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Savings and Investments thread
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With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?0 -
oh yeah, more than that, i have a low directors wage and take dividends, so i know and already pay dividends tax... I just take approx 2k out a month for living rent etc but some months the company makes 4-5k in profit so its accrued. I'm aware putting into a pension is pretty tax efficient way of keeping hold of the money and not having to pay dividends tax on it... but then i'm not going to be able to access it for another 25 years or so!Rob7Lee said:With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?0 -
Pension is very tax efficient but by it's very nature is long term. Just don't fall into the trap of 'i'll sort my pension out later' as later comes around pretty quick! And you miss all those early years of compounding growth.1
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you've been chatting to my missus havent you? nag..Rob7Lee said:Pension is very tax efficient but by it's very nature is long term. Just don't fall into the trap of 'i'll sort my pension out later' as later comes around pretty quick! And you miss all those early years of compounding growth.
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On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?Rob7Lee said:With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?0 -
Where I am for the next year or two (Northern Ireland) you can buy a castle for that! But when we come to buying it will be somewhere in the North west probably.kentaddick said:
Literally in the exact same boat as you mate, so interested in the answers. Possible difference is I run my own Ltd company and have about 10k in that that i could take out in dividends. Wondering what the best route forward for myself is. I also have a LISA - i think it works out slightly more lucrative than the help to buy isa, but youre capped at £450,000 to buy a first home - which is very limiting inside the m25, even with help to buy loan.LonelyNorthernAddick said:Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty.
Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.1 -
They should do for the LISA what they do for the help to buy loan - increase the cap if you’re buying in London. Shared ownership looks like a nightmare waiting to happen - would rather own the whole thing. But you can only buy studio new builds for 450k really (and so be eligible for help to buy equity loan).LonelyNorthernAddick said:
Where I am for the next year or two (Northern Ireland) you can buy a castle for that! But when we come to buying it will be somewhere in the North west probably.kentaddick said:
Literally in the exact same boat as you mate, so interested in the answers. Possible difference is I run my own Ltd company and have about 10k in that that i could take out in dividends. Wondering what the best route forward for myself is. I also have a LISA - i think it works out slightly more lucrative than the help to buy isa, but youre capped at £450,000 to buy a first home - which is very limiting inside the m25, even with help to buy loan.LonelyNorthernAddick said:Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty.
Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.0 -
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.LonelyNorthernAddick said:
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?Rob7Lee said:With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.0 -
Class, that's what I thought, thanks for the info.Rob7Lee said:
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.LonelyNorthernAddick said:
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?Rob7Lee said:With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.0 -
Only one other point, which sounds like you'll be fine, but you have to have had a LISA for 12 months before you can use it on a house.LonelyNorthernAddick said:
Class, that's what I thought, thanks for the info.Rob7Lee said:
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.LonelyNorthernAddick said:
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?Rob7Lee said:With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.1 - Sponsored links:
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my SIPP is now back to above pre-Covid value, happy dayz.
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My pension has recovered well but the level of recovery is much higher than I anticipated given the economic damage.LargeAddick said:my SIPP is now back to above pre-Covid value, happy dayz.0 -
Mine's been climbing quite nicely recently. A couple of funds I'm not happy about atm - one being the Augonaut Absolute Return Fund which did its stuff all this year when markets were falling (which is its remit I suppose) but has lost around 10% since September. Wanting to switch out but it was principally there as a Brexit hedge if we left with no deal (this time last year) so loathe to switch out now as it might come in handy if the French continue playing their silly buggers games.LargeAddick said:my SIPP is now back to above pre-Covid value, happy dayz.1 -
Yup, my SIPP is at an all time high by quite a margin now, up nearly 12% from Jan/Feb.0
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FTSE is 6558 today, get a bloody long drawn out Brexit deal sorted and 1st C19 vaccine plunged into peoples arms today, 6750 looks a reality 🙏🙏1
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https://www.bbc.co.uk/news/business-55236851
Wealth tax, can't see it myself but never say never..........0 -
suspect you are right, but reckon a deal has already been assumed so this would be an artifical boostDaarrzzetbum said:FTSE is 6558 today, get a bloody long drawn out Brexit deal sorted and 1st C19 vaccine plunged into peoples arms today, 6750 looks a reality 🙏🙏0 -
this would be a sensible and fair way to recoup some of this year's spendingRob7Lee said:https://www.bbc.co.uk/news/business-55236851
Wealth tax, can't see it myself but never say never..........1 -
If that's the case then sell now. It can only go one way if you are right.Salad said:
suspect you are right, but reckon a deal has already been assumed so this would be an artifical boostDaarrzzetbum said:FTSE is 6558 today, get a bloody long drawn out Brexit deal sorted and 1st C19 vaccine plunged into peoples arms today, 6750 looks a reality 🙏🙏1 -
More tax will need to be recouped for sure, but not sure a wealth tax would perform that well, especially if as indicated it includes peoples primary homes, how do you value every home in the country? They were last banded in the early 90's for the poll tax/council tax. And there's many pensioners who are asset rich but cash poor. It also penalises those (again likely pensioners) who have been prudent v's someone who hasn't.Salad said:
this would be a sensible and fair way to recoup some of this year's spendingRob7Lee said:https://www.bbc.co.uk/news/business-55236851
Wealth tax, can't see it myself but never say never..........
I think it's more likely other taxes (or removal of tax benefits, such as relief on pension contributions) will come, maybe corp tax although I think thats a way off, capital gain, dividend etc.
It would however stimulate spending I suspect for those on or around the cliff edge figure but probably not huge sums. It would also likely lead to money leaving the country.1 - Sponsored links:
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Mine is currently looking for available flights!!Rob7Lee said:
More tax will need to be recouped for sure, but not sure a wealth tax would perform that well, especially if as indicated it includes peoples primary homes, how do you value every home in the country? They were last banded in the early 90's for the poll tax/council tax. And there's many pensioners who are asset rich but cash poor. It also penalises those (again likely pensioners) who have been prudent v's someone who hasn't.Salad said:
this would be a sensible and fair way to recoup some of this year's spendingRob7Lee said:https://www.bbc.co.uk/news/business-55236851
Wealth tax, can't see it myself but never say never..........
I think it's more likely other taxes (or removal of tax benefits, such as relief on pension contributions) will come, maybe corp tax although I think thats a way off, capital gain, dividend etc.
It would however stimulate spending I suspect for those on or around the cliff edge figure but probably not huge sums. It would also likely lead to money leaving the country.4 -
Paying for this crisis? It's going to be money printing. Mark my words. Probably with a bit of austerity/tax rises around the edges, but primarily money printing, globally.
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I reckon you're right, if most big economies take this approach then plus ca change .... except we seem to have handled things worse than most, and thus be financially hit significantly more than most by this crisis, so without enough tax rises then the pound will presumably lose a fair bit of valueHuskaris said:Paying for this crisis? It's going to be money printing. Mark my words. Probably with a bit of austerity/tax rises around the edges, but primarily money printing, globally.1 -
I believe this has been suggested before - and all things being equal'ish it could work.Salad said:
I reckon you're right, if most big economies take this approach then plus ca change .... except we seem to have handled things worse than most, and thus be financially hit significantly more than most by this crisis, so without enough tax rises then the pound will presumably lose a fair bit of valueHuskaris said:Paying for this crisis? It's going to be money printing. Mark my words. Probably with a bit of austerity/tax rises around the edges, but primarily money printing, globally.
But, to paraphrase Clinton Baptiste, "I'm getting the word ..............China"0 -
Listening to JP Morgan's Investment Webinar this afternoon it appears the "market" is seeing through Brexit and looking at the bigger picture. Also that interest rates will stay at near zero for many years to come & that there have been less bankruptcies this year than usual (mainly because firms have been propped up by Government money).
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Multinationals could cough up some tax but seems unlikely given the power they have over governments.0
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Why do they have power over governments?hoof_it_up_to_benty said:Multinationals could cough up some tax but seems unlikely given the power they have over governments.0 -
Seriously?Huskaris said:
Why do they have power over governments?hoof_it_up_to_benty said:Multinationals could cough up some tax but seems unlikely given the power they have over governments.0 -
Yup.hoof_it_up_to_benty said:
Seriously?Huskaris said:
Why do they have power over governments?hoof_it_up_to_benty said:Multinationals could cough up some tax but seems unlikely given the power they have over governments.
Why do big businesses have power over governments, in your opinion?0 -
Huskaris said:
Yup.hoof_it_up_to_benty said:
Seriously?Huskaris said:
Why do they have power over governments?hoof_it_up_to_benty said:Multinationals could cough up some tax but seems unlikely given the power they have over governments.
Why do big businesses have power over governments, in your opinion?
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