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

Alexland

Dammi said:

Oh thats true! I'm fine with the risk for the LISA. I wonder if I'll need to change it away from the ACWI?

My preference for a global tracker in an AJ Bell LISA is SWLD as I don't particularly want to own Emerging Markets for various reasons (most importantly you can never really own Chinese shares so investors are buying into a Variable Interest Entity which IMHO is unsatisfactory in terms of shareholder rights), it accumulates and it is low cost 0.12%. Many may complain that a developed world tracker has too much US exposure but I've done well enough avoiding EM so far that it's created a buffer for when the US next underperforms.

You can email AJ Bell and ask them to take the LISA ongoing charges from the Dealing Account so you don't need to sell down units to create a cash balance from age 50+ (or if they stop offering bonuses before that) if you own an accumulating investment. It also means your overall ISA allowance is not being eroded by LISA fees.

Dammi said:

I'd be really interested to hear what others are planning to do with their Lifetime ISA's that they plan to hold until age 60. What funds/ETFs? 

My LISA doesn't factor into my retirement income plans (as I already have plenty in pensions) so my assumption is that I will maybe buy a new car at 60 with some of it and then probably give the rest away to the kids for their weddings or house deposits. They will be in their early 20s when I am 60. I'll probably start derisking an increasing proportion into either a money market fund such as CSH2 (assuming it's still allowed in LISAs as MMFs look to be banned from S&S ISAs) or short/medium duration Gilts (whatever is allowed at the time) as I get closer to withdrawal.

Dammi

Alexland said:

My preference for a global tracker in an AJ Bell LISA is SWLD as I don't particularly want to own Emerging Markets for various reasons (most importantly you can never really own Chinese shares so investors are buying into a Variable Interest Entity which IMHO is unsatisfactory in terms of shareholder rights), it accumulates and it is low cost 0.12%. Many may complain that a developed world tracker has too much US exposure but I've done well enough avoiding EM so far that it's created a buffer for when the US next underperforms.

Interesting, SWLD has a better Morningstar sustainability rating so it might be one I look into more.

Alexland said:

You can email AJ Bell and ask them to take the LISA ongoing charges from the Dealing Account so you don't need to sell down units to create a cash balance from age 50+ (or if they stop offering bonuses before that) if you own an accumulating investment. It also means your overall ISA allowance is not being eroded by LISA fees.

I wouldn't have known to do this, thank you!

masonic

My plan is to pull as much tax free out of my pension from the age of 60 until state pension age, so likely I will be keeping the risky assets (L)ISA wrapped in retirement. I'm happy to hold emerging markets, but have avoided an all-world index fund primarily due to the level US mega-cap exposure.

So for me it will likely be drawing down from S&S ISA (pre-60), pension (60-70), then a bit of both. An annuity may feature in the mix (quite likely as things stand).