LISA advice to open and leave

0765peter

I am 39, will open a LISA stocks & shares account for access after I am 60.
I will put the max in of £4000 before the end of the tax year and then every year in April up until I am 50 to get the max 25%.
I just want to put it into an account and leave it for the the 21 years without needing to manage it as I have never done stocks and shares before so don’t understand what I am doing at this time.
Can you please recommend best options for me to open a LISA where I can just literally not have to think about it. I am happy to go high risk and understand the market could go down as well as up.
Thank you

Albermarle

In fact there are not many options , as very few companies offer Stocks and Shares Lisa.
. You will have to choose the investments to go in the Lisa and then you can leave it alone .
Here are some suggestions https://yourmoney.lumio-app.com/best-stocks-shares-lisa-uk/

0765peter

Thank you Albermarle, that was a good interesting read. I appreciate you taking the time to post.

Marcusian

This is really handy, I am 38 next week and about to set one up. I think I am gonna go with AJ Bell.

tafelmoneysaver

If you aren't going to access until you are 60 why not consider a SIPP? You'll get greater tan benefits if you are a higher rate tax payer and greater flexibility on investment choices if you increase understandingover time. 

Albermarle

tafelmoneysaver said:

If you aren't going to access until you are 60 why not consider a SIPP? You'll get greater tan benefits if you are a higher rate tax payer and greater flexibility on investment choices if you increase understandingover time. 

Although if you are a basic rate taxpayer , a LISA is generally better from a tax point of view .
If have a LISA with AJ Bell you will have more then enough investment choice .
The main disadvantage of a Lisa compared to a pension is you have to wait a couple more years to take it ( pension age is increasing) and the limit of £4Kpa .

MoneySavingAlly

I think a LISA is better than a SIPP as you benefit with the 1k bonus but also you won't pay tax on the money when you are withdraw after the age of 60.

Alexland

Marcusian said:

This is really handy, I am 38 next week and about to set one up. I think I am gonna go with AJ Bell.

AJ Bell does require a bit of thought in selecting a fund and then ensuring there is enough cash balance to pay the ongoing charges (or paying via a separate dealing account) so you need to keep an eye on it and take small actions.

For really hands-off investing then a robo like Nutmeg would be easier but likely more expensive over the long term.

MoneySavingAlly said:

I think a LISA is better than a SIPP as you benefit with the 1k bonus but also you won't pay tax on the money when you are withdraw after the age of 60.

It depends on circumstances. A pension can beat a LISA if the person pays higher rate tax, gets employer matching, can use it to reduce their income for child benefit, is a company director to reduce corporation tax, etc. In some circumstances such as the employer operating salary sacrifice then a pension works out about the same benefit. We contribute to both pensions and LISAs.