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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Lisa advice for an investing beginner, please

2 replies

Bronwynbay · 31/05/2023 17:27

Hello, I'm a little bit embarrassed to post as I am quite ignorant about investing and I only have tiny amounts of spare cash to invest. I have researched a lot, but still feel a bit bewildered. I know people often say to ask an IFA, but I really couldn't afford this.

I wanted to invest a little bit extra for retirement - I have a DB pension. After reading about LISAs on Money Saving Expert, I opened one with Nutmeg. I only have a few thousand in it, and the fees are 0.69%. It hasn't done very well - I have been saving for 3 years and it is down 4% overall. Just recently, I have read some quite negative reviews of Nutmeg underperforming, but it is almost impossible to switch LISA provider now I am over 40. Should I continue my regular (small) payment into this, or am I wasting more money? I've lost faith in the LISA a bit, due to being trapped by the lack of transfers available.

I also have a small cash LISA with Moneybox because the MSE website suggested opening one of each - however, I've since realised that having this money in a cash LISA for 20 years is probably a mistake. I can't transfer this cash LISA to Nutmeg (no transfers in), but could transfer to Dodl and invest in Lifestrategy. I will then have two lots of fees though - Nutmeg and Dodl Does that make it pointless, as the fees will eat into these small amounts?

I feel out of my depth - can anyone help, please? Apologies if I've misunderstood anything.

TLDR:

  • Do I keep paying regularly to my Nutmeg LISA when it isn't doing well and can't be transferred?
  • Is it worth transferring small cash LISA to S&S Lisa with Dodl (fees 0.15%, minimum £1 a month)?
OP posts:
parietal · 31/05/2023 23:32

I also have an L-ISA with Nutmeg but haven't paid it much attention recently. I reckon these kind of investments are best ignored because the stock market goes up and down and does its thing.

Do keep paying into something if you can afford it.

if you can be bothered with the paperwork then Dodl looks good. And according to their website, you can transfer the Nutmeg ISA in too.

fireflyloo · 08/06/2023 14:41

Are you getting the 25% government top for your Lisa?

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