Is it conservative to assume a 5% annual return on a S&S LISA - Vanguard 100

dunstonh

I'm sure that someone will be angry about my message, but I strongly think that the LISA, as well as the other stupid gov schemes, are just scams, UK is top level for such scams.

Not angry but you may wish to check the dictionary for the definition of a scam.

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

Again, check the dictionary for the definition of a scam.
There are whole of market LISAs are available that allow shares, ITs, ETFs, OEICs/UTs etc  If you cannot find an investment you like in that lot then there is no hope for you.

Obviously, we may have another 2008, but guess what, the gov has your money anyway, in one way, you are gonna pay for the next crash.

That isn't how it works.

In the meanwhile, there is still a stock market crash compared to a few dozens of months ago ONLY,

Whilst a few markets have crashed, the majority have not.

Your LISA doesn't resolve anything, actually it creates only problems.

It neither creates problems or resolves them.  It is a largely insignificant tax wrapper.

Alistair31

And at the height of Covid the gvt made early LISA withdrawals possible without penalty, remember. 

P1Fanatic

masonic said:

Nebulous2 said:

eskbanker said:

Nebulous2 said:

Why would you stop adding money at 50? 

No choice to go beyond that within a LISA, but possible in other accounts obviously....

Thanks - I'm far too old for a LISA, so have never paid any attention to them. 

For many people who want to retire early their 50s is a productive decade, peak earning power, reduced other commitments from mortgages and children. A key time to squirrel money away. 

Another feature of LISAs is that they cannot be accessed until 60 (without penalty), so they would not support someone retiring early in their 50s.

Not initially but I see it as a nice income boost from age 60 to state pension age.

Albermarle

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

poppy10_2

Albermarle said:

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

From his previous posts he appears to have been suckered into crypto lmao

RobHT

Albermarle said:

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

I meant that you can't satisfy even that with a LISA, as most ambitious objective, but not that difficult to achieve in other ways.
So what's the point of having a LISA...
What scares me mostly is the gov control over it, which is in addition to the rest of the control that they could impose.

poppy10_2 said:

Albermarle said:

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

From his previous posts he appears to have been suckered into crypto lmao

I invest in cryptos, but I wasn't referring to that, it's enough to have a diversified portfolio with sensibly higher positions in exp growth stocks, it's not that difficult.
You can also cash out at any time, think about the most IMPORTANT BENEFIT.

masonic

RobHT said:

Albermarle said:

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

I meant that you can't satisfy even that with a LISA, as most ambitious objective, but not that difficult to achieve in other ways.
So what's the point of having a LISA...
What scares me mostly is the gov control over it, which is in addition to the rest of the control that they could impose.

I have some shiny headgear you might be interested in.

RobHT said:

I invest in cryptos, but I wasn't referring to that, it's enough to have a diversified portfolio with sensibly higher positions in exp growth stocks, it's not that difficult.
You can also cash out at any time, think about the most IMPORTANT BENEFIT.

Incorrect. You can cash out if and only if you can find someone willing to buy from you. But you should think twice about cashing out. You know who controls the cash.

RobHT

masonic said:

RobHT said:

Albermarle said:

Review the rules and think if you wanna have control over the money, or if you easily wanna profit more than the stock market average (common indexes), both things are not satisfied with a LISA, so it's a scam!

I am sure many readers of the forum would like to know how to easily profit more than the stock market average, so would be good if you tell us how to do it ( consistently) ?

I meant that you can't satisfy even that with a LISA, as most ambitious objective, but not that difficult to achieve in other ways.
So what's the point of having a LISA...
What scares me mostly is the gov control over it, which is in addition to the rest of the control that they could impose.

I have some shiny headgear you might be interested in.

RobHT said:

I invest in cryptos, but I wasn't referring to that, it's enough to have a diversified portfolio with sensibly higher positions in exp growth stocks, it's not that difficult.
You can also cash out at any time, think about the most IMPORTANT BENEFIT.

Incorrect. You can cash out if and only if you can find someone willing to buy from you. But you should think twice about cashing out. You know who controls the cash.

What the first message is supposed to mean?



The market is always liquid, unless there is a insolvency process or similar behind, at that time it's too late, the big guys already jumped off the boat.

Also in the case of penny stocks there is enough liquidity, but it's important to consider that it's much less liquid than Nasdaq, therefore, you won't be able to sell a huge amount of shares in a single transaction, but if your broker is decent enough, it will manage that for you also for days ahead, not bad ah.

masonic

RobHT said:

The market is always liquid, unless there is a insolvency process or similar behind, at that time it's too late, the big guys already jumped off the boat.

Also in the case of penny stocks there is enough liquidity, but it's important to consider that it's much less liquid than Nasdaq, therefore, you won't be able to sell a huge amount of shares in a single transaction, but if your broker is decent enough, it will manage that for you also for days ahead, not bad ah.

When things are good, then there's plenty of liquidity. When everyone wants to jump ship, there isn't. You can't make the assumption that you'll be able to cash out at any time, if any time includes times when everyone else is of a like mind, or, as you say, there is no market on which to sell. There's also selling at a reasonable price, and selling for whatever you can get. In short, you can't rely on being able to cash out this sort of investment at any time by any reasonable definition of 'cash out' and 'any time'.

InvesterJones

There was an interesting video by PensionCraft yesterday about medium term investment options. I'm not sure the whole thing is relevant to this thread, but there is a great analysis (monte carlo - running simulations of different scenarios and working out which proportion of them would make a loss vs gain, and ditto over time). The relevance being there was a nice illustration of the 'you can get little return in x time period' statement, but quantified for different types of assets and equity-bond splits. There was also a nice pivot which showed 'how long would I need to hold an asset to have only 1% chance of making a loss?'. Recommended viewing (as I find many of his videos are).

https://youtu.be/2dz_tgTQedQ