Partner Article

How to get a stocks and shares ISA

If you’re looking to give your bank balance a potential boost by investing, a stocks and shares ISA could be the right option for you. It gives you great tax benefits. A stocks and shares ISA allows you to invest a certain amount each year and you won’t have to pay any capital gains tax on your investment returns for the whole time you keep it in that ISA ‘wrapper’.

You can invest up to £15,000 in the tax year up to April 5th 2015. The allowance for the tax year starting April 6th 2015 is £15,240.

So how do you go about investing in an ISA? Let’s take a look.

Two-stage process

Typically, investing in a stocks and shares ISA is a two stage process as you need to first select the provider you want to buy your ISA from before deciding which investments to put in it.

If you’re confused think of it like buying bread in a supermarket. First you need to choose which shop to buy it from (which platform or provider to use), and then you need to select which type of bread you want to eat (your funds). You’ll be charged along the way for various services and buying your assets, so make sure you check fees closely as they are often buried in the small print.

Don’t run out of time

Once you’ve made the above decisions you must then invest in stocks and shares by 5th April (the end of the tax year) otherwise you’ll lose that year’s ISA allowance – forever!

Decide how to manage your stocks and shares ISA

While some people enjoy navigating the stock market alone, others would prefer the help of a financial adviser or a discretionary investment management service who will build your portfolio based on your financial situation and attitude to risk. The latter is ideal for anyone who wants to invest but doesn’t have the time, energy or desire to read reports, monitor the global financial markets round-the-clock and make those important financial decisions on their own. With this in mind, let’s take a look at some of the most popular discretionary investment management companies out there…

Nutmeg

Based in the UK, Nutmeg is an online investment manager that takes all the stress and worry out of investing by developing a suitable stocks and shares portfolio on your behalf. You simply answer a few questions about your attitude to volatility and risk and a team of highly-experienced investment managers will ensure your money is invested appropriately to the level of risk you’re comfortable with. They monitor your investments 24/7 and make adjustments as they deem necessary to help keep your investments on track and to seek out opportunities for good returns. You can start your stocks and shares ISA with Nutmeg and transfer in ISAs from other providers to them. Nutmeg also has a personal pension service.

Here’s what some of Nutmeg’s customers have said about the services offered…

“Nutmeg has taken away the burden of managing my money. I feel safe. With Nutmeg, I have an expert investment team.” — Fergus, chartered accountant “They give me absolute trust that they’re on top of my finances — as much as I would be if I was managing it.” — Helen, managing director “I don’t see the value in independent financial advisers. I don’t have time to stay on top of the markets. So Nutmeg is the perfect solution.” — @jilldesmo “Inspiring, interesting. A good concept to thrash traditional private banking.” — @sumaygi

Vestra Wealth

Vestra Wealth offers a fresh approach to wealth management offering a personalised, transparent service carefully designed around the needs and wants of each client. As your portfolio is as individual as you, it provides unbiased advice based around what you want to achieve and the level of risk you want to take. It doesn’t invest in anything it doesn’t believe in and ensures it fully understands investments before recommending them or including them in a fully bespoke discretionary management service.

Here are some Vestra Wealth customer reviews…

“I chose Vestra on the basis of its professionalism, an investment ethos focused on active multi-asset management and evident understanding of the expectations of both the adviser and the client.” “Vestra is a young firm, but the breadth of expertise and experience that underpins it is palpable.” “Vestra’s investment managers have a track record in being able to perform in all market conditions.”

Covestor

Covestor’s main aim is to match you with your perfect money manager in a bid to build the strongest portfolio and yield the highest returns possible. With an extensive array of highly intelligent, experienced, knowledgeable and well-vetted financial experts at their fingertips, Covestor has made a name for itself within the financial world for being unique, innovative and powerful.

It invests your money in ways you feel comfortable and work with you to secure your financial future, so here’s what its customers had to say:

“The site is well designed and being led by an experienced team of veterans that have seen success many times before.”

“Helpful, great online investment management platform”

“Covestor is a very nice tool to keep track of your trades, in terms of returns as well as compare your track record with verified traders.”

“The company provides detailed bios of its managers before you subscribe or even sign up, so you know the types of investors they consider experts.”

This was posted in Bdaily's Members' News section by Matt Rawlings .