ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,333 
Likes: 11,556
|
Post by ilmoro on Feb 5, 2017 23:09:04 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 The full rules havent yet been finalised (the consultation ended last week) but the LISA is currently considered to be a 4th ISA type so you would be able to open a LISA, Cash ISA, S&S ISA & IFISA with current year money. LISA has restrictions on it, max £4k and hve to be under 40 to open and doesnt allow early withdrawl without penalty. It can also be invested in cash and/or stocks but not IF. You will be able to open a HTB & a LISA but not use both towards a house
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 5, 2017 23:11:45 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 The full rules havent yet been finalised (the consultation ended last week) but the LISA is currently considered to be a 4th ISA type so you would be able to open a LISA, Cash ISA, S&S ISA & IFISA with current year money. LISA has restrictions on it, max £4k and hve to be under 40 to open and doesnt allow early withdrawl without penalty. It can also be invested in cash and/or stocks but not IF. You will be able to open a HTB & a LISA but not use both towards a house Its only 2m till launch, shouldn't it have been finalized by now?
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Feb 6, 2017 14:48:20 GMT
Be happy if it doesn't follow the P2P loss relief and not be finalised until eighteen months after it started. Major changes are unlikely.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 6, 2017 19:45:34 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 Have you included the £1k bonus? You have paid in the £4k for 15yrs, I presume that is based on your own personal circumstances?
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 6, 2017 20:01:19 GMT
Struggling to see a benefit of LISA's over pensions?
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Feb 6, 2017 20:24:16 GMT
Struggling to see a benefit of LISA's over pensions? The isa brand is stronger than pensions, doesn't have the toxic press coverage, e.g with profits, maxwell, bhs. for the tax man, it generates immediate returns as it is from your post tax not pre tax income. For most people, I suspect a pension is a better plan. If you have used up your annual allowance though, a LISA may make a good additional step. My current plan is to use 4K into one in s&s, assuming I've understood the details. Not looked massively into it yet as they aren't yet live!
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,333
Likes: 11,556
|
Post by ilmoro on Feb 6, 2017 23:39:35 GMT
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Feb 6, 2017 23:49:49 GMT
Struggling to see a benefit of LISA's over pensions? In his evidence to Parliament last year Martin Lewis said that he thought the LISA for retirement might be a good choice mainly for a sole trader paying only basic rate income tax. Good for the mortgage purpose as well, of course.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 7, 2017 9:00:10 GMT
H&L and Share Centre then for now - Share Centre investments seem to be limited choice of investing in three funds, aimed at the "cautious", the "positive" and the "adventurous" investorFor most of us who like to choose are individual investments, I don't think that will cut it
|
|
NSFW
Posts: 118
Likes: 58
|
Post by NSFW on Feb 8, 2017 10:49:21 GMT
I could get one but I don't see the point. The money is essentially locked away (30% penalty to withdraw early if not for a mortgage deposit) and the 25% bonus isn't compounded every year. I doubt the interest rate will make up for that and even if it launches with a good rate it will be cut like the Halifax HTB ISA was.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 8, 2017 11:25:18 GMT
I could get one but I don't see the point. The money is essentially locked away (30% penalty to withdraw early if not for a mortgage deposit) and the 25% bonus isn't compounded every year. I doubt the interest rate will make up for that and even if it launches with a good rate it will be cut like the Halifax HTB ISA was. Totally agree I am presuming if your approaching 40, you need to open one prior to or at 40 and can't open one after 40, even if you are younger than or at 40 when they first launch? If so, might be worth opening one, even with a small amount, just so you don't miss out if they later become a better deal? Although, I think that might effect the ability to open other ISA's during the tax year as your only allowed one ISA manager for new funds?
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Feb 8, 2017 17:36:11 GMT
You can have money subscribed (newly paid in) during the tax year in an unlimited number of numbered accounts with one ISA manager for each type of ISA.
Open a Lifetime ISA before forty if you can. Just to plan ahead for fifteen to twenty years later when using it will be more useful.
|
|
mason
Member of DD Central
Posts: 666
Likes: 641
|
Post by mason on Feb 8, 2017 19:51:56 GMT
I could get one but I don't see the point. The money is essentially locked away (30% penalty to withdraw early if not for a mortgage deposit) and the 25% bonus isn't compounded every year. I doubt the interest rate will make up for that and even if it launches with a good rate it will be cut like the Halifax HTB ISA was. If you do get one that's not for a mortgage deposit, then you almost certainly don't want one with an "interest rate". Incidentally, the Halifax HTB ISA is still paying 4% for those who took it up at that rate, isn't it?
|
|
NSFW
Posts: 118
Likes: 58
|
Post by NSFW on Feb 8, 2017 20:56:14 GMT
I could get one but I don't see the point. The money is essentially locked away (30% penalty to withdraw early if not for a mortgage deposit) and the 25% bonus isn't compounded every year. I doubt the interest rate will make up for that and even if it launches with a good rate it will be cut like the Halifax HTB ISA was. If you do get one that's not for a mortgage deposit, then you almost certainly don't want one with an "interest rate". Incidentally, the Halifax HTB ISA is still paying 4% for those who took it up at that rate, isn't it? Nope, they cut it for all customers last year. Still a decent rate and no penalties for changing your mind and withdrawing the funds.
|
|
dzo
Member of DD Central
Posts: 158
Likes: 150
|
Post by dzo on Feb 8, 2017 21:49:36 GMT
Incidentally, the Halifax HTB ISA is still paying 4% for those who took it up at that rate, isn't it? 3.5% for me. I opened it the day it launched.
|
|
