Crystallising a Specific Fund from Invest Engine

Stringybob3

My wife has approximately £70,000 in a SIPP with Invest Engine, comprising 40% money market funds and 60% global equity index funds. Can she crystallise the £28,000 money market portion, take £7,000 as tax-free cash and move the remaining £21,000 into flexi-access drawdown, leaving the £42,000 global equity holdings entirely uncrystallised?(I am aware that drawdown with Invest Engine is a bit of a faff with form filling etc.)

Linton

https://forums.moneysavingexpert.com/discussion/6690262/crystallising-a-specific-fund-from-invest-engine

In principle, crystallisation works in terms of values, not specific funds. To crystallise £28K simply convert £7K from any investment into cash and withdraw it as a tax free lump sum. That leaves the crystallised £21K invested however you wish.

Some platforms do have the crystallised money held as a separate sub-account, others (most?) simply record an overall figure as a %. In the first case you can always move funds between crystallised and non-crystallised by selling a fund and buying another within the crystallised sub account and reversing the transaction outside. In the % crystallised case the issue does not arise. Perhaps the platforms provide other mechanisms. I dont know how InvestEngine manages the situation.

SVaz

She just needs to sell £7000 of the MMF to cash, which will take care of the tax free cash aspect.

I imagine IE use notional split, like most firms. It’s a psychological thing to want to want a physical split but it doesn’t actually matter.

The important thing is to get the cash from the mmf ready so IE don’t sell a bit of everything to get that cash. It’s the part she CAN control.

leosayer

In general, I think most SIPP platforms don't automatically sell funds for drawdowns.

Here's an example of the email my wife gets from AJ Bell if there's insufficient cash for a forthcoming drawdown:

"I write in reference to the above SIPP and your regular income payments.

We would like to remind you that there is currently insufficient available cash balance in your AJ Bell SIPP to enable the regular income payment of £1047.50 to be paid.

In order for us to make your regular income payments, you must ensure that sufficient cleared funds are available in your SIPP cash account two working days before a payment is due. If funds are made available later than this then we cannot guarantee that the income will be paid via the regular income run.

Income payments are made via BACS on the 10th of each month, free of charge. When the 10th falls on a weekend or bank holiday, the income will be paid on the next available working day.

If trades are placed between now and the regular income run date, which will ensure sufficient cash is available for your income payment, your income payment will be processed. Please note, if your trades do not settle in time to ensure cleared funds are available in your SIPP cash account two working days before the payment is due, your regular income will still be processed however this will be delayed until all trades are settled and funds are sufficient.

Please note if trades aren’t placed until after the regular income run, we will not manually process the missed income however you can request this as a One-Off Income Payment.

If you wish for your one-off payment to be processed by BACS there is no additional charge however if you wish for the payment to be processed by CHAPS there is a fee of £25 + VAT. "