LISA advice

mkaml

I'm approaching 40 & thinking of LISA's before it's too late to open then.
I'm a homeowner
Have a pension
Have shares

So this would just be additional retirement savings.
I'm quite liking the idea of Moneybox's stock/share LISA - mainly due to the 'round up' - I don't think I'd miss that.
Would it be worth me, the next year, also opening a Cash LISA?
Just to 'keep my options open' and before I'm too late to open any?

Just looking for opinions/thoughts please.....

eskbanker

Personally in your shoes I'd open a S&S LISA but go for something more mainstream than Moneybox with its proprietary, expensive and limited range of investment choices - mainstream platforms such as A J Bell or even HL would be a better bet IMHO.

I can't think of anything to be gained by opening a cash LISA given that you wouldn't be able to access the (initial) money without penalties for 20+ years, by which time it would probably have lost real-terms value to inflation, an effect you're only likely to be able to mitigate via S&S....

Tom99

If you open a S&S LISA before age 40 can you do that with a small amount to start with and then invest further money at any time to age 40, say £1,000 today but not add to it for 5yrs, just as an example?

Alexland

If you are putting money away for withdrawal at 60+ then you only need a S&S LISA. Cash would be inappropriate as you would be burning the bonus on failing to keep up with inflation.

HL tend to be better for smaller frequent contributions (no fund trade fees) and AJ Bell YouInvest are better if doing infrequent large lump sums (trade fees, but lower custody fee).

Moneybox roundup is a gimmick - plan your contributions properly against your objectives.

We plan to use our LISAs to help our children with house deposits, weddings, etc and to recycle the money into my wife's pension until she is 75 for further benefit.

Alex

masonic

You'd be best off opening a S&S LISA directly, as few accept transfers in.