LIsa

Stevensuperbike

Hi I have heard that mps want to rid of the Lisa and abolish this but remain the H2B isa?
i have a house and have put things in place to pay this off in the next 2-3 years. Me and my wife want to start saving into a Lisa and get 8k a year in there (2 separate accounts, 4K each per year). Is this worth considering right now if it’s going to be stopped/ scrapped? What other options have a got which effectively make a 25% return each year?.. thanks in anticipation .

eskbanker

Do you have any credible sources for your claim?

I think it's fair to say that there are bigger fish to fry just now but if there was any serious talk about binning LISAs then I'm sure there'd be plenty of discussion on here and elsewhere about what the best response would be, so in your shoes I'd carry on with it until or unless anything actually changes....

Stevensuperbike

Great thank you for a speedy reply. Still researching the info regarding it. Im 35 at the end of the month and my wife 39 end of October we will definitely look at taking advantage of the Lisa however I understand we may be a little late getting it going. Least I and my wife can get at least 10 years a piece contributions in. Thank you

masonic

Stevensuperbike said:

Hi I have heard that mps want to rid of the Lisa and abolish this but remain the H2B isa?

You've got this the wrong way around. The LISA is continuing, but the H2B ISA is being phased out. Only those who already hold a H2B ISA can continue to use one, and it must be used by the end of this decade.

Alexland

If you are both looking to put the max into a S&S LISA each tax year until 50 towards age 60+ then you will probably find AJ Bell the cheapest as they have the lowest percentage fee (and lowest capped fee for exchange traded assets) which is more important than the occasional trade fees as the account valuation increases.

Obviously also ensure you are making the most of your pension options too for employer contributions and/or higher rate tax relief if applicable.

Stevensuperbike

Thanks, been looking at the moneybox cash Lisa to get it started. Can ramp up the contributions when I get our mortgage paid off. In reality I’m not going to have I huge injection of income in the future years so best put my money where it will work the hardest for us. I do have mates who are on the same wave length and work colleagues who unfortunately are reckless with their money but that is up to them, looks like they do enjoy their money a whole lot more than me lol

Alexland

Cash LISAs are only suitable for people buying a property soon. You wouldn't want to use them for 20+ years as the interest rate is 1%+ below inflation so you would be burning your bonus on the reduction in spending power each year.

Over the long term a sensible diversified S&S portfolio is far more likely to beat inflation after fees. That's why pension schemes also make S&S investments.

Moneybox S&S LISA is more expensive and less established than AJ Bell but better suited to beginners. It can be hard to transfer LISAs after the age of 40 as not many will allow you to open an account (even though its allowed to facilitate a LISA transfer).

Stevensuperbike

Thank you I see your point, I’m only able to contribute until the 50 yrs mark (15 years away)? Geez I feel old now, thank you for your time.