Savings and Investments

Savings and Investment Services

Saving and Investing can take many forms – setting aside money regularly in a bank account or ISA, to savings plans for your children or grandchildren, to maximising returns on already accumulated sums or inheritances – and the reasons for doing so can be just as diverse – saving for a first home or other short/medium term financial goals, or accumulating funds toward retirement goals. Whatever your situation and objectives, our approach consists of:

• Defining your investment objectives e.g. income, growth, combination, target dates etc;
• Establish degree of investment risk you are willing and able to take
• Suggesting and explaining suitable solutions
• Implementing those solutions in the most tax efficient way
• Reviewing the solution in light of changing experience and circumstances

Because we are a entirely independent, we are able to  put in place whatever solutions are suitable for you. That may include investment products and funds, in which case we are able to take a true, whole of market approach, or may simply be advice or cash flow planning with no investment product involved.

Savings and Investment Products include:

ISA –  Available from the ages of 16 for a Cash ISA and 18 for an Investment ISA. This savings product allows you to save up to £20,000 per tax year without any additional tax liability on interest, dividends or capital gains.

*Lifetime ISA – Available for 18 to 40-year-olds who are saving towards a deposit for a first home or towards retirement. You can invest up to £4,000 per tax year up to the age of 50 with the government giving a 25% bonus on all payments into the account.

For example, if you invest £4,000 the government will put an additional £1,000 into your account.

*Please be aware that any money you pay into this product will reduce your annual ISA Allowance

Junior ISA –  Available for those who are too young to invest in an ISA or Lifetime ISA, and potentially an ideal investment product for parents or grandparents wishing to set aside money for their future. These offer the same tax advantages as a full ISA but have an annual investment limit of £9,000. Click HERE to read more on Investing For Children.

Unit Trusts & OIECS (via General Investment Account) –  These are pooled investment funds that offer access to a wide range of investment opportunities and are the same funds as those which would be held within an Investment ISA. A general Investment Account would be used once an individual has maximised the use of their ISA Allowance. Such investments can be tax-efficient, taking advantage of the savings and Dividend Tax allowances and individuals’ annual Capital Gains Tax Allowance. Unlimited sums can be invested this way.

Investment Trusts – These are pooled investments that are similar to Unit Trusts & OEICS but are structured as a Company and listed on the Stockmarket which means their shares are priced in real-time. A wide range of trusts can employ gearing to magnify returns but can make returns more volatile. Similar tax efficiency and treatment comments apply as those for Unit Trusts & OEICS.

Bonds – These are products offered by Insurance Companies and can be UK or Non-UK based. These products are subject to income tax on investment returns but have special tax rules which mean they can be attractive investments in some circumstances, particularly for those seeking regular withdrawals and for trusts. They offer access to a wide range of investment options and some options that are specific to this type of product, such as smoothed return funds. Bonds are also often offered as part of a packaged Inheritance Tax Solution.

So if you bought the bond for £10,000 this will mean you will receive £500 each year until 2030 at which point you will receive your original investment.

Venture Capital Trust – A more specialist investment is smaller companies, these investments tend to be higher risk, but have special tax treatment which can make them attractive once pension savings have been maximised. Up to £200,000 can be invested each year into these investments and tax relief of 30% of the sum invested (capped at the investor’s overall income tax liability in the year of payment) is available provided the investment is held for five years. In addition, dividends and capital gains are also tax-free.

Frequently Asked Questions

• How do I inflation Proof My Portfolio?
• How does my attitude to risk affect my investments?
• What are the effects of inflation on my investments?
• How do I manage market volatility?
• What are the six principles of investing?