How ISAs can boost your income

The weeks either side of the tax year-end are busy for many people who are using up their ISA allowances. There’s always a bit of a frenzy as the deadline looms and the risk of missing out on a gift from the taxman intensifies.

Once the allowance for one year has been used up, many people forget about their investment until the next year when the same flurry of activity will take place. However, some investors will seek to investigate other investment options and use up the following year’s allowance, so avoiding the rush in March.

Many people save into ISAs in order to increase their pensions, often using them to make up for a shortfall in retirement income. The ISA has a bit more flexibility as the benefits can be taken at any time, while age restrictions apply to a pension.

Investors need to decide whether they want to see their ISA grow in value, pay out a tax free income, or deliver a combination of the two. In addition to being used to supplement a pension, investments that generate income can help to meet regular outlays such as school fees. That relies on investing in companies that pay dividends, and could mean either holding individual shares or investing in a fund with the specific goal of producing an income.

If you want to consider your tax-free investment options for growth or income, and need independent financial advice, Shropshire-based Hartey Wealth Management is here to help.

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