Wednesday 8 April 2015

New Year, New ISA. We’ll Give You Four Reasons Why



It’s a new tax year after April 15 folks. After the carnage of filing taxes and tax returns, you’re not too sure about taking a new ISA. Why would you want an additional headache when after April 15, you could just go and chill a bit? Well, here are four reasons you might like being the early bird when it comes to your ISA



1.    The 12-Month Payoff
Investing today, you beat countless other individuals, groups and companies that cram their tax filing during the last minute.
You also have a reward: If you buy an ISA for 2015 right after, the whole financial year your money would be growing and earning interest.
Invest even in just a nominal lump sum in your ISA. It doesn’t have to be too big. If you invest money in your ISA by the end of tax season, you’ll be having the same amount, for a lesser price when you start early.

2.    Spread Investing Across the Year
We’re all very fond of piggy banks, aren’t we? When we have coins, we make sure to put them in a bottle. Now, why not put your coins or larger savings in your ISA every month to reach the pinnacle of £15,240?
The latter is the maximum ISA allowance for 2015/2016. If you stash away some of your cash, stocks and share with values of £50 to £100 monthly in your ISA, you could get a whole deal of interest. It also makes it easier to tackle the larger objective of growing your money as you hit the limit.

3.    Tried and Tested
According to the FTSE All Share Index in the past 14 years, it has generated positive returns. When you start investing early in your ISA, you could make it perform better. When the statistics tell the truth, what have you got to lose?

4.    Rebalance
Now that you’ve put money in your ISA, you could concentrate on other things, such as rebalancing your portfolio for the next year. You might want to sell some of your underperforming assets.
Explore other investment options and treat your ISA as one of them. But for your ISA, you don’t need to manage it; it’ll grow larger with the best results ever had than cramming at the last minute.