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ou may have searched this online already and found a ton of sites with a bunch of info that just doesn’t make much sense. However, we have put together a simple yet informative article giving you an insight on
investments ISA’s.
Stocks and Shares ISA
Without making it too complex, a
stock and shares
ISA is an account that you can put investments in. These
investments can then produce/grow meaning you are left with more than you invested.
The best bit is that any
investments you put in, can be withdrawn tax-free. This is down to the government wanting people to save and think about their futures.
How Do They Work?
Keeping it simple, think of it as an empty
account. If you leave it empty, nothing will happen. However, if you put money in, you gain
interest on that money. It is similar to how
Investment ISA’s work. You invest money into the account and that
investment can grow.
For those starting out, you can actually invest in
ISA’s that can manage themselves. Therefore, you don’t have to make decisions on
investments nor do you have to really run your money.
Are There Limits?
As
Investment ISA’s are tax free, there are some limits. Firstly, there is an annual saving limit that a person can make. Make sure that you read the fine print on how much you can invest because you don’t want to lose money or be disappointed when you can invest more.
Each year these limits change and if you run it well, there are ways to build a very large
ISA portfolio. It has been revealed that there are a lot of people with over £1 million invested and it is all tax free.
Investment ISA’s can be a great way to invest your money with the possibility of making more money without doing much. However, there are some nooks and crannies that you need to be careful about. Therefore, speak to an
investment advisor or read up online before throwing your money into any old
investment ISA.
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