Investment newbie

cynicaldoc

Worth a look at LISA. Stick £4k in before you're 40 and before end of this tax year and you get £1k.

Are you married? And is your other half <40 and without an ISA? Stick another £4k in one for them before they're 40 and you've turned an £8k saving into £10k by April.

Then even if you do do S&S and you lose a little in the short-term and have a £2k buffer.

And the likelihood is with sensible fund selection you are unlikely to be down after 20 years investment.

Worth a look.

inkypinky999

cynicaldoc wrote: »

Worth a look at LISA. Stick £4k in before you're 40 and before end of this tax year and you get £1k.

yes this options looks quite sensible, any recommendation of good/cheap S&S LISA provider ?

Are you married? And is your other half <40 and without an ISA? Stick another £4k in one for them before they're 40 and you've turned an £8k saving into £10k by April.

Then even if you do do S&S and you lose a little in the short-term and have a £2k buffer.

And the likelihood is with sensible fund selection you are unlikely to be down after 20 years investment.

Worth a look.

yes will get my wife to do that as well, she is <40

cynicaldoc

I've not looked in to in huge depth. I have a normal S&S ISA at present with HL. I believe I cannot transfer funds so I would have to sell everything to transfer in as cash in to a LISA.

I'm going to have a think for a few months and then decide before end of the tax year.

migger02

cynicaldoc wrote: »

If you don't need to access the funds until you're sixty, and you're currently less than forty, put £4k in a S&S LISA and the Govt will contribute £1k. You could then buy £5k worth of funds (including VG LS) and put the remaining £8k in a normal S&S ISA.

If your age and circumstances permit, there is a good LISA thread on this forum.

That sounds a good plan.

inkypinky999

i had a thought on locking 4K for next 20 yrs in S&S LISA. If I need some or part of it then I will incur a penalty. Will it be wise to have S&SI LISA for let's say 2K and rest in separate S&S ISA (HL ISA) ?

autonm

inkypinky999 wrote: »

i had a thought on locking 4K for next 20 yrs in S&S LISA. If I need some or part of it then I will incur a penalty. Will it be wise to have S&S LISA for let's say 2K and rest in separate S&S ISA (HL ISA) ?

Its a personal choice really. I am have max'd out the matched contribnutions that my company makes into my pension so I am using a LISA as an extension to my pension. When you withdraw on your pension you will pay tax - but withdrawing from the LISA when I am 60 will be tax free.

If your seeing your investment for until your < 60 then a regular S&S ISA is probably better allowing you early access - however you wont get the 25% government bonus.

inkypinky999

cynicaldoc wrote: »

If your age and circumstances permit, there is a good LISA thread on this forum.

i searched but couldn't find the specific thread, pls can you point me to that?

inkypinky999

hi, I have one more question, I am narrowing on HL S&S LISA, but reading their transfer charges it is £25 per holding, what does it mean £25 for each fund unit or £25 for each block of units of same fund or is it per fund assuming I only buy VG LS80 in batches.

bowlhead99

inkypinky999 wrote: »

i searched but couldn't find the specific thread, pls can you point me to that?

https://forums.moneysavingexpert.com/discussion/5431681

inkypinky999 wrote: »

hi, I have one more question, I am narrowing on HL S&S LISA, but reading their transfer charges it is £25 per holding, what does it mean £25 for each fund unit or £25 for each block of units of same fund or is it per fund assuming I only buy VG LS80 in batches.

.
If you have a bunch of units in one fund, whether bought in one lump or over lots of separate purchases, that is all one "holding".

Like, when you look at your online statement with HL it would say you hold some Vanguard Lifestrategy 80 Accumulation, you have total x,xxx.xxxx units with value of £yy,yyy.yy. That is one holding , just one line on the statement of what you hold, and if you want to transfer it to a different LISA manager it will cost £25 for them to process the transfer. If you held two different funds, that would be two transfer fees (unless you sold them and just transferred one lump of cash).

inkypinky999

bowlhead99 wrote: »

https://forums.moneysavingexpert.com/discussion/5431681

.
If you have a bunch of units in one fund, whether bought in one lump or over lots of separate purchases, that is all one "holding".

Like, when you look at your online statement with HL it would say you hold some Vanguard Lifestrategy 80 Accumulation, you have total x,xxx.xxxx units with value of £yy,yyy.yy. That is one holding , just one line on the statement of what you hold, and if you want to transfer it to a different LISA manager it will cost £25 for them to process the transfer. If you held two different funds, that would be two transfer fees (unless you sold them and just transferred one lump of cash).

thanks, am i correct that at the moment only 2 are offering S&S LISA, HL, nutmeg, so my options are fairly limited for the platform?