ISA Trend Investing Can Help You RETIRE RICH - Part 1 of 3
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund on 10th March, 2009.
Tags: funds, investing, isa, stocks and shares.
Imagine a new, time friendly way of “tax-free” investing – that could help you to make enough cash to retire rich and live a truly amazing, dream lifestyle.
Wouldn’t that be something!
My friend, I’m pleased to say that there is a way – and its name is ISA Trend Investing.
Now I am sure you have heard of ISA Investing before.
At this stage, it does not matter if you answered yes or no. But what I can assure you is that this way of using ISAs – to become tax-free wealthy – is a totally new concept. When people ask me to summarise what ISA Trend Investing is, this is what I say:
“With ISA Trend Investing you trade investment funds (not stocks) using an ISA, a SIPP or both, to achieve tax-free, index beating returns. You simply profit in up markets and protect in down markets.”
Now let’s take a look at the 7 elements that make this way of investing in ISAs different.
The 7 key differences between ISA Trend Investing and traditional ISA investing are as follows:
1. Instead of simply buying and holding, when investing in ISAs, you are active.
2. You use a Stocks and Shares ISA (tax-free wrapper) instead of a Cash ISA.
3. You look to buy the highest quality Investment Funds.
4. You time your buying of your investments.
5. You time your exits of your investments.
6. You aim to beat the most powerful stock market index in the world.
7. You do not use an adviser.
Today, in Part 1 of a three part series, I am going to focus on the first two differences, and show you how it is possible to increase your investing returns from 5-6% to 15-20%.
Now that would be nice!
Difference One – Instead of buying and holding, when investing with ISAs, you are active.
As I discussed in my blog on Stock Market Trend, with ISA Trend Investing instead of simply buying and holding, you become an active investor. By understanding the overall trend or direction of the market, you invest into the market when the confirmation of the trend is up, and switch out of the market when the confirmation of the trend is down.
This is the most important element in ISA Trend Investing because this is the difference that will lead you to success if you get it right or failure if you get it wrong. Even if you find the best investment fund on the planet, if your trend reading is wrong, meaning your timing is wrong, you will fail.
Why is that? Because three out of four investment funds always move in the direction of the market, you do need to get in sync with the market’s trend (direction) or you will lose money nearly every time.
Difference Two: You use a Stocks and Shares ISA tax-free wrapper instead of a Cash ISA.
Were you aware that it is possible to make 15-20% returns instead of 5-6% returns by simply transferring your Cash ISAs into Stocks and Shares ISAs?
Yes, it’s true. Any funds in existing Cash ISAs are transferable to a Stocks and Shares ISA. By making this transfer with ISA Trend Investing not only do you get the opportunity to make much higher returns, you also keep your switching fees extremely low and ensure that any returns remain tax free.
I hope that these first two differences between ISA Trend Investing and traditional ISA investing have begun to whet your appetite because next time I will share three more exciting differences, and how they can help you retire rich:
Difference 3: You look to buy the highest quality Investment Funds.
Difference 4: You time your buying of your investments.
Difference 5. You time your exits of your investments.
If you have any questions about how ISA Trend Investing can help you retire rich, please contact me or one of my team for a chat. Whoever you speak to, you can be sure there will be no selling, no jargon, just the facts.
If you have enjoyed reading the first two differences between ISA Trend Investing and traditional ISA investing then read more in Part 2 and Part 3 of this series.
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
