LISA for an over 40

Alexland

masonic said:

It's worse than that as Alex points out above. It's a one-off bonus, so needs to be spread over the time the contribution spends in the LISA. For example, if you started contributing at age 30 and stopped at age 49, the average contribution would be in the account for 20 years before it could be (re)moved, so the 25% bonus averages out at just 1.1% per year.

Yes that's a sobering way of thinking about it which is why it's so important to keep the fees of running the S&S LISA as low as possible to maximise the amount of extra return you are getting from running the additional account alongside a normal S&S ISA.

Now the LTA has been abolished, the AA increased and cost of living is eating more into my take home pay then I've been thinking hard about how to use my income going forward. Given I had already likely used much of my LTA (assuming growth of a couple of percent each year above an inflation adjusted target from 2026 onwards) then I was considering paying some higher rate tax to feed the LISA but now I'm favouring keeping my pension contributions high enough to avoid higher rate tax which might mean there's not enough spare income left over (at least in the short term while I have various divorce related costs) to keep filling the LISA each tax year. I've filled my LISA again this tax year to keep the unbroken record since launch but for next tax year I might have to sell some stuff on ebay so my cash position doesn't get unacceptably low.

Alistair31

Not sure if has already been mentioned but AJBell are now going to accept LISA transfers for over 40’s. 

Albermarle

Alistair31 said:

Not sure if has already been mentioned but AJBell are now going to accept LISA transfers for over 40’s. 

I do not remember it being mentioned, so thanks for the update. Will be welcome news for some.

Gemok

To add Dodl the stripped down app only AJ bell sister company have just started accepting LISA transfers for over 40s as well.

Middle_of_the_Road

CompulsiveSaver said:

masonic said:

Are you saying you didn't top up beyond the initial £1 you put in to open a LISA?

Yes, that is correct. I have always used ISAs, but the LISA was just poor rates, as I was moving frequently earlier in my career, buying a house was a bad idea. I also have a HTB ISA but the rates have always been approximately the same as typical Cash ISA rates.

Now realising this means help to buy isa, originally thinking it was Hampshire Trust Bank

Nurse2047

Thanks for the tip re transfer for over 40 to Dodl 👍

SB1980

kinda following on from this thread...

from what i can see fees for AJBell LISA are 0.25% and Dodl are 0.15%.  I am +40 with a S&S LISA saving for +60, with AJB.   Only invested in a HSBC global fund, Vanguard lifestrategy,  AJB own funds... (not skilled or knowledable enough personally to invest in anything more interesting / unusual) . 

If Dodl now allow transfers it is a no brainer for me to move, or am i missing something?

eskbanker

SB1980 said:

kinda following on from this thread...

from what i can see fees for AJBell LISA are 0.25% and Dodl are 0.15%.  I am +40 with a S&S LISA saving for +60, with AJB.   Only invested in a HSBC global fund, Vanguard lifestrategy,  AJB own funds... (not skilled or knowledable enough personally to invest in anything more interesting / unusual) . 

If Dodl now allow transfers it is a no brainer for me to move, or am i missing something?

As far as I can see, the range of investments available with Dodl is much more restricted than with AJBell, so, for example, they don't seem to offer HSBC Global funds: https://www.dodl.co.uk/investments

Alexland

SB1980 said:

from what i can see fees for AJBell LISA are 0.25% and Dodl are 0.15%.  I am +40 with a S&S LISA saving for +60, with AJB.   Only invested in a HSBC global fund, Vanguard lifestrategy,  AJB own funds... (not skilled or knowledable enough personally to invest in anything more interesting / unusual) . 
If Dodl now allow transfers it is a no brainer for me to move, or am i missing something?

Another disadvantage of Dodl is that they don't seem to cap their charges as the account valuation grows after several years of contributions and growth. I am taking advantage of the AJ Bell fee cap on exchange traded assets to hold an ETF so my total AJ Bell LISA platform costs (ongoing and trades) are now under 0.15% pa.

I'm doing the same on my Fidelity SIPP which has a couple of decades of contributions and the total platform cost is down to 0.02% which just goes to show the potential value of capped (or fixed) charges in a long term investment strategy.

intalex

I just tried opening an AJ Bell S&S LISA with the intention of transferring in my Nude Cash LISA, but their online form did not allow me to proceed on the basis that I am above 40, so AJ Bell certainly haven't started allowing over 40s to sign up yet.

Dodl on the other hand were able to allow me to proceed with opening a S&S LISA and requesting a transfer through the app. Fingers crossed, Nude's 95-day notice period (hidden in their smallprint) will not prove a stumbling block...