Helping an 18 year old make the most of their money

[Nix32]

DS (18) has £30k earmarked for a house deposit. It has been in a junior ISA but needs a new home. Am thinking about setting up a LISA and transferring £4k every year. That means the rest of the money needs to be in a 1 year fixed ISA, so he can access that £4k rather than it be locked away. Does that sound sensible?

Do they intend to buy in London? Abroad? Or buy a house with a partner who already owns a house? I appreciate non of that can be guaranteed, but those are things to consider with LISAs

Do they intend to buy a house within the next 5 to 10 years? If they're not going to buy in the short term, it might be better moving the money into a S+S ISA

What do you need to consider with a LISA if buying with someone who already owns a house @BalletSki ?

@BalletSkiBuying in London is unlikely. Buying with someone who already has a house is something to think about.

Unlikely to want to buy in the next 5 years, but possibly in the next 10, so am a bit nervous of S&S.

The Chancellor has indicated there will be major changes to the LISA, with a new simpler ISA specifically for first time buyers.
Given this uncertainty, I would be tempted to hold off investing in a LISA. Whilst it might well be possible to transfer any existing LISA into a new replacement ISA product, I would worry that if not, existing LISAs risk becoming zombie products with poor rates and few providers.

@NoAdsPleaseYes, this is something I’m thinking about. Martin Lewis’ advice is to open one with £1, simply so you’ve got one and can make use of it if the new version isn’t as good.

Whilst no S&S products are completely risk free, some are less volatile than others.

If you're nervous of losing capital, but still interesting in investing, you might be interested in looking into defensive investment products whose main aim is not to lose capital over a certain time frame, as well as providing some growth above the cash savings rates. This differs from investment strategies where the main focus is on best possible growth or index tracking over a longer time frame. Prevention of losses is not guaranteed of course, but it is a focus.

There are four Investment Trusts in the UK whose primary aim is capital preservation, with some growth. Larger investors can opt for a wealth manager to invest their portfolio within the Trusts, but smaller investors can buy the Trusts shares on commission-free platforms such as Trading 212. The trusts are actively managed with strategies to protect investments, including holding gold, index-linked bonds, and cash, to mitigate losses during market crashes.

I'm not advocating you invest in these products, as I'm not a financial adviser. It might just be worth looking into for your own research.

ds has a LISA (4 years into it) and as far as I know there is no problem buying a house as a couple if the other person is not a FTB. Interested in what issue @BalletSki is concerned about that we might have missed.

Sorry I was confused. Ignore me!