Individual Savings Accounts (ISAs) are tax wrappers that allow you to save and invest your money with tax-free benefits. The annual personal allowance is currently £20,000 per year – that is how much you can pay in each year.
A Stocks and Shares ISA is a long-term investment type that allows you to invest your money in a range of stocks and shares within the tax-efficient ISA model. With Imperium Advice, you may choose to invest in a bespoke or model portfolio. If you withdraw money from your Stocks and Shares ISA and then reinvest during the same tax year, that amount is added back onto your personal allowance for the year. You can also top up your ISA to account for fees taken.
ISA rates and investment options change over time. Keeping the same ISA for years may not be the best way to maximise growth potential for your savings. Your dedicated adviser can help you with the process of transferring both invested and non-invested ISAs to a new ISA that offers a better return on your savings. It is important to note that you should transfer your ISAs rather than withdraw the cash and put it into a new account: if you withdraw more than your personal allowance, you will not be able to put the whole sum back into your ISA in one year. Transferring ISAs does not impact your personal allowance, so it is recommended to speak to your specialist adviser about transfers if you want to boost your tax-efficient savings returns.
Investments could 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.