Lifetime ISA Cash or stocks

Frubbes202

I'm 22 and will graduate this year. I recently have downloaded the moneybox app and looking into putting some money into a LISA. I was thinking of putting it into cash because I wasn't sure about risking it, however, I had a think about it it and I think I don't mind losing a bit of money as long as it isn't over a £1000. I want to buy a house but I probably won't be able to afford one in more than 5 years+. So I probably won't be withdrawing any money from it to buy one any time soon. 

I do have quite a lot of money saved up (enough to pay half of my annual rent), which is why I'm thinking of putting it into a stock LISA. I also plan on doing a masters degree next year which will probably cause me to use up most of the savings I have.

Does any one have advice for which one is the best for me in my current situation. Also, if I do go for stocks, does anyone have any advice on the best ones to invest in? (I know basic things about stocks but not a lot) 

eskbanker

The rule of thumb on here will generally be to use a cash LISA for saving for a first time property deposit or a S&S one for retirement money, and, especially given your lack of investing knowledge (not a criticism!), it would seem more appropriate to stick to a cash one IMHO.

https://www.moneysavingexpert.com/savings/lifetime-isas/

Albermarle

Also, if I do go for stocks, does anyone have any advice on the best ones to invest in? (I know basic things about stocks but not a lot) 

As above, probably a cash Lisa is better for you, but if you really think that the money will not be needed for > 5 years ( or ideally even longer) and want to invest, then you should be looking at passive low cost multi asset funds and not individual shares.

Passive investing Archives - Monevator