Crystallised / Non Crystallised help

SVaz

If you have enough cash then you don’t need to sell any funds, they should automatically use cash in preference to anything else BUT - you will need enough cash for the Annuity AND for the other tax free lump sum you need to crystallise the required amount to make up the annuity.

Mr_Benn

Thats a great point SVaz.

I was tempted to just sell all my Funds, so I had a definitive cash pots lol.

But, the right way is to just sell some. So, when I sell some of my Funds, the money from the sale then goes into each pot based on the current percentages still (ie 54% uncrystallised and 46% crystallised).

I then work out how much I need to top up my crystallised cash pot by to get to my total of £65,000, To do this I work out how much of Tax Free cash to take, so that the remainder balance goes into my crystallised pot to make the £65,000

Simples ( I think ! )

NoMore

You need to forget about pots, that's just percentages of your overall portfolio. You just need to ensure you have enough cash in the Pension to cover the purchase of the annuity and the associated 25% cash.

Once bought, your percentage splits for uncrystallised/crystallised will be recalculated, but no specific funds or cash are assigned to these.

DRS1

Based on the figures calculated by @NoMore you need to sell £7866.67 of the funds/shares to give you enough cash to cover the TFLS (you already have enough cash for the annuity. You might want to sell a bit more in case there is commission to pay.

SVaz

Plus a bit of cash for the monthly fees, unless there are dividends that take care of that 😉