Moving £45k into a Stocks & Shares LISA - How Would You Invest It?

Dammi

Hi! I had originally planned to use my cash Lifetime ISA for a property deposit, but it's now likely I’ll be inheriting a home and no longer eligible to use it for a property. So I’m transferring my LISA, a pot of around £45,000, to an AJ Bell Stocks & Shares LISA and will now invest it until I turn 60, in 20 years. I’m comfortable taking a more adventurous approach.

Which funds would you consider investing in if you were me? I already hold Vanguard LS80 and the FTSE Global All Cap fund in my Vanguard S&S ISA. I’ll be aiming to invest the full £4,000 at once each year. I’m also starting to learn about ESG and would eventually like to include ESG-focused funds in my portfolio.

Thanks in advance!

Keep_pedalling

Inheriting a property does not stop you using a LISA fo help purchase you first home providing you get the executor to sell the property within the estate and distribute the proceeds as cash. Unless the property is the sort you would want to go out and buy as a first home, I would take the cash and any left over inheritance  put into a more flexible standard ISA or if you want to hold for the very long term a pension.

dunstonh

 I’m also starting to learn about ESG and would eventually like to include ESG-focused funds in my portfolio.

So, you already know that ESG investing results in lower returns than conventional investing?

If so, good on you for putting your money where your beliefs are.    Are we to assume that you would also be selling your global tracker and the VLS managed fund?

Dammi

Keep_pedalling said:

Inheriting a property does not stop you using a LISA fo help purchase you first home providing you get the executor to sell the property within the estate and distribute the proceeds as cash. Unless the property is the sort you would want to go out and buy as a first home, I would take the cash and any left over inheritance  put into a more flexible standard ISA or if you want to hold for the very long term a pension.

Thanks for letting me know! The money is already in the LISA and now about to be transferred to AJBell, so I'm wondering more, which funds to buy within that. Or are you suggesting to remove it from the LISA and put it elsewhere?

Dammi

dunstonh said:

 I’m also starting to learn about ESG and would eventually like to include ESG-focused funds in my portfolio.

So, you already know that ESG investing results in lower returns than conventional investing?

If so, good on you for putting your money where your beliefs are.    Are we to assume that you would also be selling your global tracker and the VLS managed fund?

I'm so new to learning about ESG's but it's definitely a future option. Right now, I'm more concerned that the money will be in cash in AJBell and will need to be invested. Do you have any suggestions for funds?

I've read here that the HSBC FTSE All-World Index C Acc or Vanguard FTSE All-World UCITS ETF are good possible options..

Eyeful

1. Why so many different investments you are just making things more complicated for yourself?

2. You can make investing as simple or as complex as you like.
I believe in keeping things simple, easy to follow and understand. 

3. I know nothing about you or how much you know about investing. So can not tell what funds would be suitable for you.

4. I can tell you what I would do.Use a low cost Fund or ETF and keep it simple with either a single:
(a) Global Multi-Asset Fund with a share/bond split I was comfortable with to give me a ready made portfolio.
(b) World Index Tracker Fund or ETF which follows either the MSCI or FTSE All World Index.

5. These may be of interest & help :to you:
First watch this:  https://www.kroijer.com/
Read these:
https://monevator.com/passive-fund-of-funds-the-rivals/
https://monevator.com/best-global-tracker-funds/

6. If you do want to make things more complicated for yourself, you could try a "Lazy man Portfolio":
Does not mean you will get better results than "simple investing."
https://monevator.com/9-lazy-portfolios-for-uk-passive-investors-2010/

Dammi

Eyeful said:

1. Why so many different investments you are just making things more complicated for yourself?

2. You can make investing as simple or as complex as you like.
I believe in keeping things simple, easy to follow and understand. 

3. I know nothing about you or how much you know about investing. So can not tell what funds would be suitable for you.

4. I can tell you what I would do.Use a low cost Fund or ETF and keep it simple with either a single:
(a) Global Multi-Asset Fund with a share/bond split I was comfortable with to give me a ready made portfolio.
(b) World Index Tracker Fund or ETF which follows either the MSCI or FTSE All World Index.

5. These may be of interest & help :to you:
First watch this:  https://www.kroijer.com/
Read these:
https://monevator.com/passive-fund-of-funds-the-rivals/
https://monevator.com/best-global-tracker-funds/

6. If you do want to make things more complicated for yourself, you could try a "Lazy man Portfolio":
Does not mean you will get better results than "simple investing."
https://monevator.com/9-lazy-portfolios-for-uk-passive-investors-2010/

Thanks so much for the information! I had thought my approach had been simple, just an S&S ISA and a LISA? With the LISA and the AJBell fees I'd most likely need a single EFT?