Gilt ladder implementation Query

incus432

https://forums.moneysavingexpert.com/discussion/comment/81856183#Comment_81856183

AJ Bell interest rate on cash in a SIPP in drawdown (you have taken your TFLS) -

new rates from 1/2/26 -

2.75% 0-100k

3.15% >100k

A MMF would give you more but you'd have dealing costs

WannabeEdouard

https://forums.moneysavingexpert.com/discussion/comment/81856257#Comment_81856257

Yes that's the site I have had a play with . I like the set and forget idea of a gilt ladder , May or may not get less in long run but it's the certainty I like. I will also have a bit invested also. Needing income from April the five year gilt ladder I built had one maturing in march and 90k sitting in sipp . I aim to withdraw 43k a year Just below higher income tax rate for Scotland.

incus432

Are you planning to leave the 90k in cash or invested? If in cash an extra 1% interest would be worth having

WannabeEdouard

https://forums.moneysavingexpert.com/discussion/comment/81856500#Comment_81856500

I was as not sure of the mechanics of taking monthly income from MMF or any other invested fund. I guess the platform do it . I need to do more research I guess.

incus432

You would have to sell some of your holding to cash befoire you wanted the income.

I don't get how a 5 yr gilt ladder had only one gilt and that much in cash. I must be misunderstanding something. Can you screenshot the ladder?

WannabeEdouard

https://forums.moneysavingexpert.com/discussion/comment/81856667#Comment_81856667

86k actually

WannabeEdouard

Actually changed it to monthly withdrawal and implementation differs a bit

DRS1

So 3 gilts TR26 T27 and T29. But really why buy TR26 which matures in March? You sit on some of the cash from that redemption for over a year. Might be better to just keep the cash as cash? I suppose that depends on the price of TR26.

WannabeEdouard

https://forums.moneysavingexpert.com/discussion/comment/81856711#Comment_81856711

That was the point of original post , Just wasn't sure if there was point in doing 5 year or 4 year ladder

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81856743#Comment_81856743

Ah yes.

But is it a choice of 5 or 4? TR26 is covering both 26 and 27 withdrawals. If you just use T27 and T29 then it is really a 3 year ladder When I bought some gilts in 2024 I thought of what I was setting up as more of a step ladder because I had one maturing in 25 and one in 26. It is tricky to find ones that have the right characteristics and mature at the right time. Now I have some maturing in 28 and 29. It is a mess as there is nothing in 27. But there you go.