LIFETIME ISA UK | PROS vs CONS Explained | COMPLETE GUIDE 2022

[@TheHumblePenny]

Are you thinking of opening a Lifetime ISA as a First Time Buyer? or Saving for Retirement? What questions do you have for us? Comment below :)

[@knanabby1]

Very informative video. I have a quick question, there is a criteria that the home must be the only home you will own. Does this mean you can only utilise LISA is you only plan to own just one property? Thanks

[@najmasharif9037]

Is it worth getting a stocks and shares isa during a recession? I was planning to get one this year but now I’m worried it’s a dumb decision

[@BilingualAfricanStories]

Thank you for creating this video. I found it really informative. Can one be eligible for a LISA if they have properties overseas?

[@pathwayuk]

I was born on the 5th of April 🥰 thank you for this informative video.

[@inspirationalpostbyleverso6263]

You two are BRILLIANT.

[@TheHumblePenny]

Thank you so much 😊🙏🏽

[@inspirationalpostbyleverso6263]

We will be sitting down as a family and watching you guys,as we are doing our research ,as we are going into investing in stocks and ourselves. You have given me insight and inspiration. Thank you both.

[@TheHumblePenny]

AMAZING. Feel free to reach out if you have any questions

[@inspirationalpostbyleverso6263]

Do you guys do a live podcast if so what day and time, as I will tune in. Thank you for your time and advice.

[@HG-bi9pu]

My plan is to have a stocks and shares LISA to use towards retirement as an addition to maxing out my pension contributions with my employer and then contributing what I can manage towards a normal stocks and shares ISA. Having a 6months-1year emergency fund will hopefully be a cushion to avoid needing to dip into it before 60. Thank you for another helpful video Ken and Mary ☺️

[@TheHumblePenny]

Sounds like a solid plan! 😀

[@yarrumblob]

This is exactly my strategy.

[@TheWellnessAbbey]

I have the same plan 😊

[@BouQuiBQ]

Great video. Nottingham building society is a good Lisa provider too.

[@TheHumblePenny]

Thanks for sharing :)

[@planetblix]

Very useful and timely. Thank you Ken and Mary. I’m planning to open a LISA and drip feed as a secondary insurance scheme on top of work pension and SIPP. The point made about not being taxed when withdrawing the funds after 60 appeals to me.

[@TheHumblePenny]

Thank you 😀

[@JGRaviKumar]

Thanks mate @TheHumblePenny, you both have covered most of the open questions in my mind.

[@brownze1]

Wow the closing remarks did it for me. Thanks 🙏

[@TheHumblePenny]

You’re welcome 😊

[@jeevanmalla6857]

What is the timeframe to deposit a money or Can I deposit the money at anytime in a year?

[@TheHumblePenny]

Anytime within the tax year. The earlier the better because you get the government bonus up to around 49 weeks after you deposit the money.

[@samirahall1807]

Hmmm I may be considering going for the LISA as I had been thinking about it but this video has given me the boost/courage that I need.

[@TheHumblePenny]

Fab, Samira! :)

[@MateyBoy82]

great video thank you. We went with a LISA for first time buying as we wanted to save the deposit over a year and a half, the LISA lets you put away more each month over the £250 limit on other help to buy schemes. it's amazing with two people how fast this accumulates with the bonus, well worth doing.

[@TheHumblePenny]

Fab feedback! Thanks for sharing, Jamie! :)

[@paidachingz2220]

Can you and your partner combine the money you have saved in your individual Lifetime ISAs for payment towards your deposit or only one of you can claim using one account? Meaning that one of you will incur Penalty of 25% when you want to put your monies towards the deposit? I understand that when putting money towards the deposit it will stay as maximum 450,000 and won’t double but wanted clarity on combining both payments from two separate lifetime isas towards the deposit?

[@MateyBoy82]

@@paidachingz2220 you can combine your deposits towards the same purchase without a fine.😊

[@paidachingz2220]

@@MateyBoy82 thank you so much Jamie 😊🙏🏾

[@selimaco]

I used a Lifetime ISA to buy my first property earlier this year and currently using it for retirement. As a PhD researcher I currently don't have a pension pot so the Lifetime ISA is currently acting as my pension pot till I get a job.

[@TheHumblePenny]

Hi Selim, thank you for sharing. Was the process for buying your property using the LISA pretty straightforward?

[@selimaco]

@@TheHumblePenny The LISA provider (Skipton Building Society) had forms that you fill in to transfer funds to the solicitor - so pretty straight forward.

[@birdsaloud7590]

Hi Selim, so once you have used your LISA to buy a home, can you then keep the same LISA for retirement?

[@selimaco]

@@birdsaloud7590 yes you can. I have carried on paying into my LISA for retirement.

[@birdsaloud7590]

@@selimaco thank you!

[@heyheyhey3940]

one crucial thing you have missed, is if you pay into LISA, its tax free the other end but pension is taxable, so you might be saving one end but paying for it later down the line appreciate your thoughts keep up the good work!

[@TheHumblePenny]

Great point! 👍🏽

[@Raetalkss]

This video is so timely!!!! I have been looking at LISAs, thanks so much

[@TheHumblePenny]

You're most welcome 😀

[@michelpohl1019]

Thank you a lot for your explanations! I have two questions 1) you mention that we need a UK bank account to withdraw LISA funds but I think that non residents/foreigners are usually requested to close their UK bank accounts after they leave the UK. Is that correct and if yes, is there a turnaround for that? 2) Do you know whether it is possible to use LISA funds to buy a property abroad or does it need to be a property in the UK? Thank you again!

[@abayomifagbemi332]

Thanks for the video. Pls how can i open a lifetime ISA? And can I use my LISA to buy my first home and then keep it open, adding money into it for retirement purposes as well? Are there any limitations in how I use my first property, e.g. can I rent it out should I need to relocate one day, or can I sell it in the near future, or do I have to wait a certain amount of time?

[@adebimpeolakolu6666]

Is LISA a public fund? For people like us that our visa says we have no recourse to the public fund

[@so_simma]

What happens to the lifetime ISA if you die before reaching 60? Does it die with you or can it be passed on?

[@AL-tm1ve]

I love the videos you guys make, thank you. They are just so clear and direct and I don't get bored like with some others lol

[@TheHumblePenny]

Thanks so much :)

[@jebbysphiri6875]

Learned a lot thanks very much. Added to my weekly playlist watching on 1.25x and checking my savings checklist on isa plans.

[@TheHumblePenny]

Awesome! 😀

[@wesbit88]

Thank you for the very informative video, probably the best one I have seen on YT so far :) I had a couple of questions: can I use my LISA to buy my first home and then keep it open, adding money into it for retirement purposes as well? Are there any limitations in how I use my first property, e.g. can I rent it out should I need to relocate one day, or can I sell it in the near future, or do I have to wait a certain amount of time? Many thanks!

[@k.imelle]

Can you rent out a room if you buy on a lifetime LISA? Or could you potentially remortgage the house on a LISA?

[@eniolalamar9340]

I’m wanting to know this too

[@birdsaloud7590]

Can you have a pension scheme with your work AND a LISA for retirement at the same time? Also, is a LISA potentially better than taking out a SIPP?

[@chidiebereoluabara7931]

I found this video very insightful and timely. May I please ask if it's possible to get the 25% bonus from the government with a stocks and shares LISA or is it only restricted to a cash one? Also, glad you touched on the possibility of being able to use your LISA if a first time buyer in a couple where the other partner is a house owner. I didn't think that was possible, as I thought same rules for stamp duty applied so thanks for clearing that up.

[@TheHumblePenny]

You do get the 25% bonus with a Stocks and Shares LISA too

[@hemandrai3601]

If I do not put money next year, then what will happen? Do I still get an interest?

[@najmasharif9037]

Is it worth getting a stocks and shares isa during a recession? I was planning to get one this year but now I’m worried it’s a dumb decision

[@TheHumblePenny]

Get it.

[@connorsmith1406]

I have had a help to buy ISA for a few years but I already told my girlfriend to open a LISA towards our first house which she was buzzing with the 25% bonus she receives every month 😃 I’m unsure if I will open a LISA, I’m committed to my stocks and shares ISA just now

[@Cheesep321]

Thanks for another great video! Looking forward to your video on Help to Buy vs Lifetime ISAs

[@TheHumblePenny]

Yup, it is lined up ;)

[@so_simma]

What costs (if any) are associated with having a lifetime ISA?

[@TheHumblePenny]

Account and fund fees. Similar to having a Stocks and Shares ISA

[@FreeyourFinance]

A very detailed breakdown guys. Fantastic presentation from you both as always. Gary.

[@TheHumblePenny]

Cheers, Gary! This was a very technical.

[@Susanyoung7000]

Sorry did you say it’s better to go with a bigger company like AJ bell over Moneybox? I have been considering Moneybox but do not want to go with them if there’s a bigger risk

[@philippayne8901]

A very useful video, I'm thinking of investing once a year at £4000, or twice a year at £2000 each to avoid getting stung with transaction fees. In this case would AJ Bell still be a better option than Nutmeg? I would be choosing one of the index type funds from AJ Bell. I'm looking to build up a pot for my retirement.

[@coockiekat]

Might be a daft question but... can I pay towards my pension the standard way, private pension fund and lisa altogether or I have to chose one option? Thanks

[@TheHumblePenny]

You can do both.

[@andyrotaru7031]

For first-time buyers... Do you have to intend to live in the property purchased???

[@birdsaloud7590]

Thank you. I really appreciate your steady clear informative approach.

[@rinimariamjohn2518]

Hii, Im currently in pension scheme. Can I go with lisa and pension together??

[@TheHumblePenny]

Yes. Here is a link to open a Lifetime ISA - thehumblepenny.com/HLLISA (this is an affiliate link meaning we may get a small commission if you use it, but it doesn't cost you anything) 😊

[@HitomiKisugi84]

About the question "If You Opened a Lifetime ISA and Moved Abroad, What Happens To Your Money?" The asnwer you gave only applies to Cash Lifetime ISA or to Stocks and Shares Lifetime ISA as well? Thank you.

[@TheHumblePenny]

Both :)

[@HitomiKisugi84]

@@TheHumblePenny thank you.

[@lukeevans9010]

Hi, great video once again! I have transferred my cash Lisa to an AJ Bell stocks and shares Lisa and am thinking about investing in the Vanguard Ftse all world ETF (VWRL)would in your personal opinion say this is a good fund to invest in for a first time buyer over 5 years or would you choose a different fund/funds?

[@TheHumblePenny]

Hey Luke We can't give you specific investment advice... but in our experience, VWRL has been a good investment choice :)

[@anthonykdramanu9158]

Just to clarify is there no point in having both a lifetime ISA and a help to buy ISA for the purpose of saving for my first property, as I only will be able to get once bonus?(The ISA’s will be provided by different companies)

[@TheHumblePenny]

Correct :)

[@rumbimutopo6262]

Great summarise

[@TheHumblePenny]

Thank you :)

[@anthonyescobar2092]

very helpful video great job! i just have a question , what happens if the LISA holder died before reaching 60?

[@Eby_100]

I opened cash lisa one but I wish I opened stock and share one. Can I transfer cash lisa to stock and share now I'm over 40? God bless you guys for helping me to start investing my money 💰🤑

[@TheHumblePenny]

You're most welcome! Great question. Let's clarify and revert back :)

[@rhood101]

Thank you for the video, very useful.

[@TheHumblePenny]

You're most welcome 😊

[@anigbogodson7173]

Thank you guys so much for this information

[@amirboroujani9099]

Thanks for your useful information... is there any charge towards this account such as provider's annual fee and so on؟

[@lauretteekwechi9927]

Hi Ken and Mary, if you are 42, is there any other alternative for Lisa. Thx

[@karthikjayavel5524]

Hi, This video is helpful. If I own a home in my home country, will I be considered a first-time buyer here in the UK? Am I eligible to open life time isa saving account?

[@bettyslowwastelife9731]

Ken and Mary, I am looking for a savings type account to draw money but my instant saver has rubbish interest 0.01% any ideas?

[@tiriamcleod]

Hello, really enjoyed this video. Is it possible to have a Stocks and Shares Lifetime ISA and a normal Stocks and Shares ISA within the same tax year and pay into both within the same year. Thanks 😊

[@muskanqureshi3131]

Hi So informative video! Thank you! What about bad credit history people? Can they apply for LISA?

[@TheHumblePenny]

Thanks Sofia :). Yes you can apply as you aren't borrowing money :). Investment platforms would love you on their platform as they get to charge you a fee as they would anyone else. But that's OK as you gain from opening an account and investing etc.

[@muskanqureshi3131]

@@TheHumblePenny Thank very much! 😊 How much they could charge roughly!

[@TheHumblePenny]

Depends on the platform. Fees are stated as a percentage of your portfolio.

[@zheidari001]

You guys are amazing 🤩

[@TheHumblePenny]

Thank you, Zahra! 😀

[@sonamm94]

Can I open a Cash LISA and a Stocks & Shares LISA at the same time?

[@TheHumblePenny]

Yes :)

[@lydiaadejumo681]

So, if I were to buy a home using a lifetime ISA, can I buy another home later (e.g. 5 years later) ? I’m concerned because on the government website it says this home will be the only home I will own if I were to purchase the first home using a lifetime ISA

[@TheHumblePenny]

Ofcourse you can :)

[@eccluk3304]

Yes I was concerned about this too, but why does it say that on the government website? "The home you buy must: be in the UK have a price of £450,000 or less *be the only home you will own* be where you intend to live be purchased with a mortgage

[@UKSpearo]

Am I right in my understanding that because I inherited a tiny slither of a small cheap property from a relative that was then sold immediately (I didnt get much, just a couple of grand), I can no longer apply for first time buyer help schemes? I was looking at doing it, but then discovered that they class that as having been a part owner of a property and therefore you do not qualify as a first time buyer. 😭😭 My partner just set up a lifetime ISA with a view to using it towards our mortgage deposit but this has thrown a spanner in the works 🤦‍♂️

[@TheHumblePenny]

Darn, that's a pretty unusual situation. Hmmm it would appear that you might not qualify BUT this would need to be triple checked. So please seek additional advice from a professional. We'll do some digging and revert back.

[@UKSpearo]

@@TheHumblePenny thanks a lot for the input! Its an awkward one that's for sure. We are going to seek advice to see what our best options will be. Cheers 👍👍

[@chidinmaeriamah7691]

Can I use i life time isa if am buying a property of £250,000

[@codenameeee]

Well explained , thank you so much guys

[@TheHumblePenny]

👊🏾

[@mustafabaygun6676]

I’m 53 so clearly Lisa is not for me😢 What’s the best option for one who has spare 5K to invest it for long term please? Thanks

[@TheHumblePenny]

I'd HIGHLY suggest a SIPP (Self Invested Pension Plan). You get a rebate of 20%, 40% or 45% if you're a basic, higher rate or additional rate tax payer respectively. Plus, you can access your money from age 55. Feel free to use our link for a Hargreaves Lansdown SIPP: thehumblepenny.com/HLSIPP

[@glammapaki]

Hi please can you reply. If my family member is willing to sell me their 650k house 125k can I use LISA? Is their minimum term mortgage I have to take out or can my mortgage be like 5 years? Please reply

[@TheWellnessAbbey]

This is a great video and the points about what to do if/when we are higher rate tax payers is golden. Thank you.

[@TheHumblePenny]

😊🙏🏽

[@banahene_officialtv]

Does the government own part of your property when u use a Lifetime Isa

[@TheHumblePenny]

No.

[@arsematekle8193]

LOVE YOU GUYS

[@jacobharris954]

I am 38, and have few months to open one but I work in retail. What should I do?

[@Afrinaturality]

Open the account and just put in what you can afford. There's no point regretting it once you're past the age of eligibility.

[@anigbogodson7173]

I will be 40 in July 2024. Should i open the account now, or wait till April to do that?

[@TheHumblePenny]

Now

[@chidinmaeriamah7691]

The noise in the background is abit too much

[@tomhancock4519]

I'm a local council worker and access the very good lgps pension. So I'm going to use a lifetime ISA to in addition to my council pension. Hoping to retire at 60 and use my LISA instead of taking 25% tax free from my pension.

[@TheHumblePenny]

Good plan!

Question: Let’s say my parents give me 20k and I saved some money in Life Isa, am I allowed to use it all together towards Deposit for my First Home ?

[@TheHumblePenny]

Yes

[@adayah6772]

40 or 50 years old??

[@TheHumblePenny]

40

[@handyhandetohandle]

Does an investment property count?

[@TheHumblePenny]

No, you can only use the Lifetime ISA for a residential property purchase as a First Time Buyer.

[@handyhandetohandle]

@@TheHumblePenny Ok, thank you

[@MrRoyck10]

LISA is not for me, I’m not eligible from age, property ownership and personally it’s too restricted 🚫 but me / mrs are happily utilising our ISA allowance without all the nanny restrictions. My final salary pension is a better option for me with the retirement age of 55 years plus a good lump sum. Thanks Ken & Marry for dissecting LISA into small bite size, I’m too old to benefit from LISA!

[@callumm4087]

Seems pretty risky with all the money printing going on..

[@TheHumblePenny]

Please explain further.