Why have an ISA?

Many people ask me "Jonathan, where should I invest ￡5000"? My usual answer is why? And turns out they have some spare money sitting in the bank or savings account doing nothing. They know it's a problem but don't know where to start?

An ISA is a great place to start! The government allows UK residents to invest ￡20,000 per year of post taxed income into a box which grows UK CGT and dividend tax free plus ability to withdraw at any time with no further tax to pay.

Inside a stocks and shares ISA you can invest into a wide range of publicly listed companies or funds depending which provider you choose. Most often people will choose a well-diversified portfolio of companies depending on their financial objectives and their attitude to risk.

It's always important to understand 'why am I saving?', because it reminds you during tougher months why I am putting this money away. I am saving for my first property or I am saving for an amazing wedding. It helps you keep on track towards that financial goal. 'How long am I saving?' is another important question. The longer you invest, the more you benefit from your returns getting returns over additional years.

Understanding your tolerance to risk helps you decide what sort of investments you want to grow the money. Often, I ask people on a scale where 1 is money underneath the mattress and 10 putting your money on red at the Vegas casino, where do you sit on a level of risk? Depending on the answer will help an adviser see which type of investments would fit you and help you get to that financial goal.

If this sounds like you, why not take the first step to getting some help and book a meeting with Jonathan! Taking the first step often be the hardest part, contact us today for a no obligation meeting. Get in touch via [email protected] or +44 7527275684.

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The value of your investment can go down as well as up. You could get back less than you invested. Taxation rules can change at any time and are dependent on individual circumstances.

Twelve Wealth Management Limited is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).

SJP APPROVED 29/10/2024