Last week we looked at choosing a platform, and I said that a platform was essentially just an admin system which allows you to hold different kinds of accounts . But which tax wrapper is best for which situations? This week we're looking at choosing the right account…
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Choosing the right account
I’ve said countless times on this show that simple is best. I come across clients with lots of different tax wrappers with loads of different providers, and with no cohesive strategy for how these disparate plans are intended to achieve their aims. Most people need two kinds of accounts, or tax wrappers: one for medium term savings, and one for longer term. Let’s dig into that now, and look at everything you need to KNOW and everything you need to DO, to choose the correct tax wrapper for the job…
In this session, you'll discover:
- That different accounts serve different purposes
- That tax is an important factor in the choice
- Why compounding is possibly the most important factor of all
- That timescale is an easy factor to make a high-level choice
- Which investment limits to look out for
- Why it isn't always necessary to choose one account over another
Resources mentioned in this week's show
Podcast: Season One, Session 80 – Pension or ISA?
Click the button below for the spreadsheet which compares returns from ISAs and pensions.
And of course, there's always a full transcript available by clicking the big blue button below:
Free email course – Learn How To Invest
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Question: Which account(s) are you saving into? Why did you choose one over the other?
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