lisa might be your no 1 woman in later life

LIIIIIIIISA MAFIA (obvs she was in The MOB)

No actually, I am talking about a Lifetime ISA

You can open an LISA if you are under 40 to save for a house or use as your pension, and the government will add £1,000 for every £4,000 you put in each year

That's a 25% return. That’s huge FYI.

You can use the money to pay for a home deposit (some conditions are attached) or you can keep it as a pension (some conditions attached, again)

read this article that outlines what you can and cannot do with a lisa clearly

If you want to use it for a pension, it is best suited for self-employed individuals as workplace pensions are usually much better for those employed due to company matching schemes (if one is in place) 

The condition is that you lose a lot of return if you take any cash out between now and when you want to buy a home, or take it as your pension… so only do it if you can afford to (and resist the temptation) not take the money out before either of those events

If you decide to keep it as a pension, the Government will stop paying the contributions when you turn 50

That's a whopping 10 year return if you do it from 40-50, and more if you are below 40

And in either of those cases, you can choose to invest your LISA on the stock market too, so you could get double returns if you pick your investment options wisely

You money is at risk when investing, but choosing index tracker funds, or etf’s are a good way to keep risk low when investing

Opening a lisa is super easy and you can add in as little as £25 each month, simple google “lifetime isa” and see which provider you prefer (I have mine with Hargreaves landsdown as I already have my sipp there)

A lisa is a really good place to start, or addition to your portfolio of savings if you are self-employed or saving for a home

If you are employed, it's likely best to max out your pension contributions with your employer if you have some spare cash to lump in each month. Ask your hr or finance team what the employer contribtutions are and see if you can max yours out some more.

If you want to take control of your finances, and get financially fit with the mob, download our toolkit and come train with us each month. Look out for posts and newletters sharing how we do it.

wishing you big money futures

BC x

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