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Planning our financial life is hardly ever as clear-cut as we would like it to be. In an ideal world, we would know ahead of time how much money we will need, when and what for. But in real life, the car breaks down, children's school fees increase, inflation has made retirement more expensive, the stock market has been volatile and taxes are going up.
Against this uncertain backdrop, individual savings accounts (Isas) combine flexibility with tax advantages. You don’t need to know in advance exactly what the money is for or when you will need it in order to make the most of your £20,000 annual Isa allowance. In many cases, you can take the money out at any time and access it without having to worry about a potential tax bill. And if you opt for a flexible Isa, you can take money out and put it back in without it impacting your overall annual allowance.