Can we talk about LISAs (Lifetime ISAs)?


#42

I have been using Vanguard LS 80 for a while with excellent returns. I strongly recommend looking at sites such as monevator and reading about investment strategies.

Passive investment plus an ETF like VLS80 is simple and effective (historically).

In answer to the initial question, there has been a recent downturn in the market and with uncharted territory ahead I would not put my money into s&s if I needed it within 3 to 5 years (house purchase). It all depends on your tolerance to risk :sunglasses:


#43

No. Your “earnings” do not count towards the total £4000, it is based on how much you deposit.

This being said, I did hear rumor that if you lost money, below the £4000, some platforms had a “glitch” allowing you to contribute and make up losses. This was when the LISA first became available though and government bonus was paid at the end of the financial year :wink::sunglasses:


#44

If anyone is thinking of opening a savings account with Nutmeg I have a code that gives you £100 for investing and 6 months of no fees. PM if you want it

*LISA apparently isnt included but they do offer one (and you can open both) and I have it and think it is pretty good returns at the moment (Obviously it is investing so can go up or down)


#45

Sadly opening a LISA isn’t elgible for this offer

Damn terms & conditions

Edit : to add , I have a LISA with Nutmeg and have been impressed

Too early to see any decent returns, time will tell


#46

Not sure what would stop you opening a savings one then moving it across to your LISA though?


(Freddie Altman) #49

Hi, I’m Freddie and (for full disclosure) I run a company, launching later this year, called Homewards. Our aim is to help people – specifically LISA customers – to get onto the ladder quicker through cashback on their spending.

It’s great to see so many people are clued up about the LISA and the various providers. But, what I haven’t managed to understand from the thread so far is just how easy people are finding it to reach the maximum £4k annual limit to get the full £1k government bonus.

On the whole, are people managing to do it simply enough? And what do people think about being able to get there with cashback on your spending rather than your own contributions as such?

  • I’ve been hitting the £4k annual limit :dart:
  • I haven’t been able to put in £4k p.a. :grimacing:

0 voters


#50

Fancy telling us a little more about Homewards and how it is made for LISA customers specifically?


(Freddie Altman) #51

Hey @don_quixote, sure thing.

We provide our members with cashback on purchases from thousands of everyday retailers (online and in-store) that is transferred into their Lifetime ISA – to help them boost their savings towards their first home and maximise the government bonus they receive.

Family members can join too and nominate their cashback to someone else, which we pool together into that person’s LISA to maximise their contributions.

We were recently featured in The Times and This is Money if you’re keen to find out more.

Really interested to see how the community feels about the concept of boosting their LISA savings with cashback and the family contribution element too.

Thanks!


(Nathan) #52

Will this be tracked without the need to have to “go through” a specific link on your site before every purchase?

Because if the answers yes then im sorry ill not use your product :grimacing:


(JackO) #53

I think the idea pretty cool.

But agreed, from what I understand homewards want people to share their commission in groups to pay into one LISA.

If that’s going to be a success I think it relies on being able to have something such as a browser extension able to track individuals purchases where people can set it up and then forget about it (or at least make it very easy to get the cashback via something similar).

As I can’t see family members going to homewards every time they want to make a purchase online.

But then at the same time I struggle to see why retailers would engage with this as it means that person was already going to purchase something.

Maybe I’m missing something :confused:


(Freddie Altman) #54

To track online purchase members will have to click through a link to the retailer website or app (if you have it installed), I’m afraid. Unfortunately, it’s an industry standard for now but in the future this should be more seamless where you’ll just use one of your registered, existing cards and it’ll pick up the purchase automatically.

For in-store offers that’s exactly how it’ll work. You could spend on your Monzo card and it’ll recognise when you’ve purchased from a participating retailer.


(Freddie Altman) #55

Thanks, @JackO.

Not just random groups of people, but those who might want to support the LISA saver, e.g. parents, grandparents, etc.

Totally agree, for each type of person a different prompt/engagement technique will be needed to make sure they remember to have their purchases tracked to receive their cashback rewards. A chrome extension is in the pipeline to make sure that my granny, for example, knows there’s cashback to be had when doing her weekly online shopping. She can click the button and it’ll redirect her to the retailer website.

A good example was someone we know who did this manually, making £7,000 towards his deposit from his own cashback and getting his family to use a cashback account of his for (most of) their purchases, especially the big ones like holidays, etc.

As for retailers, they’re paying for “incentivised traffic” – basically a guarantee that they only pay for a definite sale. For them, it’s worth committing marketing budget towards because they can 100% attribute a sale to that marketing channel, unlike display advertising, for example.

Hope that helps!


#56

Kidstart has the same sort of system for online and I gave up on it almost instantly - so much hassle!


#57

Just signed up for this. What’s the ETA on Homewards, anyway? From what I’ve seen so far, I’m really looking forward to it!

So much of the discussion I’ve seen on here is by people who have the kind of incomes to max out LISAs easy peasy, not people who are on relatively low incomes who are trying to save :disappointed_relieved:


#58

Saving the max only makes sense if you’re sure you’re going to use it for a house purchase.

The retirement option is much more complicated, but basically you’d only want to put money in that you’re sure you really really won’t need until you’re 60, and even then only after you’d topped up your pension etc…

Cashback for retirement LISAees could actually make more sense than for purchase LISAees, as it would be little bits of cash to forget about for 10-30 years


(Freddie Altman) #59

I understand why some may find that a hassle for online. It can be easy to forget to follow the link to the retailer website.

Unfortunately, it’s an industry standard for online affiliate marketing right now. Things are changing though and it’ll become more seamless with time.

What is it specifically that you find a hassle? Is it just going to the cashback site before shopping? Would something like a chrome extension to prompt the clickthrough when you browse as usual make that less arduous for you?


(Freddie Altman) #60

Thanks, @rhebden. Glad to have you on board! We’re aiming to be live by Q4 this year. Hopefully, we’ll be able to help you get closer to maxing out that limit each year :slightly_smiling_face:


(Freddie Altman) #61

Great point – and there’s nothing stopping people using our service to save for retirement!


(Nathan) #62

My main issue is its a system thats built for laptop and online shopping on a computer not for mobile.


(Freddie Altman) #63

That’s interesting. We’ve got it on our early roadmap to optimise the mobile experience by making sure that if you have Just Eat’s app, for example, that clicking the link will redirect you there rather than to their mobile website.

Would that solve the problem for you?