Why it’s never too soon for UK residents to start an ISA
Those looking to put their money into a stocks and shares ISA might have a number of things to think about when getting their tax-efficient investment off the ground. One such consideration might be exactly what your long-term goals are, and how long you are prepared to wait to see a return.
Stocks and shares ISAs are available to UK residents aged 18 or over, but if you would prefer a cash option you are eligible from 16 years old. A survey commissioned by Friends Provident during 2010 revealed that 43 per cent of people between the ages of 21 and 29 planned to set up an ISA at some point during 2010, but for some this kind of investment may still seem too soon. In fact, if you fall into this particular age bracket, you may already have tired of other people telling you where you should be putting your money.
However, there is good reason for thinking about your financial health as early as possible, as well as considering how certain products could benefit you in the future. Whether it is ISAs, pensions or a simple savings account, putting money away on a regular basis could give you the boost you need later on.
This might be when considering your first home, taking a career break, or even approaching retirement. The start of a new tax year can be a great time to consider improving your financial status with these kinds of products.
If you do decide an ISA is right for you, you might also be glad to hear that certain changes in the ISA allowance 2011 have made them even more attractive – but it’s worth remembering that tax rules can change again in the future. Stocks and shares ISAs have the potential to make your money work harder using the power of the stock market. Of course, it is important to remember that stock market investments can go down as well as up and you may get back less than you invested.
About the Author: George Pardew is a writer and supporter of stocks and shares ISAs .
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