Ditch LISA? Not making any money...

IAMIAM

I currently have 15k, and was going to top it up to 19k (aka 20k) in the next tax year. It's all invested in AJ Bell Funds.
It is currently valued at 14k, after 3 years. Beginning to think its not even worth it and cancel/withdraw and just use funds to pay off lump sum on mortgage....
Thoughts....

Herbalus

You’ll lose 25% if you withdraw before age 60.

you’ve presumably got at least 10+ years before you’re 60, so plenty of time for markets to recover. Though you don’t say what you’re invested in.

daveyjp

5 years as a minimum for S&S ISA.  If prices are falling its an ideal time to buy.

dunstonh

It is currently valued at 14k, after 3 years. Beginning to think its not even worth it and cancel/withdraw and just use funds to pay off lump sum on mortgage....

An economic cycle is around 15 years nowadays.   Unless you are prepared to invest for that sort of period, you wont know if you are going to get the good growth period, the slow and steady period or the highly volatile loss making period.     As it happens the last few years have formed part of the highly volatile period.  If you pull out now then it just indicates you haven learnt nothing from posting here over the years.

kuratowski

Time invested makes so much difference.

My GIA is down about 10%.

My LISA is down about 1%.

My ISA is up about 4%

My SIPP is up about 70%.

All these accounts have identical investments.  The only difference is how long they've been open.

Perksy5

I think you'd be making a massive mistake cashing in now. As I'm sure you're aware, investing is for the long term and checking performance and seeing an underwhelming view is going to make you more jittery.
The gov bonus is just too good to not benefit from in my humble opinion. 
Remember this isn't the problem of the wrapper you're invested in (LISA) it's global issues.

kinger101

The LISA itself doesn't lose or make money (other than the Government top-up).  It is merely a vehicle for holding investments.  You need to take a step back and ask yourself why you're investing, how long for, and then whether you're holding the types of asset suited to achieving that goal.  Then decide whether the LISA is the right vehicle to hold those investments.

grumiofoundation

IAMIAM said:

I currently have 15k, and was going to top it up to 19k (aka 20k) in the next tax year. It's all invested in AJ Bell Funds.
It is currently valued at 14k, after 3 years. Beginning to think its not even worth it and cancel/withdraw and just use funds to pay off lump sum on mortgage....
Thoughts....

Withdrawing means 14k becomes 10.5k. Guaranteeing a loss of 4.5k over 3 years. 

The LISA hasn't lost money, the investments have.

What happened to investing for next 12 years? As above ignore short term movements, investing now means you get a cheaper deal. 

https://forums.moneysavingexpert.com/discussion/6377660/is-it-conservative-to-assume-a-5-annual-return-on-a-s-s-lisa-vanguard-100/p1

P1Fanatic

Withdrawing sounds rash as you lose the bonuses your received (and a little bit more due to the way its calculated). As above as your still paying in you must have at least another 10 yrs before you can cash it in penalty free so plenty of time for investments to go up. My reason for having a LISA is to to bridge the gap from age 60 to State Pension age so less of personal pension used in those years. The interest you save paying a lump of your mortgage is going to be peanuts compared to the loss of bonus.