Getting an ISA account can be one of the best things you’ve ever done. When I was first starting out in my plan to take back my financial life, I really didn’t know what they were. I didn’t know what I was supposed to be doing. So I decided to research a little more and figure out what I wanted to really know.
You see, an ISA stands for Individual Savings Accounts. It’s a financial product that gives you the power to invest money without having to pay income tax or even capital gains tax if you want to pull it out later on down the road.
Your funds aren’t earmarked for anything specific — even though some people use this as an addition to retirement, that doesn’t mean that you have to join their numbers. It’s all about figuring out the best path for your own needs.
You can have a Shares ISA where you actually hold a wide variety of investments, something that’s pretty cool. Shares ISA accounts really do float up and down, so if that’s something that you don’t want to deal with, you might want to go with a Cash ISA.
You get to deposit cash into the account as you would with any other savings, but this money is tax-free at this point. If you are in a high income bracket and you want to save yourself some taxes, this is definitely the way to go. I have heard numerous accounts from friends saying that it saves them quite a bit of money when they combine it with other tax saving schemes.
There are no taxes due on the growth of your money, something else that should make you pretty happy.
When it comes to the stocks and shares ISA, you have quite a few options. You can go into investment trusts, OEICs, unit trusts, stock market company shares, public debt securities, and even Eurobonds. The list goes on and on.
Reading financial reports before you make any type of investment is always a good idea. Don’t just take my word for it when it comes to ISAs and investing in your future — go with a good wealth advisor that can give you much more specific information based on your goals.
There are a few other things I wanted to talk about here, but if you have any more questions about this or anything else I cover on my blog, feel free to let me know! ~Ellie