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  • FIRST POST
    • christian white
    • By christian white 9th Feb 18, 3:57 PM
    • 2Posts
    • 0Thanks
    christian white
    Moneybox lifetime ISA
    • #1
    • 9th Feb 18, 3:57 PM
    Moneybox lifetime ISA 9th Feb 18 at 3:57 PM
    Iím wanting to switch my help to buy ISA (currently with Santander) to a lifetime ISA before he end of the financial year, so that I can get the savings from my H2B donít count towards my 2018/109 £4000 limit. There really arenít many options for who to open a lisa with, but Iíve been looking into moneybox..

    So far, Iíve heard little praise for the app - but this mostly seems to be coming from users bashing millenials for wanting to get into investing in stocks.

    Iím not particularly interested in investing at the moment, and as I donít kmow too much about investing Iím very cautious of moving such a large amount of money to moneybox. I plan to save £4000/year, and it will be a minimum of 4 years before I withdraw this to purchase a house. What do people think of using moneybox to open my lifetime isa?

    -Will my money be safe (i.e. insured if the company goes bust)
    -What is the liklihood of making a loss/profit over the 4 years, and how large is this loss/profit likely to be
    -What will be the best investing style to choose (i.e. cautious, adventurous or balanced)
    -Is this the right company to choose, considering their montly cost of £1, 0.45% and 0.22% of the total in my account?
    -Is there *any* feasible chance that I will lose a large proportion of my savings (>10%)

    THANK YOU!
Page 1
    • AnotherJoe
    • By AnotherJoe 9th Feb 18, 4:26 PM
    • 9,608 Posts
    • 10,687 Thanks
    AnotherJoe
    • #2
    • 9th Feb 18, 4:26 PM
    • #2
    • 9th Feb 18, 4:26 PM
    Are you sure the criticism isn't because its quite expensive and the fact it has an app may make it attractive to millenials who dont understand its a complete irrelevance as they wont be sharedealing in it every five minutes?

    re the rest of your questions

    -Will my money be safe (i.e. insured if the company goes bust)
    Yes but the odds of needing that insurance are really REALLY low.

    -What is the liklihood of making a loss/profit over the 4 years, and how large is this loss/profit likely to be
    Its literally impossible to know. I'll hazard a guess at anywhere from plus 100% to minus 90% depending how lucky, able and cool under pressure you are.

    -What will be the best investing style to choose (i.e. cautious, adventurous or balanced)
    For short term savings (and 4 years is short term) for a house, I dont think shares/funds is the right approach. Is there an "ultra cautious" ?

    -Is this the right company to choose, considering their montly cost of £1, 0.45% and 0.22% of the total in my account?
    Seems expensive to me

    -Is there *any* feasible chance that I will lose a large proportion of my savings (>10%)
    Theres a very feasible chance you could lose 50% or more. 10% isnt a "large proportion" and if you think it is you need to steer well clear of investments when saving for a house.
    • Alexland
    • By Alexland 9th Feb 18, 7:28 PM
    • 2,594 Posts
    • 1,976 Thanks
    Alexland
    • #3
    • 9th Feb 18, 7:28 PM
    • #3
    • 9th Feb 18, 7:28 PM
    -What is the liklihood of making a loss/profit over the 4 years, and how large is this loss/profit likely to be

    Obviously it depends on the investment but for a 100% global shares investment you are about 10% likely to have a loss on initial contributions after 4 years. If investing regularly then the final contributions are about 50% likely to result in a loss as they are only invested for a few days or months.

    The loss is at the end is unlikely to be more than 50% of your contributions however in theory you might lose it all but then that wouldn't matter as we would probably be hunting each other for meat with guns.

    You can improve your odds by running a portfolio of shares, bonds and cash and moving more money into bonds and cash as you approach the withdrawal date. Or you could just stay in cash with Skipton.

    Alex.
    • christian white
    • By christian white 10th Feb 18, 1:22 AM
    • 2 Posts
    • 0 Thanks
    christian white
    • #4
    • 10th Feb 18, 1:22 AM
    • #4
    • 10th Feb 18, 1:22 AM
    Thanks! Think I might well stay with skipton! !!!128513;
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