S&S LISA? Novice question.

Novice_investor101

Using a cash LISA for retirement purposes probably isn't the best idea - your money will lose value due to inflation. Over a minimum of 20 years investment time you would look to make some decent real growth if invested in a Stocks & Shares LISA, providing you invest sensibly & understand that the usual caveats apply.

I think if you opened a new LISA now you would have to pay something into it, so would fall foul of contributing to two in a tax year You could open one on 6th April 2020 with £1 & could then only pay into that one that tax year. You could have both cash & stocks as long as you only pay new money into 1 of them each tax year.

Alexland

If you are already a homeowner then why would you want to earn a below inflation cash LISA interest rate for the next 20 years? Inflation will burn out the bonus.

Surely it makes sense to transfer your existing LISA to a S&S provider (AJ Bell tend to be best for higher LISA balances) and take some risk for example with a suitable low cost multi asset fund for a likely higher long term return?

Alex

oz0707

As has been said no reason to have a cash LISA - unless you mean LISA?
I'd transfer it to s&s LISA if it were me.

I use it as a pension but it's probably worth locking the product in as future governments may change the rules. Whatever happens changes shouldn't be retrospective and may even come out of it well...

girllikeme1

Thanks for all the above. Ok, sounds like I need to look into S&S LISA and transfer before I'm 40. I opened one to have it in situ before it was too late but did not realise the S&S option was available. Will investigate best options now... I see AJ Bell has been recommended above for starters!

girllikeme1

If over 40 can you transfer a cash LISA to a S&S LISA?

Alexland

Yes under the rules however AJ Bell have admitted they have a software bug that will not let you apply for a LISA, even if only for the purpose of a transfer, from age 40. Other providers may have the same issue.

Why wait to transfer when you can do it now?

Alex

girllikeme1

Is the Moneybox one totally no go zone? :-D

Alexland

Moneybox offer 2 LISAs. Their Cash LISA for first time buyers is market leading. Their S&S LISA for age 60+ has even higher charges than Nutmeg. Generally HL or Nutmeg are best for small S&S LISAs and AJ Bell for larger valuations. Nutmeg (and possibly Moneybox) are yet to turn a profit so rely on regular bailouts.

girllikeme1

Ok sounds like a no-go! ;-) thanks

girllikeme1

I might be missing something but I'm trying to transfer to HL (the only one that says it accepts transfers in).

However to open a HL S&S ISA it requires me to open the account and add funds to it, then complete a transfer form which appears to be geared towards ISA transfer in - no mention of LISA transfers in.

Having already paid into the Cash LISA with Moneybox this tax year, I am breaking the rules if I subscribe to a HL S&S LISA.

Has anyone successfully transferred a Cash LISA into a S&S LISA on here, please?