Image Alt

The Investing Box

  /  Editor's Pick   /  ISA season: life begins at £4k!

ISA season: life begins at £4k!

Snowing on Jubilee Gardens in London at dusk

My next milestone birthday is fast approaching, as my wife keeps reminding me.

The big 4-0. When life begins, so they say. Or is it impending doom? 

Maybe – if I hadn’t opened a Lifetime ISA by then.

There aren’t many age restrictions on savings products, at least on the upper range. But with a LISA, the account must be opened between 18 and 39 years old.

Like a financial Logan’s Run, there’s a cut-off point at a certain age. In this case 40.

Or is it 50? The Lifetime ISA allows accountholders to contribute – up to £4,000 each year – until their half-century, either as cash or stocks and shares.

Of course, the real benefit to the LISA is the 25% bonus added to your savings courtesy of the government. So if you’re lucky enough to afford to save £4k each year, that’s a free £1,000 annually!

Once the big 5-0 is reached, you’re unable to pay in to or withdraw from your savings for a decade without incurring a hefty fee – with two exceptions – though it will still earn interest or investment returns. 

One of those caveats is if the accountholder is buying their first home; I’m in a fortunate position to have done that in recent years, so my Lifetime ISA savings will go towards our retirement.

I estimate that I’ll have saved around £75,000 by the time I’m 50, with £15k of that kindly contributed by the government. With whatever interest is added, that’s a substantial start to retirement.

As I’ll keep reminding my wife!

The post ISA season: life begins at £4k! appeared first on The Motley Fool UK.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More reading