LISA with IFA

rafhelp

Ive invested some money into a LISA.

Now im looking at personal pension options.

Ive seen several options where you can set them up yourself online like moneybox pension pot etc..

Ive been contacted by an IFA from unbiased website who wants 2% lump sum to reinvest the Cash LISA into a Stocks and Share LISA

But is that a good idea?

I mean value of S&S LISA can go down so its possible I will not make the money paid as fees back.

eskbanker

IFAs generally wouldn't be interested in dealing with products limited to £4K/year as it's unlikely to be worth their while, but what is it that you're looking to achieve with your LISA anyway?  If it's for retirement planning then yes, a S&S LISA is likely to make more sense than a cash one, but it would surprise me if many holders would have engaged an IFA.

What sort of scale of personal pension planning do you have in mind?

Albermarle

Ive been contacted by an IFA from unbiased website

If this was an unsolicited call i.e. out of the blue, then stop all communication with them as it is likely to be some form of scam.

If you made the enquiry to unbiased , then should be OK . However as eskbanker noted , your situation seems an unlikely one to attract a IFA. Normally they are only interested if you have a minimum £50K to invest , and they would want to advise on all investments, including pensions.

wjr4

You must have put your details into unbiased to get contacted. 

rafhelp

wjr4 said:

You must have put your details into unbiased to get contacted. 

yes

rafhelp

investment is 5k, so the fees are 2% of that as a lump sum

dunstonh

Unbiased is a lead generation site nowadays for FAs and IFAs. it is no longer an independent directory of IFAs.   Firms that need business pay unbiased for leads which come from people saying they want an adviser.   Nowadays, most of the IFAs I know, no longer have a paid entry on unbiased.  

rafhelp

just a quick question...its about lisa anyway.

is the government bonus only paid on what you put it?  So if you put in £1000 year 1 and nothing after that all you get in 20 years is about £1250

Albermarle

If it is cash LISA it will earn interest like a savings account - not very much though.
if it is a stocks and shares LISA it will go up and down with the financial market trends but over 20 years it should have grown more than the cash LISA.
https://www.moneysavingexpert.com/savings/lifetime-isas/