12:25 05 March 2013
As with practically everything in life, no matter how good it is there are always those who, for whatever reason, refuse to see the benefits. It’s no different with individual savings accounts (ISAs).
But in my book ISAs are a win-win no matter how you look at it.What do I like about ISAs? Well here are the 3 main reasons I find them appealing:
•ISAs are not your mama’s old-fashioned savings account. ISAs are tax free. For as long as the money is in the account, it’s tax free. 10 years? Tax free. 20 years? Tax free. Get the picture? So, if you’re a savvy investor, you invest the total allowance every year, invest part in some good, robust stocks that have a history of performing well, don’t take any out and watch your money grow!
•The yearly allowance has been raised to £11,280 per year, and will continue to rise as inflation rises. So as inflation gets higher, you’ll be able to save more of your hard earned money without worrying about being taxed.
•There is a Junior ISA for kids who are 16 years old and younger. This is great when you want to save for your kid’s college education, but you don’t want it to be part of your retirement savings. You can have a separate account for each child, with a yearly allowance of £3,000.
So the simple question is “Why would you not take advantage of something that benefits you and doesn’t cost you a penny?” That’s a rhetorical question but I’m sure you get my point.
ISAs are a simple way to become a better investor and get a better return on your investment. I encourage you to use it, and take the full allowance every year. It won’t be long before you’ll see that it’s a win-win for you too!
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