S&S ISA, S&S LISA and SIPP

TheShape

Looking for some ideas as to how to invest future subscriptions/deposits between a S&S ISA, S&S LISA and SIPP.

I currently have the investments below:

S&S ISA with Cavendish Online (subscribing £150 p/m split evenly between 3 funds):

Blackrock Consensus 100 £4800
HSBC Global Strategy Dynamic £4800
Vanguard Lifestrategy 100 £4800

Total £14400

Hargreaves Lansdown SIPP (subscribing £80 p/m gross - £100 p/m gross from November)

Vanguard Lifestrategy 100 £5300

I also have £25k in (high interest) p2p and approx £23k in current accounts and regular savers (this is almost entirely stoozed funds). I believe I have more than enough in p2p and intend to divert future saving for the foreseeable future into a S&S LISA.

I intend to make a £4000 lump-sum deposit into the LISA in Feb/March receiving the £1000 gov bonus in May? and intend to contribute the full £4000 in 18/19 whether by lump sum or in monthly instalments.

With possibly £25k invested by May increasing to £30k over the 18/19 tax year is there any point in investing in anything other than a global multi asset fund such as one of those I'm already invested in?

I'm already considering whether it would be preferable from a fees perspective to hold VLS 100 with Vanguard themselves in a S&S ISA.

Alexland

Assuming you are investing the LISA for the long term (rather than buying a house soon) my view is the optimal configuration for your preferred funds at this stage would be:

1 - an AJ Bell LISA invested in Blackrock or HSBC at 0.25% platform fee and £1.50 per trade (max 4 trades if you are doing 2 lump sums and 2 bonuses next calendar year possibly less trades if you hold in cash for a bit). Remember to keep enough cash to pay the platform fee until you can contribute again in the following tax year.

2 - Vanguard ISA with LifeStrategy (0.15% platform no trade cost)

3 - keep the HL SIPP and invest in either Blackrock or HSBC (whichever isn't in your LISA) however when the value gets high enough consider paying the HL exit fee and moving to Cavendish for 0.20% cheaper platform.

I don't invest in anything other than global multi asset funds as nothing else seems to be as good over the long term.

You might also want to consider adding L&G to the fund list or trying the Nutmeg LISA ETF mix. My LISA is with Nutmeg because I already have other FSCS exposure to AJ Bell.

Although I have been investing long enough to build a tollerence to volatility and crashes I still invest in 60% to 80% equity funds and get the magic of rebalancing across asset classes.

Alex.

snowqueen555

I am in a similar situation, but everything is in HL, but I use Degiro to invest in stocks and ETFs, as they offer cheap fees.

If you are willing to be more risky, invest in sectors you believe in. My portfolio is tech heavy, but I am willing to take that risk and think there is still more growth to come.

Just have a look at the recent Microsoft/Apple/Alphabet earnings this week. Amazon too, but it isn't technically a tech company in a traditional sense.

TheShape

Alexland wrote: »

Assuming you are investing the LISA for the long term (rather than buying a house soon)

Yes, should have mentioned that I own a property.

Alexland wrote: »

1 - an AJ Bell LISA invested in Blackrock or HSBC at 0.25% platform fee and £1.50 per trade (max 4 trades if you are doing 2 lump sums and 2 bonuses next calendar year possibly less trades if you hold in cash for a bit). Remember to keep enough cash to pay the platform fee until you can contribute again in the following tax year.

It is unfortunate that fees have to be taken from inside the LISA as it means keeping some money 'un-invested' each year. Also got to keep a look-out from age 50 as you can't contribute to cover fees so may end up having to do some selling to raise money for fees.

Alexland

Yeah while cash balance requirements are very straight forward it's hassle to keep on top of them so I like providers such as Nutmeg and Vanguard who don't require you to worry about them.

In choosing investment platforms I try and minimise the number of accounts that require me to manage cash. For some like my large Halifax SIPP the extremely good value for money means that I don't mind doing it.