Should you be investing in a Stocks & Shares ISA?
USE IT! DONT LOSE IT! – Monday Musings 15/03/2021
Over the last couple of weeks, we have been writing to all our clients to remind them that with the end of the tax year approaching they should be ensuring they use as much of their UK ISA allowance as they can before April 5th.
Savings rates are so bad that the value money held in bank accounts is falling each year
What this means is that with the average cash ISA earning about 0.05% interest and inflation averaging 2% over the long term the real value of your investment in a cash Isa is falling.
While it is important to keep a safety buffer in cash it doesn’t seem to make much sense to leave more than the buffer in a cash ISA. You can invest via a Stocks and Shares ISA in a range of equity and bond funds structured to meet your particular appetite for risk. For example, a conservative portfolio of funds might only have 40% invested in equity backed funds with the balance in bonds. This means that you have the underlying security of the non-equity investments but with the potential for growth from the equites.
As we are now mid-March time is getting short to get your ISA organised, so please do get in touch sooner rather than later on 02380243665 or firstname.lastname@example.org
So, to the markets