Making a Million Using Stocks and Shares ISAs - Part 3 of 26
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 3rd February, 2010.
Tags: isa, isa investing, isa investment, liquid millionaire, million.
Over the last few months, I’ve been writing an ISA Trend Investing Guide that shows you how you could make a million using ISAs.
Over the next few weeks/months, I’ll be giving you an exclusive sneak preview before the main newspapers get their hands on it because I suspect that some time in the future, you’ll be seeing a copy inside your favourite weekend broadsheet.
In my two previous blogs, I introduced how ISAs are one of the UK’s best-kept secrets with some content from the guide’s introduction. In my previous blog I illustrated how much tax you will save by investing through an ISA.
Today, I’m going to explain there are Two types of ISAs: Cash ISAs or Stocks and Shares ISAs and how flexible they can be in helping you make larger Tax-Free returns.
Two Types of ISAs: Cash ISAs or Stocks and Shares ISAs
ISAs are fantastic. As mentioned in the introduction, we believe that ISAs are one of the UK’s best-kept secrets.
Unfortunately 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.
First of all there are simply 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.
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.
In Friday’s blog I’ll be detailing who can buy an ISA as well as where to get an ISA.
Find Out More
In the mean time if you would like to find out more about how you can make a million pounds through using an ISA, 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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