Retirement Could Be Sweeter When Stocks and Shares ISAs Back-up the Pension Pot
- Author Richard Teahon
- Published September 20, 2011
- Word count 392
Possibly the only thing sweeter than fruits or fizzy drinks is the tax rules applicable to stocks and shares ISAs.
They were introduced together with the cash ISA which unlike the stocks and shares ISA received widespread media attention for the tax free savings it offered. The stocks and shares ISA is sweet because it has some rather wonderful UK tax rules.
Dividends are not subject to additional tax
Capital Gains are not taxed
Bonds interest is not taxed
Income, capital gains, or trades are not considered taxable income so they do not have to be reported to HMRC.
Stocks and Shares ISAs are particularly sweet to those facing retirement with incomes around £22,900 level, as they do not affect personal allowances as other systems do. This possibly nudges them past grapes in the sweetness level.
So, if a person has a pension pot which is as stable as a celebrity marriage, then a few quid tucked away in a stocks and shares ISA is not be a bad thing. You could say it is a prenuptial agreement in case the pension hits the rocks together with the stock market. It should be noted however, that the stocks and shares ISA like the name suggests is dependant on stock market performance like most pensions. Nonetheless, if used well they can make the pension crisis seem more like a heavy drama.
Stocks and shares ISAs give plenty of benefits which by and large offset some of the risks of investment. They are an investment vehicle which supports a pension scheme without impeding it at least up to a point and through investing in both the stocks and shares ISA and the pension, the money is spread around which always lessens a risk.
Many investors turn to banks and financial advisors to get advice on where to invest their money and this makes sense on the surface. It is important to realise that many financial decisions are common sense ones, and do not need a highly paid professional telling you what to do with your financial investments, anymore than you need them to tell you how to flush the chain. The better financial management companies have acknowledged this and subsequently take a hands off approach and step in only when needed.
For stocks and shares ISA investments, this is the kind of company you need.
Fundsnet.co.uk was founded by Chairman Simon Dixon with a view to reduce the cost of financial investing. It offers a variety of financial products, including but not limited to stocks and shares ISAs, consultancy and advice, trust and pension investments, emerging markets, commodities, and unit trusts and OEICs. The product range was created to suit every type of investor. http://www.fundsnet.co.uk
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Transformative Power of Yamaigel’s Certified Gel Eye Masks
- Checking account with cell phone protection!
- Keeping Cool This Summer: Air Conditioning Installation Services in Milwaukee
- A DIY Guide to Fixing Your Garage Door (with a Call to Garage Door Magnolia When All Else Fails!)
- Can a Bent Garage Door Be Bent Back into Shape? Don't Panic, Call Kiki Garage Door!
- How Can I Tell If My Garage Door Opener Sensor Is Bad?
- Maximizing Profitability: The Economics Behind Customizable Design Assets
- Exploring the Hidden Gems of Si Racha, Thailand
- DIY vs. Professional Movers: Pros and Cons in 2024
- MK Web Celebrates Top Position in Bourne's Premier Web Design Rankings
- The Road to Sobriety: Understanding Substance Use Disorders
- MotorKote Ultimate 40/60 Synthetic Hyper Mix 5W-30
- Exploring Denver on a Dime: A Frugal Travel Guide
- Top 10 Ways Production Scheduling in Business Central Transforms Manufacturing
- Strength Training and it's Incredible Benefits for Fat Burning
- Enhancing Home Security with Aluminum Shutters: A Focus on Weatherwell Elite
- 5 Easy Ways to Make Oral Hygiene Fun for the Whole Family
- Transforming Plastic Extrusion Machines into Recycling Powerhouses
- Unraveling the Potential of Plastic Extrusion Machines
- The Rise of Plastic Recycling Machines: A Step Towards Sustainability
- Strawberry Cheesecake Ice Cream: OMG! Unreal!
- The Advantages of Using Professional Home Cleaners in Ilford
- 8 Compelling Reasons to Hire Professional Home Cleaners
- The 12 Steps Narcotics Anonymous Program To Recovery
- Send Money to Tanzania: Effortless Transfers with SafariRemit
- Stylish Savings: 10 Frugal Ways to Stay Fashionable in 2024
- Fly Cheap With FlightPapa To Any City
- How Collaborating with a Software Development Company Can Propel Your Business Forward
- A Comprehensive Guide to Choosing the Best Hair Transplant Method
- 15 Frugal Tips for a Memorable Wedding Day