Author Topic: Your favourite provider of LISA?  (Read 817 times)

MrOnyx

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Your favourite provider of LISA?
« on: May 02, 2018, 07:43:58 AM »
Hi guys, just a simple one this time:

Don't know how often this is discussed, but whom are your favourite providers of Lifetime ISAs?

I know they're pretty rare, and I've actually only found one so far (Onefamily) and their rates seem pretty high at least to me - they take 1% annual management charge, as well as 0.3% for "Investment expenses", and I'm not sure on the frequency of that. Is it just me or is that high?

If you max that out over a year, your £4,000 + £1,000 is being reduced by £50 every year. Meaning your actual max input per year is £3,960 + £990 (£4950). Obviously this is then multiplied by how many years you invest (it'll be a lot for me).

Maybe I'm thinking about it wrong, or maybe those numbers aren't as bad as I think they are. Whom is your favourite provider of LISAs - or, for that matter, ISAs - especially if you use more than one provider for these different accounts for a specific reason.

frugledoc

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Re: Your favourite provider of LISA?
« Reply #1 on: May 02, 2018, 08:45:59 AM »
That is very high.

I use Hargreaves Lansdown 0.45% capped at £45 per year for ETFs

It is a common myth that HL are expensive. As long as you donít buy funds they are very cheap

MrOnyx

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Re: Your favourite provider of LISA?
« Reply #2 on: May 02, 2018, 08:54:14 AM »
That is very high.

I use Hargreaves Lansdown 0.45% capped at £45 per year for ETFs

It is a common myth that HL are expensive. As long as you donít buy funds they are very cheap

Just looked them up. That's a much more sane sounding charge rate. So you're saying that they're good for ISAs and LISAs, but not for buying funds. So a worthy strategy might be to use HL for the ISAs, and then go somewhere else if, for arguments sake, you've managed to max out the £20k ISA allowance but still want to invest more in stocks/index funds.

Runner5

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Re: Your favourite provider of LISA?
« Reply #3 on: May 02, 2018, 02:03:13 PM »
I use Nutmeg, but there seem to be a lot more providers available now than when they started last June. 0.75% fee which isn't the best, but I'm only keeping it for 3 years, and its more an exercise to get me used to variable returns and such.

frugledoc

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Re: Your favourite provider of LISA?
« Reply #4 on: May 02, 2018, 03:15:33 PM »
That is very high.

I use Hargreaves Lansdown 0.45% capped at £45 per year for ETFs

It is a common myth that HL are expensive. As long as you donít buy funds they are very cheap

Just looked them up. That's a much more sane sounding charge rate. So you're saying that they're good for ISAs and LISAs, but not for buying funds. So a worthy strategy might be to use HL for the ISAs, and then go somewhere else if, for arguments sake, you've managed to max out the £20k ISA allowance but still want to invest more in stocks/index funds.

No, just buy ETFs instead of funds.  If you are buy and holding long term there is no difference.  Index funds are no different from vanguard index etfs.

londonstache

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Re: Your favourite provider of LISA?
« Reply #5 on: May 03, 2018, 01:48:01 AM »
Another vote from me for Hargreaves. Not a fan of Nutmeg personally as I don't want someone making my choices for me.

TartanTallulah

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Re: Your favourite provider of LISA?
« Reply #6 on: May 03, 2018, 03:42:58 PM »
I also went for Hargreaves Lansdown when helping my son open his LISA. I like the user-friendliness of the platform.



shelivesthedream

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Re: Your favourite provider of LISA?
« Reply #7 on: May 03, 2018, 09:45:27 PM »
I've got a HL LISAand then a Vanguard ISA. I want an easy life so at the moment I just buy Vanguard LS100 in both.

PropJoe

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Re: Your favourite provider of LISA?
« Reply #8 on: May 04, 2018, 12:08:47 AM »
I use VG for my ISA and don't have a LISA.
For me it makes more sense to pay extra into my pension than to pay into a LISA, since I'm a higher rate tax payer. Also, under current rules my pension is available at 55, the LISA is 60.

LISA looks great for first time buyers though.

frugledoc

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Re: Your favourite provider of LISA?
« Reply #9 on: May 04, 2018, 09:57:28 AM »
I use VG for my ISA and don't have a LISA.
For me it makes more sense to pay extra into my pension than to pay into a LISA, since I'm a higher rate tax payer. Also, under current rules my pension is available at 55, the LISA is 60.

LISA looks great for first time buyers though.

If you can afford it, max out pension, ISA and LISA

PropJoe

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Re: Your favourite provider of LISA?
« Reply #10 on: May 08, 2018, 06:00:29 AM »
I use VG for my ISA and don't have a LISA.
For me it makes more sense to pay extra into my pension than to pay into a LISA, since I'm a higher rate tax payer. Also, under current rules my pension is available at 55, the LISA is 60.

LISA looks great for first time buyers though.

If you can afford it, max out pension, ISA and LISA

Alas I cannot, maxing pension is 40k alone.