Long term investment advice

[Deleted User]

Personally, I would run LISA alongside pension, just don't keep the LISA in cash.
Both offer tax benefits on deposit but the LISA will be tax free aged 60, whereas the pension will be taxable income.

Albermarle

James811 said:

OK, so
1. Let's just ditch the LISA
2. Put the LISA contribution into Pension 
3. Take the Premium bond money and pay extra off the mortgage 

Seem a better plan? 

Could be, but I would first read through the pros and cons of LISA vs pension, in the second half of this article before finally deciding. Plus you can not just ditch it without paying a penalty.
Lifetime ISA (LISA): how they work & best buys - Money Saving Expert

What would be your suggestion be as to a fund split then?

If you want to be 100% equity, then normally a global tracker is recommended, rather than one just focused on the US. They are still over 60% US, but the rest is spread into Europe, Japan, UK etc so less dependent on US market/Dollar strength.

James811

Albermarle said:

James811 said:

OK, so
1. Let's just ditch the LISA
2. Put the LISA contribution into Pension 
3. Take the Premium bond money and pay extra off the mortgage 

Seem a better plan? 

Could be, but I would first read through the pros and cons of LISA vs pension, in the second half of this article before finally deciding. Plus you can not just ditch it without paying a penalty.

What would be your suggestion be as to a fund split then?

If you want to be 100% equity, then normally a global tracker is recommended, rather than one just focused on the US. They are still over 60% US, but the rest is spread into Europe, Japan, UK etc so less dependent on US market/Dollar strength.

OK. My pension is 100% global 

S&S ISA is 80% S&P 10% gold 10% emerging markets 

James811

What about 

10% Premium Bonds 
30% mortgage 
30% pension
30% S&S isa 

I could then leave LISA as it is or take it out and put into the pension pot 

Cus

Are you a higher rate taxpayer? If so, pension is the best place imo

James811

Cus said:

Are you a higher rate taxpayer? If so, pension is the best place imo

Not currently, but if the business continues to grow the way it is then I will be soon 

noclaf

I would keep the LISA and switch to an S&S version as others have mentioned....  25% govt top up and 30 years of compounding + tax free wrapper ... assuming you plan to access it at age 60 plenty of time for potential growth (subject to investment performance etc).
The S&SLISA could then be used at 60 as part of your retirement planning in combination with pension and S&SISA...this is what I plan to do albeit haven't quite worked out the sequencing....will depend on how it all looks when I'm closer to retirement!

AAZ

GazzaBloom said:

Personally, if it were me, and I was 30 all over again, knowing what I know now, I would put all extra money I could after having a cash emergency fund and putting 15% into my pension, into paying off the mortgage Dave Ramsey style.

Why do you say so ... not in 30s but still asking for myself

cloud_dog

James811 said:

Cus said:

Are you a higher rate taxpayer? If so, pension is the best place imo

Not currently, but if the business continues to grow the way it is then I will be soon 

If you think you may be a HRT payer in a couple/few years, I might be tempted to simply add the additional monies allocated to pension and LISA in to your ISA until you are a HRT payer with sufficient HRT bandwidth and then drop those additional monies in to your pension.

oz0707

Sometimes I find it deceiving to say the LISA has a 25% bonus. You can just as easily say you're getting the tax back on the 5k (give or take) you had to earn to come out with 4k. It doesn't effect the outcome and it's 'free' money you otherwise wouldn't get but it's not to dissimilar from a pension really they both have different quirks.