to catch a falling knife".

If it was so easy to 'sell high and buy low' that you could automate it like this, everyone would be rich? In reality, very few people have had success timing the market like this.

In fact, why not have a go yourself: https://personalfinanceclub.com/time-the-market-game/

Time in the market > timing the market. Just stay invested and sell when you need to. You shouldn't be making decisions based off market trends or policy speculation, like you did with your LSA.

RogerPensionGuy

Pipthecat said:

RogerPensionGuy said:

no debts, house owned outright, plus an good DB pension. don't need any extra income to maintain my lifestyle. have a S&S and a cash ISA that will cater for any big spending 

What are you saving for?  You are in retirement, you seem to have more money than your needs and no one you need to leave it to.  I would be asking how much can you spend while you are your partner are in good health.  

I am just trying to achieve good simple housekeeping and tiny or little involvement in the process longterm. 

I want any value in SIPPs to be maximised, costs small as I can easily see myself choosing to pay for private medical treatments if required in the future, I have a few friends that have been using plenty of their own cash/savings for private medical as the NHS just takes too long.

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