S&S LISA Options

NathanMorgan

I’m going to take the plunge next year in going self-employed and I’m going to use the LISA as my pension pot as I won’t have any employer to contribute to a workplace pension soon.

I’ve decided I’d like to invest in Vanguard Life Strategy 80/100 and will be depositing £100 per month into this…any recommendations on which platform to take it out with in regards to yearly costs and any experiences you’ve had with any providers.

unkle

Probably first off, which of the providers allow the Vanguard lifestyle strategy 80/100?

Alexland

Assuming you mean VLS80 or 100 (undecided or 50/50) then the problem is with only £100 per month AJ Bell YouInvest's £1.50 fund trade fee is significant so it might be better to pay the higher percentage platform fee on HL which has no fund trade fees. But on HL there are better options than VLS such as the similar but discounted Blackrock Consensus 85 or 100.

Unfortunately the platform market for LISAs is not as competitive as ISAs

Alex

NathanMorgan

yes the VLS80/100 im looking at so in regards to AJ Bell fees for example do the fees mean they will charge £1.50 every month I put in £100?

&

Could you explain how Blackrock 80/100 is better than Vanguard’s equivalent?

Facknats

I'm with Nutmeg. No deal fee like AJ Bells but less granular control over investments, so if you're set on something that could limit you.

I have the fully managed version at 0.75% fee- however I it performs terribly in comparison to my similar, but auto-invest Moneybox S&S ISA (Which really I just see as a toy) despite low attitude to risk. I'm aware that the markets are in an utter state right now but it's never performed better than -6% returns compared to Moneyboxes average of 3%.

Also no direct debit option.. just manual.

Moneyboxes LISA is quite expensive however so I think I will put the toys down and switch to HL. Either way Nutmeg have !!!!ed away my gov. bonus quite nicely :money:

Alexland

NathanMorgan wrote: »

yes the VLS80/100 im looking at so in regards to AJ Bell fees for example do the fees mean they will charge £1.50 every month I put in £100?

AJB don't charge you to contribute cash but would charge you to £1.50 each time you want to invest cash into additional fund units. It's actually a bit more painful as the 25% bonus is added into the account as cash about a month later so it would probably be best to invest the bonus with the next regular contribution to avoid paying 24 trade fees per year. On HL there are no fund trade fees to worry about.

NathanMorgan wrote: »

Could you explain how Blackrock 80/100 is better than Vanguard’s equivalent?

The VLS series fund manager fee is 0.22% and Blackrock Consensus is discounted on HL to 0.09% (on 85) or 0.10% (on 100) which help make up for the 0.20% platform difference between AJB (0.25%) and HL (0.45%). Also I like that Consensus 100 has less UK bias. All of these are fairly high risk options with the potential to drop 40%+ in a market crash.

Alex

Alexland

Facknats wrote: »

I think I will put the toys down and switch to HL.

Nutmeg fully managed is expensive at 0.75% plus 0.19% average fund (etf) fees and given they are not yet a viable company I can see why you would want to leave. I agree the MoneyBox LISA is also unattractive.

The problem you will find is HL are not accepting inbound LISA transfers so your best bet might be transfering to AJB and trying to minimise trade volumes.

Alex

NathanMorgan

thanks for the replies...going off topic here as I don’t want to start a new thread.

I currently have a 2 year old and one on the way very soon and currently I have a cash JISA for my 2 year old which I want to transfer over to a S&S JISA.

I did want to go with Vanguard but they require a £100/month or lump sum of £500 so that’s out the question as I want to put £50/month to them both.

Any alternative recommendations on the best S&S JISA’s out there at the minute apart from Vanguard?

Alexland

At £50 per month then you could go with a Cavendish JISA at 0.25% and no fund trade fees.

https://www.cavendishonline.co.uk/investments/

Zorillo

You could just let the £50 accumulate for two months and make six £100 deposits into a JISA instead of twelve £50 ones.

NathanMorgan

been having a look through HL’s Vanguard and against each each product its got say Vanguard Life Strategy 80 with 2 options of income or accumulation.

is the accumulation product the one im after for long term 30+ years investment?