Don't neglect your ISAs
Don't neglect your ISAs is our message of the month as we encourage you to make sure you use up this year’s Isa allowance, if you haven’t already done so.
Don't delay, Invest today is our advice to take advantage of your ISA allowance. The limit for a cash ISA is £5,100 and the limit for a Stocks & Shares ISA is £10,200, which can be used up until 5th April 2011.
Remember if you're a couple looking to invest, you can put up to £41,760 into a stocks and shares ISA before April 7th this year, taking into account the limits for 2010/11 and 2011/12.
To make sure you don't miss out, call us now on 01246 570078 or email us to talk about your options before it's too late.
Consolidating your ISAs – what it is and is it worth it?
Individual Savings Accounts (ISAs) were introduced in April 1999 and replaced the earlier Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs). They were established to encourage us all to save more, an initiative that many consider a success.
Over the years many people have taken out ISAs and have now built up a respectable portfolio in a tax efficient manner. If you had been a consistent investor in cash ISAs, at the maximum allowable rate since 1999, you would now have cash ISAs worth more than £40,000. If you had also been investing in stocks and share ISAs, your portfolio could be considerably larger than this.
With continued investments into varied ISA savings products and accounts, a number of issues can arise and this has led the way for more individuals to consider ISA consolidation. ISA consolidation means bringing together all your different ISA products under one administrator.
Reducing the amount of paperwork
One of the main reasons people consolidate their investments is due to the reduction in the amount of paperwork received from ISA providers. Rather than multiple statements arriving at different times providing information on just one ISA investment, consolidation means that you would just have one administrator who would provide a statement covering all of your ISA investments. This makes it simple to understand where your money is invested and enables you to compare the funds you have across your portfolio.
A clear and consolidated view of your investments
Where ISA funds are held across a wide range of providers it is far more difficult to understand where you have invested and actively manage the portfolio in a consistent manner, ensuring it is aligned to your financial goals. Consolidation provides a much clearer picture of your portfolio.
In this internet age, if you view your investments online, consolidation means that you will only have to visit one site to see all your ISA investments. This has the added benefit for you of only having to remember one login and password.
Access to a wide range of funds
When consolidating your ISAs, it is likely that the platform administrator will enable access to a significantly wider range of funds, giving you access to funds that previously were not available to you. It is normal for fund platforms to provide access to over 1000 funds from a broad range of fund managers. A broad range of funds means that you will always have options should you need to switch your investments into better performing or more suitable funds.
There are a number of issues to consider when looking to consolidate your investments. Consolidation can often be achieved without cost but this may not always be the case. The process involves completing paperwork to move the investments, which may seem daunting to some people. If you are interested in looking to see whether you would benefit from consolidating your ISAs, do not hesitate to get in touch with us.