Tag Archives: investments

Stocks & Shares ISA Investments

Investing in a wide range of different tax-efficient investments

Investments in Individual Savings Accounts (ISAs) can be used to hold stocks and shares or cash, or any combination of these, up to the current annual limit. An ISA is a tax-efficient ‘wrapper’ that can be used to help save you tax.

Investments in ISAs

A Stocks & Shares ISA and an Innovative Finance ISA are wrappers that can be put around a wide range of different investment products to help save you tax.

A number of different types of investment can be held in an ISA, including:
Unit trusts
OEICs (Open-Ended
Investment Companies)
Investment trusts
Exchange traded funds
Corporate and government bonds
Individual stocks and shares

Whole allowance
You can contribute a total of £20,000 a year into an ISA in the current 2021/22 tax year. The whole allowance of £20,000 can be paid into a Stocks & Shares ISA, Innovative Finance ISA or Cash ISA, or a combination of these.

Your annual ISA allowance expires at the end of each tax year on 5 April and any unused allowance will be lost. It can’t be rolled over to the following year. You can choose between making a lump sum investment and/or making regular or ad hoc contributions throughout the tax year.

Investment value
Any increase in the value of the investments in your Stocks & Shares ISA or Innovative Finance ISA is free of Capital Gains Tax, and most income is tax-efficient.

You can only pay into one Stocks & Shares ISA or Innovative Finance ISA in each tax year, but you can open a new ISA with a different provider each year if you want to. You don’t have to use the same provider for your Cash ISA if you have one.

ISA rules on deceased spouse ISA transfers
ISA rules introduced in April 2015 now permit the surviving partner of a spouse or registered civil partner who died on or after 3 December 2014 to receive an additional ISA allowance equal to the value of the deceased’s ISA savings at the time of death.

Transferring ISAs
Should you wish to switch your current or previous year’s ISA to a different provider’s ISA while simultaneously keeping future tax benefits intact, you have to arrange for a transfer rather than selling and reinvesting.

All ISA providers have to allow transfers out, but they don’t have to allow transfers in. You can transfer money from a Cash ISA to a Stocks & Shares ISA.

If you transfer an ISA that you have paid into during the current tax year to a new provider, you must transfer the whole balance. For ISAs from previous years, you can choose how much to transfer.

For most of the investments you would put into a Stocks & Shares ISA, the value can go down as well as up, and you might get back less than you invested. The level of risk in your Stocks & Shares ISA will depend on the investments you choose to put into it.


For independent, expert advice on financial planning, wealth management, investments and more, please contact Farnham-based Fish Saltus today on 01252 931265 or complete our short enquiry form and we’ll call you back

What Could Rising Prices Mean For Your Money?

The post-war years are often thought of as a time of economic stability, but the high inflation in the 1970s saw significant losses for savings and investors. Since this period, generations have become accustomed to low inflation. So what could rising prices mean for people with investments?

What could rising prices mean for your money

Inflation can be measured by the Consumer Price Index (CPI), which measures how much prices have risen by using a basket of everyday items such as food and transport fares. The rise in the cost of those goods is then added up for each month and compared with the same period from the year before. If there’s been an increase, you would expect inflation to be positive – but if prices fell, it would be negative.

Every year, the Office for National Statistics (ONS) publishes a new basket of goods and services – which it uses to measure inflation – and periodically updates its list for accuracy. The basket is made up of 750 goods and services, which makes up around 90% of household spending. It includes everything from bread and bicycles to kettles and stationery.

Retail Price Index (RPI) vs. CPI
The CPI is not the only way to measure levels of inflation in the UK. Since March 2003, the Retail Price Index (RPI) has been used as an alternative, although it does tend to be higher than many other countries’ official figures. This could be because it takes into account housing costs such as mortgage interest payments.

RPI includes housing costs such as mortgage interest, council tax and buildings insurance. In April 2012 , the ONS stopped using RPI after saying it had ‘serious shortcomings’ when compared to CPI. However, in March 2013, former chancellor George Osborne announced he would be bringing back RPI in line with inflation for State Pension increases in 2016. The previous government had dropped it in 2010 on the grounds that ‘it does not accurately reflect changes in spending patterns’.

What is deflation?
Deflation is when prices go down. This can occur if wages go up faster than supply or demand for goods, which drives down the cost of things. It was seen during 2009 when oil prices fell by about 60% within six months following a sharp downturn in economic activity. But deflation can be concerning because it can cause an economy to slow down further and is difficult to turn around once established .

This period of price ‘stickiness’ means that most products remain unchanged despite current market conditions. Falling income could mean people don’t have the money to pay for goods at their current prices, but large scale changes would still take time.

How inflation affects investments
Inflation acts as a hidden tax on people’s savings and investments, generally causing their real terms value to gradually diminish over time. Therefore, investors should not only look at the interest rate or return on investment (ROI) they are receiving but also consider potential loss of purchasing power due to inflation when deciding how to invest money.

Of course, it’s impossible to predict inflation with 100% accuracy but you can estimate its average yearly increase. The effects that inflation has on investments will also depend on which type of investor you are (conservative, moderate or aggressive), how much money you’re investing in general and what kind of timeframe you’re investing for.

Conservative investors (also called ‘defensive’ or ‘income-oriented’) usually seek to provide a steady income stream and protect their principal investment, so they tend to choose conservative investments with low inflation sensitivity such as bonds, money market funds and cash. They also often invest in government securities, which may pay interest that is not affected by inflation.

Conservative investors should keep an eye on the inflation rate when deciding how much to invest in each type of asset because even if some higher risk investments remain low-risk after adjusting for inflation, those gains will be impacted if there is deflation instead of inflation.

Moderate investors (also called ‘aggressive growth’ or ‘capital appreciation’) are willing to take on more risk in order to potentially achieve higher returns, so they can afford to invest more heavily in stocks, which are generally more sensitive to inflation. These investors should keep an eye on the inflation rate when deciding how much money they want to put into riskier investments relative to safer ones, because these investments may decrease in value faster if there is deflation instead of inflation and/or increase in value more slowly if there is inflation instead of deflation.

Aggressive investors (also called ‘speculators’) focus on high returns and quick profits and not only look at the interest rate or ROI they are receiving but also how fast their investment will appreciate or depreciate due to inflation. These investors should keep an eye on the inflation rate when deciding how much money they want to put in each kind of asset, because these investments can decrease in value faster if there is deflation instead of inflation and/or increase in value more slowly if there is inflation instead of deflation.
An understanding of the effects that inflation has on investments can help you make more informed decisions when it comes to managing your money.

So what should investors do?
There isn’t a ‘one size fits all’ answer to the question of whether inflation is good or bad for your investments. Rates of return and time scale are just two factors that can affect things, as well as general economic conditions such as employment and wages.

It’s not surprising that some people may switch their savings into cash. However, keeping too much money in cash could come with its own risks because of inflation – even if it is still relatively low.

Cash deposits used to be seen as the benchmark for safe returns but no longer offer protection against price inflation over time. This means you could see serious falls in value if you need to withdraw money from your account at short notice. It makes more sense to consider a range of investment products which have the potential to boost your earnings over time.


For independent, expert advice on financial planning, wealth management, investments and more, please contact Farnham-based Fish Saltus today on 01252 931265 or complete our short enquiry form and we’ll call you back

What Should Investors Consider In The New Year?

Investors: Your opportunities. Your wealth. Your legacy.

For Investors, part of the process of putting in place a successful personal lifestyle financial plan is to understand your ‘number’ – in other words, the amount of money you’ll ultimately need to ensure complete peace of mind in knowing your future lifestyle is secure and making sure you don’t run out of money before you run out of life.

Investor considerations for the New Year

By getting to know you and what you want to achieve, we’ll be able to provide you with a detailed action plan that is focused on you. By creating a total wealth solution for you, we can get a clear understanding of your current lifestyle, your future and the life you want to live.

Initially, creating a financial life plan will help you to make the right financial choices and achieve the right balance between current responsibilities and future aspirations. All of this should enable you to achieve your desired lifestyle goals and objectives over time.

Liquidity needs
This is important to fund expenditures and meet liabilities for the next two to five years. Investments should be held in stable assets with low volatility, such as cash and/or a high-quality bond ladder. Failure to plan adequately for your liquidity needs could mean you have to sell assets at discount prices.

Assessing your cash flow needs over the next two to five years, and setting aside funds to meet them, creates a buffer between cash needs and market returns, thus reducing the risk of being forced to sell assets with high return potential at the wrong time. This strategy generally involves low-volatility assets such as short-term fixed income and cash, as well as borrowing facilities.

Lifetime balance
This will enable you to meet your financial goals for the balance of your lifetime, and is characteristically well-diversified across asset classes with a growth orientation. The exact composition depends on your situation, goals, financial personality and values.

These assets are designed to satisfy lifetime needs. With short-term cash needs met by your liquidity strategy, these assets can be focused on long-term growth, with an asset allocation tailored to your risk appetite and the family’s aspirations.

Future generations
These are assets in excess of what you need to meet your lifetime objectives. Your approach to your legacy strategy investment portfolio could be more aggressive and less liquid than those investments in your liquidity or longevity strategies, given the time horizon is much longer term.
This strategy is assigned to improve the lives of others, both within your family and in society. In many cases, this will include cash flows lasting beyond your lifetime, including philanthropic goals and assets earmarked for future generations.

Given the opportunity to focus over a very long investment time horizon, this strategy has the capacity to invest in asset classes that offer an illiquidity premium, such as private equity, or investment themes that seek to profit from long-term trends in society or technology.


For independent, expert advice on financial planning, wealth management, investments and more, please contact Farnham-based Fish Saltus today on 01252 931265 or complete our short enquiry form and we’ll call you back.

Guide to 6 principles of investing

Free Download – Fish Saltus Guide to The 6 Principles of Investing

Putting aside money for your future and getting it to work for you.

Whatever stage of life you’ve reached and whatever plans you may have for the future, you want your
money to earn the best return possible without taking undue risk. Please download Fish Saltus ‘s Guide to The 6 Principles of Investing, to help build a brighter financial future.

If you would like independent, expert advice on investing for you future, please contact us our Farnham-based team!

Wealth Needs Managing

Wealth needs managing – now more than ever

Achieving your financial goals through investing, and one size does not fit all.

Even as we hope to put the coronavirus (COVID-19) pandemic in the rear-view mirror in 2021, uncertainty regarding both the virus and Brexit is likely to continue to weigh on the UK and global economies as well as on our personal finances during this year.

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Holding onto cash

Are you keeping too much in cash?

Savers holding onto extra cash during the COVID-19 pandemic

Some savers are putting their hard-earned money at risk by holding too much on deposit. Savers holding onto extra cash during the coronavirus (COVID-19) pandemic need to consider their long-term investment options, as new data shows the savings ratio for some people has increased during the pandemic.

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Investing in Retirement

Investing during retirement

Why it’s important not to view your portfolio with an element of finality

Retirement is a major accomplishment for most people. You’ve worked hard all of your working life to save and prepare for your retirement, and now you’ve finally retired. So how should you approach investing now that you’re no longer earning a salary? When it comes to investing during retirement, with the right strategy, you can help make sure your retirement savings last.

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