[Nigel Roberts]

Hi Stephen,

I am continuing to build my HYP, topping it up each year to take account of my SIPP and ISA allowances and reinvesting accumulated dividends and will probably continue to do so for the next 10 or 20 years as I do not have need for the income from the portfolios at the moment – and so come April I will be adding to my selections / topping up where necessary… over the years I have become lazy and have relied on you letters to help me with my selections and so now I will need to start doing my own research (11 years not doing this has left me out of practice!) – in the good old days of TMF and my general stock picking and trading strategies I used to use REFS – can you let me know what database(s) you currently use to do your filtering / selections?

Please reply before this forum disappears for ever along with the DL!

Nigel

[Nigel Roberts]

I use AJ Bell Youinvest – very happy with them and I believe they are very competitive on pricing – https://www.youinvest.co.uk/ – I use them for SIPPS . ISA’s and general investments….

[Nigel Roberts]

Gareth,
The answer is that as soon as you start withdrawing funds you are taking money out and so you are in draw down – I believe that you are able to continue to contribute while in drawdown – but I am sure that this would be counterintuitive…. also I think once you withdraw funds the amount you can contribute drops dramatically – you need to take proper advice!
You also need to be careful about transferring company pensions into SIPPS and you most definitely need proper financial advice before doing that.
Nigel

[Nigel Roberts]

I think if this happens probably best if we all sell up and go and live somewhere hot…… and a long way away – Colombia is very nice and looking for foreign investment …..

[Nigel Roberts]

Hi Stephen – yes – I think from your perspective this makes sense, but investing is an individual pursuit and your readers also have to take responsibility for how they invest and also how they eventually use the money. We all have to make our own decisions! Keep up the good work!

[Nigel Roberts]

It is an interesting conundrum – and eternity HYP is forever isn’t it? Well yes, but much as we might hope unfortunately we don’t last forever so at some point it comes to a conclusion, natural or otherwise….

There is a lot to be said for leaving it all to your children or elsewhere, but that does not have to be the case and a careful and managed withdrawal of capital definitely could and would work for some people, my use of a 5% capital withdrawal was just plucking a figure from the air and I did qualify this by saying that you should do this only if you needed or wanted the money and it clearly has to be recognised as something that will increase the risk to future income by withdrawing too much and potentially leaving you in your old age in strained circumstances…. but of course this may be preferable to leaving yourself in strained circumstances when you are not quite so old when the money may be better used…..

Its all about situation and circumstance and everyone will be different!

[Nigel Roberts]

Just to add to what Stephen has said with my own interpretation of this….

It’s an eternity portfolio – yes, and when you die what remains in the SIPP can now be left to the beneficiaries of your estate (now that you don’t have to buy an annuity)…. but that does not mean that it has to be…. Personally I don’t think there is anything wrong with drawing down on the capital as well as taking the dividends once you have retired…. If you are 70 and think you have 20 years left to live why not draw down up to 5% of the value of the fund each year plus dividends? But only if you need / want to actually spend the money? This can be reassessed as you go so that you don’t risk putting yourself in a difficult position if you live beyond 90……

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