is an isa worth the bother?
Discussion
petemurphy said:
are they worth it these days? i have a fair chunk of money that i need to do something with but wont get round to it in next few weeks so wondering if I should at least put 20k in an isa before april 5th?
Yes. There are a significant number of people who are now millionaires because they made full use of their ISA allowance & given that income from ISAs is tax free they are now in a very good position. Of course it's not a short-term investment but if you have time on your side an ISA can be a valuble part of any investment plan. Yes...if you are a high rate tax payer then getting as much as you can each year into tax free wrappers like ISA and SIPP makes sense. Once the money is in, you can move it between stocks n shares or cash. Take advantage of it whilst you have spare cash...I wish I had done in my earlier years....
bogie said:
Yes...if you are a high rate tax payer then getting as much as you can each year into tax free wrappers like ISA and SIPP makes sense. Once the money is in, you can move it between stocks n shares or cash. Take advantage of it whilst you have spare cash...I wish I had done in my earlier years....
I agree but I would say SIPP would come before ISA for high rate tax payer due to the tax relief on the way in being higher than on the way out (possibly) - assuming they wanted to lock it away till at least 55 too.For shorter term then yes ISA.
It’s important to separate out the wrapper from the underlying investment.
Your question is like saying “Should I buy a car?” rather than “Should I buy a Ford or a Ferrari?”.
What’s your timescale for the investment, what’s your attitude to risk? What age are you (are you close to retirement)?
Your question is like saying “Should I buy a car?” rather than “Should I buy a Ford or a Ferrari?”.
What’s your timescale for the investment, what’s your attitude to risk? What age are you (are you close to retirement)?
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