ablender
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Post by ablender on Mar 20, 2016 11:40:05 GMT
I found the following in a news letter I receive:
"Lifetime ISA
A new Lifetime ISA will be launched, to help you save for your first home or for retirement.
The ISA limit will be increased to £20,000 a year for all savers, and lifetime ISAs will be introduced for young people.
For every £4 you save, the Government will top it up by £1. So if savers put in £4,000, the Government will give them £1,000 every year until they reach the age of 50."
Is this something that we can combine with P2P lending?
Is the increase in the ISA limit applicable to IFISA?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 20, 2016 12:27:14 GMT
I found the following in a news letter I receive: "Lifetime ISA A new Lifetime ISA will be launched, to help you save for your first home or for retirement. The ISA limit will be increased to £20,000 a year for all savers, and lifetime ISAs will be introduced for young people. For every £4 you save, the Government will top it up by £1. So if savers put in £4,000, the Government will give them £1,000 every year until they reach the age of 50." Is this something that we can combine with P2P lending? Is the increase in the ISA limit applicable to IFISA? This is two seperate announcements. The ISA limit will increase to £20k for everyone in Apr 2017 and applies to all standard ISA types including IFISA just as does now The new Lifetime ISA from Apr 2017 only applies to those aged 18-40 and they can contribute £4000 a year up until they are 50 which the govt will top up at the end of the year as you describe. However, unlike a normal ISA you cant withdraw the money penalty free until you are 60, there is a 5% fee and you lose the bonus and interest earnt on the bonus, unless you a first time house buyer buying a house. Rules on transfers, one a year etc same as normal ISA. Sum invested in a lifetime ISA counts towards total ISA allowance so if you put in the £4k you would then have £16k to invest elsewhere. It seems that it will cover all ISA types so you could have a Lifetime ISA with P2p investments. However, as with the IFISA rules are still being decided and it would depend on providers deciding to offer them which they may not as possibly admin costs will make it unattractive, though 25% boost should mitigate that. This seems a good analysis monevator.com/lifetime-isa/Too late for me  Edit - they are exploring making it sort of flexible so you would be able to make a withdrawl before 60 and as long as you put the money back not loose the bonus Interesting reading the HMRC docs ISTM that you will be able to fund it by transferring exisitng ISA contributions in, so you could move £4k from your normal ISA into the LISA to get that years bonus and still have £20k to ISA for the current year. www.gov.uk/government/uploads/system/uploads/attachment_data/file/508176/Lifetime_ISA_final.pdf
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Liz
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Post by Liz on Mar 20, 2016 12:34:51 GMT
I found the following in a news letter I receive: "Lifetime ISA A new Lifetime ISA will be launched, to help you save for your first home or for retirement. The ISA limit will be increased to £20,000 a year for all savers, and lifetime ISAs will be introduced for young people. For every £4 you save, the Government will top it up by £1. So if savers put in £4,000, the Government will give them £1,000 every year until they reach the age of 50." Is this something that we can combine with P2P lending? Is the increase in the ISA limit applicable to IFISA? This is two seperate announcements. The ISA limit will increase to £20k for everyone in Apr 2017 and applies to all standard ISA types including IFISA just as does now The new Lifetime ISA from Apr 2017 only applies to those aged 18-40 and they can contribute £4000 a year up until they are 50 which the govt will top up at the end of the year as you describe. However, unlike a normal ISA you cant withdraw the money penalty free until you are 60, there is a 5% fee unless you a first time house buyer buying a house. Rules on transfers, one a year etc same as normal ISA. Sum invested in a lifetime ISA counts towards total ISA allowance so if you put in the £4k you would then have £16k to invest elsewhere. It seems that it will cover all ISA types so you could have a Lifetime ISA with P2p investments. However, as with the IFISA rules are still being decided and it would depend on providers deciding to offer them which they may not as possibly admin costs will make it unattractive, though 25% boost should mitigate that. This seems a good analysis monevator.com/lifetime-isa/Too late for me Damn it, I turn 40 a week before the deadline. So at 40 I'm too old to save for retirement, are this government thick? Bear in mind someone who is 40, still has 30 years left before they are likely to draw a state pension. Also over 40's vote. Add in a letter my my partner had this week from their employer, stating that due to pension changes from government, we will be over £1000 worse off per year.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 20, 2016 12:48:27 GMT
This is two seperate announcements. The ISA limit will increase to £20k for everyone in Apr 2017 and applies to all standard ISA types including IFISA just as does now The new Lifetime ISA from Apr 2017 only applies to those aged 18-40 and they can contribute £4000 a year up until they are 50 which the govt will top up at the end of the year as you describe. However, unlike a normal ISA you cant withdraw the money penalty free until you are 60, there is a 5% fee unless you a first time house buyer buying a house. Rules on transfers, one a year etc same as normal ISA. Sum invested in a lifetime ISA counts towards total ISA allowance so if you put in the £4k you would then have £16k to invest elsewhere. It seems that it will cover all ISA types so you could have a Lifetime ISA with P2p investments. However, as with the IFISA rules are still being decided and it would depend on providers deciding to offer them which they may not as possibly admin costs will make it unattractive, though 25% boost should mitigate that. This seems a good analysis monevator.com/lifetime-isa/Too late for me Damn it, I turn 40 a week before the deadline. So at 40 I'm too old to save for retirement, are this government thick? Bear in mind someone who is 40, still has 30 years left before they are likely to draw a state pension. Also over 40's vote. Add in a letter my my partner had this week from their employer, stating that due to pension changes from government, we will be over £1000 worse off per year. 'Old' people are sensible enough to save for their retirement, 'young' people are less likely to vote Tory - have to see it through George's eyes As someone who has never bought a house, Im off to see if I can open a Help to Buy ISA and then find a loophole that allows me to turn it into a LISA in 2017. Hope springs eternal, unlike my youth 
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ben
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Post by ben on Mar 20, 2016 20:21:50 GMT
It appears good on the face of it and if was offered this last year would have gone for it but I expect to have a rather large drain on my finances in about 5 years time and the get out makes it not worthwhile if the drain is larger then I expect which it probably will be as I am sure they will be plenty of parasites dragging it out for as long as possible.
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ablender
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Post by ablender on Mar 20, 2016 22:00:43 GMT
Thanks ilmoro . 40 eh? I have missed the deadline by a few years then. |
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brin
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Post by brin on Mar 20, 2016 22:38:39 GMT
 20 more than a few here.
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james
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Post by james on Mar 20, 2016 23:33:29 GMT
Is this something that we can combine with P2P lending? Is the increase in the ISA limit applicable to IFISA? "Qualifying investments in a Lifetime ISA will be the same as for a cash or stocks and shares ISA" ( The New Lifetime ISA para 1.7). Neither 36h nor other P2P except via investments funds/trusts is permitted in either of those two. The new limit does apply to IFISA. IFASA can be combined with P2P but not in the same ISA because 36h investments are not in the permitted investment lists for either cash or S&S ISA.
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vmail
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Post by vmail on Jan 14, 2017 20:36:52 GMT
I'm trying to do XIRR on LISA, I don't think I am doing it right
06/04/2017 4000
06/04/2018 4000
06/04/2019 4000
06/04/2020 4000
06/04/2021 4000
06/04/2022 4000
06/04/2023 4000
06/04/2024 4000
06/04/2025 4000
06/04/2026 4000
06/04/2027 4000
06/04/2028 4000
06/04/2029 4000
06/04/2030 4000
06/04/2031 4000
06/04/2032 0
06/04/2033 0
06/04/2034 0
06/04/2035 0
06/04/2036 0
06/04/2037 0
06/04/2038 0
06/04/2039 0
06/04/2040 0
01/09/2040 -75000
XIRR = 1.357962787
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Post by Come_on_Grandad on Jan 14, 2017 21:21:51 GMT
I'm trying to do XIRR on LISA, I don't think I am doing it right 06/04/2017 4000 06/04/2018 4000 06/04/2019 4000 06/04/2020 4000 06/04/2021 4000 06/04/2022 4000 06/04/2023 4000 06/04/2024 4000 06/04/2025 4000 06/04/2026 4000 06/04/2027 4000 06/04/2028 4000 06/04/2029 4000 06/04/2030 4000 06/04/2031 4000 06/04/2032 0 06/04/2033 0 06/04/2034 0 06/04/2035 0 06/04/2036 0 06/04/2037 0 06/04/2038 0 06/04/2039 0 06/04/2040 0 01/09/2040 -75000 XIRR = 1.357962787 Yes, that's correct ... but your result is a percentage and you haven't indicated that. In this example, with deposits only, it is very easy to check. For the first £4,000 you can calculate an investment period of 23.42192 years (by subtracting start from end date and division by 365) and then use FV with that value for nper, the rate that XIRR gave you, pmt of 0 and pv of £4,000 to get a future value of £5486.09. Do the same for all your deposits and ... the future values sum to £75,000
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Post by brokenbiscuits on Jan 15, 2017 18:01:36 GMT
I would think the biggest interest outside of those buying a house would be the self employed.
Keeping a close eye on them to see if more clarity is given nearer April, but seems withdrawal at age 60 is tax free whatever you pull. Might be a good option alongside other investments if this tax advantage at the end is there.
Can be invested in stocks but not p2p as far as I'm aware. Need to do a bit more reading first though.
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vmail
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Post by vmail on Jan 15, 2017 19:19:06 GMT
So it's better to put the money into P2P than a cash LISA, Increase compared to LISA is noticeable in year 4 and better off by £283,363.79. No one knows what interest rates will be in the LISA account.
P2P rate 12.7455404% (10.1964323% Net) <-- current earning rate
Contribution Balance Rate Interest Balance difference from LISA
4000.00 4000.00 0.101964323 407.86 -592.14
4000.00 8407.86 0.101964323 857.30 -734.84
4000.00 13265.16 0.101964323 1352.57 -382.27
4000.00 18617.73 0.101964323 1898.34 516.07
4000.00 24516.07 0.101964323 2499.76 2015.83
4000.00 31015.83 0.101964323 3162.51 4178.34
4000.00 38178.34 0.101964323 3892.83 7071.17
4000.00 46071.17 0.101964323 4697.62 10768.79
4000.00 54768.79 0.101964323 5584.46 15353.25
4000.00 64353.25 0.101964323 6561.74 20914.99
4000.00 74914.99 0.101964323 7638.66 27553.65
4000.00 86553.65 0.101964323 8825.38 35379.03
4000.00 99379.03 0.101964323 10133.12 44512.15
4000.00 113512.15 0.101964323 11574.19 55086.34
4000.00 129086.34 0.101964323 13162.20 67248.54
0.00 142248.54 0.101964323 14504.28 81752.82
0.00 156752.82 0.101964323 15983.20 97736.02
0.00 172736.02 0.101964323 17612.91 115348.93
0.00 190348.93 0.101964323 19408.80 134757.73
0.00 209757.73 0.101964323 21387.81 156145.54
0.00 231145.54 0.101964323 23568.60 179714.14
0.00 254714.14 0.101964323 25971.75 205685.89
0.00 280685.89 0.101964323 28619.95 234305.84
0.00 309305.84 0.101964323 31538.16 265844.00
0.00 340844.00 0.051401193 17519.79 283363.79
358363.79
XIRR = 10.84282815%
If you wanted to match the LISA performance then it needs to be in a 5.23205% account
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james
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Post by james on Jan 15, 2017 21:09:18 GMT
I would think the biggest interest outside of those buying a house would be the self employed. ... Can be invested in stocks but not p2p as far as I'm aware. Need to do a bit more reading first though. In his evidence to a Parliamentary committee last year Martin Lewis said that his view was that pensions are a better choice for retirement except for the self-employed. P2P isn't currently permitted, anything a cash or S&S ISA can hold is.
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stevio
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Post by stevio on Jan 15, 2017 22:42:25 GMT
I would think the biggest interest outside of those buying a house would be the self employed. ... Can be invested in stocks but not p2p as far as I'm aware. Need to do a bit more reading first though. In his evidence to a Parliamentary committee last year Martin Lewis said that his view was that pensions are a better choice for retirement except for the self-employed. P2P isn't currently permitted, anything a cash or S&S ISA can hold is. Be interesting to compare to putting the same amount into a pension Note, some comments Martin Lewis made: If you're employed, auto-enrolment means your employer has to match some of your contributions in a pension; they don't in a LISA. This is a big advantage of pensions, and one that easily trumps a LISA. If you're self-employed and a higher-rate taxpayer, still prioritise paying in to your pension as the tax relief is far bigger. If you're self-employed and a basic rate taxpayer, the differences are much smaller, so it may be more about which scheme will suit you better If people use a LISA rather than a pension, as it comes from taxed income it gets the Treasury tax revenue now. If people put it in a pension, the Treasury has to wait years until it gets tax.
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stevio
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Post by stevio on Feb 5, 2017 22:55:48 GMT
Will the LISA form a new ISA category, so that the "you can put money into one of each kind of ISA each tax year" would mean you can put NEW funds into one of each:
- Cash
- S&S
- IFISA
- LISA
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20 more than a few here.
