As a parent we all want to try and save for out children’s futures and even in today’s climate it is worth trying to save for a rainy day. MadDad works in the financial industry so he is my go too guy when it comes to asking about money etc, but I would always suggest that you find an Independent Financial Adviser to help you out with financial planning.
So firstly what is isa season?
In very basic terms it is a six week period in the lead up to when you have to subscribe to your Is, the 5 April 2012 (if you don’t use it, you lose it).
This often means that you can be bombarded with information telling you to open a cash isa on the lead up to this date and if can be very confusing.
So what is an isa?
A Cash isa is a savings accounts where the interest isn’t taxed.
A stocks and share isa is a managed collective investment again where the interest isnt taxed.
Should I prepare for isa season?
I decided to ask MadDad this and he said he would advise anyone to make an appointment with a Independent Financial adviser to discuss this. My first response was that IFA’s are for people with money, to which he told me this isn’t at all true. Many IFA’s get their payment from any investment you make through them or charge a nominal fee and they are perfect for people who are going through major life changes such as parents. They can often take an overview of a situation and help you put your new priorities in perspective.
People often think that isa’s are only for people with money and that they are not something that they can utilise to manage their finances, but again it is often about working smarter not harder and in today’s climate we need to know the best way of making our money work for us.
But don’t take my word for it, go and see a professional!