Funds for a short term sipp

stulaunch

Going to open a sipp for o/h.

Hoping to get around £30k invested over next 3 years & then draw down probably around 7k a year for 4 yrs, until state pension arrives.

I know options for investment over this short of term are limited. But does anyone has any thoughts on what to do?

I use Hsbc GS balanced in mine, which has pretty good for me. but would 1 of the GS less risky funds be better & safer over such a short period?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6673407/funds-for-a-short-term-sipp

Does she have sufficient earnings to be able to contribute that much year (from a contribution limit, not cashflow perspective)

Marcon

Depends entirely on your/her attitude to risk - but you make no mention of her workplace pension. Does she have sufficient earned income to contribute £10k a year?

stulaunch

Thank you.

Yes around 10k would be maximum she could put in.

Probably wouldn't go too risky because of the short time.

She's in a lgps at work, but because she doesn't oay income tax, we thought sipp instead of salary sacrifice would give us more flexibility

stulaunch

Should say, we've looked at what she's likely to get if she retired in 3 yrs & the drawdown would be used to take her upto her tax threshold

SVaz

3 years is too short for money that will be used. Better to use short term money market funds like Fidelity cash or Royal London.
Treat it as the short term savings account that it is.

Bostonerimus1

for such a short term I’d stick with money market funds and ultra short term bond funds.

QrizB

Hoping to get around £30k invested over next 3 years & then draw down probably around 7k a year for 4 yrs

You could even put £2500 a year into each of four gilts, maturing in the years you plan to make the withdrawals.

SVaz

gilt rates are garbage before 2034

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82042869#Comment_82042869

That's definitely a take. Not one I'd necessarily agree with, but each to their own.

stulaunch

Thank you for the comments. I see that a MMF would be good, which has me thinking about my sipp. I have been investing in the Global Strategy balanced for around 10yrs now, which I keep buying.

As I'm probably a couple of years before I retire, should I be moving away from that & putting some into a MMF? I will be in no rush to drawdown so aggresively in my sipp