Stocks and Shares ISA

Chaosx

I'm looking at using a stocks and shares ISA as my pension so I have the option of withdrawing the money early for use as a deposit on a house/flat. It's a bit of a minefield - where should I be looking for the best deals?

dunstonh

See ISA vs pension thread in pension section (sticky at the top of the board). There are pros and cons.

HL is the best ISA provider for DIY investors if you intend to use unit trusts/oeics/sicavs. If you intend to use shares or investment trusts or other direct investments then it will vary.

Debt_Free_Chick

Why not put some into an ISA for your house deposit and some into a pension for your pension?

Chaosx

Debt_Free_Chick wrote: »

Why not put some into an ISA for your house deposit and some into a pension for your pension?

Because I can't afford both really. Wanted to use the ISA/property as part of the pension. Struggling to find the best place to put my money though.

nickj_2

if you need the money over the next couple of years then i owuld have thought a cash isa would have been a better bet , if you invest now you could end up having less than what you put in due to the downturn in global stocks - if you don't need it for a few years the market may have picked up a bit -

Chaosx

nickj wrote: »

if you need the money over the next couple of years then i owuld have thought a cash isa would have been a better bet , if you invest now you could end up having less than what you put in due to the downturn in global stocks - if you don't need it for a few years the market may have picked up a bit -

Well I already have a cash ISA so can't put any more in that which is why the stocks and shares option is better.

dunstonh

if you invest now you could end up having less than what you put in due to the downturn in global stocks - if you don't need it for a few years the market may have picked up a bit -

Of course, that assumes you use the stockmarkets for 100% of the investing. You dont have to invest in the stockmarket if you dont want to.

Debt_Free_Chick

Chaosx wrote: »

Because I can't afford both really. Wanted to use the ISA/property as part of the pension.

Assuming you need a property to live in when you retire, how will your property provide you with a pension?

Chaosx

Debt_Free_Chick wrote: »

Assuming you need a property to live in when you retire, how will your property provide you with a pension?

Well looking long term - I hoped to buy a place with some of the ISA, then do the normal thing of kids etc. Then when I retire I would get somewhere smaller and have some cash.

jem16

Chaosx wrote: »

Well looking long term - I hoped to buy a place with some of the ISA, then do the normal thing of kids etc. Then when I retire I would get somewhere smaller and have some cash.

A lot of people plan to downsize once the family has flown the nest and then they suddenly realise that they don't want to move away from friends that they have made or still want to have some spare rooms for the grandchildren.

cheerfulcat

Quite right, jem. Once you've spent 20 years or so in the one place, it can be very difficult to move.

Chaosx,

I'm looking at using a stocks and shares ISA as my pension so I have the option of withdrawing the money early for use as a deposit on a house/flat. It's a bit of a minefield - where should I be looking for the best deals?

I would suggest that you separate your housing requirements from your retirement savings. If you really can only afford one or the other, you'll need to decide what your priority is. It's also worth looking at your expenditure - is there anything which you could do without/buy more cheaply? If so, you may find that you can increase your savings. Have a look at the Old Style board.

Another option is to increase your income - plenty of ideas here.