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  • FIRST POST
    • newuser78
    • By newuser78 7th Mar 18, 12:16 PM
    • 185Posts
    • 35Thanks
    newuser78
    LISA - open anyway?
    • #1
    • 7th Mar 18, 12:16 PM
    LISA - open anyway? 7th Mar 18 at 12:16 PM
    So I will be 40 end of this month.

    Many years ago, due to naivety/stupidity, I invested in property with 2 business partners (just before the recession hit and losing it all!) so I don't think I can quality for LISA as a "first time homebuyer".

    Should I open a LISA now anyway for the "save for later" retirement? If I do, can I use it as a wrapper for shares?

    I already make maximum contributions to my pension with my employer matching and am a 40% taxpayer.
Page 1
    • AlanP
    • By AlanP 7th Mar 18, 12:23 PM
    • 1,177 Posts
    • 850 Thanks
    AlanP
    • #2
    • 7th Mar 18, 12:23 PM
    • #2
    • 7th Mar 18, 12:23 PM
    Open it ASAP, just a simple cash one to start with maybe to beat the Birthday Deadline.

    Worry about what you can invest in (might need to be moved to a S&S version from the Cash version) when you have a bit of time to think about it.

    It won't be accessible penalty free until you are 60 so depending on your life plans and overall situation could be a supplement to pensions or maybe additional pension contributions would be better for your circumstances.

    Either way get the LISA opened while you can, next month will too late to realise it was a good idea. Worst case you have say 100 tied up until you are 60.

    If you can put the maximum annual amount in (4k) as that is a "use it or lose it" allowance per tax year.
    • newuser78
    • By newuser78 7th Mar 18, 12:31 PM
    • 185 Posts
    • 35 Thanks
    newuser78
    • #3
    • 7th Mar 18, 12:31 PM
    • #3
    • 7th Mar 18, 12:31 PM
    Thank you, Alan!

    I will go ahead and open a LISA account with Skipton.
    • aj23
    • By aj23 7th Mar 18, 4:02 PM
    • 396 Posts
    • 145 Thanks
    aj23
    • #4
    • 7th Mar 18, 4:02 PM
    • #4
    • 7th Mar 18, 4:02 PM
    Open it now and you can deposit every year until you're 50. That's potentially 10k if you max it out each year.
    • grey gym sock
    • By grey gym sock 7th Mar 18, 4:23 PM
    • 4,321 Posts
    • 3,839 Thanks
    grey gym sock
    • #5
    • 7th Mar 18, 4:23 PM
    • #5
    • 7th Mar 18, 4:23 PM
    as a 40% tax payer, you are generally better off making further pension contributions, even without employer matching, rather than contributing to a LISA. (this could be into your workplace pension scheme, or into a separate personal pension.)

    however, it is well worth opening a LISA with a nominal amount of cash, to keep your options open. (e.g. you might cease to be a 40% tax payer, or higher-rate relief on pension contributions might be abolished, or ...........)
    • cloud_dog
    • By cloud_dog 7th Mar 18, 4:36 PM
    • 3,685 Posts
    • 2,185 Thanks
    cloud_dog
    • #6
    • 7th Mar 18, 4:36 PM
    • #6
    • 7th Mar 18, 4:36 PM
    ^^^^^ - This.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • sam_scott
    • By sam_scott 21st Mar 18, 8:06 PM
    • 30 Posts
    • 4 Thanks
    sam_scott
    • #7
    • 21st Mar 18, 8:06 PM
    • #7
    • 21st Mar 18, 8:06 PM
    Yes, as Martin Lewis says, stick a in before you hit 40, and at least you have the option to put in until you're 50 if circumstances change...
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