Tony Harris writes:
Equity or cash based ISAs offer an effective method of saving for anything from your retirement to a deposit for an investment property. Unlike other savings accounts, ISAs benefit from tax free breaks on up to £7,200 each tax year and can be accessed at any time which offers you a great amount of flexibility with your money. This can offer an invaluable opportunity to stop the tax man from charging further tax on your hard earned cash and could enable you to build a substantial nest egg.
Traditionally many people try to rush at the end of the tax year in order to invest their allowance, but it is easier and less risky to drip feed a monthly amount into your ISA whilst giving you the chance to budget to save. This also gives you the added bonus of being able to change your contributions to fit around your various contracts.
If you require access to your money in the short-term, then a Cash ISA is probably the best investment opportunity. The funds can often be accessed at any time and they invariably benefit from a much higher interest rate than those offered in normal high-street savings accounts because the banks believe they will hold the money for longer. Cash ISAs also offer the benefit of being free from short term fluctuations of the stock market.
With an Equity ISA you can choose from thousands of different funds and we have chosen a number of providers that offer a proven track record in effective investment management to give you peace of mind that your money will be taken care of. No one manager is strongest across the board so it is important to choose carefully depending on where you want to invest.
Less risk, same reward
Some providers have equity based ISAs that invest in stock markets but that carry varying levels of protection for the underlying fund value. This allows you to benefit from some measure of the potential growth of equities without taking on as much of the risk.
As Independent Financial Advisors, we search the whole of the market to find the best ISA for you and we will help manage the investment from start to finish, making your stock market experience as hassle free as possible.
Shout99 has teamed up with ContractorFinancial to offer ISAs to freelancers. If you'd like to discuss using your allowance for this tax year or are looking into setting up a flexible monthly investment to avoid the last minute rush fill in the online enquiry form.