What do people think of Interactive Investor (ii) platform

MK62

https://forums.moneysavingexpert.com/discussion/comment/82087464#Comment_82087464

You could do it that way, but on II, it would require a monthly application for the drawdown and an UFPLS application every 4 months.

The simplest way to do it, on II, is to crystallise £5100…….taking 25% tax free (£1275) and then the remaining £3825 as a monthly drawdown (from crystallised funds) of £318.75, which after BR tax would mean £255 arriving in your bank each month. Total arriving in your bank over the year = £1275+(£255*12)=£4335. This would require a single application at the start.

Then, each subsequent year, if desired, you simply change the monthly drawdown amount (eg by inflation) with a couple of clicks on the website……and then make one application to crystallise a further amount, but this time only taking the TFLS with the remaining 75% being added to your crystallised portion of your SIPP to fund the monthly drawdowns - your drawdown plan is already set up and running.

Shimrod

https://forums.moneysavingexpert.com/discussion/comment/82087464#Comment_82087464

Use flexi access drawndown, take one tax free payment at the start of the year and have regular monthly payments into your account over the course of the year. Repeat at the start of the following year.

If you need an ad-hoc additional amount of money, you still have the option of doing UFPLS during the course of the year.

I don't think I've seen you mention why you wanted separate quarterly draw downs rather than just a higer monthly payment. If it is about keeping money invested as long as possible, you only need to have the cash at the point the payment is due to be made by ii. I mentioned at the start of the thread we do this with my wife's pension - there's enough cash for payments until November, so sometime in October we'll just sell enough to see her through until next April. With one free trading credit a month this won't cost anything.

You could do monthly UFPLS (we did for the first 5 months as she started drawing part way through a year), but it's a hassle completing the form each time.

LHW99

£5780 pa? - £4335 in bank and £1445 TFLS

What you propose is only impracticable if you don't want to do the paperwork.

TheComputerGuru

I am simply looking for the most tax efficient and (my) time efficient way to achieve the desired amount in my bank per year.

Leaving the uncrystalied funds in the SIPP (hopefully) increasing in value each year.

TheComputerGuru

I now have two of my three "old" pensionsions transferred to an ii SIPP, the third one is in flight.
I am leaving my current work pension "in stu" until I retire, then I will transfer that to ii.

I have read the ii pathways document at ii-accounts/sipp/investment-pathways, but I am still a little confused as to when / how I set this up.

I am not planning to take any thing from my SIPP until April 2027, and then it will be relatively small amounts each year. Therefore I have plenty of time to get this sorted out.

What I have done so far is to split the cash amount in my SIPP pot into half and invested in "Vanguard LifeStrategy 100% Equity A Acc" and "Vanguard Target Retirement 2040 Acc" shares.

Looking at the long term charts for both of the above seems to show good growth over three years.

1. Have I done the right thing moving the cash in my SIPP into two of the funds that form part of the ii pathways?
2. What funds have people been investing in?

I am NOT seeiking financial advice.

LHW99

You are not forced to use the "pathways". All (most?) DIY platforms offer these, for people who don't know what they want.

If you are happy doing your own thing, there is no need to change just because you plan to access your pot. My and OH's SIPPs are with II. One has been accessed, but otherwise there have been no major changes for 5-10 years. You just have to make sure there is cash in the account before you want to withdraw.

After all, you will (hopefully) not be taking all the money out in one year, rather spread it out over 20+

Linton

https://forums.moneysavingexpert.com/discussion/comment/82087464#Comment_82087464

Simply withdraw a lump sum from the pension once a year. If you want to hold it separately from your current account you could put it in an instant access interest account and pay yourself monthly.

TheComputerGuru

https://forums.moneysavingexpert.com/discussion/comment/82132276#Comment_82132276

"You just have to make sure there is cash in the account before you want to withdraw."

This one sentence is (I think) the key takeaway here.

Many thanks.

poseidon1

In my case I have a number of income generating investments ( bonds, investment trusts, Oeics) which produce cash on a monthly/quarterly / biannual basis in my ii Sipp.

Although I am still not yet in drawdown and am currently reinvesting the income, the plan is to eventually take my income/ UFPLSs from this 'natural yield' thereby avoiding investment disposals until i wish to do so purely on investment grounds, rather than income need.

Just another way of approaching the Sipp drawdown process.

fineclaret

I was somewhat dismayed to find that ii require full rBCE history every time I make a new withdrawal of tax free cash. This is somewhat burdensome, as each new withdrawal adds a line that must be re-entered every time subsequently, even though they processed the transaction. They did say the latter is a nice-to-have for withdrawals made through them rather than a strict requirement, but I still find it weird they can't just keep (and display to me) a running LSA total based on info already provided.