ISA - Use it or Lose it

Steve Weisner - Independent Financial Adviser Radcliffe & Newlands

Yes, it’s that time of year when we are all reminded, usually at the last minute, not to miss out on our annual ISA allowance. This time around it’s even more important to maximise all the savings or tax advantages that we possibly can.

If you already have a well-balanced portfolio and a good financial plan then you probably know what you’re doing with your ISA this year.

If you don’t know whether you ought to have your money in cash or shares then talk to your adviser now while there’s plenty of time left to consider it. And with interest rates so low you might well query the logic of putting money in cash right now.

Indeed some of you are already planning to take advantage of the new transfer rules allowing you to transfer money from your existing cash ISAs into a stocks and shares ISA whilst retaining its tax free status.

Most of the time we advise you not to try to time the market – if you go for active management, at least leave it to the professionals. In a previous issue we asked you to keep calm and resist the desire to sell assets whose prices had fallen – that just crystallises your loss. This time we’re asking you not to be scared of the market.

Most investors wait until prices have risen and hence don’t get back in the market in time to get the first recovery – they miss out on the best gains. So investors regularly commit two cardinal sins: they sell low and buy high!

A year ago we said short term investors could consider taking profits from shares and moving to cash. Now may be a good time to consider getting back into the market. Cash returns are low and shares are down. Prices might continue to fluctuate short term but if you’re waiting for the ‘bottom’ then you could potentially miss the first signs of any recovery. So if your asset allocation calls for investment in shares, don’t be scared!

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH  

Tel: 020 7382 0437
Fax: 0207 374 0462
Email: SWeisner@myeggnest.com
www.rad-new.com

If you have a question or if you would like to discuss becoming a client with Radcliffe & Newlands then do please complete the very short form on the right hand column of this page.

You will usually get an answer within 24 hours except during the weekend or bank holidays.

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