LISA - open anyway?

newuser78
newuser78 Posts: 187 Forumite
in Savings & investments
So I will be 40 end of this month. :eek:

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.

Comments

  • AlanP_2
    AlanP_2 Posts: 3,252 Forumite
    Name Dropper First Anniversary First Post
    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
    newuser78 Posts: 187 Forumite
    Thank you, Alan!

    I will go ahead and open a LISA account with Skipton.
  • aj23_2
    aj23_2 Posts: 1,155 Forumite
    Name Dropper First Post Combo Breaker First Anniversary
    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
    grey_gym_sock Posts: 4,508 Forumite
    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
    cloud_dog Posts: 6,044 Forumite
    Name Dropper First Post Photogenic First Anniversary
    ^^^^^ - This.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • sovsov1357
    sovsov1357 Posts: 38 Forumite
    First Anniversary First Post Combo Breaker
    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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