Lifetime ISAs guide

snowqueen555

I'm in the process of moving from HL to skipton, 1% is better than 0%

Alexland

0% is pretty low - is the account in cash or just a disappointing investment performance? Our HL LISAs for age 60 are up around £1.5k each which could have been better if we had taken more risk but am reasonably happy with.

Alistair31

Alex, I vaguely remember you said your LISA was invested in VLS but then you were considering switching to ETF to reduce fees, did you ever make the switch ?

Curious what ETF you chose, or were thinking about.

Hope you don’t mind my asking.

Alexland

Alistair31 wrote: »

Alex, I vaguely remember you said your LISA was invested in VLS but then you were considering switching to ETF to reduce fees, did you ever make the switch ?

Curious what ETF you chose, or were thinking about.

Our £16.5k LISAs are currently invested in the HL discounted Blackrock Consensus 100 fund with an OCF of 0.11% and I was considering switching to an accumulation World ETF such as Blackrock SWDA at 0.20% or Lyxor LCWL at 0.12% in order to cap the HL fees at £45. We already hold SWDA in our larger Fidelity SIPPs to cap their platform fees at £45.

So for our LISAs I guess LCWL would make the most sense (for the lower OCF and to avoid having too much with Blackrock) but it's newer so smaller and less liquid than SWDA with a greater initial bid ask spread. In addition, unlike SWDA, it's not available as an HL regular investment option for the lower trade fees. LCWL isn't even available to buy on Fidelity if we arranged it the other way around although I could ask them to add it and see what they say.

I didn't consider the HSBC and Vanguard ETFs for long as we already have investments in their funds via my other SIPP and our ISAs and their ETFs tend to be distributing incurring further trade costs to reinvent.

In the end I decided that it was all marginal at the current LISA valuations and to see if the LCWL liquidity improves over time. I will probably make the switchover after receiving the LISA bonus next tax year. In the meantime HL can make a bit more profit out of us.

Alex

KittyMoma

There weren't many LISA options when it first came out and I know very little about investing so I chose Nutmeg.
The past three years, I put in the maximum allowance of £4k each year so now it stands at £15k (including government bonus and not including gains).
Now I'm having second thoughts. I plan to contribute £4k each year for the next 10 years which is when I can no longer contribute.
Would it be better/possible to transfer to a different provider or should I leave the Nutmeg one as it is and open a new LISA with a different provider from next FY?

jonon

Hi, few quick questions. I have a stocks lisa and i’m under 39 years old.

After you are 39 years old, can you still open accounts with new stocks lisa providers?

Can you still open and move your lisa between providers after you are 50 and older?

VintageLady

Hi there. Real sorry if this has been asked before but my husband and I have a LISA each. Turns out our deposit is now less than what we cumulatively have in our Lisa's. Once we pay our deposit we will want to access that money. I'm aware that we will have to pay the 25% but what about the government bonus? Will they try to claw that back at all? Thanks

Zorillo

The 25% they will take includes all of the bonus on that part of the money, they take 25% of the total amount withdrawn.

Couldn't you just pay a bigger deposit?

playz28

Moneybox have launched a cash lifetime isa partnering with OakNorth bank. The account has a market leading interest rate of 1.4% AER.

moneyboxapp.com/introducing-our-cash-lifetime-isa

Alexland

KittyMoma wrote: »

The past three years, I put in the maximum allowance of £4k each year so now it stands at £15k (including government bonus and not including gains).
Now I'm having second thoughts. I plan to contribute £4k each year for the next 10 years which is when I can no longer contribute.
Would it be better/possible to transfer to a different provider or should I leave the Nutmeg one as it is and open a new LISA with a different provider from next FY?

Sorry for the delay replying. So it sounds like you have made gains on the LISA above the £15k of contributions and government bonuses? If so is there any particular reason you want to change providers? We moved our LISAs from Nutmeg to HL (when HL were still accepting LISA transfers) for more choice and eventually lower capped platform fees once the accounts were big enough. AJ Bell YouInvest is also a good platform who have capped fees on exchange traded assets and accept LISA transfers. I don't see the point of having multiple LISA accounts as the value is relatively small and there can be economies of scale from capped fees.

Alex