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Post by elephantrosie on Aug 26, 2017 11:12:03 GMT
opened an IFISA account with ABL and a lifetime ISA with skipton building this tax year. could I open a s+s isa?
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Post by beeje13 on Aug 26, 2017 11:30:31 GMT
Yes, just the 20k annual allowance you need to worry about. I also opened the Skipton LISA. Technically a 25.5% return with FSCS protection! Also opened a Lending Works IFISA, and continued subscribing to my previous S&S ISA.  |
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llew
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Post by llew on Aug 26, 2017 12:20:07 GMT
Yes, just the 20k annual allowance you need to worry about. I also opened the Skipton LISA. Technically a 25.5% return with FSCS protection! Also opened a Lending Works IFISA, and continued subscribing to my previous S&S ISA. Quite correct you may invest in a LISA, IFISA, S&S ISA and Cash ISA all in the same tax year, but they all share the same allowance. Handy page: www.gov.uk/individual-savings-accounts/overviewI would just like to point out that with a LISA, 25% is awarded by the Government on contributions only. Therefore it is a one time return and so may not be as good as you think when you take a long term view, since it is impossible to take short term view with a LISA. E.g. Let's invest £1,000 for 10 years, we will say the start date of the investment was 1st May 2017. We will put £1,000 in a Skipton LISA at 0.5%, another £1,000 in an Assetz Capital property secured investment account with provision fund at 5.5%. Skipton LISA (compound interval yearly) Year 1: £1255 Year 5: £1280.29 Year 10:£1312.62 Total: £312.62 interest (tax free)Assetz Investment (compound interval quarterly) Year 1: £1056.14 Year 5: £1314.07 Year 10: £1726.77 Total: £726.77 interest (you must pay tax on annual savings interest over £500/£1000)The interest is of course variable, however both platforms would broadly track the same changes. And of course the Skipton LISA is a safer choice due to the FSCS. The drawback is you'll pay a 25% fee for withdrawing the cash early with the LISA.
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Post by beeje13 on Aug 26, 2017 12:49:07 GMT
It's for my house deposit though, I ain't going near P2P or Shares/Bonds for that!
I plan to put the maximum in over the next few years. I have a 4% regular saver that saves £3k per year for it. S&S, P2P falls into the category 'what I can afford to lose'.
Once I have the house I think I may run my S&S through the LISA for retirement purposes.
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Post by elephantrosie on Aug 26, 2017 13:40:23 GMT
It's for my house deposit though, I ain't going near P2P or Shares/Bonds for that! I plan to put the maximum in over the next few years. I have a 4% regular saver that saves £3k per year for it. S&S, P2P falls into the category 'what I can afford to lose'. Once I have the house I think I may run my S&S through the LISA for retirement purposes. what do you mean by this?
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Post by elephantrosie on Aug 26, 2017 13:40:57 GMT
Yes, just the 20k annual allowance you need to worry about. I also opened the Skipton LISA. Technically a 25.5% return with FSCS protection! Also opened a Lending Works IFISA, and continued subscribing to my previous S&S ISA. Quite correct you may invest in a LISA, IFISA, S&S ISA and Cash ISA all in the same tax year, but they all share the same allowance. Handy page: www.gov.uk/individual-savings-accounts/overviewI would just like to point out that with a LISA, 25% is awarded by the Government on contributions only. Therefore it is a one time return and so may not be as good as you think when you take a long term view, since it is impossible to take short term view with a LISA. E.g. Let's invest £1,000 for 10 years, we will say the start date of the investment was 1st May 2017. We will put £1,000 in a Skipton LISA at 0.5%, another £1,000 in an Assetz Capital property secured investment account with provision fund at 5.5%. Skipton LISA (compound interval yearly) Year 1: £1255 Year 5: £1280.29 Year 10:£1312.62 Total: £312.62 interest (tax free)Assetz Investment (compound interval quarterly) Year 1: £1056.14 Year 5: £1314.07 Year 10: £1726.77 Total: £726.77 interest (you must pay tax on annual savings interest over £500/£1000)The interest is of course variable, however both platforms would broadly track the same changes. And of course the Skipton LISA is a safer choice due to the FSCS. The drawback is you'll pay a 25% fee for withdrawing the cash early with the LISA. I can invest in all the ISA in the same tax year?
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Post by elephantrosie on Aug 26, 2017 13:43:32 GMT
Yes, just the 20k annual allowance you need to worry about. I also opened the Skipton LISA. Technically a 25.5% return with FSCS protection! Also opened a Lending Works IFISA, and continued subscribing to my previous S&S ISA. Quite correct you may invest in a LISA, IFISA, S&S ISA and Cash ISA all in the same tax year, but they all share the same allowance. Handy page: www.gov.uk/individual-savings-accounts/overviewI would just like to point out that with a LISA, 25% is awarded by the Government on contributions only. Therefore it is a one time return and so may not be as good as you think when you take a long term view, since it is impossible to take short term view with a LISA. E.g. Let's invest £1,000 for 10 years, we will say the start date of the investment was 1st May 2017. We will put £1,000 in a Skipton LISA at 0.5%, another £1,000 in an Assetz Capital property secured investment account with provision fund at 5.5%. Skipton LISA (compound interval yearly) Year 1: £1255 Year 5: £1280.29 Year 10:£1312.62 Total: £312.62 interest (tax free)Assetz Investment (compound interval quarterly) Year 1: £1056.14 Year 5: £1314.07 Year 10: £1726.77 Total: £726.77 interest (you must pay tax on annual savings interest over £500/£1000)The interest is of course variable, however both platforms would broadly track the same changes. And of course the Skipton LISA is a safer choice due to the FSCS. The drawback is you'll pay a 25% fee for withdrawing the cash early with the LISA. after my 40% tax, it is only 436 quids. sadly. 120 quids more for 10 years of anxiety is not very worth it imho. not good for my mental health
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Post by beeje13 on Aug 26, 2017 13:48:06 GMT
It's for my house deposit though, I ain't going near P2P or Shares/Bonds for that! I plan to put the maximum in over the next few years. I have a 4% regular saver that saves £3k per year for it. S&S, P2P falls into the category 'what I can afford to lose'. Once I have the house I think I may run my S&S through the LISA for retirement purposes. what do you mean by this? The LISA can either be cash (like what we have done) or S&S. The providers I know of are: HL, Share Centre, and Nutmeg.
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llew
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Post by llew on Aug 26, 2017 22:04:22 GMT
It's for my house deposit though, I ain't going near P2P or Shares/Bonds for that! I plan to put the maximum in over the next few years. I have a 4% regular saver that saves £3k per year for it. S&S, P2P falls into the category 'what I can afford to lose'. Once I have the house I think I may run my S&S through the LISA for retirement purposes. Haha fair enough, I completely agree with the "what I can afford to lose" comment. I have a regular save and a Help to Buy ISA myself, it was the Halifax 5% one, now dropped to 3% or something like that in year 2. Considering switching it to a LISA and most likely I will do. The only thing holding me back is the £450,000 maximum property value caveat, which could become a problem if I'm still in London and haven't made a move to buy within the next 3-5 years! Seeing as a 2 bed flat in what can be described as London and journey under 40m is already about £400,000. Sticking to the Help to Buy right now allows me to pull out with no penalty... we shall see.
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llew
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Post by llew on Aug 26, 2017 22:08:35 GMT
I can invest in all the ISA in the same tax year? Hmm, you didn't click my helpful GOV.uk link did you? Direct quote from the page:
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Post by spiker on Aug 29, 2017 20:08:21 GMT
E.g. Let's invest £1,000 for 10 years, we will say the start date of the investment was 1st May 2017. We will put £1,000 in a Skipton LISA at 0.5%, another £1,000 in an Assetz Capital property secured investment account with provision fund at 5.5%. Skipton LISA (compound interval yearly) Year 1: £1255 Year 5: £1280.29 Year 10:£1312.62 Total: £312.62 interest (tax free)Not quite sure thats accurate... You get 25% bonus each year up to £1000 maximum per year (You've just included the first year in your calculations) You'd get 10*250=£2500 on bonus topups alone (if adding £1000 a year for 10 years), thats equivalent to over 6% p2p gains assuming compounding, but its risk free!/ If you can stretch to add £4000 a year, then you'd have 10*1000=£10000 on bonus topups
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Post by dan1 on Aug 29, 2017 20:52:00 GMT
/Mod hat off Please, no more LISA talk because it makes me feel oh so old |
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Post by sayyestocress on Aug 30, 2017 9:54:23 GMT
E.g. Let's invest £1,000 for 10 years, we will say the start date of the investment was 1st May 2017. We will put £1,000 in a Skipton LISA at 0.5%, another £1,000 in an Assetz Capital property secured investment account with provision fund at 5.5%. Skipton LISA (compound interval yearly) Year 1: £1255 Year 5: £1280.29 Year 10:£1312.62 Total: £312.62 interest (tax free)Not quite sure thats accurate... You get 25% bonus each year up to £1000 maximum per year (You've just included the first year in your calculations) You'd get 10*250=£2500 on bonus topups alone (if adding £1000 a year for 10 years), thats equivalent to over 6% p2p gains assuming compounding, but its risk free!/ If you can stretch to add £4000 a year, then you'd have 10*1000=£10000 on bonus topups Yes but you'd also need to account for that same further yearly contribution going into assetz for a fair comparison. By using 1 year's investment into each option the calculation shows you that the higher rate in assetz will beat the low lisa rate plus bonus over time after roughly 5 years (taking income tax out of the picture). If you're saving to buy a house in the next few years the cash LISA is a great option, probably a no-brainer. Long term it's not worth it because the more money you have in it, the more insignificant the government bonus becomes and an alternative investment with a better interest rate / return should win out over time (e.g. a S+S LISA or pension contributions depending on the individual, or non pension/ISA with good return for added flexibility).
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