Need a Lifetime ISA that lets me invest in the FTSE

dude7691

Hi everyone
So I've got £5k currently sat in a cash lifetime ISA, but have used moneybox before. Their information on investing was very poor, you can't choose specific funds to invest in. The FTSE is down nearly 50% from the highs and I want to get into just that, because I know the UK economy better than any other, and it's screaming for me to buy. So yeah, I basically just need a Lifetime ISA I can transfer into that allows me to invest in the FTSE and crucially, collect dividends! I'm okay if these are automatically reinvested, I'm looking to keep this open for 5-10 years. But I want them paid. My current LISA with Newcastle gets 1.1%, and the dividend yields on the FTSE are way more than that, so that alone makes it worth the risk. Just need some guidance here, I'm very stuck because all the websites are so damn vague. 
Thanks in advance  

Alistair31

I’m amazed that you can be so sure of your chosen investment but cannot understand how to go about it. 

Anyway, you be looking at transferring your cash ISA to a S&S ISA with the likes ok AJBell or HL. Then just pick a fund/ETF that does what you want. HSBC,Vanguard and iShares all have what you’re after I believe. 

I would not be confident of future FTSE100 dividends based on past performance, certainly not now that for many constituent companies earning have tanked or soon will be tanking.

Alexland

HL don't accept inbound LISA transfers so assuming you are still under 40 then AJ Bell YouInvest would be a good platform to pick a UK index fund from one of the above managers. You are a lot more optimistic about the future proposects of UK listed companies and their dividend income than me. Remember to only invest if you won't need the money for the next 5+ years as markets could go down further and take a long time to recover. Generally Cash LISAs are for people buying houses and S&S LISAs are for people investing for age 60+

Username999

dude7691 said:

... the FTSE and crucially, collect dividends! ...

Take a look at Investment Trusts like this one...
https://www.hl.co.uk/shares/shares-search-results/c/city-of-london-investment-trust-ord-25p

Alexland

This is probably the first post we have had about LISAs that focuses on dividends and onto investment trusts. For most S&S LISA investors the income doesn't matter as they are seeking total return over 20+ years so buying an investment that prioritises continuity of income over capital growth could turn out to be a mistake. If using a LISA to support a near term qualifying property purchase the dividends are far less important than the capital volatility.

dude7691

Alistair31 said:

I’m amazed that you can be so sure of your chosen investment but cannot understand how to go about it. 

Anyway, you be looking at transferring your cash ISA to a S&S ISA with the likes ok AJBell or HL. Then just pick a fund/ETF that does what you want. HSBC,Vanguard and iShares all have what you’re after I believe. 

I would not be confident of future FTSE100 dividends based on past performance, certainly not now that for many constituent companies earning have tanked or soon will be tanking.

Haha that's the nature of me I'm in the UK and it's like a warzone right now, food rations everywhere, people are very tense. I'm looking to buy once I see positive signs of reversal, I believe the UK economy is fundamentally strong, but we shall see. Thank you for that, I will research them thoroughly. 

dude7691

Username999 said:

Will take a look mate, thank you!

dude7691

Alexland said:

This is probably the first post we have had about LISAs that focuses on dividends and onto investment trusts. For most S&S LISA investors the income doesn't matter as they are seeking total return over 20+ years so buying an investment that prioritises continuity of income over capital growth could turn out to be a mistake. If using a LISA to support a near term qualifying property purchase the dividends are far less important than the capital volatility.

That's right. I'm in a position where I would like to buy a house in 5 years, but can wait longer if needs be. So I'm prepared to lose money if I have to, I've been through market cycles before with short term investments, so I know what it's like and I'm not phased by it. Thank you for your advice, it is much appreciated. I am an investor at heart, but I do like the property market and the Lifetime ISA is a great tool for doing it. 

dude7691

Alexland said:

HL don't accept inbound LISA transfers so assuming you are still under 40 then AJ Bell YouInvest would be a good platform to pick a UK index fund from one of the above managers. You are a lot more optimistic about the future proposects of UK listed companies and their dividend income than me. Remember to only invest if you won't need the money for the next 5+ years as markets could go down further and take a long time to recover. Generally Cash LISAs are for people buying houses and S&S LISAs are for people investing for age 60+

I am indeed, I'm 20. Been investing since I was 17 so that's why I've managed to get some funds together from profits on those to set up a nice little nest egg, hopefully I've been watching the FTSE for years, and it's done pretty well considering all the negative news on the UK over the last few years, and I believe that things will pick up after we're done with COVID. But yeah thank you very much for helping me with that tool, it's my money to risk so if I've made a bad decision willing to pay for it, been in this game long enough!

dunstonh

The FTSE is down nearly 50% from the highs 

Make it 35%. Although which FTSE are you on about?  Hopefully not the FTSE100 as that is an awful index to track.

Grandst2

The FTSE is an absolute dog index, think global and mix in other assets.