Harrison Smith is a financial adviser based in Hartlepool. Harrison offers an
insight into money matters in an exclusive monthly column for North East
Connected.
insight into money matters in an exclusive monthly column for North East
Connected.
The sun is shining, the summer break for the schools is upon us, and people will have one eye on a holiday destination rather than financial spreadsheets and budgets.
From a personal point of view, I know I have a holiday planned and I am already looking forward to it. That’s what many of us aim for – that rest from the stresses and strains of everyday life.
As has been a common theme as part of these columns over the last two years, a lot of discussion has been linked to the ability to plan financially, effectively.
There had been continuous speculation in the build up to that speech with regards to the chancellor’s intentions regarding the cash ISA limit, on the night nothing was announced, however, a lot was announced for the future of financial services.
An ISA – or an individual savings account as it’s known in full – is effectively the collective term of a tax-free wrapper relating to the £20,000 annual limit that you will likely be familiar with.
From a personal point of view, I know I have a holiday planned and I am already looking forward to it. That’s what many of us aim for – that rest from the stresses and strains of everyday life.
As has been a common theme as part of these columns over the last two years, a lot of discussion has been linked to the ability to plan financially, effectively.
There had been continuous speculation in the build up to that speech with regards to the chancellor’s intentions regarding the cash ISA limit, on the night nothing was announced, however, a lot was announced for the future of financial services.
An ISA – or an individual savings account as it’s known in full – is effectively the collective term of a tax-free wrapper relating to the £20,000 annual limit that you will likely be familiar with.
Most people when they think of ISAs they think of a Cash ISA, However, it is also possible to have an investment ISA. The limit for both products has been £20,000 per tax year, meaning anything placed in to either of these ISAs is allowed to grow tax free and be withdrawn tax free.
Recent media speculation around ISAs have dominated around whether the government will make changes to the ISA regime. However, the proposed reforms, which are expected to come into effect in 2026 will allow providers to nudge investment opportunities to savers with cash sitting in low-interest accounts, encouraging savers to become investors.
The difference is that if you have a cash ISA it holds only cash, such as what you may find a building society or high street bank, whereas an investment ISA is one which holds investments such as stocks and shares.
Recent media speculation around ISAs have dominated around whether the government will make changes to the ISA regime. However, the proposed reforms, which are expected to come into effect in 2026 will allow providers to nudge investment opportunities to savers with cash sitting in low-interest accounts, encouraging savers to become investors.
The difference is that if you have a cash ISA it holds only cash, such as what you may find a building society or high street bank, whereas an investment ISA is one which holds investments such as stocks and shares.
In theory this will encourage more people to explore investment solutions rather than cash solutions for their savings.
We have discussed on many occasions in these columns the longer-term benefits of effective investment strategy, so I can understand the logic behind the move.
The Government’s initiatives to get more people into investing and building a better culture of investing, where appropriate, is a suitable course of action.
We have discussed on many occasions in these columns the longer-term benefits of effective investment strategy, so I can understand the logic behind the move.
The Government’s initiatives to get more people into investing and building a better culture of investing, where appropriate, is a suitable course of action.
However, investment risk is very subjective, my approach at 29 years of age might be very different to that of my grandma, aged 75. That’s just two examples.
If you think about how different your circumstances are to your own family, friends or your next-door neighbour, the chances are that you have all got very different outlooks and circumstances that determine the level of risk you are comfortable with.
The chancellor’s move means she is effectively encouraging savers holding money in cash to put money into stocks and shares to build a stronger investing culture. It remains to be seen whether this approach will have the effects Chancellor Reeves desires. However, it is important to plan for your future on what you would want for your future
*To connect with Harrison check out his advisor hub https://linktr.ee/harrisonsmithea [linktr.ee]
If you think about how different your circumstances are to your own family, friends or your next-door neighbour, the chances are that you have all got very different outlooks and circumstances that determine the level of risk you are comfortable with.
The chancellor’s move means she is effectively encouraging savers holding money in cash to put money into stocks and shares to build a stronger investing culture. It remains to be seen whether this approach will have the effects Chancellor Reeves desires. However, it is important to plan for your future on what you would want for your future
*To connect with Harrison check out his advisor hub https://linktr.ee/harrisonsmithea [linktr.ee]