Another Tax Year

2018/2019 Tax Year

So as we draw to the end of this Tax Year, we start to plan for the next one. Last year we topped up our clients’ ISA accounts from their General accounts very early in the Tax Year. This year we intend to do the same where possible, so stand by to see share sales being made if you own both a General & ISA account.

If you usually top up your ISA from other savings, then we are ready when you are. Simply speak to Melissa and she will do the rest to make the top up as simple as possible. There is no time like the present as it will not have escaped many of you that our investments are currently worth a little less than when they hit their recent peaks in February. Continue reading “Another Tax Year”

ISAs – people often hate them

My cash ISA hasn’t grown. I’m shocked

Increasingly I am meeting prospective new clients who tell me they hate ISAs, when I recommend they invest in one.

How come we can understand that we will never get wealthy holding cash in a bank, yet we complain when an ISA held in a bank fails to perform? Cash is cash wherever it is held. With Bank of England interest rates still at only 0.5%, how could cash ever grow?

“If you don’t use this years cash ISA allowance you must be an idiot”

I wish I had a pound for every time someone tells me that ISAs are useless. Simply not true. ISAs that can only hold cash will give a useless return. A cash ISA is a holder of cash. The bank that flogged that ISA to you, will do very well from your cash thank you. Because they will use your cash and lend it on to poor folk who agree to pay 19.5% in interest on authorised overdrafts of only a few thousand pounds. Excessive return for the bank, disappointment for the ISA investor and enduring heartache for the borrower. Please tell me you no longer trust the banks.

Shocking! First view of naked ISA

So let’s get this straight. An Individual Savings Account is not a physical thing that you are free to love or hate. It doesn’t exist in the physical world. It exists merely as a set of tax rules. Let me show you an ISA completely naked. Everything the banks and investment companies do to convince us their ISA is the best is just fancy packaging. Beneath those clothes lies the same naked ISA. Now can you understand when you are forced to switch cash ISAs from one product to another just what a false concept it is? The underlying ISA is the same. The banks are just messing with you. Repeat. I no longer trust the banks. (Or any entity in possession of a banking licence)

I love ISAs

I love ISAs as a tax free holder of our life-savings. ISAs have allowed my clients to double their life-savings in only 7 years. The UK Goverment has not taken their 20%-40% tax bite. Obviously I’m talking about ISAs where we are free to make our own investment decisions. They are called Stocks and Shares ISAs, but that’s a misnomer. They should be called “hold any investment that has a chance of growing ISAs”.

Where can I invest a Stocks & Shares ISA?

Its a long list. It includes Corporate Bonds, UK Government Gilts, Overseas Gilts, UK Commercial Property, Overseas Commercial Property, UK Shares, UK Funds, Large Dividend Paying Shares, Small Growth Shares, Tiny AIM Shares, Investment Trusts, Foreign Shares, Foreign Funds, Hedge Funds, Commodities like Gold and Oil. Oh and Cash!

But let’s not forget the amazing investment opportunities that lie within; Off Plan Dodgy African Island Property schemes offering 18% guaranteed returns, Own your own Brazilian Teak Forest, Hopelessly Proliferate Student Property investments lacking only students prepared to pay £9,000 per annum tuition fees, a Revolutionary process that makes Oil out of simply water, air and cash (I made that one up – but I’m sure it’s coming)

Something for Everyone

The taxation rules that govern ISAs are a wonderful construct. A beautiful thing that has been hacked and hijacked by banks for their own selfish gain. ISAs were created to give the little man an opportunity to build up life-savings outside of UK taxation. My clients understand that it’s not about the ISA, it’s what’s held within the ISA that matters.

Many people misunderstand ISAs. Well done you banks. Again repeat after me. I no longer trust the banks. We don’t hate ISAs, we hate what banks have done to them.

Individual Savings Accounts

Last Call for ISA2014. Proceed to Gate

I won’t bore you with the details, because as a client I’m sure I will have mentioned ISAs many times in our meetings.  If you need reminding of how much you can invest and what the tax free benefits are then here is a link to wikipedia with a perfect description. 

If you are still thinking of getting on board our internationally invested ISA, then it’s now time to leave the duty free shopping, the bar or the toilet and proceed directly to our gate.  If you need individual assistance now or are looking for priority boarding of ISA2015, please contact Melissa on the usual telephone number or email address.

This years ISA allowance is about to leave you behind unless you act now.

If you want to read my previous blogs going into more detail about ISAs, here are the links:

Last Orders Please

Let’s get to the point as we have little time left…..Have you invested your ISA allowance with us yet?

We have 7 working days left in this tax year and from July ISAs are set to become NISAs

  • From 1 July 2014 ISAs will be reformed into a simpler product, the ‘New ISA’ (NISA), with an overall limit of £15,000 per year. The government is also abolishing the rule that says only half can be saved in cash. The government will also raise the limits for Junior ISAs and Child Trust Funds from £3,720 to £4,000.

Over time they will be referred to Nicers no doubt. And what’s not to like? Investing tax free is a no-brainer. I have referred to ISAs in the past here and here.

Now we think we have educated clients to not leave their ISA investments until the last minute and we automatically move money from General Accounts to ISA accounts to help clients to not miss the deadline. But every year we have the odd client ask if they are not too late.

So gentlemen and ladies, last orders please.

Will the Cash ISA become a worthless option soon?

I remember seeing my first video recorder. It was 1978 and it was a Sony Betamax. It’s owner was justly proud of his purchase even though it must have weighed about 40lbs and was almost the size of a modern day microwave oven. He could record anything he liked from a choice of 4 TV Channels, as long as he was in at the time or held a Phd in Applied Physics and thus could programme the timer. Even the “remote” had a wire to connect it to the front of the player. Blank 3 hour cassettes were almost £20 and a pre-recorded Film like “Jaws” was a staggering £60. How times have changed. Continue reading “Will the Cash ISA become a worthless option soon?”