CNBC Live Appearance - Ten Top Tips for Successful ISA Investing

By Stephen Sutherland, author of Liquid Millionaire.
Posted in the Category of ISAS, Investing, Investment Fund, Wealth Building on 25th March, 2011.
Tags: bull market, investing with isas, investment fund, investment opportunity.

As I mentioned on Wednesday, on Tuesday 29th March 2011 at approximately 11.50am, I will be sharing with over 21 million people my “Top 10 Tips for Successful ISA investing.”

These tips are what professional ISA investors use to become ISA millionaires.

Successful ISA investing is just like baking a cake. You need all the right ingredients to make it work. Below are my 10 commandments of ISA investing. These are the rules my clients and I follow and by adhering to them religiously, they have fortunately helped me build a six figure ISA account.

On Wednesday, we covered the first five points which were:

1. Make a Compelling Goal
2. Be Active
3. Buy Quality Investment Funds
4. Park in Cash During Bear Markets
5. Tax Shelters = Compounding Power

Here are the final five points that I intend to cover:

6. Fight for Every Percentage Point
7. Invest the Max Every Year
8. Stay the Course
9. Add Value
10. Set Up a Withdrawal Plan

6. Fight for Every Percentage Point

Keep commission and switching costs low by using a fund supermarket such as Fidelity’s Funds Network. If you don’t use a fund supermarket and buy through an IFA or bank, you could end up paying excessive commission fees.

7. Invest the Max Every Year

Invest the Maximum Allowance Every Single Year – Right from the start, focus on investing your full £21,360 (if you are investing with your partner) each and every year. Add aggressively for the full duration of your plan irrespective of what the market is doing. Ideally, aim to add sometime between April 6th and April 13th every year. Adding is the key to your success. Aim to put in £10,680 for you and £10,680 for your partner each year but don’t worry if you are unable to put that much in. Just do your very best and try to improve it year on year.

8. Stay the Course

Think long-term. Think ten, twenty or even thirty years or more. Never cash in your chips
early or you may live with serious regret. Be patient. NEVER touch this money for anything. To win, your ISA account must become untouchable UNTIL the time that is has grown so large that you can start to draw down on that account to help pay for your chosen lifestyle.

9. Add Value

Continuing to educate yourself can increase your value, which in turn helps you to be worth more to the market place, which in turn helps you easily and effortlessly stock away the maximum allowance each and every year.

10. Set Up a Withdrawal Plan
When you finally reach your target, you set up an automatic withdrawal plan to pay for your chosen lifestyle. This means that if by then you have mastered the skill of growing your money at 12% per year, by withdrawing 5%, your large chunk of capital will continue to grow at approximately 7% every year. This means as well as enjoying your chosen lifestyle, you also become richer each year.

Please find the time to watch and enjoy the show and if you can’t see me live Sky + my interview.

If you have any questions about anything I discuss please do not hesitate to get in touch by contacting me using the link below.

Next week I am going to share with you how I use investment funds in a period of strong market growth and wrap it all in the safety of a stocks and shares ISA. This system is called “ISA Trend Investing.”

Until the next time my friend.

If you would like to get more detail about what you’ve just heard, you can request a FREE Telephone Consultation (£1,997 value) by simply contacting us.

In your free over the phone consultation, you’ll learn about a first class investment opportunity– aimed at affluent people who have Stocks and Shares ISAs, a personal pension or a SIPP.

As well as booking your free session, you can also obtain a copy of my book Liquid Millionaire (RRP £21.97) for just 99p. I have just 99 copies to give away so be quick.

The number of telephone consultations (and free book giveaways) available is always limited.

You can email us or call 0870 757 8554 if you prefer.

In both cases you are under no obligation to do anything, buy anything or sign up for anything.