Ndubuisi 'Andy' Egwim (YouTube) explains the Lifetime ISA (LISA): a UK-account for people aged 18–39 to save for a first home or retirement. The government adds a 25% bonus on contributions (up to £4,000 per year = £1,000 bonus). LISAs can be used for a first home (property price cap mentioned £450,000) or held until age 60 for retirement; the speaker notes you may continue contributing until age 50 and that LISAs can be cash or stocks & shares, recommending stocks & shares for long-term growth after house purchase.
Chapters
Between 18 to 39, you want to draw closer and listen to this one. I'm just going to crack on and talk about number three, the lifetime isa. So the lifetime ISA is like the one you've got to do. I say life does not start at 40, so lifetime ISA does not start at 40. If you are 39, you need to be listening to this one closely. This account allows you to open a savings account which you can also use to invest in the future. And whatever you save inside it, the government gives you 25% of it as a bonus just for saving your own money or even for investing it now, something some people don't understand the lifetime ISA properly, I'm just going to call it the Lisa or Lisa, however you prefer to call it. You've got to be between 18 to 39. You can only use it for two things, buying your first house or for retirement. And that means 60 years. But here is a common mistake people make. One, that house cannot be more than 450k. So for you to use the lifetime izer, if you use a lifetimer for anything other than that, you get a penalty, you lose the 25% bonus and lifetime. Actually, what happens that if you put up to £4,000 into your account, the government gives you £1,000. Wherever money you put into your account, you get 25%. So that's quite a powerful account, I would say. But here's the second way people misuse it. Some people don't understand that after you buy your first house, you are still eligible to have the lifetime iza. You can continue using the lifetime, but now no longer for your house, but for your retirement. So if you think about it, the way I look at it is that I'll count it as another tax efficient wrapper that I'll use to invest for retirement. Because for every £4,000 I put every tax here, the government puts a thousand pounds for me. So most people get to that point and they realize, I bought my first house. I don't think I can use the lifetime isa. No, you can still use it. And you can still continue to put money into the lifetime isa till you're 50 years of age. But here is the nugget of lifetime isa. Most people don't even know the lifetime ISA is not just in cash. Of course, when you're buying your first house, you don't want to invest your deposit or the money you are saving your lifetime isa. So it's better to leave it in cash. But I don't use lifetime ISA cash anymore. Because obviously I bought my first house many years ago, second one and all that. I use the Lifetime ISA stock and shares. So the Lifetime ISA stock and shares is actually really makes more sense to me. Because remember, the money in the life of myself, I'm not going to be able to assess it till I turn 60. So I'm not even 40 yet. Why am I going to just leave the money lying fallow? And remember, after 50 years of age, you can't contribute more money to the Lifetime isa, so you want to have it in the market. In my own opinion, I prefer to have it in stocks and shares growing. So that's Lifetime ISA stocks and shares.
