Why Now Is A Good Time To Start ISA Investments

The truth is that any time is a good time to start using ISA investments. The bottom line is that you can add money every year to your ISA and any profits you make are tax-free. If you can invest the full £20,000 every year you can really set yourself up for retirement. 

Of course, if you’re looking to start an investment ISA you need a reputable broker. That’s one that is well-established, has a good reputation, and gives you complete control over your investment.

The Risks Of Investing

If you monitor the news, as you should do, you’ll have seen that the two favourite ISA fund managers in the UK were recently hammered. They lost their customers millions. The problem is often simple. Fund managers get success through tactics and a little luck. This results in increased numbers of clients and more funds for them to invest and build. 

Unfortunately, many fund managers stick to the area that has served them well. Inevitably, the fortunes of specific industries will change and the investments, that were doing so well, collapse.

Why Now Is Good

The above is enough to put anyone off. But, it shouldn’t be. 

The trick to ISA investments and the main reasons why you should be starting them now is to do it yourself. If you’ve chosen the right operating platform you are in charge of what funds you add and when and where they are invested. Adopting this approach means you can:

  • Limit Risk

When you allow a broker to invest your funds they are likely to be concentrated in one high-risk area. That means, that if there is a collapse in a specific industry you could quickly lose a lot. 

But, if you opt to control your investment yourself, you can place small amounts of your funds in different high-risk areas and maintain a good proportion in safe investments. 

Safe investments grow much slower but there are much less likely to crash. That’s why they are preferred as you approach retirement age.

You can then manage your investments by monitoring the news. It will help you to see when industries or individual firms are about to collapse and move your funds before you lose them.

By investing a little you can build your own experience while reducing risk, effectively making the market work for you.  

  • Choose Your Speciality

To really make your ISA work for you it is advisable to choose specific high-risk companies. It’s easier to monitor a company in the context of the industry than it is to watch an entire industry. Choose something you’re interested in and it will be enjoyable to keep up with the latest news and adjust your investment accordingly. 

Great Benefits

Investing today gives you the maximum amount of time to understand the markets and build a retirement fund, with the minimum of risk. Creating a fund allows you to gain financial security which assures you of independence in old age and the freedom to enjoy life.  

It’s not so much a question of whether to start an ISA investment or not, it should be why haven’t you started one yet?

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