LISA investment choices

TheShape

I understand the difference between the Inclusive Class A fund and the Class I fund on HL. Thought I'd have a look at my holding in my S&S ISA with Cavendish. With Cavendish I hold a different Class D fund with completely different Sell/Buy prices albeit very closely priced £2.02/£2.03. No initial charge for the fund and the same 0.23% OCF.

stphnstevey

Herbalus wrote: »

Aha. My S&S is with the Vanguard platform itself, so I can't see the sense in adding Vanguard products on HL where the platform cost is 3x as much. If I need more VLS I would use Vanguard platform at this time.



Haha yes. I see what you mean with "at least". I was trying to convey longer term investing (in my view) warrants 100% equities as a minimum, regardless of whether you can go above 100%.

With Consensus 100, there are 2 of these on HL. What is the difference between them? The website says Class A is "inclusive", which means higher management fees and loyalty bonuses, but HL savings mean the fee is the same on both. Is there a difference to the fund structure?

Also, these have a buying and a selling price, with c5% difference. This puts me off, as it seems to be a 5% cost whereas other funds don't have this. Is this a supply/demand scenario or simply initial dealing costs?

The Vanguard platform may be dearer than a flat fee broker such as iweb for Vanguard funds or ETFs

With the capped broker fee for shares on H&L, but also even lower again with AJ Bell, I have gone for ETFs in a LISA. This will work at much lower broker fees than holding funds with either

Has anyone had their bonus yet? Still waiting for mine for last tax year from AJ Bell..

masonic

stphnstevey wrote: »

Has anyone had their bonus yet? Still waiting for mine for last tax year from AJ Bell..

Nothing received here (also AJ Bell). I'm expecting my 2017/18 and 2018/19 bonuses to be paid in fairly quick succession given I topped up at the very start of the tax year.

stphnstevey

masonic wrote: »

Nothing received here (also AJ Bell). I'm expecting my 2017/18 and 2018/19 bonuses to be paid in fairly quick succession given I topped up at the very start of the tax year.

I had contacted AJ Bell in March and they said payment would be end of April for 17/18 (ie end of month after tax year end) and then monthly for 18/19

Wurly

I encouraged my daughter to open a HL LISA so one day when the mortgage is finished and the kids are grown up she might find a pot of cash useful to retire a bit earlier than waiting to collect State Pension.

Unsure of what to invest in. She's not really interested in doing her own investments so we figured Vanguard Target Retirement Fund 2045 would be a good option. (Love to hear some feedback on that choice).

She also informs me that HL have added the 25% to her account this week. She is on course for the next 4K for this year.
Nagging does work!!

grey_gym_sock

the L&G international index trust excludes the UK. so perhaps a slightly odd choice as your only holding. when combined with a FTSE 250 tracker, then clearly you do have some UK, but still none of the largest 100 UK companies.

one alternative world tracker, which does include the UK, is fidelity index world (currently costing 0.12% or 0.13%, depending which website you're looking at).

or blackrock consensus 100 does something similar (while being slightly more complicated than a simple tracker), and is cheaper with HL (if you happen to be using HL already).

on FTSE 250 trackers, there might be a case for using L&G UK mid cap index, which tracks the FTSE 250 excluding investment trusts. since i expect those investment trusts are mostly invested in companies already covered by a world tracker, and in effect you pay an extra layer of charges for the ITs themselves.

wjr4

Wurly wrote: »

I encouraged my daughter to open a HL LISA so one day when the mortgage is finished and the kids are grown up she might find a pot of cash useful to retire a bit earlier than waiting to collect State Pension.

Unsure of what to invest in. She's not really interested in doing her own investments so we figured Vanguard Target Retirement Fund 2045 would be a good option. (Love to hear some feedback on that choice).

She also informs me that HL have added the 25% to her account this week. She is on course for the next 4K for this year.
Nagging does work!!

Has she also got a workplace pension?

Wurly

wjr4 wrote: »

Has she also got a workplace pension?

Nope, If she did I would nag her to do that as well.
She is busy managing kids/family/mortgage as well as a job (although p/t). This is the best option for now and to be fair, she's finding the money to put away.

Alexland

Wurly wrote: »

Nope, If she did I would nag her to do that as well.
She is busy managing kids/family/mortgage as well as a job (although p/t). This is the best option for now and to be fair, she's finding the money to put away.

Are you sure her part time job doesn't offer a pension in which the employer may also contribute? A two pronged approach of both matched workplace pension plus LISA should work well for young basic rate taxpayers.

Alex