Appropriate savings and investments schemes can help you to generate tax efficient wealth in the future.To achieve the most out of these schemes, one must consider four crucial factors when it comes to choosing the right savings product:
Any gains you make are potentially subject to tax at your highest rate, it is vitally important therefore that the product “wrapper” chosen is most tax-efficient for you presently and in the future. When one mentions an ISA, this just refers to the wrapper. The actual savings can be within an ISA or outside of an ISA depending upon the allowances available to you.
Savings products have charges built in. However a lower charge does not necessarily mean a better overall product and all other factors have to be taken into account in order to choose the most suitable product and fund.
The return of the savings product can prove to be most important. However this must be taken in context with all the other factors. It would be counterproductive to have high returns if they are then taken by the taxman or fund manager.
The Investment Period
The longer you can save, the better value the return should be due to compound interest and costs being spread over a greater amount of time.
Therefore in shorter period savings, it is essential that charges are kept to a minimum as there is less time for them to be spread over and in the majority of cases will lead to recommendations for high interest savings accounts such as cash ISAs and fixed rate bonds.
Don’t put all your ‘eggs’ in one basket
We can advise you on cash based savings schemes but we are also experts on investing into funds managed by leading UK fund managers. Whether you wish to start a Cash ISA, Investment ISA or are planning for future events such as school fees provision for your children or saving for your first home
The advantage of investing in funds rather than directly in bonds, property, commodities or shares is that the fund will buy many individual holdings from the different assets. This provides you with relative exposure to many assets, as per the level of investment you make. Your own share portfolio may not be sufficient to provide you with such a diverse portfolio of assets and although this means your returns may not be as great as if you were individually invested in shares, the risk is greatly reduced and therefore a much steadier longer-term investment plan.
The most important part of any investment strategy is to ensure that you are invested in a wide range of assets from a wide range of geographical locations. We will help build you a diverse portfolio that matches your attitude to risk and depending upon your personal circumstances will be tailored to your specific requirements.
For a quotation please don’t hesitate to Contact Us for a no obligation initial consultation over email or telephone.