With a conservative average growth rate of 5% over a 40-year period, your initial investment would now be worth over £107,000.
To top things off, you can withdraw that £107,000 completely tax-free.
Do you like the idea of paying less tax? Then open a stocks and shares ISA by the 5th April.
To us, that’s a no-brainer. Your future self will thank you.
Even if you open an ISA and deposit £1,000, it is still better than nothing. The key is to start right now.
The first step is to open an ISA
Over £100 million is lost in the UK every year by consumers not using stocks and shares ISAs to protect their investments from capital gains tax. Don’t be someone who adds to that pot when it takes very minimal effort to set up an ISA.
An ISA is one of the best ways to keep your money safe from the taxman. How much money, you ask? Each tax year, the UK government allows you to deposit a certain amount into an ISA. If you open an ISA by the 5th April, you’ll be able to deposit up to £15,240 tax-free. This one simple trick will be able to save you thousands during your lifetime so that you can take back control of your hard-earned money. However, if you miss the 5th April deadline, you’ll lose the opportunity to have invested that money.
We currently use the Hargreaves Lansdown Stocks and Shares ISA given that it was the quickest and easiest way to set up an ISA. We literally were able to start investing the next day and we have never looked back.
The fee structure is low and transparent. Their interface is user-friendly and easy to navigate. Furthermore, it was possible to invest in certain funds through them at no cost at all. Our experience to date with Hargreaves Lansdown has been very positive and we highly recommend opening an ISA with them.
Every person and family member can open an ISA. If you have kids, they are also eligible to set up a Junior ISA, which means more tax-free savings.