4 Reasons to Save with an ISA

An ISA is a way to store away money to earn interest or dividends

without getting taxed on your earnings.

According to most financial experts in the UK, an ISA is an absolute

must for nearly every Brit today.

What can an ISA do for you? Consider these opportunities for

using ISA funds to your fullest advantage.

Saving for a Rainy Day

The money in a cash ISA can be withdrawn at any time, as long as the bank and account you choose

offer liquidity-based terms.

This means you can put money away for emergencies, without the worry of paying taxes on interest

you earn.

This is also a good way to invest in the stock market and not have to worry about paying capital gains

taxes on your earnings.

You can capitalize on your investment and enjoy the full fruits

of your labor without having to send a dime of your investment to

the taxman.

This allows you to invest as you see fit, and you can sell your shares

when you need money for expenses of any kind.

College Tuition

If your children’s thoughts are beginning to turn to ivy-covered

campuses, you can be ready to pay the bill with the right ISA

investment.

If you can afford to save for a longer period of time, try

purchasing shares ISAs that offer a greater return potential.

If your children are nearer to college age, a cash ISA with a

competitive rate may be just the ticket for saving for those years of

higher education.

In addition to the ability to stash money away for tuition, you enjoy the tax break on your earnings that will make college just a little more

affordable.

Retirement

Many investors are moving from the traditional pensions to ISAs for

a number of reasons.

First, ISAs offer more flexibility and options than pensions, providing a greater potential for earnings and

the ability to customize your savings to your specific needs.

You can save money in an ISA until you get closer to retirement age and then determine whether it makes more sense financially to leave your money where it is or move it to a pension to receive a

pension credit.

The other advantage to an ISA over a pension is that money can be

withdrawn prior to retirement age without penalty if necessary.

Of course, less money in the ISA at retirement affects your quality of

life during this stage; withdraw with utmost care and only for very compelling reasons, if the purpose

of your ISA is to support your retirement years.

Life Assurance

When you purchase a stocks and shares ISA, you can include life

assurance in the mix.

This provides you with the opportunity to earn tax-free returns

on your initial investment, as well as taking out a life assurance policy

that protects your family in the event the unthinkable happens to

you.

To find a shares ISA that incorporates life assurance, talk to

your financial advisor.

There are many ways to use your ISA funds, whether you invest for

the short term or over the long term.

With so many options for your ISA money, it is no wonder this product

is so widely recommended by financial experts today.

4 Reasons to Save with an ISA