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Lifetime ISA

Lifetime ISA (LISA), the full name of Lifetime Individual Savings Accounts (Lifetime Savings Accounts), is a premium investment project provided by the UK government to UK residents aged 18 to 40 to use as living savings after buying a home for the first time or after retirement. I discovered that quite a few of my friends who immigrated to the UK didn't know about the existence of LISA, so today I would like to introduce it to you:

• How does Lifetime ISA work?
• How to withdraw funds from a Lifetime ISA?
• How do I withdraw money from my Lifetime ISA?
• How to choose a supplier for Lifetime ISA?

Lifetime ISAHow does it work?

The amount of the annual government allowance is 25% of the annual deposit of citizens: citizens can deposit up to £4,000 per year (until age 50) and receive the government's bonus of £1,000. However, citizens can also obtain investment returns or interest from LISA without tax (depending on the investment project or economic environment, investment items may not necessarily increase), so the total annual savings can be less than or more than £5,000. When a citizen is 50 years old, even though he will not be able to continue saving money or receiving a 25% subsidy from the government, he will still be able to obtain investment returns or interest.

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How to start Lifetime ISA Withdrawal funds?

As long as one of the following three conditions is met, citizens can withdraw funds from a Lifetime ISA free of charge.

(1) First-time home buyers: If citizens have never owned a property anywhere in the world, they can use all or part of the funds in the account to purchase a property worth £450,000 or less in the UK after holding a LISA account for more than 1 year. Real estate purchased by citizens must be for self-occupation, not for rental purposes. Citizens need to buy real estate through a mortgage (Mortgage), and they can also use it in conjunction with the government's Shared Ownership Program (Shared Ownership); they can only choose Help To Buy (Help To Buy). If you're buying with someone else (such as your partner) and they also have LISA, you can use the funds in your account to buy a home together, but they must also be first-time buyers, and the property is still worth £450,000 or less.

(2) Retirement savings: After reaching the age of 60, citizens can withdraw all or part of their funds from their accounts and use them for any purpose to enjoy their retirement. Furthermore, in order to save for a pension (Pension), a Pension Plan (Pension Plan) that requires simultaneous contributions from the employee and employer may be more cost-effective than LISA.

(3) Poor health: If citizens have a clear medical certificate showing that they are in poor physical condition, they can withdraw funds from LISA in advance if they live less than a year.

In addition to the above three purposes, if the public needs to withdraw their savings for any other reason, they are required to pay a 25% fine. In addition to losing 25% of the government stipend, this representative also had additional losses. For example, if you paid £4,000 and received £1,000 in government benefits, you would have £5,000 (not including any interest or investment increases). However, if you later withdraw £5,000, you'll pay £1,250 and only get back £3,750 of the £4,000 you paid, so you should avoid unauthorized withdrawals as much as possible. If you need a specific amount, you should take the cost into account to ensure that the amount you withdraw is sufficient.

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How to choose Lifetime ISA The supplier of?

Lifetime ISA's providers charge transparent management fees to manage accounts for citizens. Each provider offers different investment solutions, and you can use ready-made investment combinations if you don't have confidence in your own investment decisions. And those who want to invest themselves can choose: individual stocks, funds, mutual funds, government bonds, etc.

Common off-the-shelf investment union ISA providers:

• Nutmeg (owned by J.P. Morgan)
• Moneybox
• nude

Common Proprietary Investment Association ISA Providers:

• Hargreaves Lansdown
• AJ Bell Youinvest

Everyone can collect data according to their own needs and choose suppliers and products that suit them. Each supplier's management fees are different. Please check these fees carefully before choosing a supplier to calculate how they will affect your return on investment.