Vanguard Funds' withdrawal allocation.

threlkeld53

I have an UNcrystallised SIPP with Vanguard, worth £90k. It comprises £64k in FTSE Dev World ex UK & £26k in VLS60.

For the first time, I have requested to crystallise £20k of VLS60 in order to take £5k as a TFLS. This would leave VLS60 with £6k uncrystallised & £15k in drawdown, or so I was led to believe.

Vanguard sent me an illustration pack showing that part of both funds will be crystallised proportionately, meaning the Index fund would be a much larger part going into drawdown than VLS60, which is not what I wanted.

Quick online scroll suggests I can request which funds to crystallise & take tax free from, but I then spoke to Vanguard who informed me not so and that they automatically use a percentage ratio method. Just have a feeling that is not the case.

Anybody with similar experiences? Maybe it's just a Vanguard thing?

moedeeb

I am in drawdown with vanguard and you can choose the proportions of each investment fund to utilise when you make a withdrawal.
I don’t have any non crystallised funds but it is very easy to do the withdrawal and there are a couple of “ are you sure “ alerts before you commit Why not just try the crystallisation process and check out what choices you have. Nothing will happen until you actually commit. I can’t recall the exact process on initial crystallisation process, and it may have changed but I definitely withdrew from my money purchase fund held specifically for this purpose.

It is worth noting that vanguard are very efficient once an initial withdrawal is made.

ian16527

https://forums.moneysavingexpert.com/discussion/comment/82006156#Comment_82006156

https://forums.moneysavingexpert.com/discussion/6669190/vanguard-funds-withdrawal-allocation

No you cannot choose the funds to move to your drawdown account. They will move them pro rata.

You can choose what investments you want to have the crystallised funds in to when transferred over.

I have had several discussions with Vanguard about this and initially they said you could pick the funds, but now you cannot.

I keep 2 years drawdown funds in a STMMF and want to use this to move across so I dont have to disinvest my investment funds but they wont let you.

Last year they made a mistake, buying and selling funds in my drawdown account which cost me over £200.

So this year I rebought funds in my investment funds using the cash fund to re balance. It is a pain in the bum to do it but there's no other way

ian16527

Have a look at the previous threads

You also have to move some funds to cash for the TFLS, or they will divest pro rata for this as well

Vanguard - Moving funds to drawdown and change to II — MoneySavingExpert Forum

Vanguard SIPP - be careful when you move assets to drawdown — MoneySavingExpert Forum