Investments could help maximise the growth potential of your hard-earned money in your pension pot, but values can fall or rise over time. That is why your adviser will ask you about your risk appetite and your future retirement goals. It helps them to get a full picture of the most suitable route for you – and regular reviews of your investments with your adviser mean you can always change where and how your funds are invested as your needs change.
Individual Savings Accounts (ISAs) are a great investment tool, however the personal allowance can be limiting for those with more capital to invest each year. A General Investment Account (GIA) is a separate account that you can hold alongside your ISAs. The GIA offers access to the same stocks and shares portfolios as your ISA, but unlike a Stocks and Shares ISA, there is no limit to how much you can invest each year.
Why opt for a GIA?
The first thing to note with a GIA through Imperium Advice is that you will have access to multi-asset portfolios that your financial expert can match and recommend to you based on your circumstances and investment goals. This may be a Model Portfolio or one that is completely bespoke. All fees and charges are transparent and fair: there are never any hidden charges.
A GIA is easy access: you can deposit and withdraw funds as you need. This includes online access through a straightforward portal, so you can view your investments, make changes, and even withdraw money at any time. Taking funds prematurely could impact the return potential – but your financial adviser is on hand to help you make decisions like this.
GIA and taxes
Unlike an ISA, you may need to pay tax on returns from your GIA. How much you pay depends on your circumstances; once you have exceeded your personal savings allowance, the interest received from investments would be taxed. Your dedicated adviser will help you understand the charges and taxes as part of their ongoing advice, ensuring that you never pay more tax than is necessary.
Should I have a GIA and ISA?
ISAs offer a £20,000 tax-efficient investment every year, while GIAs allow you to invest more than the personal allowance limit. It is likely you will benefit from holding both an ISA and GIA – and move money from your GIA to your ISA each tax year.
For example: if you have a £60,000 lump sum, you could pay £20,000 into your Stocks and Shares ISA at the start of a tax year. The remaining £40,000 could be invested in your GIA. As the next tax year starts, you may then choose to transfer £20,000 from your GIA into your ISA. This helps you maximise your tax-efficient benefits on investments while taking advantage of both savings products.