How ISAs Work and How They Can Help You Create a Dream Lifestyle - Part 1 of 2
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 2nd December, 2009.
Tags: dream lifestyle, how isas work, isa, stocks and shares isas.
How ISAs Work and How They Can Make You Seriously Rich
Many people are blissfully unaware of how ISAs work.
And yet ISAs are one of the most effective ways for people in the UK to build the level of wealth necessary for the lifestyle of their dreams.
Investing in Stocks and Shares ISAs have helped me to build a very healthy six figure tax-free account and if you are a regular reader of this blog, you’ll know that I love sharing my ideas and insights with people like you.
Today, in the first of a 2 part series of blogs, I am going to provide you with a very simple introduction to ISAs so that you can see for yourself how ISAs can work for you.
One of the UK’s Best Kept Secrets
ISAs are fantastic. As I have mentioned before on this blog, I believe that ISAs are one of the UK’s best-kept secrets.
Unfortunately however, most of the financial information about ISAs is either too complex or too boring to engage people’s interest.
How they work and how useful they can be for growing long-term wealth is simply not common knowledge.
More than Double Your Gains by Switching ISA Types
First of all there are two types of ISAs; Cash ISAs and Stock and Shares ISAs.
Are you aware that if you are willing to take more risk, it is possible to make greater returns – possibly even double digit - instead of 3% or 4%?
Yes, by simply transferring your Cash ISAs into Stocks and Shares ISAs, you could end up making larger returns. But remember that when you expose your money to the stock market, the value of your investment can go down as well as up.
But if you are more adventurous and you feel confident that you know what you are doing, it is possible to transfer your existing Cash ISAs to a Stocks and Shares ISA.
To put it another way, if you have built up a stock pile of Cash ISAs over the years, they can now be rolled into a Stocks and Shares ISA. This is great news for anybody who has a desire to get their money working harder for them.
Your Existing Cash ISAs Are NOT Locked In
Many people think that when they take out a Stocks and Shares ISA with a bank, their ISA has to remain with that same bank for life. A few people mistakenly think that they are locked in and can’t move their ISA. Both these myths are utter nonsense.
With your ISAs, you have the power to control where your money is being parked or invested. And you can change your mind at any time.
Did you know that an ISA is not an investment, but is the name of a wrapper that goes around an investment sheltering it from the Inland Revenue?
Think about a sweet in a wrapper. The investment is the sweet and the ISA is the wrapper.
Did you know that there is no limit to how much your tax-free pot can grow?
Yes, it’s true. If you start with say, £1000 and eventually over time it grows into, let’s say, £1 million, all of that £1 million would be tax-free.
In Part 2 of this series I will be looking at who can buy an ISA and where you can buy them from. I will also be sharing examples of people who have become millionaires through their ISA investments.
If you are serious about making your money work harder for you and creating a dream lifestyle then don’t miss it.
In the mean time, if you would like to read more about the benefits of ISA investing then please click here for a FREE sneak preview of my book, Liquid Millionaire.
Happy reading!
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
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