Whilst this is headline good advice, there is absolutely no mention of the reasonably high possibility that, in the next few years there will be a crash and your ISA will, temporarily, be hugely devalued. How if you need the funds at that exact moment. This is crucial advice and should always be presented when proposing investing in markets
For that reason, you are probably better off investing in a pension, not a stocks and shares ISA. Unless you need the money before retirement. Personally I dont do a stocks and shares ISA as I already have a large % of my overall net worth invested in the stock market via a pension, which is more tax efficient than an ISA (contributions are also tax free).
Pretty straight forward.. if you need guaranteed access to the money in the next 3-5 years then the money amount you need access to should not be in equities? But instead in lower volatility liquid assets. Stocks and shares for the longer time runway to ride out any downturns that none of us know when are coming. People have been saying we are due another GFC percentage crash and that tech is over valued etc since the GFC over 15 years ago yet here we are 😃
@@garythornbury9793if you need guaranteed access to a certain specific amount of money for a specific timeframe, can you really take the risk of the possibility of it not crashing, what if it does and you have no plans for it?
From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Evelyn Infurna, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape...
I think that cash is the right place to be right now. And Warren Buffet agrees with me. I pay tax at 40% but, through 'rate-tarting', am beating inflation by a clear 1% - so I'm growing my wealth. I'll put my cash into stocks when the market crashes. Good video.
I remember friends saying “I’ll buy a house when the market crashes” back in 2000. Even in 2008, it didn’t drop much where I am (10% at the very most - and only on very few properties).
Hi , New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
I've stuck with ‘’Melissa Elise Robinson” for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
I envy you, I’m still trying to recover from losses I incurred in 2021/2022, who is this investment adviser you work with, I’m intrigued and I could use some quality guidance
My CFA ‘’Aileen Gertrude Tippy” , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Look into a sipp as well as at the moment you can still invest in a sipp, unless labour fook it up in the budget it should be tax free for inheritance.
If your income comes from defined benefit pensions, fair enough. But if you are drawing down a defined contribution pension pot to pay into a cash ISA, you might be better off withdrawing less from the pension as that can be passed down to relatives free of inheritance tax after you pass on. I’ve seen advice that, after retiring, you should draw down ISAs before your pension pot as ISAs are subject to inheritance tax. (Possibly leaving a buffer of ISA cash for later, in case there is a stock market downturn and you want to withdraw less from your pension in the hope that the market soon recovers.)
It's important to remember Cash ISAs are NOT investments, they are purely saving accounts. However, I'd *may* be the right thing to do given, I assume, you are retired, and therefore don't want to expose your money to stock market fluctuations. Saying that, most investment advisors would probably suggest some kind of bonds rather than a straight Cash saving account, albeit in the form of a Cash ISA.
I've bought some - not enough and too late - as a hedge against a stock-market crash. If that happens, gold should hold its value. You should research that particular characteristic of the shiny stuff.
Hi Kiran, thanks for your knowledgeable video, had a question if I had to invest say 20,000 in ISA for a year @ 4%, and after interest that would be 20,800. Now can I reinvest that 20,800 for another year Or Have to invest only 20,000 as thats the allowance given, Appreciate your advice
The 20800 would remain in the ISA. You could either keep it there or transfer it to a different kind of ISA, eg stocks and shares. There important thing is not to withdraw it from the ISA to invest in another ISA , you need to keep your yearly 20k contributions within an ISA wrapper if possible.
Not many stocks and shares ISAs out there to choose from, I think its telling us that folk don't trust those who deal in Stocks and shares on their behalf, they still have the stigma of being robbers and cheats! that if we as investors are going to invest, we need to trust!
Good basic ideas, but I really don't like that you picked extreme numbers to try to illustrate your cases. You mentioned people with less than £25k savings probably won't have to pay tax, but then go on to use £9k a year of contributions into a Junior ISA for 18 years. Both are extreme examples that are just not going to apply to the same people. Aaaannyway, how did I come to this video? I was looking at basque cheesecake recipes. Hmm.
I pay mostly into my pension as it's very tax efficient, and investment options are easier to access. You can invest 60k per year into your pension while ISA is 20k. If you dont need the money then push money into your pension.
I'm a little confused, you mention one cannot open a cash isa and a stocks and shares isa. I have both with the same bank. I don't see why they would let me open both if we are not allowed....
@@johnristheanswer That's why its its good to invest in low cost tracker funds. You are buying the market at a fraction of the cost of actively managed funds.
Pensions are exposed to the same level of vulnerability. It is assumed that if you understand what a pension or an ISA is, you should already know that your investments are always at risk.
Very good information. I did not put 20K in my ISA per year for 5 years. which is 100K Can I back log and put the money now in my ISA account. Any help will be highly appreciated. I move to UK 10 years ago so did not know all the rules and my accountant did not guide me.
1:48 Hmm.. Sorry to be that guy but only 6-8% of UK residents hold a Stocks and Shares ISA but you said "41% of men already do hold a Stocks and Shares ISA" I think you meant to say 41% of male ISA holders use a Stocks and Shares ISA.
You didn't highlight the negatives of investing. I had lost half of my investment as I needed the fund to put down for my house deposit after investing for 13 years. I'm now sticking to cash, as I will know for sure I will get my money back that I've put in.
I do understand that isa can be transferred from one spouse to another on death of spouse. Can these isa’s be transferred to our children on death of both spouse?
When was the last time the market crashed to zero? When was the last time it crashed more than 40% and wasn't at all time highs within 10 years? Maybe if you're dodging coffins and can't weather a bear market you'd be prudent to stuff your money in your mattress but, for those with youth and time on their side, investing in the markets and buying more when things are on sale is a great way to build wealth for the future.
@ Oh dear, oh dear, are you telling me the money you invest isn’t at risk of being lost? Better to invest that money in property or gold that you actually own
@@marcusherts9345 the ROI on gold barely keeps pace with inflation and, as with property, you have to pay CGT when you do sell, unless you go with coins from the Royal Mint, but then you face a 10% fee with most brokers both when you buy and sell. It's even worse with property since you have to pay additional taxes and duty which eat up a pretty hefty chunk of profits. If you buy stocks within an ISA you keep all your profit. There's also the possibility that the housing bubble finally pops and your property loses value or the price of gold experiences severe volatility. It dropped 30% in 2 days back in 2012 and historically it's prone to large, prolonged downward price movement which can last decades and make it difficult to free up capital if you need to. Plus, as far as actually owning your assets goes, and the event of stock markets going to zero, we're talking about a pretty serious black swan event. There is a precedent for governments simply seizing privately owned gold during times of extreme hardship, like post ww2 when the British government did so, or the during great depression when the US government did the same.
Hi Kiran. i have a stocks and shares isa with trading 212. if i invest the full £20k in the stocks and shares before the end of tax 2025 april and then decide to withdraw some money out before that date im i able to put more money back in before the end of tax year?
I'd say the biggest mistake is not maximising your sipp/pension contributions first. You can contribute up to £60k a year as a tax deductible every year. ISA's dont have this advantage. My approach is to max SIPP first then do ISA as my logic is that I need to at least work towards a realistic annual income off my pension before thinking about tax free cash from ISA's. Having tax free ISA cash at a low level of income is pointless if your income is not at a reasonable taxable income to start with to take advantage of these benefits.
If they do this it means we will only be able to access later obviously. I dont think this is on the table, and eve if so, my understanding is that we can still access (albeit with stiff tax implications). My approach is to have more than one stream of income in any case as I run multiple businesses.
Bit flawed as you don’t compound if the stocks are growth only and don’t have a dividend. If you are using the 10% return for simplicity then fine but you will be hard pressed to get a 10 dividend return without it being high risk. If you get 10% growth on growth stocks you still have the same amount of stocks and have no additional stocks so you are constantly relying of growth of the stocks.
Have all 3! Pension for anything at 40% tax, then fill the Lisa as it’s 20% relief but tax free on the way out, then your ISA. And balance them based on how long you can afford not to touch the cash for.
Whilst this is headline good advice, there is absolutely no mention of the reasonably high possibility that, in the next few years there will be a crash and your ISA will, temporarily, be hugely devalued. How if you need the funds at that exact moment. This is crucial advice and should always be presented when proposing investing in markets
For that reason, you are probably better off investing in a pension, not a stocks and shares ISA. Unless you need the money before retirement. Personally I dont do a stocks and shares ISA as I already have a large % of my overall net worth invested in the stock market via a pension, which is more tax efficient than an ISA (contributions are also tax free).
Pretty straight forward.. if you need guaranteed access to the money in the next 3-5 years then the money amount you need access to should not be in equities? But instead in lower volatility liquid assets.
Stocks and shares for the longer time runway to ride out any downturns that none of us know when are coming. People have been saying we are due another GFC percentage crash and that tech is over valued etc since the GFC over 15 years ago yet here we are 😃
there is also a possibility it wont crash.
@@garythornbury9793if you need guaranteed access to a certain specific amount of money for a specific timeframe, can you really take the risk of the possibility of it not crashing, what if it does and you have no plans for it?
@@garythornbury9793of course, she covers that, no problem. What about the other possibility...
From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Evelyn Infurna, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape...
I appreciate the professionalism and dedication of the team behind Evelyn’s trade signal service.
As a beginner, it's essential for you to have a mentor to keep you accountable..
Use her name to quickly conduct an internet search.
SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
Infurnaevely1 she’s verified
I think that cash is the right place to be right now. And Warren Buffet agrees with me. I pay tax at 40% but, through 'rate-tarting', am beating inflation by a clear 1% - so I'm growing my wealth.
I'll put my cash into stocks when the market crashes.
Good video.
I remember friends saying “I’ll buy a house when the market crashes” back in 2000. Even in 2008, it didn’t drop much where I am (10% at the very most - and only on very few properties).
Hi , New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.
I've stuck with ‘’Melissa Elise Robinson” for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Thanks Kiran.
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Just buy and invest in Gold or other reliable stock , the government has failed us and we cant keep living like this.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
I envy you, I’m still trying to recover from losses I incurred in 2021/2022, who is this investment adviser you work with, I’m intrigued and I could use some quality guidance
My CFA ‘’Aileen Gertrude Tippy” , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
At 74, I only invest in cash ISAs. I am already paying a huge amount of tax on savings interest.
I put £20,000 into a cash ISA each year.
Fill your premium bonds as well in that case.
Change this country
Look into a sipp as well as at the moment you can still invest in a sipp, unless labour fook it up in the budget it should be tax free for inheritance.
If your income comes from defined benefit pensions, fair enough. But if you are drawing down a defined contribution pension pot to pay into a cash ISA, you might be better off withdrawing less from the pension as that can be passed down to relatives free of inheritance tax after you pass on. I’ve seen advice that, after retiring, you should draw down ISAs before your pension pot as ISAs are subject to inheritance tax. (Possibly leaving a buffer of ISA cash for later, in case there is a stock market downturn and you want to withdraw less from your pension in the hope that the market soon recovers.)
It's important to remember Cash ISAs are NOT investments, they are purely saving accounts. However, I'd *may* be the right thing to do given, I assume, you are retired, and therefore don't want to expose your money to stock market fluctuations. Saying that, most investment advisors would probably suggest some kind of bonds rather than a straight Cash saving account, albeit in the form of a Cash ISA.
super helpful video as always thank you
Glad it was helpful!
Shukriya lovely stuff as usual 🤝
Thanks for watching!
Very good advice as usual
Glad it was helpful!
Any thoughts on investing in gold? It has gone up 26% in 12 months.
👍 39%
do it
It’s easily outperformed by stocks in the long run so I wouldn’t bother personally.
I've bought some - not enough and too late - as a hedge against a stock-market crash. If that happens, gold should hold its value. You should research that particular characteristic of the shiny stuff.
I had gold, disappointing, not a wealth creator.
Hi Kiran, thanks for your knowledgeable video, had a question if I had to invest say 20,000 in ISA for a year @ 4%, and after interest that would be 20,800.
Now can I reinvest that 20,800 for another year
Or
Have to invest only 20,000 as thats the allowance given,
Appreciate your advice
The 20800 would remain in the ISA. You could either keep it there or transfer it to a different kind of ISA, eg stocks and shares. There important thing is not to withdraw it from the ISA to invest in another ISA , you need to keep your yearly 20k contributions within an ISA wrapper if possible.
can you make a video going over the two types of stocks and shares isa from vangaurd? Managed vs do it yourself?
I met a guy who worked in the city. He was 43. Died 3 months later. Don't lose today in the noise of what if.
It's all about balance. Don't spend penny, and don't put away every penny. Live a little today, and plan a little for tomorrow.
Not many stocks and shares ISAs out there to choose from, I think its telling us that folk don't trust those who deal in Stocks and shares on their behalf, they still have the stigma of being robbers and cheats! that if we as investors are going to invest, we need to trust!
Can Stock and Share ISA allows us to buy US shares?
Yes.
Good basic ideas, but I really don't like that you picked extreme numbers to try to illustrate your cases. You mentioned people with less than £25k savings probably won't have to pay tax, but then go on to use £9k a year of contributions into a Junior ISA for 18 years. Both are extreme examples that are just not going to apply to the same people. Aaaannyway, how did I come to this video? I was looking at basque cheesecake recipes. Hmm.
What if you are in your eighties?
What you "can make" could make might make might not make.
Stay in cash for the next 60 years then and see how that works out for your real terms wealth 🤣
I pay mostly into my pension as it's very tax efficient, and investment options are easier to access. You can invest 60k per year into your pension while ISA is 20k. If you dont need the money then push money into your pension.
Wrong, you will pay up to 67% tax on your pension if you are unlucky . On an ISA , no matter how much you have invested you will pay 0% tax.
I'm a little confused, you mention one cannot open a cash isa and a stocks and shares isa.
I have both with the same bank.
I don't see why they would let me open both if we are not allowed....
She never said that listen to 3:36
You didn’t even mention that with a stocks and shares isa your capital is at risk. If you are going to recommend them, people should know.
It’s also a big gamble , not all funds beat market
@@gavinscotttraining Hardly any beat the market.
@@johnristheanswer That's why its its good to invest in low cost tracker funds. You are buying the market at a fraction of the cost of actively managed funds.
Pensions are exposed to the same level of vulnerability. It is assumed that if you understand what a pension or an ISA is, you should already know that your investments are always at risk.
Very good information. I did not put 20K in my ISA per year for 5 years. which is 100K Can I back log and put the money now in my ISA account.
Any help will be highly appreciated. I move to UK 10 years ago so did not know all the rules and my accountant did not guide me.
No you can’t you only allowed 20k per year
Unfortunately you can't use previous years' unused allowances!
1:48 Hmm.. Sorry to be that guy but only 6-8% of UK residents hold a Stocks and Shares ISA but you said "41% of men already do hold a Stocks and Shares ISA" I think you meant to say 41% of male ISA holders use a Stocks and Shares ISA.
People who listen and follow the advice will benefit. Thank you.
So if I leave my money in my ISA, how do you recommend I pay for my home renovation 😮??
You didn't highlight the negatives of investing. I had lost half of my investment as I needed the fund to put down for my house deposit after investing for 13 years.
I'm now sticking to cash, as I will know for sure I will get my money back that I've put in.
How did you lose half of your investment and how much did you invest????
Thank you for spreading financial literacy and making it digestible to all!
Thanks so much for watching, glad these videos are useful
❤❤❤
I do understand that isa can be transferred from one spouse to another on death of spouse. Can these isa’s be transferred to our children on death of both spouse?
Guess how much money you’ll have after investing in stocks & shares, when the market crashes?…ZERO!..NOTHING!..
When was the last time the market crashed to zero? When was the last time it crashed more than 40% and wasn't at all time highs within 10 years? Maybe if you're dodging coffins and can't weather a bear market you'd be prudent to stuff your money in your mattress but, for those with youth and time on their side, investing in the markets and buying more when things are on sale is a great way to build wealth for the future.
@ Oh dear, oh dear, are you telling me the money you invest isn’t at risk of being lost?
Better to invest that money in property or gold that you actually own
@@marcusherts9345 the ROI on gold barely keeps pace with inflation and, as with property, you have to pay CGT when you do sell, unless you go with coins from the Royal Mint, but then you face a 10% fee with most brokers both when you buy and sell.
It's even worse with property since you have to pay additional taxes and duty which eat up a pretty hefty chunk of profits. If you buy stocks within an ISA you keep all your profit.
There's also the possibility that the housing bubble finally pops and your property loses value or the price of gold experiences severe volatility. It dropped 30% in 2 days back in 2012 and historically it's prone to large, prolonged downward price movement which can last decades and make it difficult to free up capital if you need to.
Plus, as far as actually owning your assets goes, and the event of stock markets going to zero, we're talking about a pretty serious black swan event. There is a precedent for governments simply seizing privately owned gold during times of extreme hardship, like post ww2 when the British government did so, or the during great depression when the US government did the same.
Great video, thank you, wish I’d subscribed earlier.
Thank you! Glad it was useful
Hi Kiran. i have a stocks and shares isa with trading 212. if i invest the full £20k in the stocks and shares before the end of tax 2025 april and then decide to withdraw some money out before that date im i able to put more money back in before the end of tax year?
Hence why it's a flexible ISA 😂😂😂😂
No
I'd say the biggest mistake is not maximising your sipp/pension contributions first. You can contribute up to £60k a year as a tax deductible every year. ISA's dont have this advantage. My approach is to max SIPP first then do ISA as my logic is that I need to at least work towards a realistic annual income off my pension before thinking about tax free cash from ISA's. Having tax free ISA cash at a low level of income is pointless if your income is not at a reasonable taxable income to start with to take advantage of these benefits.
What if they bring sipp access age in line with state pension age?
If they do this it means we will only be able to access later obviously. I dont think this is on the table, and eve if so, my understanding is that we can still access (albeit with stiff tax implications). My approach is to have more than one stream of income in any case as I run multiple businesses.
@@KharmaComa123 fair point. I only prefer ISA right now due to easy access
Dont you worry yourself.
Labour will change everything on October 30th ...
Let's see who are laughing after voting labour in😂😂😂😂😂😂😂
@@lawrencer25 labour voters are those on benefits. They will be the biggest winners from this government
As far as I am aware the 212 ISAs are flexible ISAs
Correct it is 👍🏽
It is, but it’s still not recommended practice.
to a smart yummy mummy ❤
This video is for Rich, who are having £20k leftover on this time in the UK?
I have 20 pence to invest
Bit flawed as you don’t compound if the stocks are growth only and don’t have a dividend. If you are using the 10% return for simplicity then fine but you will be hard pressed to get a 10 dividend return without it being high risk. If you get 10% growth on growth stocks you still have the same amount of stocks and have no additional stocks so you are constantly relying of growth of the stocks.
Growth can compound too. Dividends can be cut, dividend stocks can fall. Pros and cons of each. Do both.
Some people are championing the lifetime ISA and SIPP over the S&S ISA
Have all 3!
Pension for anything at 40% tax, then fill the Lisa as it’s 20% relief but tax free on the way out, then your ISA. And balance them based on how long you can afford not to touch the cash for.
Mistake you mekin is not mekin me roti benchod isn’t it.
stop it you racist and talk in English