Investing, in the traditional sense, has commonly been reserved for wealthy individuals who may pay a financial adviser. However, with interest rates at a record 0.25% low and inflation increasing by 0.6% to 1.8% in three months, considering how you generate and preserve wealth has never seemed more important. “Investing” doesn’t have to be a daunting prospect. Robo-advice has taken something “traditional” and made it accessible, understandable and cost-effective. Robo-advice is not risk-free, however. As you invest in the stock market, your investment is exposed to fluctuating market conditions, meaning the value of your investment can rise and fall. There are no guarantees.
What is a Stocks and Shares ISA?
When should I use a Stocks & Shares ISA?
What are the key features of a Moneyfarm ISA?
Discretionary investment management
With an investment in a Moneyfarm Stocks & Shares ISA you hand over the decision-making reigns to Moneyfarm. It will hold discretion over the adjustment of your portfolio of assets, striving to provide the best rate of return for your risk profile at all times. A skilled team of finance professionals monitor the market, constantly reviewing the ETFs you invest in.
What sort of returns can I get from Moneyfarm?
Moneyfarm allows you to open either a General Investment Account (GIA) or Stocks & Shares ISA. In either instance, you can set the parameters of your investment and visualise the expected performance before investing a penny.
Investment term: 5 Years
Principal investment: £15,000
Expected performance: +20.74%
Total tax-free returns: £3,110.43
Which rules govern the Moneyfarm ISA?
For tax year 2016-17 the ISA subscription limit is £15,240. You cannot subscribe more than this amount to a single/mixture of ISA types, in the tax year.
For tax year 2017-18 the subscription limit will increase to £20,000.
You can subscribe all or some of your existing allowance to a Moneyfarm ISA.
You can transfer any amount of money from any old ISA type to any new ISA type, but you may need to liquidate the asset held, depending on the ISA type.
You could transfer £20,000 in old Cash ISA subscriptions to a Moneyfarm Stocks & Shares ISA, but you would need to liquidate your Stocks & Shares ISA investment before transferring cash, as examples.
NB: Some providers will charge exit fees, so be sure to check with your plan manager before exiting.
With the rise of robo-advice in the U.K and further afield, a new opportunity for wealth creation has surfaced. This is not just for the sophisticated and experienced; robo-advice is designed to give everyone who is dissatisfied with the returns they receive on their investments and/or savings an alternative without the requisite knowledge and experience of having invested before. Moneyfarm facilitates a seamless transactional process for investors, especially those who may wish to utilise the Moneyfarm Stocks and Shares ISA.