The ISA Performance Scandal

ISA performance has been a crying shame…

We approach ISA Season 2019 with more uncertainty for investors than at any time since the 2008 financial crisis. Stock markets are crashing around the world. Interest rates have barely ticked up a fraction of a per cent yet that’s been enough to make cash the best investment of 2018.

ISAs are probably the best gift from the government that you’re ever going to get. You can shelter £20,000 a year each from tax forever, or £40,000 a year if you’re a couple. There are two distinct differences between ISAs and pensions, both concerning tax relief. People love the tax relief that you receive when you make a pension contribution. But they forget that you pay tax on the funds you take out of your pension once you’ve used up your 25% tax free allowance. And let’s not forget the speculation at the time of each budget about whether this allowance might be removed by a hungry chancellor…

OK, so ISAs don’t give you any tax relief on the way in. But they do give tax relief on all the gains within the plan AND full tax relief on anything you take out of the ISA. And, let’s face it, the whole point of investing should be that you accumulate gains over the years so the amount you take out should be much higher than what you put in. That’s what makes ISAs special. Along with the flexibility of not having to wait until you are 55 to take money out. And no lifetime limit – anyone who’s fully invested their allowance since the days when these things were called Personal Equity Plans will now have over a million quid in tax free savings.

At least they would have, if the stock markets had not been so damn volatile. We saw years of gains wiped out in a matter of weeks at the end of 2018, negating the tax benefits that drove the initial investment decisions.

Plan B would be to follow the dumb money and hold the ISA in cash. That’s been a losing proposition for over a decade now – there is no cash ISA on the market that is paying a positive net return on cash after allowing for inflation. Wait until you see the statistics I will share at this Boardroom Breakfast on 13th February.

Is there a third way other than volatile stock markets or negative returns on cash? I believe there is, and will share it with the 20 or so people round the table at this unique event on Wednesday 13th February. I very much hope you can join me.

As with all our Boardroom Breakfasts, we have a maximum of 20 places available and tickets are sold on a first-come, first-served basis. So you Lastminute.com merchants had better watch out because this event will sell out well before mid-February. Once everyone arrives we will fortify you with some breakfast then I will share some startling statistics with you about what the Man In The Street is doing with this exceptional tax saving opportunity.

I will then share with you what the sophisticated and high net worth members of Elite Investor Club can do to bring a third way (oops, I’m starting to sound like Tony Blair) to their ISAs in 2019. We’ll be joined by a senior representative of APAC, the company we are partnering with to bring you this new concept of an Innovative Finance ISA – he will explain the approach and then we can grill him until every question has been answered.

The venue for the event is The Arch Hotel, 50 Great Cumberland Pl, Marylebone, London W1H 7FD.

Here’s the plan:

8:00am Arrival and coffee

8:20am Breakfast

8:40am Welcome & Introduction – Paul Watson

8:50am The ISA Performance Scandal & How To Address It – Graham Rowan

9:20am The New Approach To An Innovative Finance ISA – APAC   

9:30am Questions & Answers

9:40am Networking

10:00am Close

All this for just £20 including breakfast at a boutique hotel near Marble Arch.

Reserve Your Tickets Now!

Here’s what you can expect on Wednesday 13th February:

Graham Rowan will explain what has gone wrong with ISAs and how you can fix it

Networking with other members and investors

A private boardroom in this delightful boutique hotel

[/column]