With interest rates at historic lows, it can be hard to make your money work hard for you.
What is an ISA?
An ISA is an Individual Savings Account. ISA’s are a tax-efficient way to save for your future as your initial investment and any growth is free from further liability to income and Capital Gains tax.
At Four Wealth Management, we offer our clients a Stocks & Shares ISA through St. James’s Place. Investing in the stock market has the potenital to provide greater returns than cash can achieve over the long term. You can choose to contribute a lump sum or monthly payments to your ISA.
How much is the annual ISA allowance?
The current annual allowance for the 2019/20 tax year is £20,000.
How much could my ISA be worth in the future?
If you invest the maximum allowance of £20,000 each tax year, your ISA could be worth £694,385 in 20 years’ time assuming a growth rate of 5% as your investment could also benefit from compound returns. Another benefit of an ISA is that it can also be passed onto your spouse or civil partner upon your death within its tax-efficient wrapper.
This figure is an example only and is not guaranteed – it is not a minimum or maximum amount. What you will get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than this.
At Four Wealth Management, a Financial Adviser will recommend ISA investments that are suitable for your individual circumstances.
The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may go down as well as rise. You may get back less than you invested. An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA or a deposit with a bank or building society.
The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.
Contact Four Wealth Management today to book a no-obligation financial review and to discuss starting an ISA today.
