It seems that a new trend in financial advising is sweeping the UK. Experts are now sharing secrets with citizens on how to make the most of their ISA savings accounts. Some of these experts have made their secrets more public, rather than discussing them in private with their clients.
One main topic is that of saving for children. According to Colin Jackson of Baronworth Investments, 2011 may be the best year to start saving for children with the new junior ISA, which will be launched later this year. The yearly allowance is between 3,600 and 5,600 Euros and there will be a choice of cash or stocks and shares. It is advised that all money given as Christmas gifts be put in the junior savings account, which cannot be touched until the child turns 18 years of age.
Other topics include making sure funds fit comfortably with your risk level, review your ISA investments, spreading risk by phasing your investment, not waiting until the end of the year to invest, using the income after retirement, considering investment into an equity ISA (if you don’t mind the risk), and selling assets subject to Capital Gains Tax for money to reinvest in an ISA.
Some people make the mistake of choosing an IRA that they have read good things about. Experts advise against this and instruct investors to instead choose one based on their particular needs. According to Patrick Connolly, at AWD Chase de Vere, one must “…consider the risk that you are willing to take and examine the investments you already hold…” in order to make a smart investment.
As the year progresses on, financial experts will continue to give their advice to investors, hoping that they will help them to make better use of their ISAs and turn toward a brighter financial future.