(My Original Blog Post: http://ping.fm/JanuF)
Why Isa providers concentrate on selling Isa investments to clients at the end of the tax year just doesn’t make sense.
Admittedly most investments are made towards the end of the tax year at the last minute, but there are advantages to making an investment at the start of the tax year.
Since March 2009 stock markets globally have produced healthy returns as major economies come out of recession.
Clients that had invested there Isa allowance in April 2009 would possibly have seen a good return on their investments.
If another good year of returns is achieved then those clients would have had the benefits of two lots of Isa investments made in years where the returns were substantially more than cash.
If they were married and both over the age of fifty, in theory they could have invested up to £40,800 in stocks and shares Isa’s for the two tax years.
However if they invest at the end of the tax year they would have missed out on last years growth and not invest their allowance for the current tax year until 2001.
If you are looking to make the most of your Isa allowances each year then it might be more appropriate to invest at either the beginning of the tax year or alternatively on a regular monthly basis.
