Find out how to get the best investment ISA for over 50s possible.
In our later years, the rationale behind investment decisions is significantly different from our younger days. This is why the best ISAs for over 50s may be different from those of 20, 30 and 40 year olds.
The distinction is more applicable to stocks and shares ISAs than it is for cash ISAs because of the elevated level of risk to capital that some investments can present. Simply put, the value of your investment ISA is not guaranteed, nor is any return, and you need to be comfortable with this before you part with your money.
When you’re considering how to use the ISA allowance over 50 you need to consider what types of investments will be most suited to your long term objectives and experience.
If you’re a confident investor who is looking to maximise gains then opting for a self select ISA may be suitable.
However, if you’re new to investing and want to benefit from the experience of an ISA manager, then investing your ISA allowance in OEICs, low risk funds, gilts and bonds may be more sensible – particularly if you can’t afford to incur significant losses.
You can invest up to £11,280 in investment ISAs during the 2012/2013 tax year – less any amount you’ve saved in a cash ISA (this has increased from £10,680 in the 2011/12 tax year). However, depending on the ISA provider you may also be able to transfer in previous years’ ISA savings so that you have more money to play with in one place.
You can compare investment ISAs for over 50s on the basis of the number and type of investment funds on offer, the minimum initial and monthly deposits required and whether the provider accepts incoming transfers.
You’ll also need to take into account other factors such as annual charges and withdrawal penalties that can impact the profitability of even the best ISA deals for over 50s.
You can compare the best over 50 investment ISA rates on offer side by side in our best over 50 investment ISA accounts comparison.
