In this episode of 'Finance for Everyone,' we delve deep into the world of Lifetime ISAs (LISAs). Follow the journey of Jess, a 31-year-old first-time homebuyer, as she navigates this special savings account. Discover how LISAs provide a 25% government bonus for either purchasing your first home or saving for retirement. We break down key rules, eligibility, benefits, and penalties. Whether you're saving for a house or planning for retirement, this episode offers valuable insights into making the most of your financial future.Friendly Reminder: This episode is intended for educational purposes only and does not constitute financial advice. Always consult a qualified financial advisor for personalised guidance.In This Episode:00:00:00 – What Is a Lifetime ISA?We introduce the concept of a Lifetime ISA—an account offering a 25% bonus from the government for young savers (ages 18–39).00:01:00 – Meet JessJess, our fictional character for this episode - is a determined spreadsheet lover saving for her first home, hears about Lifetime ISAs and wonders if this account can fast track her goal.00:02:00 – Key LISA FactsAge eligibility, annual £4,000 contribution limit, and how the government bonus effectively boosts your deposits.00:03:00 – Cash vs. Stocks & SharesJess compares a simpler cash LISA (earning interest) versus a riskier stocks & shares LISA (investing in the market).00:04:00 – Opening and FundingSteps to open a Lifetime ISA online, the 12-month rule, why you must contribute before age 40, and how the monthly bonus deposits arrive.00:09:00 – Beware the 25% PenaltyUnapproved early withdrawals don’t just cancel the bonus - they can dip into your contributions too. Why it pays to stick to house or wait until you're 60.00:10:00 – Buying Your First HomeHow LISAs help with deposit rules:Minimum 12 months openPrice cap of 450,000 poundsMust use a mortgageFunds go directly through a solicitor00:16:00 – Couldn’t Buy a House?No worries—the LISA morphs into a retirement savings option at age 60. Jess discovers it’s not lost money if her home plans change.00:19:00 – LISAs vs. PensionsWe compare the LISA’s 25% bonus with tax relief on pensions, including the role of employer contributions and access ages.00:26:00 – Common Myths“If I don’t buy a house, I lose my bonus!”“I can only use it once!”“It replaces my pension!”We bust these and other misconceptions for Jess.00:32:00 – Final Takeaways & Jess’s PlanJess feels confident about using a LISA for her first home and possibly as a retirement supplement. No more confusion!

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