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    • RD42
    • By RD42 6th Apr 18, 2:37 PM
    • 42Posts
    • 25Thanks
    HL SIPP - Fund for Cash
    • #1
    • 6th Apr 18, 2:37 PM
    HL SIPP - Fund for Cash 6th Apr 18 at 2:37 PM
    Hi All,

    I have a largish cash position in my HL SIPP (120K). I don't feel comfortable putting this into either the stock or bond market at the moment.

    It is getting a very low interest rate at the moment from HL. Are there any 100% safe options for a funds available in HL where I could put this cash to get some return? Even 0.5% would be worth having.

Page 2
    • ffacoffipawb
    • By ffacoffipawb 8th Apr 18, 6:07 PM
    • 2,582 Posts
    • 1,727 Thanks
    There is the Legal & General Cash Fund:,-prices--and--factsheets/search-results/l/legal-and-general-cash-class-i-accumulation
    Looks like the yield is 0.30% and charges are 0.15%, leaving a massive 0.15% !
    Originally posted by Morphoton
    ... or -0.30% after HL's 0.45% fund charges, i.e. negative.

    May as well stay in cash for 0.00%.
    • ffacoffipawb
    • By ffacoffipawb 8th Apr 18, 6:09 PM
    • 2,582 Posts
    • 1,727 Thanks
    You could always try a variant on Harry Browne's Permanent Portfolio. 25% cash, 25% (index-linked?) gilts, 25% the cheapest global equity tracker you can find, and 25% gold. Rebalance once per year and otherwise ignore.
    Originally posted by kidmugsy
    The first three are probably easy, what would you suggest for Gold? The "PHGP" ETF?
    • NorthernGeezer
    • By NorthernGeezer 8th Apr 18, 7:16 PM
    • 144 Posts
    • 20 Thanks
    Wonder what L&G charge to be in their cash fund?
    • gnash101
    • By gnash101 8th Apr 18, 7:17 PM
    • 23 Posts
    • 1 Thanks
    If intent on keeping that much cash in sipp I think the close brothers suggestion might be worth looking at.

    First glance if looking to drawdown say 15k per year

    As far as I can see the cost is 0.25% p.a. for sipp so 300 for 120k and a 50 drawdown setup.

    2k cash to cover fees for 5 years

    Year 1 15k fix term deposit @ 1.8% = 270 p.a.
    Year 2 15k @ 2.05%=307 p.a.
    Year 3 30k @ 2.2% = 660 p.a.
    Year 5 58k @ 2.6% = 1508 p.a.

    Total return over 10k for 5 years. Once year 5 matures recycle into other short term deposits until fund depleted.

    Anyone got cash only in close brothers sipp and do my assumptions add up. If so, and if wishing to stay in cash then surely a far better return than keeping cash with HL.
    • RD42
    • By RD42 9th Apr 18, 7:59 PM
    • 42 Posts
    • 25 Thanks
    Its my pension; I expect to start using it at around 60 (I am 43).

    Total pot is about 350K - Just over 100K currently in cash.
    • RD42
    • By RD42 9th Apr 18, 8:01 PM
    • 42 Posts
    • 25 Thanks
    They won't charge for holding it as cash, but they will not pay much interest. I was looking for a "Fund for cash" that would pay, for example 0.5%, but is it was pointed out this is not worth doing, since then I would incur a fund charge (0.45%) meaning an effective rate of 0.05% .
    • RD42
    • By RD42 9th Apr 18, 8:02 PM
    • 42 Posts
    • 25 Thanks
    Come the next stock market crash (or large dip) it will go in. Or if I don't have the patience for that then I will drip it in over 12 months.
    • RD42
    • By RD42 9th Apr 18, 8:07 PM
    • 42 Posts
    • 25 Thanks
    Thanks, this is just about my ash position, which is approx 1/3 of total pensions. I will happily put it into equities at what I judge to be the right time, but for now it would be nice to get some return as cash, but there clearly is not a good option.
    • kidmugsy
    • By kidmugsy 9th Apr 18, 10:06 PM
    • 12,400 Posts
    • 8,791 Thanks
    The first three are probably easy, what would you suggest for Gold? The "PHGP" ETF?
    Originally posted by ffacoffipawb
    I don't know enough to distinguish one ETC from another. There are (or used to be) ETCs that held their gold in Switzerland and in Singapore.

    The counsel of perfection might be to hold a SIPP with a specialist provider that allows holdings of bullion. (Jim, lad!)
    Free the dunston one next time too.
    • Thrugelmir
    • By Thrugelmir 9th Apr 18, 10:41 PM
    • 61,603 Posts
    • 54,834 Thanks
    Have you looked for short dated gilt funds? As a temporary home for your cash.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • RD42
    • By RD42 10th Apr 18, 3:44 PM
    • 42 Posts
    • 25 Thanks
    Have you looked for short dated gilt funds? As a temporary home for your cash.
    Originally posted by Thrugelmir
    That's the type of thing I am looking for I guess, pretty secure but with a non negative return. I will investigate and post back here if I find anything that looks decent.
    • nrsql
    • By nrsql 10th Apr 18, 6:11 PM
    • 1,834 Posts
    • 643 Thanks
    You are looking for small amounts of interest (0.5%) so why not dabble with a small amount.
    Maybe a few 5k tranches. (passive tracker, bonds, gilts funds)
    The possible downside wouldn't be much and you have a good chance of making your 0.5%
    • Bravepants
    • By Bravepants 10th Apr 18, 6:54 PM
    • 531 Posts
    • 642 Thanks
    I've just had an AVC pot transferred to a SIPP. My plan for this is to retire in 5 years, drawing down 15800 (current tax allowance plus 25% tax free component) for 5 years until I hit 60 and one of my FS pensions kick in, for about the same amount per annum.

    I have decided that I will keep 1 year's worth of drawdown as cash, so 15800 now and invest the rest in HSBC Global Strategy Balanced. Next year (on my brithday) I will sell another 15800 worth of investment and add it to my cash in the SIPP and so on each year for 4 years, until the last year before I reach 55, when it will all be cash.
    • mark9
    • By mark9 12th Jun 18, 9:51 PM
    • 3 Posts
    • 1 Thanks

    Like the simplicity of your approach, thanks for sharing. Would appreciate an insight into your strategy if there was to be a market crash/downturn? This a genuine question not a criticism.
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