Top Ten Tips for Successful ISA Investing

By Stephen Sutherland, author of Liquid Millionaire.
Posted in the Category of ISAS, SIPPS, Investing, Stock Market, Investment Fund, Wealth Building, Financial Advice on 30th May, 2011.
Tags: bear market, bull market, investment fund, isa, isa investing, stock market, tax shelter, tax-free investing, top ten, top ten tips.

Top Ten Tips for Successful ISA Investing – Part 2

Hello,

Yesterday I shared with you the first half of my Top Ten Tips for Successful ISA Investing. To recap the first five tips are:

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

Here is the second half of my top ten tips.

6. Fight for Every Percentage Point. You’ve got to fight for every percentage point and one way to do this is to use a fund supermarket like Fidelity’s Fund Network. When you use a fund supermarket to trade quality investments in the uptrends and park in cash in down trends, you keep fees and charges to a minimum.

7. Invest the Max. Right from day one make a commitment to add the maximum ISA allowance for you and your partner and do this every single year. The maximum allowed has just increased from £10,200 per year per person to £10,680 per year. That means two people can invest £21,360 into the market every year. That means over a decade a couple can build up almost quarter of a million pounds and that’s without taking into affect any growth on their cash over that decade.

8. Stay the Course. This tip means never cashing in your chips until you reach your long-term goal. If you do cash in early, you run the risk of living with regret. I’ve seen this happen time and time again. To win with ISAs and end up an ISA millionaire, you have to stay with this for the long haul, and what I mean by long haul is forever. Yes, commit to investing in ISAs forever. This philosophy works for me, it works for my brother, it works for our team, and I know it works for ISACO’s clients. You put in, rather than taking out. Fools cash in their ISAs. The smart ones keep adding. Make sure you invest your full allowance into ISAs every single year and make sure your partner is doing it as well.

9. Add Value. By continually increasing your value, adding the full ISA allowance, each and every year, becomes then easier to manage. When I talk about value, I mean financial value. It’s all about what financial value a person has in relation to the market place. In other words how much is their going rate? How competent are they at their job? What sort of knowledge have they acquired to effectively carry out their job role? How difficult would it be to replace that person? How many hours have they invested into mastering their job role? All these questions help you to understand that the more advanced the skills, knowledge and experience, the higher the financial value. Do whatever you need to do to become in the top ten percent of your field and you will be paid accordingly.

10. Set Up a Withdrawal Plan. Each year you withdraw a percentage less than what you are able to grow your ISA money at. When you get this right, it means you no longer have to work, you can live a great lifestyle and you become richer each year.

For example, if you are competent at being able to grow your ISA account at, say, 12% a year and you draw down 4% a year, that means your ISA cash mountain is going to be growing at a greater percentage than what you are drawing down.

To be clear the second 5 tips of my Ten Top Tips for Successful ISA Investing are as follows:

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

Our research indicates that right now the stock market is presenting a first class investment opportunity, not seen in almost 30 years. Over the next decade I believe we’re going to see a stock market boom, and Stocks and Shares ISAs are a perfect vehicle to help adventurous growth investors to profit from the boom.

As a reminder, I am posting my take on the market on Tuesday’s through to Saturday and I think you might find the information useful.

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.