SIPP's LISA's etc
Discussion
I'm trying to do some longer term financial planning and as a result trying to educate myself.
I'll be 40 <12 months so looking to invest a lump sum and a regular monthly sum.
I've a defined benefit pension from my employer, it has been closed of extra contributions for a while, which is currently set at 60.
With approaching 40 I had started to look at LISA's as the you need to be <40 to open one. Sound OK on the face of it. Save up to 4k per year up until 50 and get a 25% bonus from the government. Downside is you can't touch it until you're 60 and heavy (25%) penalty for early withdrawals. Nothing stopping me opening one with a minimal deposit.
SIPP as a higher rate tax payer I'll get better tax relief, plus believe you can make access from 55. This appeals as it may help fund earlier retirement or part time working later in life and give more options.
Not talking huge sums, maybe 30-40K lump sum, and 6-12K per annum. Spoke to a local IFA but wasn't really impressed. On the face of it I'd be best paying into a SIPP? Anything else I should be considering?
We've a small mortgage which I had considered paying off, but with a low interest rate would get a better return investing unless the market performs really poorly. 2 young kids and have savings and regular savings set up for them.
I'll be 40 <12 months so looking to invest a lump sum and a regular monthly sum.
I've a defined benefit pension from my employer, it has been closed of extra contributions for a while, which is currently set at 60.
With approaching 40 I had started to look at LISA's as the you need to be <40 to open one. Sound OK on the face of it. Save up to 4k per year up until 50 and get a 25% bonus from the government. Downside is you can't touch it until you're 60 and heavy (25%) penalty for early withdrawals. Nothing stopping me opening one with a minimal deposit.
SIPP as a higher rate tax payer I'll get better tax relief, plus believe you can make access from 55. This appeals as it may help fund earlier retirement or part time working later in life and give more options.
Not talking huge sums, maybe 30-40K lump sum, and 6-12K per annum. Spoke to a local IFA but wasn't really impressed. On the face of it I'd be best paying into a SIPP? Anything else I should be considering?
We've a small mortgage which I had considered paying off, but with a low interest rate would get a better return investing unless the market performs really poorly. 2 young kids and have savings and regular savings set up for them.
I don't think a LISA benefits you much does it?
Not sure that pension access will be 55 for you but possibly still earlier than the 60 of a LISA.
Pension tax rebates are better than LISA government bonus unless you aren't earning enough to use the pension rebate much (which you are)
Why a SIPP, unless you are planning on putting things other than cash into it?
Not sure that pension access will be 55 for you but possibly still earlier than the 60 of a LISA.
Pension tax rebates are better than LISA government bonus unless you aren't earning enough to use the pension rebate much (which you are)
Why a SIPP, unless you are planning on putting things other than cash into it?
mfmman said:
I don't think a LISA benefits you much does it?
Not sure that pension access will be 55 for you but possibly still earlier than the 60 of a LISA.
Pension tax rebates are better than LISA government bonus unless you aren't earning enough to use the pension rebate much (which you are)
Why a SIPP, unless you are planning on putting things other than cash into it?
What alternatives do you suggest to a SIPP? Really it's just about trying to get a better long term return than I'm currently getting at 1.5% in cash. Not sure that pension access will be 55 for you but possibly still earlier than the 60 of a LISA.
Pension tax rebates are better than LISA government bonus unless you aren't earning enough to use the pension rebate much (which you are)
Why a SIPP, unless you are planning on putting things other than cash into it?
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