Have a Better Retirement With a Stocks and Shares ISA
With UK pensions providing a very bleak outlook in the main, other investment vehicles are often looked at by people trying to give themselves a better quality of life when they finally leave the working world.
Many financial products impact on personal allowances, which for many defeats the object of investing in a different investment vehicle.
The stocks and shares ISA however, changes the game as it has some quite wonderful tax rules.
They are:
Other systems often fail miserably in this regard.
With a stocks and shares ISA, the pension performance though still important loses its edge slightly.
Though it should be noted that as its name suggests, the stocks and shares ISA is still stock market dependent.
Most financial professionals however will tell you that not having all the money tied up in one fund is a good idea, especially given the fluctuating nature of the world economy.
The advantages a stocks and shares ISA, especially when running side by side with a pension, provide the investor with a better chance of a good quality of life.
More so in fact, than having all the money tied up with the pension.
If you are approaching retirement and are concerned about what your current pension or pensions are going to yield, you may want to take a look at a stocks and shares ISA, as it may offer you not so much an alternative, but more of a backup to the pension should it under perform.
Many people enlist the help of banks and financial advisors where financial investments are concerned, and though there is obvious wisdom in doing this, many clients pay for decisions that they could easily make themselves.
Many financial choices just need a little thought, and some companies have acknowledged this.
Sadly however, there are many financial companies which use a sell - sell method where it is not needed.
If you are looking to invest in a stocks and shares ISA, then you should use a company that is prepared to take a hands off approach and only step in when financial advice is truly needed.
Many financial products impact on personal allowances, which for many defeats the object of investing in a different investment vehicle.
The stocks and shares ISA however, changes the game as it has some quite wonderful tax rules.
They are:
- Dividends are not subject to additional tax
- Capital Gains are not taxed
- Bonds interest is not taxed
- Income, capital gains, or trades are not considered taxable income so they do not have to be reported to HMRC.
Other systems often fail miserably in this regard.
With a stocks and shares ISA, the pension performance though still important loses its edge slightly.
Though it should be noted that as its name suggests, the stocks and shares ISA is still stock market dependent.
Most financial professionals however will tell you that not having all the money tied up in one fund is a good idea, especially given the fluctuating nature of the world economy.
The advantages a stocks and shares ISA, especially when running side by side with a pension, provide the investor with a better chance of a good quality of life.
More so in fact, than having all the money tied up with the pension.
If you are approaching retirement and are concerned about what your current pension or pensions are going to yield, you may want to take a look at a stocks and shares ISA, as it may offer you not so much an alternative, but more of a backup to the pension should it under perform.
Many people enlist the help of banks and financial advisors where financial investments are concerned, and though there is obvious wisdom in doing this, many clients pay for decisions that they could easily make themselves.
Many financial choices just need a little thought, and some companies have acknowledged this.
Sadly however, there are many financial companies which use a sell - sell method where it is not needed.
If you are looking to invest in a stocks and shares ISA, then you should use a company that is prepared to take a hands off approach and only step in when financial advice is truly needed.
