Taking UFPLS from which fund?

Linton

https://forums.moneysavingexpert.com/discussion/comment/82153333#Comment_82153333

A bucket is just a logical division of assets into subsets with different objectives and hence different asset allocations and management strategies. A bucket approach is highly beneficial when one has multiple objectives. But if, for example, you are employed and solely aiming to achieve a particular size of pot at retirement I see no point in bucketing.

For example I am retired needing both ongoing income and long term security. So I have a long term growth bucket and an income generation bucket. All investments are physically spread across his and hers SIPPS and his and hers S&S ISAs as is convenient. There is no attempt to manage each account separately and no distinguishing between what is hers and what is mine..

The income bucket is sized to generate the amount of income we require and is composed of high income generating equity and fixed interest funds chosen to obtain high yields with high diversification. The funds are only held in the ISAs to avoid higher rate tax and for dividends to be paid direct into current accounts automatically..

The growth bucket is 100% equity spread across all acounts and holds all investment money not required for income. The management strategy is simply to maximise diversification and generally leave the portfolio alone to do its job of very occasionally increasing the size of the income bucket for inflation.

Working in this way is a lot easier than just holding a long list of funds which are managed as a single portfolio. You know instantly the purpose of each fund and can avoid complications such as where a fund has two distict jobs such as both income and growth. Funds can be replaced simply by consideration of the relevent bucket without worrying about the effect on all investments.

Qyburn

Should I take the withdrawal:

By selling units from MMF, then sell units of the multi asset fund to top up the MMF for future withdrawals as market is higher than last year
Sell from multi asset fund while market is higher than last year, and retain the existing MMF allocation for future withdrawals

Those have the exact same result, except that the first might incur two dealing fees.

SVaz

I’ve found buckets the best strategy for my own needs.

Main SIPP : 4 years in STMM funds ready for taking £12k UFPLS from 2028 when I retire, up until SP kicks in, my military pension means I can’t taking any more without paying tax.

Income funds with Dividends of approx £2k going into a ‘balanced’ mixed asset fund.

Global index fund for long term, I’m planning to scrape off growth above 10% into the balanced fund.

SIPP 2 : enough in STMM to take TFLS next year - earmarked for a car when our current lease ends.

4-5 year Gilt Ladder starting in 2034, I’m adding to it while prices have tanked.

Global index fund.

I was concerned about having so much in STMM funds but with interest rates apparently set to rise again, it’s fine. It was “safe” down to 3%
I’m still trickling money into both but 90% of our combined contributions are going into my Wife’s pension because she can get her whole pension out tax free over the next 7 years.