Under 40, struggling to save as much as you need? If so, Nutmeg’s lifetime stocks and shares ISA may just be the solution you’ve been looking for. Since the Government launched the lifetime ISA in 2017, a growing number of investment firms have been getting in on the act. One of these is Nutmeg who clearly see this as a chance to offer a financial product tailored to the needs of millennials.
- Want to see the best Lifetime ISA accounts? Compare Lifetime ISAs here.
What is Nutmeg’s Lifetime Stocks & Shares ISA?
Lifetime ISAs were launched to address the savings gap among millennials. This generation, which hit financial independence in the midst of the 2008 recession, has found it tough to put aside substantial sums for retirement. Stagnant wages combined with a high cost of living mean getting onto the housing ladder remains a pipedream for many.
As for saving for retirement? Forget it. A study from the FCA found that 15 million people aren’t saving for retirement. Even those who are, often aren’t saving enough. Lifetime ISAs are the Government’s way of changing the story.
Nutmeg Lifetime ISA Review: Invest instead of save for your first property
What does Nutmeg's Lifetime ISA invest in?
Nutmeg Investment’s approach is to invest in Exchange Traded Funds (ETFs). These are more transparent and offer a lower cost and adopt a more conservative approach of tracking the market rather than trying to beat it. With no hidden fees, their approach is to be seen as offering the best value for money on the market.
Setting up is relatively easy. All you have to do is pay in a sum of between £100 and £4,000 to get started. For those who had given up hope of being able to save enough to get on the property ladder or retire comfortably, therefore, this does offer an attractive option. As with anything, though, it pays to check the terms and to make sure this is the best option for your circumstances.
You can only open this type of account if you’re aged between 18 and 39. You can invest up to £4,000 per tax year, which will count towards your overall £20,000 annual ISA allowance
Pros
- Returns linked to the stock market
- Diverse portfolios
- Owned by J.P. Morgan
Cons
- Can lose money
- Not a savings account
- Expensive compared to peers
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Research & Analysis
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
