ISAs GUIDE. An introduction to Individual Savings Accounts

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "ISAs GUIDE. An introduction to Individual Savings Accounts"

Transcription

1 ISAs GUIDE 2015 An introduction to Individual Savings Accounts

2 ISAs GUIDE 2015 Introduction Most people s experience of saving starts in childhood. Your parents encourage you to save up a few pennies, perhaps in a jar or piggy bank, then eventually spend your hoarded cash on a treat. We get taught saving as a child because saving money becomes important in adulthood. Our savings will help us steer a course through uncertain events like losing a job or an illness - as well as more predictable ones such as getting married, children, house purchases and eventually retirement. The good news is that a while ago the government decided that saving was good for the UK economy too so good, in fact, it wanted to reward everyone for doing it. The reward is simple: keep your savings as cash or shares in a government-endorsed ISA pot and you won t have to pay tax on any interest or capital gains you get from storing your money there. And with income and capital gains tax being a constant drain on investment returns for many, you may want to think seriously about what ISAs can offer as a possible storage pot for your loot. We hope this guide will help you understand more about how ISAs work and how they might benefit you. Adam Price Founder, VouchedFor 1 ISA. /ʌɪsə/ (in the UK) an individual savings account, a scheme allowing individuals to hold cash, shares, and unit trusts free of tax on dividends, interest, and capital gains; in 1999 it replaced both personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs).

3 1. What is an ISA? The term ISA stands for 'individual savings account' and, in the briefest possible terms, presents a tax-efficient way to save money. They were introduced on 6 th April 1999 by the government as a measure to encourage people to save. There are various reasons for this, including the theoretical benefits to the economy that come with increased investment, and the idea that if people put money aside they will be less likely to have to lean on the government for benefits should things go badly wrong. They play a counterpart to another mainstream tax-efficient investment product, a pension scheme. One way to think about the difference between an ISA and a pension is that with an ISA you will have already paid tax on money you put in to it, while with a pension you don't pay tax on your contributions (to be more specific, the government 'tops up' your contributions with the amount you would have paid in tax had that money not gone into a pension). Let's say you pay tax as you earn it from your employer. So when you receive your pay slip every month, it will have had a certain amount of tax deducted from it. It's out of that already-taxed money that you make contributions to an ISA. However, because you pay tax on the way in, you don't pay tax on the way out, i.e. when you sell the assets the ISA is invested in. More on that later. In contrast, with a pension you don't pay on the way in, but you pay tax on the way out usually if you try to take more than your 25 per cent tax-free lump sum. But that's another story. 2

4 2. How do they work? An ISA is what people in the industry call a 'wrapper' which is a way of grouping together underlying assets. In a cash ISA this will be unsurprisingly cash, and in a stock and shares ISA this will be equity in businesses or other underlying assets. The main draw of an ISA is that it provides a certain amount of tax relief to the saver. With typical, everyday bank accounts the kind that you use to pay bills, make online purchases, and cover the expenses of everyday life you will usually receive a small amount of interest. However, this interest will be taxed at your marginal rate of 20 per cent for basic taxpayers and 40 per cent for higher rate taxpayers. So let's say you have 100 in a current account with your local bank or building society. If it pays you 2 per cent interest, you would have 102 after one year, before tax. However, if you are a basic rate taxpayer the interest will be taxed at 20 per cent, meaning you will pay 40p of that 2 to the government, leaving you with only Admittedly these are very small amounts in this example, but remember that this example is a small sum for simplicity. Over several years and if you are dealing with larger amounts, this can add up significantly. Interest earned on an ISA is not taxed, so after one year with 100 and the same interest rate (for simplicity's sake) you would be left with the full 102. Note however that ISAs will often pay slightly better interest rates than current accounts, although this may not always be the case and will vary from one provider to another. Things become a little more complicated with a stocks and shares ISA, but there are still tax efficiencies for savers to enjoy. First, capital gains tax: usually you would pay tax on the gains (or profit) from selling as asset, be a property, piece of art, or an investment. However, when you sell the investments held in a stocks and shares ISA, you don't have to pay capital gains tax on the profits you make on this. Also keep in mind that you can make 11,000 of capital gains in the 2014/15 tax year before having to pay tax on it, regardless of whether or not it's held in an ISA. Second, income tax: usually, you would pay tax on any dividends you get from shares you own, or interest paid to you (see above). However, in a stocks and shares ISA the basic rate of tax has already been paid for you by whoever issues the dividend payments, at a rate of 10 per cent instead of the basic rate of 20 per cent. You don't have to pay anything else. Note however that if you do not pay any tax at all (i.e. are a nil-rate taxpayer) you cannot claim this 10 per cent back. In the case of investing in cash, property, gilts (government bonds) and corporate bonds, growth is paid as interest rather than dividends. You don't pay any tax on this either because the issuing company will claim back all tax on your behalf, irrespective of the level of tax you pay. 3

5 One more tax-related note: you don't have to even mention your ISAs in your tax return for the purposes of capital gains or income tax, making your return generally easier to fill out each year. 4

6 3. What are the ISA limits? You can't just pour all your money into an ISA and avoid paying tax on capital gains and interest. Both cash and investment ISAs have limits. Until last year, you could save 11,520 into an ISA, and of that only half ( 5,760) could be in cash. But in 2014 chancellor George Osborne announced that not only would the ISA limit be raised to 15,000, but savers would be allowed to keep as much of that in cash as they wanted. In July 2014 the limits were raised to this new threshold and you can currently save 15,000 into an ISA, split however you like between stocks and shares and plain old cash. However, how much you can save into an ISA the ISA limit can change from year to year. The precedent is that it will rise in line with inflation but this is not set in stone. For the tax year the limit will rise to 15,260. It s good to be aware that the limit does change and to keep abreast of changes as they are announced. 5

7 4. What types of ISAs exist and which types are most popular? There are two basic types of ISA, a cash ISA and a stocks and shares ISA. Let's talk about each of these in turn. CASH ISA A cash ISA, as explained previously, is a deposit account usually run by a bank or building society that offers tax-free saving. It will keep your initial investment intact i.e. there is no risk of losing capital to poorly performing investments however it will be eroded by the implacable force of inflation. This means that if you deposit 15,000 in an account for several years, that same amount will have less borrowing power as it did initially because prices have gone up slightly each year since it was deposited. A cash ISA from a given provider will usually offer a better interest rate than similar taxed accounts from that same organisation. Some ISAs are 'instant access', allowing you to withdraw cash as and when you please. Others require you to lock cash in for a certain amount of time. A junior ISA, meant for saving on behalf of a child, cannot be accessed until the child turns 18 for example. STOCKS AND SHARES ISA A stocks and shares ISA can hold investments including one or more funds, or individual stocks and shares in what is called a self select ISA. This type of investment carries investment risk, meaning that if the underlying investments perform poorly it's possible you could lose your original investment capital and get less back than you put in. However, with greater risk comes the potential for greater return, and if your investments do well you may come out with significantly more than you would have from a cash ISA. Also, keep in mind that because you hold trade-able securities in your stocks and shares ISA, your capital will generally be insulated from the effects of inflation that erode the value of basic cash. Stocks and shares ISAs should generally be seen as medium to long term investments. 6

8 If you want better access to your money a cash ISA might suit you better. However, if you want to invest seriously or don't intend to access your ISA for at least five to ten years, you might consider opting for a stocks and shares ISA. People under 16 can qualify for a junior ISA as long as they weren't born between 1 September 2002 and 2 January The ISA must be opened by an adult with parental responsibility for the child, and the maximum annual contribution is now set at 4,000. This will increase to 4,080 in the tax year (from 6 th April 2015). One last thing to note is that you may see ISAs increasingly referred to as 'NISAs'. This stands for new ISA, and refers to the changes proposed by Chancellor George Osborne in his 2014 Budget. 7

9 5. Who benefits from ISAs? In principle, pretty much everyone should be saving for the future rather than living pay cheque to pay cheque, and ISAs fill a nice space between the current account which is for short-term spending and a pension, which can't be accessed until you reach retirement age. So is there anyone who should not be saving into an ISA? Aside from those in debt... no. Even if you don't come anywhere near to reaching your annual limit, and even if you're too nervous to risk having a stocks and shares ISA and want to keep all your holdings in cash, you will still benefit over the long term from the tax breaks. Obviously in order to save you have to be able to afford to contribute, but even a handful of pounds a month is better than nothing, and you will be pleasantly surprised at how quickly that adds up. Remember because you're not paying tax on interest or capital gains, your returns will compound leading to a significant benefit over the long term. For example if you earn 2 per cent interest on 100, you will earn 2 the first year, 2.04 the next, then 2.08, 2.12, 2.16 and so on until what seemed like a minor difference had added up to a whole lot more than it started out as. 8

10 6. How should I choose one? There are a few things to consider when choosing an ISA, including what rate you're going to earn for cash, what the charges are on an investment ISA, and what restrictions are placed on how and when you can get your money back. Think about your goals: is this a long-term savings product, or is it something you want to draw from every once in a while when you need a bit extra? Although the principle of an ISA is simple, there is quite a variety available on the market. If you're not sure what you want you should consider speaking to an Independent Financial Adviser (IFA), who will have knowledge of the entire ISA universe and will be able to make a specific recommendation based on your personal circumstances. 9

11 7. How can I manage my ISA? ISAs are relatively straightforward investment products, and there are many places where you can buy and manage an ISA yourself, completely online. This might include online investment platforms such as Interactive Investor or Hargreaves Lansdown. Many will offer tools to determine your risk rating, and model portfolios that match that rating so you don't have to worry about choosing which individual stocks you think will perform. You're not a fund manager after all, and even fund managers have trouble timing the market. There are also offline options. If you have your ISA with a bank or building society chances are you will be able to make changes or deposits at your local branch. Many ISA providers also offer services over the telephone. However, if you aren't comfortable picking your own investments outside of a cash ISA and want to invest with the blessing of a professional, you may want to consider a face-to-face meeting with a financial adviser. 10

12 8. What recent changes have taken place? Previously, your ISA allowance was just over 11,000, and would rise in line with inflation. Also, you could only hold up to half of your allowance in cash. One of the ideas behind this was to encourage everyday people to invest, which would in theory help businesses prosper and also help people save more money so they might not have to lean on the government in the case of an emergency or later in life. However, Chancellor George Osborne gave ISAs a significant boost in his 2014 Budget. Not only did he raise the annual limit to 15,000 but he proposed that a saver should be able to invest as much or as little in cash. So while before you could only put in a few thousand pounds of cash every year, from now on you will be able to divide your ISA savings up any way you like between investments and cash. 11

13 9. How much do they cost? Cash ISAs should cost you absolutely nothing to set up, or to deposit money into, but may have charge you for switching into a better-paying account or withdrawing your money early. A stocks and shares ISA on the other hand will almost certainly have annual and initial fees attached to it. The initial charge will be up to 5.5 per cent or so to buy into the fund, and every year an annual management charge of up to 1.5 per cent will be deducted to cover the costs of running the ISA. In the case of a self-select ISA, where the investor hand-picks the contents of his or her ISA, you will still generally pay an annual fee, which might be a fixed amount of anywhere between 15 to 100 a year, and possibly waived if you invest the full allowance each year ( 15,000 at time of writing). 12

14 10. What are the potential pitfalls or risks? It's not a pleasant thing to say, but the truth is your money is never safe, not even when it is being held in cash. One of the main risks of having a stocks and shares ISA is investment volatility. Your money isn't being held in a bank account but in a selection of stocks and shares whose value depends on what other investors are willing to pay, which itself is affected by how in-demand the shares are, which is affected by how well the company performs and what its perceived growth projections are and so on and so on. The value of stocks and shares can go up and down. If you plan it well or pay for the services of a discretionary manager, you might be able to hedge your investments so that not all of them will drop in value at the same time. But remember if they all travel together then the good days will be even better and the worse days will be even worse. If they are hedged so some go up when others go down this might protect against dips in the market but could also dampen gains. Remember, you are never guaranteed positive returns, nor even getting back what you originally put in. However, the risk of losing everything, or even coming out with less over the long term, is probably not so great to put you off. An independent financial adviser will be able to either help you choose the investments according to your goals and risk profile i.e. how much risk you are willing to take and how much money you can afford to lose or at least point you in the direction of someone who can. You can avoid investment risk by holding your money in cash. However, this comes with a different risk inflation. Inflation is the gradual reduction in value of currency. Typically inflation only goes one way, so what you can buy with 100 one year is slightly more than what you can get with the same amount a few years later. If you hold all your ISAs in cash and inflation hits a high note for several years in a row, that can seriously chip away at the value of your holdings. 13

15 11. Should I seek advice or do things myself? When choosing your ISA you might want to go it alone, but might be better off considering the services of an independent financial adviser, or IFA. Although ISAs are relatively simple investment products, there are still several things to consider, including what rate the ISA provider is willing to pay you. Although you might be tempted to simply walk into your local bank or building society, or even go one step further and look on an online investment platform, keep in mind that only an IFA will look at the entire universe of ISAs on offer and decide what is best for your circumstances and investment goals. An IFA will also be well-versed in the different characteristics of various products on offer, for example how long you would need to lock your money away. If you're considering a stocks and shares ISA, then an IFA could be even more useful. Many advisers can either help you choose which investments to hold in your ISA or at least point you in the direction of someone who can. 14

16 12. Conclusion When navigating the sea of savings and investment products an ISA or NISA might seem like a good port of call and for the majority of savers it is indeed a good place to start. Created by the government to encourage saving and investing, the benefit of tax free returns on your savings should not be under-rated. However, as we ve covered in this guide, like all savings and investments they are not without risk. Every individual s case is different, but unless you re in debt, the bottom line is that the earlier you start saving the better. 15

17 To find a rated and reviewed Mortgage Adviser, Independent Financial Adviser, Solicitor or Accountant in your area, please visit: For more information on financial and legal topics, please visit: answers.vouchedfor.co.uk Disclaimer This guide is for information only and does not constitute financial or legal advice. This information is general purpose only and may well not suit your particular circumstances. You should not rely on this information by itself to make decisions about your financial or legal situation. Articles on financial and legal topics quickly become outdated and you should check that anything written here reflects the latest laws, government policies and best practice. You should take professional advice as necessary. 16

Cash ISA - These allow you to invest in a deposit account with a bank or building society.

Cash ISA - These allow you to invest in a deposit account with a bank or building society. Guide to ISAs What is an ISA? ISA stands for Individual Savings Account. These were introduced on the 6th April 1999. At that time the Government promised that ISAs would available for at least 10 years.

More information

INVESTMENT POTENTIAL,

INVESTMENT POTENTIAL, ADD POWER TO YOUR INVESTMENT POTENTIAL, CHOOSE THE M&G ISA 2 CONTENTS What is an ISA? 3 The key benefits of ISA investing 4 Reasons to invest in The M&G ISA 6 What is a Junior ISA? 7 The key benefits of

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

CREATE TAX ADVANTAGED RETIREMENT INCOME YOU CAN T OUTLIVE. create tax advantaged retirement income you can t outlive

CREATE TAX ADVANTAGED RETIREMENT INCOME YOU CAN T OUTLIVE. create tax advantaged retirement income you can t outlive create tax advantaged retirement income you can t outlive 1 Table Of Contents Insurance Companies Don t Just Sell Insurance... 4 Life Insurance Investing... 5 Guarantees... 7 Tax Strategy How to Get Tax-Free

More information

NISAs a simple explanation

NISAs a simple explanation NISAs a simple explanation A NISA is a New Individual Savings Account. As the name suggests, these are accounts that can be accessed by individuals (you cannot have a NISA in joint names). ISAs were introduced

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

A guide to getting started

A guide to getting started The Association of Investment Companies A guide to getting started Find out what makes an investment company tick September 2014 www.theaic.co.uk The Association of To find out more, read our other guides

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

Understanding Investment Leverage

Understanding Investment Leverage Understanding Investment Leverage Understanding Investment Leverage What is investment leverage? Each year, more and more Canadians are taking advantage of a simple yet powerful wealthcreation strategy

More information

A Guide to NISAs. The Generous Tax Efficient Accounts

A Guide to NISAs. The Generous Tax Efficient Accounts A Guide to NISAs The Generous Tax Efficient Accounts Contents NISAs a simple explanation Who can invest into a NISA? The different types of NISAs available How much can be invested? How long do I need

More information

Will your investment or savings plan pay off your mortgage? why you need to review your investment or savings plan regularly;

Will your investment or savings plan pay off your mortgage? why you need to review your investment or savings plan regularly; April 2006 FSA Factsheet Will your investment or savings plan pay off your mortgage? Financial Services Authority This factsheet is for you if: you are using an investment or savings plan such as an endowment

More information

Click on the sections below to take you straight to the specific area you wish to view without scrolling all the way through the document...

Click on the sections below to take you straight to the specific area you wish to view without scrolling all the way through the document... SAVING MATTERS If you re looking for ways to save your money, this guide explains some of the things you need to consider. We hope you find this guide useful as a first step in your research before deciding

More information

Taking control of your future

Taking control of your future The Association of Investment Companies Taking control of your future A guide to Self-Invested Personal Pensions September 2014 www.theaic.co.uk The Association of Saving for your retirement is one of

More information

Your retirement could have even more going for it

Your retirement could have even more going for it Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

More information

What Is NISA? What makes a good Cash NISA?

What Is NISA? What makes a good Cash NISA? 1st Financial NISA s This is the 1st Financial guide to New Individual Savings Accounts and how to make the most of the annual tax year allowance. What Is NISA? NISA stands for New Individual Savings Account;

More information

Investing for income when you retire

Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

KEY GUIDE. Investing for income at retirement

KEY GUIDE. Investing for income at retirement KEY GUIDE Investing for income at retirement Introduction The decisions you make at retirement could have repercussions for the rest of your life. That might be considerably longer than you think, as the

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

INVESTMENT PRODUCTS 1 INVESTMENT ADVICE

INVESTMENT PRODUCTS 1 INVESTMENT ADVICE INVESTMENT ADVICE INVESTMENT PRODUCTS 1 ADVICE, IT S TIME WELL SPENT. Whether you want to invest as a one off or on a regular basis, your financial consultant is here to help you get the most from your

More information

Making the most of your tax-free allowances

Making the most of your tax-free allowances UNISONMONEYTALK The personal finance newsletter for UNISON members published by Lighthouse Financial Advice Autumn 2015 Making the most of your tax-free allowances A key consideration for anyone with money

More information

Pensions made simple. Take control of your future MIND THE GAP

Pensions made simple. Take control of your future MIND THE GAP Pensions made simple Take control of your future MIND THE GAP PENSIONS MADE SIMPLE FROM AVIVA Contents Page 1 First things first 2 2 Why pensions are so important 4 3 How a pension plan works 8 4 The tax

More information

Your investment choices and charges. Explaining the investment options and charges for our Active Money Self Invested Personal Pension

Your investment choices and charges. Explaining the investment options and charges for our Active Money Self Invested Personal Pension Your investment choices and charges Explaining the investment options and charges for our Active Money Self Invested Personal Pension Contents 02 Level 1 investments 04 Level 2 investments 06 Level 3 investments

More information

Contents Introduction To Annuities Flexibility of Annuity Types of Annuity About Pensioncalculator.org

Contents Introduction To Annuities Flexibility of Annuity Types of Annuity About Pensioncalculator.org Annuities Guide Contents Introduction To Annuities What is an Annuity? Why Bother with an Annuity? Main Advantages of Annuities Pros and Cons Flexibility of Annuity Buying an annuity Tax & National Insurance

More information

Understanding your AVC investment choices

Understanding your AVC investment choices Shell Contributory Pension Fund Additional Voluntary Contributions Arrangement Understanding your AVC investment choices Produced in Association with the Trustee s Adviser Aon Hewitt July 2013 1 July 2013

More information

WELCOME TO THE AIRBUS GROUP UK RETIREMENT PLAN

WELCOME TO THE AIRBUS GROUP UK RETIREMENT PLAN WELCOME TO THE AIRBUS GROUP UK RETIREMENT PLAN Investment guide The is an important part of your reward package. This guide aims to help you choose the funds in which to invest your personal Retirement

More information

PENSION INVESTMENT APPROACHES GUIDE. More detailed information

PENSION INVESTMENT APPROACHES GUIDE. More detailed information PENSION INVESTMENT APPROACHES GUIDE More detailed information OUR COMMITMENT TO YOU We want to do everything we can to help you achieve what you need from your plan. Aiming for investment growth is vital,

More information

Investing in onshore bonds

Investing in onshore bonds Investing in onshore bonds Open up your options with our Tailored Investment Bond Before you decide to buy, you need to know what the risks and commitments are. Read our key features document (TNB17).

More information

Investment Dealing ISA SIPP Investment Plan Investing for Children

Investment Dealing ISA SIPP Investment Plan Investing for Children Investment Dealing ISA SIPP Investment Plan Investing for Children Contents Introduction 3 How can you help me manage my investments? 4 How can I invest? 5 The Investment Plan 6 The ISA 7 The Select Pension

More information

Savings account conditions and information.

Savings account conditions and information. Savings Savings account conditions and information. (For personal savings accounts that are no longer available to new customers.) page heading 1 Savings account Conditions. This booklet contains the conditions

More information

BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015

BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015 BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015 CONTENTS Where your Scheme benefits come from 4 Your choices affect your retirement account 5

More information

Your investment choices made easy

Your investment choices made easy Your investment choices made easy PathFinder guide The Fidelity PathFinder range An easy way to invest Our PathFinder range is exclusively available to customers of Fidelity s Personal Investing service.

More information

A Guide to Tax Efficient Investments

A Guide to Tax Efficient Investments A Guide to Tax Efficient Investments Need some help? Please contact your local office if you have any questions: London 020 7009 4900 Blackpool 01253 621 575 Bangor 01248 353 242 Carlisle 01228 515 224

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

Current Issues April 2015

Current Issues April 2015 In this issue: Pension tax: a post-election change - whoever wins Further help to buy from the government A savings tax cut Selling your pension annuity Income tax changes Pension tax: a post-election

More information

Nurturing your investment

Nurturing your investment helping life flow smoothly UNITED UTILITIES PENSION SCHEME Investment choices Nurturing your investment Contents Investment choices 1. A BRIEF GUIDE TO INVESTMENTS A reminder of the main different types

More information

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk 21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk Everyone wants to save tax and, although there are complex tax savings schemes available, some tax savings are simple. You just need to take some care

More information

Dealing with your mortgage shortfall

Dealing with your mortgage shortfall Dealing with your mortgage shortfall The options available Things to consider Helping you stay on track The Money Advice Service is independent and set up by government to help people make the most of

More information

The ABCs of 529 Plans

The ABCs of 529 Plans Clear Path Advisory Michael Steinhardt ChFC AIF 1777 Reisterstown Road Suite 285 Pikesville, MD 21208 410-486-5242 michael@clearpathadvisory.com www.clearpathadvisory.com The ABCs of 529 Plans Page 1 of

More information

With Our PRSA You Can

With Our PRSA You Can Live Life Your Way With Our PRSA You Can Making Your Money Work As Hard As You Do Contents Why Should I Plan For My Retirement?... 2 How Will My PRSA Work?... 4 How Will I Benefit From A PRSA?... 6 Investment

More information

M&G Guide to Retirement Income

M&G Guide to Retirement Income M&G Guide to Retirement Income 2 Working out how to make adequate financial provision for retirement is one of the most important financial decisions most of us will ever face. However, it can be a daunting

More information

Guide to Retirement Planning 2014/15

Guide to Retirement Planning 2014/15 Guide to Retirement Planning 2014/15 Retirement isn t what it used to be. In many ways it is better: people are living longer and enjoying healthier and more active retirement years. On the financial side,

More information

A guide to the pension changes in April 2015

A guide to the pension changes in April 2015 A guide to the pension changes in April 2015 106027837.indd 1 05/01/2015 10:00 Contents What do the changes mean for you? 3 Summary of the changes from 6 April 2015 5 What s changed in practice? 6 How

More information

John and Deena Smith SaidSo Client Number: 3xampl3

John and Deena Smith SaidSo Client Number: 3xampl3 John and Deena Smith SaidSo Client Number: 3xampl3 YOUR SAIDSO FINANCIAL PLANNING REPORT ed [Pick the date] [Type the abstract of the document here. The abstract is typically a short summary of the contents

More information

University of Reading Pension Scheme

University of Reading Pension Scheme Human Resources University of Reading Pension Scheme Investing for Retirement Introduction After deciding how much to save for retirement, where to invest the contributions that you and the University

More information

Saving and Investing in ISAs

Saving and Investing in ISAs Saving and Investing in ISAs ISAs are often referred to as tax wrappers. This means that you pay no tax, or less tax than usual, on the income you earn or on the profits you may make on your investments.

More information

Your simple ISA guide

Your simple ISA guide Your simple ISA guide How to make the most of your tax efficient savings and investments New ISA allowance 15,000 Contents An introduction to cash ISAs 4 Cash ISA 6 Fixed Rate ISA 7 Stocks & Shares ISA

More information

Your Guide to Equity Release

Your Guide to Equity Release Equity release has enabled me to go on more holidays, purchase a new car and make some major household purchases. The service provided met our financial needs in an efficient and helpful way. John, Sutton

More information

TD Direct Investing A Guide to ISAs

TD Direct Investing A Guide to ISAs TD Direct Investing A Guide to ISAs Introduction The aim of this guide is to explain how an Individual Savings Account (ISA) works and the benefits to investors. We offer our services on an execution-only

More information

Personal Pension Account

Personal Pension Account Personal Pension Account Contents Introduction... 1 A Closer Look At Our Personal Pension Account... 2 What Are The Tax Advantages?... 3 Flexible Contribution Options... 4 You Control Your Investment...

More information

Providing Financial Education. Your guide to ISA s

Providing Financial Education. Your guide to ISA s Providing Financial Education Your guide to ISA s ISA stands for Individual Savings Account, a taxefficient wrapper offered under Government legislation as a way of encouraging you to save. 02 ISA Your

More information

With new options available from April 2015, we can help you plan your finances for a worry-free retirement

With new options available from April 2015, we can help you plan your finances for a worry-free retirement Your retirement With new options available from April 2015, we can help you plan your finances for a worry-free retirement Life is full of financial decisions and planning your retirement is one of the

More information

how the One account works all your questions answered 08456 000 00 1 oneaccount.com

how the One account works all your questions answered 08456 000 00 1 oneaccount.com how the One account works all your questions answered 08456 000 00 1 oneaccount.com Contact us By telephone 08456 000 00 1 By typetalk 08456 000 00 1 By textphone 08456 10 10 56 By post By web The One

More information

Your guide to retirement savings and fund choices

Your guide to retirement savings and fund choices Your guide to retirement savings and fund choices The Global Connections Group Personal Pension Plan for employees automatically enrolled into the plan Contents What is The Global Connections Group Personal

More information

retirement planning the retirement you want Heineken UK Flexible Retirement Plan

retirement planning the retirement you want Heineken UK Flexible Retirement Plan my retirement planning the retirement you want Heineken UK Flexible Retirement Plan Contents Get an overview of the Heineken UK Flexible Retirement Plan What is the Flexible Retirement Plan? 4 Your benefits

More information

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions TAKING CONTROL OF YOUR PENSION PLAN If you add together all the money you have in pension arrangements, the total may well dwarf every other investment you ever make. Despite this, many people are happy

More information

Important changes to NS&I Children s Bonus Bonds

Important changes to NS&I Children s Bonus Bonds Important changes to NS&I Children s Bonus Bonds Read this to find out how they will affect your child s investment Please also read the separate Key features leaflet, which includes the terms and conditions

More information

Retirement Income Planning With Annuities. Your Relationship With Your Finances

Retirement Income Planning With Annuities. Your Relationship With Your Finances Retirement Income Planning With Annuities Your Relationship With Your Finances There are some pretty amazing things that happen around the time of retirement. For many, it is a time of incredible change,

More information

planning for a better retirement

planning for a better retirement planning for a better retirement retirement is the time when you finally get to do all the things you said you were going to do page 01 making the most of your retirement Retirement is the time when you

More information

Investing in the Future

Investing in the Future Investing in the Future Many years ago, an American company had the slogan, The Future is NOW. Still another company crowed, The future is here! Neither is true the future is the future, while NOW is the

More information

Adviceguide Advice that makes a difference

Adviceguide Advice that makes a difference Jargon Buster A Z of financial terms This fact sheet explains some of the financial terms that you might come across when you are dealing with financial matters. ACCOUNT:- this is provided by a bank or

More information

Your guide to the investment changes

Your guide to the investment changes Your guide to the investment changes This announcement sets out changes to both the Lifecycle Strategy and Freechoice fund range. Please read it carefully. A quick reminder of how the Scheme works Every

More information

Your Guide to Pension Freedom

Your Guide to Pension Freedom Your Guide to Pension Freedom 3 From April 2015, individuals will have more freedom to access their pensions. These changes mark a radical departure from the existing system, by giving you greater choice

More information

Understanding mortgages

Understanding mortgages This information is an extract from the booklet Housing costs, which is part of our Financial guidance series. You may find the full booklet helpful. We can send you a free copy see page 7. Contents What

More information

Junior ISA key features

Junior ISA key features SIPP ISA Dealing Junior ISA Junior ISA key features The Financial Conduct Authority is the independent financial services regulator. It requires us, AJ Bell Securities Limited, to give you this important

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

SIPP Key Facts. This is an important document which you should keep.

SIPP Key Facts. This is an important document which you should keep. SIPP Key Facts! This is an important document which you should keep. 2 Key Facts of the Alliance Trust Savings SIPP The Financial Conduct Authority is the independent financial services regulator. It requires

More information

Investing for a brighter future. Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED

Investing for a brighter future. Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED Investing for a brighter future Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED Contents 03 What is a stocks and shares ISA? 04 How much can I invest? 05 Why invest in a stocks and

More information

The New ISA Frequently Asked Questions

The New ISA Frequently Asked Questions 1. The New ISA What is the New ISA? The New ISA Frequently Asked Questions From July 1 2014 all ISAs will become New ISAs (NISAs). This applies to all existing ISAs and new accounts opened after 1 July.

More information

WAYS TO WEALTH - IN YOUR 20's TIME TO GET SMART WITH YOUR MONEY

WAYS TO WEALTH - IN YOUR 20's TIME TO GET SMART WITH YOUR MONEY WAYS TO WEALTH - IN YOUR 20's TIME TO GET SMART WITH YOUR MONEY Whether you're studying, working or travelling, living at home or with friends, saving to buy your own place or you have a mortgage, now

More information

Keeping up with mortgage repayments

Keeping up with mortgage repayments Keeping up with mortgage repayments This information is an extract from the booklet Housing costs, which is part of our Financial guidance series. You may find the full booklet helpful. We can send you

More information

Standard Life Active Retirement For accessing your pension money

Standard Life Active Retirement For accessing your pension money Standard Life Active Retirement For accessing your pension money Standard Life Active Retirement our ready-made investment solution that allows you to access your pension savings while still giving your

More information

TD Direct Investing A Guide to SIPPs

TD Direct Investing A Guide to SIPPs TD Direct Investing A Guide to SIPPs Introduction If you are considering investing for retirement, there are a number of ways to approach it. One way is to embark on the do it yourself (DIY) self investment

More information

exploring the options

exploring the options Information caveat The content of this presentation is provided for illustrative purposes only and is not intended to be used for individual investment or financial planning and does not constitute personal

More information

Registered Investment Advisor Firm

Registered Investment Advisor Firm Registered Investment Advisor Firm Issue VI, Vol. III Bud Heng Registered Adviser (925) 360-6819 June 2014 Congratulation Graduates! For the graduating class of 2014, let me be among the first to say congratulations!

More information

Prudential ISA. A guide to the. Your questions answered

Prudential ISA. A guide to the. Your questions answered Prudential ISA A guide to the Prudential ISA Your questions answered The Prudential ISA combines tax-efficient investment with access to the unique range of PruFund funds. About the Prudential ISA Capita

More information

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning With careful tax planning, it may be possible to mitigate taxes or make them much more manageable A GUIDE TO 2014/15 YEAR END TAX PLANNING With

More information

InterContinental Hotels UK Pension Plan

InterContinental Hotels UK Pension Plan InterContinental Hotels UK Pension Plan Pension Newsletter Defined Contribution (DC) Section Room for you March 2011 I m pleased to welcome you to our latest Pension Newsletter which has a new format,

More information

Your retirement income. Exploring your options

Your retirement income. Exploring your options Your retirement income Exploring your options Contents 02 What do you want to do with your pension fund? 07 A regular retirement income for the rest of your life 10 A flexible income from a Self Invested

More information

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX CONTENTS Understanding inheritance tax 3 Should I be worried about inheritance tax? 4 Inheritance tax planning 6 Using gifts 8 Using trusts 10

More information

Your Guide to Equity Release

Your Guide to Equity Release Equity release has provided me with financial stability. I now have the opportunity to help my family, go on holiday, and make some home improvements. Mr W, East Sussex Your Guide to Equity Release Contents

More information

2) You must then determine how much of the risk you are willing to assume.

2) You must then determine how much of the risk you are willing to assume. CHAPTER 4 Life Insurance Structure, Concepts, and Planning Strategies Where can you make a Simpler living as a needs financial planner? 1) Wealthy clients have a much higher profit margin. The challenge

More information

Investment matters. Smart guide #3 Getting your fair share

Investment matters. Smart guide #3 Getting your fair share Investment matters Smart guide #3 Getting your fair share Produced in partnership with Shares magazine The value of investments can fall as well as rise and any income from them is not guaranteed and you

More information

MORE CHOICE MORE FREEDOM

MORE CHOICE MORE FREEDOM LOOK FORWARD TO MORE CHOICE MORE FREEDOM A guide to Income Release Pension Portfolio royallondon.com WELCOME TO ROYAL LONDON We re a mutual organisation and, unlike a PLC, we don t have any shareholders

More information

HALIFAX CASH ISA. Conditions and information

HALIFAX CASH ISA. Conditions and information HALIFAX CASH ISA. Conditions and information Welcome to Halifax 3 Section 1 How these conditions work 5 Section 2 Special Conditions 7 ISA Saver Variable 12 ISA Saver Online 13 ISA Saver Fixed 14 Junior

More information

Start counting on yourself

Start counting on yourself Start counting on yourself Start with life insurance on your terms ING ROP Endowment Term and ING ROP Endowment Term NY Term Life Insurance issued by ReliaStar Life Insurance Company and ReliaStar Life

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

A guide to inheritance tax

A guide to inheritance tax Sept 2014 Contents: 1. Understanding inheritance tax page 02 more 2. Should I be worried about inheritance tax? page 03 more 3. Inheritance tax planning page 05 more 4. Using gifts page 07 more 5. Using

More information

WHAT S INSIDE. Financial Planning. Starting out. Young families. Established families. Empty nesters. Retirement Getting the best advice

WHAT S INSIDE. Financial Planning. Starting out. Young families. Established families. Empty nesters. Retirement Getting the best advice FINANCIAL PLANNING If you re looking for advice on financial planning, this guide explains some of the things you may need to consider. We hope you find this guide and the important pointers to each life

More information

Annuities Market Briefing

Annuities Market Briefing Annuities Market Briefing Written by Pensions specialist Dr. Ros Altmann You can read Ros' blog here: http://pensionsandsavings.com/ Annuities are a unique financial product. There is no other investment

More information

Your guide to. Equity Release. with no obligation

Your guide to. Equity Release. with no obligation Your guide to Equity Release Expert advice with no obligation Your introduction to equity release Your retirement should give you the freedom to do all the things in life you haven t had time for. However,

More information

Money Math for Teens. Dividend-Paying Stocks

Money Math for Teens. Dividend-Paying Stocks Money Math for Teens Dividend-Paying Stocks This Money Math for Teens lesson is part of a series created by Generation Money, a multimedia financial literacy initiative of the FINRA Investor Education

More information

New pension rules explained take the whole lot as a lump sum

New pension rules explained take the whole lot as a lump sum 0117 980 9926 www.hl.co.uk October 2014 New pension rules explained take the whole lot as a lump sum On 19 March the Chancellor announced what he described as the most radical changes to pensions in almost

More information

Asset allocation A key component of a successful investment strategy

Asset allocation A key component of a successful investment strategy Asset allocation A key component of a successful investment strategy This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard

More information

Guide to Trading GUIDE TO TRADING

Guide to Trading GUIDE TO TRADING GUIDE TO TRADING 1 Table of contents THE GUIDE...3 INTRODUCTION...4 GETTING STARTED...8 HOW TO TRADE... 12 LADDER OPTION...20 ABOUT US...24 BASIC GLOSSARY...25 2 The Guide Dear client/investor We welcome

More information

Key features. For customers One Retirement

Key features. For customers One Retirement For customers One Retirement Key features Contents Its aims 02 Your commitment 02 Risks 03 Questions and answers 04 Secure retirement income (SRI) 08 Other information 11 How to contact us 12 The Financial

More information

This factsheet will use the term ISA to refer to both ISAs and NISAs.

This factsheet will use the term ISA to refer to both ISAs and NISAs. PUBLISHED November 2015 FACTSHEET Individual Savings Accounts, incorporating New ISAs On the 1 st July 2014 there were some significant changes to Individual Savings Accounts (ISAs) and the subscription

More information

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM www.jaswealth.com.au Superannuation 101 Everything you always wanted to know but were too afraid to ask What is Superannuation? Superannuation 101 Contents What

More information

Welcome to NEST. All the key information you need about being a member of NEST

Welcome to NEST. All the key information you need about being a member of NEST Welcome to NEST All the key information you need about being a member of NEST 2 Please write your NEST ID here: You ll find this number on the letter that came with this booklet. Welcome to NEST Building

More information