Ndubuisi 'Andy' Egwim breaks down how people waste their Lifetime ISA by forgetting they can keep using it for retirement after buying a first home, and still claim the £1,000 government bonus. The Lifetime ISA is just a tax wrapper with a £20,000 annual allowance across all ISAs.
Buying a first home or investing for retirement.
£1,000.
£20,000 per tax year.
When it comes to ISA is use it or lose it. If you don't use it in that taxi, it's gone. You can't come back and use it again. Now the lifetime ISA can only be used for two buying your first home or investing for retirement. The big mistake many people are doing is after they buy their first house, they don't realize they can still use the lifetime ISA to invest towards retirement and also get that extra £1,000 from the government. Second big mistake, they just put their money in the ISA and think it's working for them. No, ISA is just like a tax wrapper, it's just a tax protector. And that ISA doesn't invest your money for you. It just means that if you put in money through that isa, you can invest it without any taxes based on your returns. Right? So the ISA allows 20k maximum and does it also compound? So your ISA, you allowed £20,000 per tax here, that's the maximum you can put in the tax here.
