S&S LISA Options

Alexland

Sorry I haven't registered to download the form but if you are having problems completing the form I suggest you phone HL with your existing JISA paperwork ready.

NathanMorgan

what are your thoughts of investing in something like Vanguard LifeStrategy 100 for your little ones, good/bad idea?

Alexland

NathanMorgan wrote: »

what are your thoughts of investing in something like Vanguard LifeStrategy 100 for your little ones, good/bad idea?

How old are they, when will they likely withdraw the money, did you transfer the JISAs to HL in the end, is the money from yourself or others, how much can you bear to lose?

Alex

kidmugsy

NathanMorgan wrote: »

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.

It might keep the trading costs down if instead you put the £100 p.m. into a regular saver account paying 5% AER (e.g. the excellent one at Nationwide) and then when the account matured each year you would bung the capital into your LISA.

NathanMorgan

Alexland wrote: »

How old are they, when will they likely withdraw the money, did you transfer the JISAs to HL in the end, is the money from yourself or others, how much can you bear to lose?

Alex

Hi, one is 2 and my other one is a newborn and they won’t have access to it until there both 18.

got all the paperwork ready to transfer the JISA over to HL and wondering if I should invest in VLS 100 for them or VLS 80 and I know the risks involved in regards to money loss/gain whilst doing so.

kidmugsy

NathanMorgan wrote: »

wondering if I should invest in VLS 100 for them or VLS 80 and I know the risks involved in regards to money loss/gain whilst doing so.

Ah, we all know the risks. But do we all know how we would react if the capital value suddenly fell by (say) one third? If we haven't experienced such a thing before, how could we know how we would react?

Alexland

NathanMorgan wrote: »

Hi, one is 2 and my other one is a newborn and they won’t have access to it until there both 18.

In which case with at least a 16 years to go most people would consider an adventurous asset allocation. As I said a few weeks ago in post 3 if you are going to HL then there are better options than VLS with the 0.22% fund manager charge. In particular consider the similar Blackrock Consensus 85 or 100 which are discounted on HL to 0.09% and 0.10% respectively.

I take risks with money I have gifted my son in his S&S Junior ISA but I put gifts from others in his Nationwide Future Saver cash account.

Alex

Alexland

kidmugsy wrote: »

But do we all know how we would react if the capital value suddenly fell by (say) one third? If we haven't experienced such a thing before, how could we know how we would react?

Even if we have invested through a few crashes the problem is that when it next happens we are likely to have more money invested so see a bigger £ drop for the first time.

Alex

kidmugsy

Alexland wrote: »

Even if we have invested through a few crashes the problem is that when it next happens we are likely to have more money invested so see a bigger £ drop for the first time.

Alex

I agree. I took the crash of '87 - such as it was - with complete equanimity, but we didn't have much invested and anyway would have had many years to repair the damage. It's a different story when you are older and have saved more.

Two tips for the OP though. (i) Don't check progress more often than once a year. (ii) Don't say "oh we've lost a thousand pounds". Say "thank goodness it's only fallen 10%".

Alexland

kidmugsy wrote: »

It's a different story when you are older and have saved more.

Yup and of course as you get older you have a better view of your remaining career earnings (if any) so you have less wriggle room in your financial plans to make additional contributions to fill any shortfalls that might emerge.

As someone roughly in the middle of my career I still have an adventurous asset allocation but the amount of money I will likely earn going forward becomes firmer in my mind. Still when markets go down I just remember it helps the dividend compounding work better and means I am buying more units for my regular contributions.

Alex