LISA - what to hold?

gray821

I've got about 8k in a LISA. For the past couple of years it's been invested in Vanguard FTSE Global All Cap through HL. I'm planning to leave it with HL, but I'm now at the point where I'm considering buying somewhere in the middle of next year, and increasing my contributions so it's more like 15k for the deposit.

My question is what to do with the money until then? Obviously I want to be out of the global all cap. I don't know anything about bonds or cash funds. Is there anything in the HL portfolio that I can buy that would get me 0.5 - 1% interest/increase or should I forget that and just hold in the account as cash?

csgohan4

if you need the money in the short term, it would be risk to leave it in a global fund, perhaps cash LISA would be best until you need it. Bonds would be an option, but short term bond yields are low as well

83705628

If you're thinking of using it to buy a property within a year you should not be in equity at all IMHO.
You could leave it all as cash or you could try some money market funds, and short term bond funds. Vanguard have a good cheap Global Short term bond index fund and a money market fund, but spread it out over a few different fund managers.
I'm in a similar situation I opened a HL LISA when they first became available, wish I'd gone with a cash one, now i don't know when I might be buying because of general life reasons.

dd95

I've got my LISA (HL) but for retirement with a circa 30 year horizon. Currently invested in fidelity world index as the main. Will add l and g tech, healthcare and lindsell train as my satellites moving forward

ec9wrr

dd95 said:

I've got my LISA (HL) but for retirement with a circa 30 year horizon. Currently invested in fidelity world index as the main. Will add l and g tech, healthcare and lindsell train as my satellites moving forward

This isn't an answer to the question posed though. The funds you mention are high risk and do not suit a short term location when the OP is going to be using the LISA for a house deposit next year.

Also, HL very expensive. I'd recommend finding an alternative if you're keeping it for 30 years.

Shankers

It's a real shame that at the moment the 'Active Savings' products aren't available within the LISA or S&S ISA. They've been talking about it for a while but it's come to nothing so far. I'm sure there are complicated technical reasons why this change hasn't been made because of all the 3rd parties HL are involved with for Active Savings.

dd95

ec9wrr said:

dd95 said:

I've got my LISA (HL) but for retirement with a circa 30 year horizon. Currently invested in fidelity world index as the main. Will add l and g tech, healthcare and lindsell train as my satellites moving forward

This isn't an answer to the question posed though. The funds you mention are high risk and do not suit a short term location when the OP is going to be using the LISA for a house deposit next year.

Also, HL very expensive. I'd recommend finding an alternative if you're keeping it for 30 years.

apologies and you're absolutely right - i glanced at the thread title and assumed

darkidoe

Suggest transfer to something like Nottingham BS Cash LISA which is paying a leading rate of 1.25%APR interest.