Lifetime ISAs guide
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Looking just to get my foot in the door with the minimum, I am worried nutmeg infrastructure is new and won't be able to cope with a later transfer, so I am thinking of HL despite higher fees - what would be the cheapest investment option for HL to get going? (I am assuming it is a tracker of some sort)0
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bowlhead99 wrote: »If this is part of your retirement planning and you are putting in £4000 a year for the next ten to eleven years and then being left until you're over 60 to grow further, that is a natural "drip feed" and will encompass plenty of ups and downs as your ongoing purchases buy assets at all sorts of prices over the next 120 months.
When you are 120 months down the line and you look back, you are really not going to think "oh my god look how much my portfolio suffered when I paid in £1200 in August 2017 instead of £300 in each of May, June July and August"
So, it doesn't have to be "so frustrating". If you're bothered about it, you could invest the £300pm in their ISA or general unwrapped investment account instead over the next few months and move the resulting investment proceeds over later. Even if you use the non-ISA, non-LISA, unwrapped fully taxable account, it's not like you're going to end up paying capital gains tax or dividend tax on the profits you get on £1000 invested for a few months.
Thanks. I guess the frustration is relative to me being new to S&S ISAs and not being great at making decisions at the best of times so having pretty much decided to spread my payments out monthly it's a pain to have to make a new decision as to what to do. At least I found out before opening the LISA and what you say about spreading the investments out over the 10/11 years is very reassuring.0 -
Reading nutmeg says can only put in a set amount at opening then can't add to it? That right or am I reading wrong?0
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Reading nutmeg says can only put in a set amount at opening then can't add to it? That right or am I reading wrong?
Yes, we've been discussing this over the previous page or two. They say that they are still setting their system up to work properly with the new LISA product, and that the ability to add to the account will be up and running within a few months at the latest (remember, the final regulations were only released in the last 10 days, so providers have been rushing to get things ready for today).
If you need to be adding to the investment in the short term, then yes, I'd look at HL.0 -
Hi,
Please accept my apologies in advance if my questions have already been answered before.
I currently have a "split ISA" (Cash and H2B) and wondering what would happen to the cash ISA when I transfer H2B to LISA?
Would I be able to continue paying £ into the Cash ISA before/or after the H2B is merged with the LISA.
Any clarification would be greatly appreciated!0 -
You can keep paying into both accounts in the split-ISA, and would be free to transfer the cash ISA elsewhere after the transfer. Once you've transferred the HTB ISA into the LISA, it will be as if you never held a HTB ISA.Hi,
Please accept my apologies in advance if my questions have already been answered before.
I currently have a "split ISA" (Cash and H2B) and wondering what would happen to the cash ISA when I transfer H2B to LISA?
Would I be able to continue paying £ into the Cash ISA before/or after the H2B is merged with the LISA.
Any clarification would be greatly appreciated!
If you don't want to continue paying into the cash ISA before the HTB ISA is transferred, then you could transfer the cash ISA elsewhere now since it only holds money from the previous tax year.0 -
My daughter holds a UK passport but currently rents and works in Germany. Her long term plan is to come back to UK and buy a property.
I note that LISA can only be opened by people who live in the UK. Is there a legal definition of this please?
I'd be grateful if any of the experts here could help with this question I asked previously. Many thanks.0 -
I'd be grateful if any of the experts here could help with this question I asked previously. Many thanks.
I note that LISA can only be opened by people who live in the UK. Is there a legal definition of this please?
Your daughter would need to be a UK tax resident in the eyes of HMRC (with certain exceptions like working for UK armed forces stationed overseas).
Presumably your daughter does not want to declare herself to be UK tax resident to meet this criteria because she would then have to pay UK tax on all her worldwide income (as well as paying German income tax on what she earns from her employment in Germany).
She would be better to investigate German tax-advantaged savings/investment schemes rather than UK ones.0 -
Just looking for a bit of advice as I've been looking at the HTB ISA's and the LISA's and I'm still not sure what my best course of action should be.
My Fiance and I have a good chunk of money saved in a standard savings account to go towards a deposit on a house. I'm not really that well up the best places to keep our money so it's a really bog standard account.
We are looking to buy in the next 12-18 months and I'm just looking for a way to maximise the potential return we can get in that short period of time.
Should we open HTB ISA's and LISA's how does the transfer work, is there any benefit to doing this now or should we just go straight to the LISA's? I assume opening an account each would be the best course of action to get the maximum returns?
I've read the article from ML but my head is still a bit muddy so I'd appreciate any advice.
Thanks0 -
25% is deducted on anything you withdraw before 60 for a non-"life event". Investment performance within the LISA is irrelevant to this.
Income cannot be "paid away", so it will just be another form of growth within your LISA.
If you use their ready made ISAs, then you'd end up paying those extortionate fees. If you use a cheap multi-asset fund, your total fees could be as low as 0.67%.
Yes, or if you use their fixed portfolios, about 0.65%. There is no evidence their managed portfolio will perform better than the equivalent fixed one over the next X years.
I don't know, but you'd be mad to pay even this much.
Not necessarily. HL and Nutmeg are tied when it comes to the cheaper options.
Remember that Nutmeg is a loss making venture that has had to have several injections of capital to keep going, whereas HL is a profitable and established company, so that could factor into your decision. I'm not in a rush to open a LISA anywhere that currently offers one.
@masonic Thanks for the replay - that's cleared up a lot for me!
I'll take on board what you're saying about going for funds with lower fees. I haven't dabbled in stocks and shares before, so will probably go for a managed portfolio initially. However, I may well take more control once I'm more comfortable with how things work.0
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