-
The forum upgrades are now largely complete.
Please read this thread for more details.
New user registrations are currently disabled.
Stocks n Shares ISA
- Thread starter Fletch
- Start date
The Ram
Central Defender
Coincidentally I've been looking at the same thing LISA vs SIPP so I'm glad this question has been raised.
The main driver is I'm 38, and the LISA closes to new applicants at 40 and then to additional funds from 50. So that gives 12.5 years to contribute before its locked (although you can change investment options if using s&s) whereas a SIPP you can keep contributing.
Darlo1973
Striker
"I have investments actually". Savings are different.
Amokachi
Winger
Fair point I hadn't thought about that. I'd probably just lie and say I have no savings in that scenario tbh.
woodlebert
Striker
Is the LISA tax free when you take it out in retirement whereas a SIPP will be taxed?
burro nunn
Winger
Wasn't sure if they could check or could just plead ignorance
I did open one and put a quid in just in case I change my mind.
Aye there is that.
Last edited:
It doesn’t sound like you need to make the decision now mate. If you pull it now you’ll lose £5k/£6k. If you need it, you can weigh up that decision then. Whether it’s worth losing that money or keeping it.
You can still have the ISA & get the benefits of the tax relief, but you can’t add to it.
You can have an investment LISA. Theoretically, depending on what platform you’re on, you could have exactly the same investments in a LISA & S&SISA. It’s just the wrapper rules that are changing for you.
Could be if you’re maxing out your existing pension allowances.
You can’t have your pension until 57 currently. So it’s whether that 3yrs could make a difference to you. Also, if you’re employed, your workplace pension will get additional contributions from the employer.
Just move the LISA to a Investment one. Same investments as a S&S ISA.
I’m a year younger than you & have opened a LISA to use as a mortgage overpayment vehicle.
Put in a regular amount over the next 12yrs, the growth will be bigger than the savings on the mortgage, especially taking into account the 25% free.
The trade off is, I’m making peace that my mortgage won’t be paid off until 60. I can handle that if it’s part of my plan & it’s tax free to take.
I’ve still got my standard pension for retirement planning. Having both is more of an organisation thing than anything else.
Last edited:
Harbour Boy
Winger
I'm not in any pensions apart from my workplace one. Any you recommend?
First up, make sure you’re getting the maximum matched contributions from your employer. The minimum they have pay in is 3%. However some will give you more e.g. if you put in 7%, they will. That’s free money, don’t turn it down.
Once you’ve done that, you could always opt to put in more of your wage into your company pension scheme
Or, you could open a SIPP (self invested personal pension), with the likes of Vanguard or Hargreaves Lansdown, there’s various different platforms out there. You’ll have to pick your own investments within these.
Other option is an IFA who can help you out, put you on their platform, manage the investments for you & help put a plan in place for accumulation as well as drawdown when the time comes to retire. You’d expect that person to advise on all other arenas of your finances too. You’ll play a slightly higher charge for the service.
The short answer to your question is, these days, new pensions are all the same in principle. You’ve just got to choose where to hold it. The difference after is the performance of the investments once in the pension.
Darlo1973
Striker
I usually have two pensions running in parallel.
One is whatever my current employer scheme. I also have a personal pension which I've been adding to an ad-hoc basis over the last 20 years whenever I have some spare money. I also use it to transfer company pensions into when I move jobs. This saves having to track multiple pensions which you have collected from jobs over the years. I suppose you could move all of your old pension into whatever is your current scheme but you don't get to choose who your employer's provider is.
If you are thinking of stopping with the same employer long term then maybe one pension would be enough but if you move jobs every few years manging lots of different pension can be a pain.
One is whatever my current employer scheme. I also have a personal pension which I've been adding to an ad-hoc basis over the last 20 years whenever I have some spare money. I also use it to transfer company pensions into when I move jobs. This saves having to track multiple pensions which you have collected from jobs over the years. I suppose you could move all of your old pension into whatever is your current scheme but you don't get to choose who your employer's provider is.
If you are thinking of stopping with the same employer long term then maybe one pension would be enough but if you move jobs every few years manging lots of different pension can be a pain.
Blue_Monday
Central Defender
Is Vanguard 20% a good way to start if you have about 20k you want to invest and know very little about stocks and shares?
Edinburgh Black Cat
Striker
It depends.
Vanguard 20% is 20% Stocks and 80% Bonds so is, in theory, much lower risk/return than other funds.
Better for those who are older or need the money back soon but not great for those who are younger or want to put it away for 10/20/30 years.
The Butcher
Striker
Must be costing you to keep transferring pensions though?
Blue_Monday
Central Defender
I am 32 and just want to stick the 20k somewhere and forget about it really, not expecting to need the money anytime soon but not really wanting to risk losing a chunk of it.
Deleted User 11453
Striker
How long will you forget about it for?
If over 10 years then 80-100% equities would be my bet.
Plus you could drip-feed the 20k over at least 12 months.
42
Striker
What time scales are you looking at?
If for retirement, then at your age you should really be looking at 100% equities. Over a 25-35 year time frame the chances of losing money are about 1%.
If you're that risk adverse, probably best just sticking with a standard savings account.
Edinburgh Black Cat
Striker
You must be logged on to see external links
Vanguard's all world product would probably suit well for longer term. Think of it like a FTSE 100 tracker but covering the world rather than just UK stocks.
If you wanted, you can mitigate your risk short term by putting your £20k into an ISA now but buying the fund in chunks (say £10k now and in 6 months, or £5k every 3 months). But that's less of a concern if you genuinely don't want access any time soon.
Edit: disclaimer..obviously there are other funds available so not advising as such (I'm not qualified to do so), just giving an example of a different Vanguard product used for a different purpose
Last edited:
Blue_Monday
Central Defender
No specific timescale or anything as to when I would need the money but would be for at least 5 -10 years if not longer, really just want something that can return a decent amount of money without me worrying about losing a chunk of it, which is why I was looking at the 20% one to start with and then maybe changing to a higher % further down the line. Just don't like the idea of putting it all in to a 80 or 100% one to start with and possibly losing a large chunk of money.
ReidysLeftLug
Striker
Even Cramer is pleading for the youth to get aggressive with something speculative, not that what Cramer says means anything he's a complete meme... although if you have time on your side there's nothing wrong with greater risk imo.
