Both cash ISAs and investment ISAs help to shield the investor from paying taxes to the British government. The main difference between the two is the liquidity of the account, as well as investment options available to the account holder. Both accounts provide tax advantages, and any savvy investor knows that any retirement strategy that provides legal tax advantages is a wise one. Taxes and fees can quickly erode the principal balance of any account if one is not careful. The fact of the matter is that no one wants to see their hard-earned pounds go to paying taxes rather than helping reach your retirement goals. In order to accomplish this, it is imperative that good sound strategy be implemented, and that tax planning is part of that strategy. Helping to protect your investment is precisely the advantage afforded to account holders of each ISA type.
A savings account is one of the most liquid and safe investment vehicles available in the financial world today. An account holder deposits cash, and the banking institution pays a specified amount of interest on that cash. Typically, interest earned in a savings account is subject to UK Income Taxes, but this is not the case with a cash ISA. In order to open a cash ISA, you must be at least 16 years of age, and a citizen of the U.K. When you open your cash ISA account, you will pay no UK Income Taxes on any interest made in the account. Keep in mind that deposits to your cash ISA is made with after-tax dollars, and there are annual contribution limits to keep in mind in order to continue to enjoy tax-exempt status. These limits are set by the government and can change from year to year. In order to enjoy the full tax benefits, you must stay within contribution limits, as well as meet eligibility requirements. See your local banker or consult with a tax accountant who can help you understand the regulations around cash ISA, and help sort through complex tax affairs with you.
If you are looking to upgrade your personal finance, why not consider investing? There are a few channels you can start investing in. But first of all, you need to determine how much money you have to invest. When determining this amount, you need to consider how much you can afford to lose while investing. If that number is zero, then investing is certainly not for you, otherwise it could wreak havoc on your personal finance. In addition, you also need to decide whether or not you are able to make your own investments or if you want professional help. There are online business registration agents for limited company formations in the UK that can help you get started. They sort all your business taxes, certificates, and provide other secretarial tasks. If you’re planning in targeting European markets it will be useful to consider financial translation. This is so you will be able to see and understand exactly what you will be investing in and costs involved. It could save you alot of money understanding stocks, gains and losses.
The first one you can try out is the stock market. You have to remember though, that in any sort of investment, there is always risk involved. You can reduce your risk by investing in stocks that are already doing well, but then you will have to pay more per share you purchase and your profit margin will be less. What’s more, if the stocks lose money, it doesn’t take much of a drop for you to lose your entire investment. The more risk you take the more you have to gain or lose – which is a basic rule in personal finance. Read more
Worrying about your finances, is the last thing you’d want to do, while on holiday. In this rather gloomy economic climate, most of us are tightening our purse strings and looking for ways to cut down on our costs. Holidays can be very expensive and many people are deciding to sacrifice their weeks in the sun. But if you’re careful (and clever) your finances won’t have to suffer.
It always pays to research before you choose where, when & how to go on holiday. Here are a few interesting tips on how to have a fantastic, memorable holiday while keeping your finances intact:
Peak times/off-peak times: This can be an awkward one for families who are constrained by school holidays, but if you’re not in that position, having a holiday outside of peak times can cut down your potential costs considerably. Or, instead of flying Saturday to Saturday, why not aim for midweek flights for lower costs? Simply nudging your holiday along a few days could make all the difference.
Don’t go all inclusive: Although it may seem like the obvious way to save money on a holiday, think before you book. If there’s a considerable difference in price between a bed & breakfast and an all inclusive, consider taking the B&B. Although touristy restaurants can indeed be expensive, a little bit of exploring can take you to local eateries where you’ll eat great local food & may well save even more than you would on your all inclusive deal. Read more