March 2003

ISA's
Tom Hyslop, Consultant at Acumen Financial Planning Limited in Aberdeen.
Acumen can be contacted on 01224 573904 and the website is www.acumen.ltd.uk

a. Question

I usually make lump sum ISA contributions to maximise my allowances before the 5 April each year. I am concerned about the equity markets but already hold enough cash and mini cash ISAs aren’t attractive to me. What are your views on using this year’s allowance?

b. Answer

Obtaining the tax sheltered environment of an ISA is attractive for long term investments. As it is the timing of the investment that is your concern, you could select a provider that has a wide choice of asset environments that you can utilise i.e. access to property, bond and equity funds. Some portfolio based providers allow the temporary holding of cash until the investment timing is more attractive. Either way you can make an investment obtaining the long term tax sheltered environment for the funds and then make a switch into equities when you are more comfortable with the markets.