ISA Top Tips

ISA Top Tips

Remember, cash is not risk free

With interest rates currently low, there is a risk that over time inflation will erode the buying-power of your savings. You can hold a wide variety of assets in an ISA. We’ll explain these options to you.


Think about your time horizons

If you intend to save or invest into an ISA over the longer term, say five to ten years, then you may want to consider investing rather than saving in cash, giving your money more time and scope for growth.


Consider investing monthly

If you’re thinking of putting your ISA subscription into the stock market, but are worried about the current volatility that stocks and shares can sometimes have, then you can always choose to make regular contributions. This approach called ‘pound-cost averaging’ means that you don’t have to worry about getting the timing of purchases exactly right, and there’s no need to constantly watch markets to invest at the right moment.


Don’t forget your pension

Both ISAs and pensions are forms of tax wrapper that offer valuable tax concessions. One of the key differences between ISAs and pensions is that contributions to ISAs are made from taxed income, while those made to pensions are not. Savers contributing to a pension within HMRC annual and lifetime allowances receive tax relief at the same rate they pay income tax. With a pension, you can’t generally access your money before you are 55. For many people, contributing to an ISA and a pension makes good financial sense.


Get good advice

ISAs have an important part to play in organising your money in a tax-efficient way and making provision for the future. We can offer advice about the type of ISA that would work best for you, whether you’re investing for a child through a Junior ISA, looking to buy a property using a Help-to-Buy ISA or a Lifetime ISA, or accumulating funds for future goals such as a comfortable retirement.


The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.