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You can help maximise
the potential of your investments with a wide range flexible solutions for Contractors.
The extensive experience of the IFAs at ContractorFinancials means that they
can search thousands of investment funds to find the right solutions for you. One of the most
popular investment routes amongst Contractors is an Individual Savings Account
(ISA) because of its significant tax breaks and flexibility. There are a number
of key benefits for an ISA investment: ·
You
can invest up to £11,520 each year into an ISA account. ·
There
are a wide range of ISAs to choose from so you can find the best solution to
your needs ·
ISAs
offer a flexible investment option that is suitable for medium and long term
investments and with most you can draw out your savings at any time. Make the most of your savings With HMRC’s
continuing efforts to remove the tax breaks available to Contractors, now more
than ever it is important for you to take advantage of the few remaining
options available. ISA investors can
deposit a maximum of 50% of the allowable portion in a cash based ISA, 100% in
an equity (stock market) based ISA or a mixture of both. Equity ISA Investing in an
equity ISA is one of the most popular options and stock market based
investments historically offer the best returns as long as you can accept that
your funds may fluctuate in value. It is often best to opt for a term of five
years or more so that your savings have a chance to grow and hopefully ride out
any dips in the stock market. Contractor Financials search thousands of options
to short list the funds that have a history of positive performance and strong
prospects. You have the
option to invest in a lump sum however the advisers will recommend that you use
monthly contributions to spread the risk of market fluctuations and avoid the
end of tax year rush. Cash ISA For investors with
a low risk tolerance or those that need to have access to their savings in the
short term, a cash ISA would probably be more suitable as savings can be
accessed instantly. With a cash ISA you should benefit from a higher interest
rate than you would gain in a High Street savings account because banks view
ISA investments as a longer-term commitment and reward this with extra interest.
Protected ISA Offering a
compromise between the cash and equity ISAs, a protected ISA tracks the stock market
but it carries a protection policy for the underlying value of the fund. This
allows Contractors to benefit from the potential for growth in an equity ISA
with the security of a cash ISA. Pension or ISA? Ideally both if affordable,
as the pension offers substantial up-front tax breaks whilst the ISA offers accessibility.
This ability to access your savings at any time with an ISA carries dangers as
you are more likely to take money out leaving no long term nest egg. The
pension cannot be accessed until you are 55 which will ensure you have a pot
for your retirement. Contractor
Financials will be happy to advise you on your investment options, to find out
more please call 0845 062 8888 or email us at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
.
Financial advice
is given by ContractorFinancials, which is a trading name of Contractor
Financials Ltd and is regulated and authorised by the Financial Conduct
Authority.
The value of investments may rise as well as fall and past performance is not a
guide to future returns.
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