No tax saving

swissroll

I am looking at where to invest savings with no tax. I think an Isa but dont know which. Pensions what I know about it if you put your money in you can not get your money out again until you are allowed and the rules keep changing so I dont trust them. I dont want to put money somewhere and find I have set a president and have to carry on but I dont need the money so it can be invested for a long time as I wont ever need it exept in emergency.

Mark_d

For a long term investment with no tax, I suggest a stocks & shares ISA

https://www.ii.co.uk/recommend-ii?ii_referrer=yh5mzkknl2u8-2iopl2wzlltx

eskbanker

swissroll said:

I am looking at where to invest savings with no tax. I think an Isa but dont know which. Pensions what I know about it if you put your money in you can not get your money out again until you are allowed and the rules keep changing so I dont trust them. I dont want to put money somewhere and find I have set a president and have to carry on but I dont need the money so it can be invested for a long time as I wont ever need it exept in emergency.

The Flowchart - UKPersonalFinance Wiki gives a structured method of deciding what to do with your money - in particular it highlights what's often said on here that you should ensure that you have readily available money in case of emergency and that this is better kept separate from long-term money.

Pensions are likely to be best for money you really won't need until later life so probably worth educating yourself about them rather than being driven by mistrust apparently due to lack of knowledge....

Likewise it's usually best to aim to maximise net returns (within an appropriate level of risk) rather than trying to avoid tax as such.

swissroll

A lot of choice but for me I think the Isa. I think pensions are off putting. I have tried to understand them but it is hard to trust something where you agree your money is locked away and you plan but I read about people worrying for retiring when the goverment keep changing the rules.

Ayr_Rage

My pension is the best of my "investments".

Second comes a Stocks and Shares ISA, I contributed the maximum every year since tax-free investments were launched, reinvested all income and only took some profits 7 years after I retired.

Rules will always change, but if you are really looking for the best long term returns and security in retirement, the above options should be considered, probably in that order.

Beddie

You could open a stocks and shares ISA at Vanguard and put it in Lifestrategy 60.

That's just one example, there are loads of things you could do, but there's no right answer and that's as good a place to start as any.

Read this and see if it's what you're looking for:

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

Or, for no investment risk put it in a Cash ISA, rates are here:

https://moneyfactscompare.co.uk/isa/

phlebas192

swissroll said:

A lot of choice but for me I think the Isa. I think pensions are off putting. I have tried to understand them but it is hard to trust something where you agree your money is locked away and you plan but I read about people worrying for retiring when the goverment keep changing the rules.

The people worrying about possible changes are doing so because they already have accumlated large pensions (> £400,000). Which should probably tell you something about how good pensions can be. Yes, it requires locking up the money for a long time (currently earliest access is at age 55 which will rise to 57 in 2028) so they are NOT suitable if you might need it earlier. But they are currently the most efficient way of saving for retirment - which, after all, is their purpose hence the restriction on when you can access them.

An ISA may well be best for you right now, but please don't be put off pensions!

Albermarle

As above. There is a lot of speculative politically driven stuff in the media, making negative noises about pensions.
However for retirement they are still a good option, especially if you are employed, so you can take advantage of a workplace pension.

swissroll

Ok yes I will look at pensions as well as Isa. Compare both and start.

artyboy

Albermarle said:

As above. There is a lot of speculative politically driven stuff in the media, making negative noises about pensions.
However for retirement they are still a good option, especially if you are employed, so you can take advantage of a workplace pension.

Doesn't help that the Treasury today confirmed (according to the BBC) that raising more IHT from multiple sources is part of the budget plan. Pensions may not specifically have been referenced, but I think we're getting a step past mere speculation now.

In future, 2+2 could well equal 2.4...

eskbanker

artyboy said:

Albermarle said:

As above. There is a lot of speculative politically driven stuff in the media, making negative noises about pensions.
However for retirement they are still a good option, especially if you are employed, so you can take advantage of a workplace pension.

Doesn't help that the Treasury today confirmed (according to the BBC) that raising more IHT from multiple sources is part of the budget plan.

Funny way of confirming:

A spokesman for the Treasury told the BBC: “We do not comment on speculation around tax changes outside of fiscal events.”

Inheritance tax increases expected for some in Budget - BBC News