They say money never sleeps, except it certainly seems like it when it’s sitting in our bank accounts. An individual savings account (ISA) can yield marginal returns. A better return can be gained through investing in various financial instruments. An even better way yet to put your money to work is to combine the two.
A stocks and shares ISA is a great choice for managing your own portfolio and sending your future in the right direction, since you do not pay taxes on any capital gains made via this form of investing and saving. While there is an entire cosmos of various ways to invest and make your money grow, the stock market is a true and tested path for many to ensure a brighter financial future for themselves and their families. Some believe that the stock market is a risky path that is beyond the grasp of most people, and others believe it is a promising way to get rich quickly.
The truth is somewhere in the middle. While it is true that most people can and do lose money on uneducated choices with their choices of stocks and shares, the stock market also provides many safe opportunities to get a return on your investment much faster than other investment options. Opening a stocks and shares ISA with FinecoBank is a great way to put your future on a secure path towards financial growth.
First thing you will need to do is to open a Fineco standard account. Opening the account is quick and easy. It requires your ID, your smartphone, your TIN (tax identification number), and your UK address. Afterwards you will need to apply for the stocks and shares ISA. You can only pay into one such account per year.
Despite their name, stocks and shares ISAs also allow you to trade in other types of financial instruments, such as equities, bonds, and exchange-traded funds. Trading can be done with Fineco’s excellent trading platform, PowerDesk, as well as their mobile app. It shouldn’t take long to familiarise yourself with the platform, as it is made to be intuitive and simple, while at the same time comprehensive and full of various essential and useful features.
If any problems or misunderstandings should arise, the Fineco customer service team is only a phone call away, from 8am to 9pm, Monday to Friday.
A great benefit of having a stocks and shares ISA is the exposure it provides you with regarding trading. With such an account you can trade in multiple investment choices.
Shares and stocks are portions of a company, which hopefully increase in value and pay dividends. Bonds are basically a loan you provide to an institution such as the government, which they pay you back with interest. Exchange traded-funds are investment packages composed of various financial instruments, which you can buy a portion of.
Understanding the pros and consof each is imperative for you to decide how and why to invest in each. And you will want to be familiar with all of your options, since the diversification of your portfolio is the best way to ensure minimal losses, as you spread your risk across the investment spectrum.
The main reason you would prefer a stocks and shares ISA to a “regular” ISA is the increase in return, but that doesn’t mean you have to make rash decisions.
Saving is a long-term process, and with careful planning and investment choices, the potential for growth is limitless. Seeing as many companies multiply in total value over the course of several years, there really is no contest when it comes to this type of saving.
One can imagine how regrettable it would be to let your money sleep, in some cases actually losing value due to inflation, knowing full well what could have been gained by participatingin the market.