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A Stocks and Shares ISA is one of the best products for long term financial planning. Here we break down exactly what a Stocks and Shares ISA is, and what the benefits of them.<\/p>\n
In short<\/strong><\/p>\n It is an ISA which is in a tax efficient wrapper that allows you to invest in Stocks, Funds, Bonds and other investment vehicles. The main benefits of a stocks and shares ISA is:<\/p>\n -No capital gains tax on investment growth<\/p>\n – No tax on dividends within the ISA<\/p>\n -No tax on any interest within the ISA<\/p>\n So effectively if two people both invested \u00a320,000 with one using an ISA and one without there is a difference:<\/p>\n As you can see the same investment can have two different outcomes if not held within an ISA.<\/p>\n What can you actually invest in?<\/strong><\/p>\n You can buy individual stocks within an ISA but generally we advise investing in a fund. That fund can spread your investment over a much wider range of products which can importantly mitigate your risk.<\/p>\n How much can you put in?<\/strong><\/p>\n Each year you get an allowance of \u00a320,000. This allowance is on a use it or lose it basis and you cannot carry forward allowances into the following tax year.<\/p>\n What is the risk?<\/strong><\/p>\n A Stocks and Shares ISA holds investments as per any other wrapper and so the value of the investment can both rise and fall. Historically investments over the long term have performed well but past performance cannot be a guarantee of future performance<\/p>\n Is it right for me?<\/strong><\/p>\n If you are looking at investments for a time horizon of over 5 years then generally a Stocks and Shares ISA can be very beneficial. If you are planning on using the funds in the short term then you may be best to use a cash ISA as there is less risk associated with cash ISAs.<\/p>\n What do I invest in?<\/strong><\/p>\n This is where a Financial Adviser can add real value to you. Many people invest without a full understanding of the investment, their risk tolerance, the historic performance of the fund and the risk rating of the fund. As financial advisers we undertake a thorough fact finding process before making any investment recommendation.<\/p>\n","protected":false},"excerpt":{"rendered":" A Stocks and Shares ISA is one of the best products for long term financial planning. Here we break down exactly what a Stocks and Shares ISA is, and what the benefits of them. In short It is an ISA which is in a tax efficient wrapper that allows you to invest in Stocks,… <\/p>\n\n