Advice Please - Planning for Future - LISA AND ISA

2

Comments

  • TheShape
    TheShape Posts: 1,777
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    Not advice but my experience. I have my S&S LISA with HL. I chose HL as I preferred a platform with no dealing costs for funds unlike AJ Bell and I preferred to pay fees outside the LISA by setting up a seperate HL Fund & Share account from which I pay the fees. I was also happy with the reduced fees that HL have on the Blackrock Consensus 100 fund (fees also reduced on Blackrock Consensus 85) which I also invest in through my S&S ISA.
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Thanks for that advice....I am thinking of Vangaurd SSISA Lifestrategy 60 - works out cheapest and the returns seem to have been favourable....


    LISA I will still investigate
  • Alexland
    Alexland Posts: 9,653
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    edited 12 March 2018 at 8:30AM
    FIRSTTIMER wrote: »
    LISA I will still investigate

    Moneyfarm don't do LISAs and, like Nutmeg, are a loss making company. I think it's more likely that Nutmeg will succeed than Moneyfarm. Still it depends on how much the backers are willing to keep burning money in the hope of getting to a break even point. If either did go bust (and the accounts were not transferred to a competitor) then claiming on the FSCS compensation would be a pain so take regular printouts.

    Still the experience and investment quality at Nutmeg is simple and high quality. I am not a fan of the Moneyfarm investment ETF mix which seems overly complicated for no real benefit. We have closed our Moneyfarm accounts.

    My view is that AJ Bell and HL offer the most attractive S&S LISAs and the choice depends on how regularly you are going to trade. HL are good for regular contributions and, as TheShape mentioned, if you are happy to go for a very volatile investment (ie a chance of 40% to 50% drops) for the chance of higher gains HL have secured very good discounts on the Blackrock Consensus 85 and 100 funds.

    Ours are with Nutmeg and I will be moving them to HL and investing in Blackrock when they next offer an incentive to transfer. I take the most volatility in ISA/LISAs (as the growth will be untaxed) and run the pensions at lower risk (to avoid hitting lifetime allowance issues)

    Alex.
  • Lungboy
    Lungboy Posts: 1,953
    First Anniversary First Post
    Forumite
    Alexland wrote: »
    I take the most volatility in ISA/LISAs (as the growth will be untaxed) and run the pensions at lower risk (to avoid hitting lifetime allowance issues)

    Interesting. Is this the more usual way to do it or your own approach? To me (as an utter novice) the opposite makes sense as pensions are presumably for the longer term and can therefore afford to be a bit more risky. I'm never going to run into lifetime allowance issues though.
  • Alexland
    Alexland Posts: 9,653
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    edited 12 March 2018 at 10:08AM
    It's probably not normal but it's what I do. I have already used 1/4 of the LTA in my 30s (and expect 1/3 of the CPI uplifted LTA by my 40th birthday) so I don't want too much growth in my pensions. Am happy if it only grows by a couple of percent above inflation. Would prefer the volatility and growth elsewhere. The ISAs will be invested for decades anyway.

    Still if the markets dropped enough then I would be tempted to increase the equities in my pensions to take advantage of the recovery.
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Thanks for all this.

    I am going to pluck for vanguard invester with vanguard lifestyle 60 managed fund paying in say £250 a month for a the next 5-10 years. Is this a good fund to leave once set up and it should manage itself?

    I will then set up a lisa s&s with HL before the end of the next tax year once i!!!8217;ve had my vanguard a year or so.

    Can anyone advice on safety - is either company or product likely to fold?

    Should I be watching for my investments to not go over the £50k value for protection purposes and if they do, open another product with another company? Or is this the wrong mentality. I ideally want two products that will do well, I dont have to touch and can access around aged 55-60.

    Thanks
  • Alexland
    Alexland Posts: 9,653
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    Vanguard are one of the world's largest fund managers and HL is the biggest DIY platform in the UK. They are about as safe as you get.

    There are enough companies in the industry that you don't need to take the risk unless there is a fees advantage in which case use your judgement about what proportion of your overall wealth you are risking.

    Alex
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Great. Thats good to know.

    I am hoping £250 a month in a S&S ISA (vangaurd lifestyle 60) will pay out a decent sum circa age 55 (so about a 20 year investment from now)

    Same with S&S Lisa at age 60 saving 4k a year from next year. Apart from them two, I will have 10k cash to fall back on and also company pension and have a propery already, ideally looking to wind down at 55 really! Heres to hoping.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    FIRSTTIMER wrote: »
    Thanks for all this.

    I am going to pluck for vanguard invester with vanguard lifestyle 60 managed fund paying in say £250 a month for a the next 5-10 years. Is this a good fund to leave once set up and it should manage itself?

    I will then set up a lisa s&s with HL before the end of the next tax year once i!!!8217;ve had my vanguard a year or so.

    Are you waiting a year because you don't have the money to invest in the LISA yet? If not then why wait? Waiting means you're missing out on free money from the government, in the form of the 25% bonus.
    FIRSTTIMER wrote: »
    Can anyone advice on safety - is either company or product likely to fold?

    As Alex says, you're opting for two of the biggest and most established companies in the market. The chances of them going bust are very slim.
    FIRSTTIMER wrote: »
    Should I be watching for my investments to not go over the £50k value for protection purposes and if they do, open another product with another company? Or is this the wrong mentality. I ideally want two products that will do well, I dont have to touch and can access around aged 55-60.

    Thanks

    Personally, I'm not worried about exceeding the £50,000 limit. The compensation scheme is only really relevant in instances of corporate fraud or gross negligence. The chances of this are incredibly small. However, if it makes you more comfortable then once you approach £50,000 opt for different investments (but that will be quite a way off yet!).
  • FIRSTTIMER
    FIRSTTIMER Posts: 637 Forumite
    Yes you're spot on - I am doing the first S&S ISA with Van60 first at the start of the the 18/19 tax year, then towards the end of it - once my confidence has been established with a S&S ISA, I will then open a H&L LISA and invest the full 4k before the 18/19 tax year and then start the £333 ish investment with them monthly..


    Can anyone gauge what costs I will be looking at between AJBell and H&L for a monthly subscription of £333 - which company works out cheapest? Ideally I will probably pick a fully active balanced managed fund (similar to lifestyle60) and leave it be.


    If that's approx. £7k cash saved per year £8k if you include government extra - I am looking at 64k invested from me in the LISA and around 75k in the S&S ISA - so hopefully 130kish invested from me resulting in a lump sum of 200k at least hopefully come the time I want to cash in......one can only hope!
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards