Turbulent times can bring financial gain
APRIL 6TH, 2010 By DOMINIC
Necessary evils are the bane of our lives and tax planning must be right at the top of many ‘to do lists’. Today, is the first day of the new tax year, so why not buck the trend and do your tax planning NOW rather than later.
With today’s announcement of a General Election set for 6 May, it’s an important time to get your financial house in order. Whoever secures power, changes in tax legislation are likely and speculation will fuel volatility in the markets. There has been much debate of late over Individual Saving Accounts (ISAs) which no doubt further confuse the layman on how to maximise and protect savings.
Talk of market volatility will make risk averse savers shudder at the thought of stocks and shares ISAs but there are low risk options and with some proactive management of your ISA funds you can really bolster your finances.
The annual limit has been increased to £10,200 and you can either commit the full amount from the outset or drip feed into the ISA throughout the year. By taking the latter approach you can benefit from ‘pound cost averaging’. This is a useful tactic in a volatile market as when prices are high your monthly contribution may buy fewer shares or fund units but when prices are low your investment buys more shares or fund units.
Volatility can bring real rewards for canny investors and this year our team will be working hard for our clients to ensure they benefit from the peaks and troughs.
Posted in: TAX Planning