Maximise your ISA allowance

Every year, each person has an ISA allowance available to them. An ISA is one of the most tax-efficient methods of saving, but if your full allowance is not used within the tax year, the valuable benefits are lost for good. The reason I am writing is that time is running out to make the most of this year's ISA allowance and to make plans for 2009/10 ISA allowances.

I appreciate that the continual bad economic news has knocked investors confidence considerably. There are however several key factors that should be considered at this time: -

• Interest rates are at all time lows resulting in cash deposit investments failing to maintain pace with inflation.


• Equity based markets are cheaper than have been for a number of years offering significant financial opportunity for the investor willing to accept a degree of risk.


• Corporate Bond funds are offering an attractive alternative for risk adverse investors
  

What else do you need to know?

We are currently recommending clients invest in the FundsNetwork 2008-09 Maxi ISA. I am certain you are quite familiar with the investment principles governing ISA’s however as an aide-memoir the enclosed brochure offers detailed information.

BASIC FEATURES

The aim of the FundsNetwork Maxi ISA is: -

• To give you the opportunity to increase the value of your capital and/or provide a tax-efficient income.


• To provide access to over 1,100 funds from 65 leading fund managers to maximize investment performance.


• To give you the flexibility to spread your investment among different investment funds with different aims.

FundNetwork Limited is regulated by the FSA is the UK’s largest investment platform with over £15 billion assets under administration (14/08/08).

Spreading investments decreases the risk of a fall in value across your whole portfolio - it is the investor's way of living out that old adage 'don't put all your eggs in one basket'. FundsNetwork give you freedom to change your investments as circumstances change – be it a change in your needs, or a change in the effectiveness of a fund manager. FundsNetwork also give you the ability to change managers, assets and sectors easily, a facility included in the price of their products.

We would be pleased to forward an extremely helpful brochure prepared by FundsNetwork which not only describes the funds we have selected for recommendation but also presents significant information relative to investing in ISA’s.

If you would like to view our ISA pack please forward an e-mail to ifa@ferguson-oliver.co.uk

ISAs are intended as a long-term investment which means you should be prepared to keep it for five years or more. You should read the brochure before you decide to invest to ensure you are aware of the risks associated with the investment. The funds selected may fluctuate in value, and any return is not guaranteed as the value of your investment may fall as well as rise.

As we near the tax year end I would also take this opportunity to emphasise the importance of maintaining pension contributions in the current economic climate. With depressed values many investors might be put off from making pension contributions however I would suggest now is an attractive time to be making contributions. With fund prices offer tremendous value and tax relief of 20% (basic rate) or 40% (higher rate) secured against all pension contributions made I would argue what other form of investment is offering such certain returns currently.

If you would like to discuss this opportunity further, please contact me on 01356 625285 or by e-mail to ifa@ferguson-oliver.co.uk