5 ISA Mistakes Everyone Is Making (2023)

I always see people making the same mistakes with ISA’s (individual savings accounts) Whether it is the basics like how many you can have, or the correct way to use them to build long term wealth. There always seems to be confusion. So in today's video we will get back to basics and iron out some of the most common mistakes i see people making with ISA’s

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Timestamps:
00:00 - Intro
00:49 - Understanding an ISA
01:25 - More than 1 ISA
02:46 - Daily Upside Sponsor
03:42 - Being too cautious
06:23 - Family Allowance
08:39 - Don't take cash out.

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DISCLAIMER: I am not a financial advisor and none of the content on this channel is financial advice. All information is provided for educational/entertainment purposes. If you are making investment or other financial decisions and require advice, please consult a suitably qualified licensed professional.

[dpspeedy]

UK based financial commentators on YouTube have really upped their game. Great job Damien, really impressed with your content….keep it coming.

[A_friendwithoutbenefits]

Biggest ISA mistake I ever made when I didn't know what I was doing: Moving my funds in one ISA to another ISA via my current account.
NEVER move money from an ISA account to a non-ISA account in order to then move it into another ISA. Always transfer between ISAs. It may take a lot longer, but transfers ensures that amount stays protected in that tax wrapper and doesn't use up any of your ISA allowance. It may sound obvious to those of us who know, but you'd be surprised how many ISA account holders don't know this.

[AlisonWonderland]

the brilliant thing about this is that for once in my sweet life, I watched a list of 5 financial mistakes and realised I'm not making any of them. And you know why not? -- because I watch your channel! 🤩 I wish you and your advice had been around years ago, but at least I can start now. Better late than never... as the Chinese proverb goes: The best time to plant a tree was 20 years ago; the next best time is now.

[bikeman]

I saved into a junior s&s ISA for my daughter. Unfortunately when she finished her degree and started her masters, it worked against her applications for grants and she was forced to spend it on living expenses whilst continuing her studies. Unfortunately it was a pointless investment which had to be sold during a stock market fall.

[mdapeebles]

"reheeled by a different cobbler!" Oh my days...just CLASS.

[michaewelina]

I can see you are in great form again, this is one of the master class videos where you are able to explain crucial financial issues in very light and approachable way.👍👍

[Litzann]

As someone who's starting to get a grip on finances as well as a better understanding around the topic, this channel is having a massive and a positive impact! Keep 'em coming!

[mtb]

One of the huge benefits of self managed stocks and shares ISA's happened a few years (under Gordon Brown?) ago when the Govt stopped the tax with-holding rules on dividends. Dividends used to have 20% removed by companies before being paid (for tax). Now they enter ISA accounts gross. This was a massive boost to dividend income from a stocks and shares ISA and if reinvested enhanced the compounding effect.

[liammacaodha]

You're legend. It's so difficult to hit the YouTube bullseye like you have. You deserve it.

[Joshx]

One thing to be careful with longer fixed savings accounts is when the interest is paid - monthly, annually or at maturity. If paid at maturity then only that year's personal savings allowance is taken into account for all of the interest received, meaning you are more likely to pay tax if the fix is longer than one year.

[Hamish_A]

With interest rates up and new isa rules on the way this needs revisiting soon. I've always been appalled at the low rates offered by cash ISA's and they're still shocking.

[lexlawthorrl]

People think the same about pensions, being an investment that is. With compounding, the years towards the end are worth a hell of a lot more than the years at the beginning

[adrianfell]

Re point 2, aiui you can only pay NEW MONEY into one ISA of each type each tax year, but you can do whatever transfers of existing ISA money you like (so in that respect technically you can "pay in" to more than one ISA of the same type in the same year, buy you can only pay new money into one of each type).

[nikki_jp]

Damien spot on. I totally wasted time (and money) chasing after those yearly best rates in cash ISAs. They are also a pain...you have to think about moving them to a new ISA (through the transfer mechanism) to get a new rate... meanwhile stocks and shares just do tend to grow over time. Other thing is women not taking hold of their own finances. Get wise ladies: you are generally worse off in the divorce or breakup. I know of two recent family and friend stories here. It's heartbreaking. Listen to Damien!!

[blah]

Damien I've only been investing into my S&S ISA for the last 2 years (I'm now 52) and also wish that I had started sooner, but when I try and tell young people to open one they look at me like I'm mentally unstable!!! Great vid by the way mate :)

[jellyboy]

i thought you could have a stocks and shares isa and a cash isa and pay into the 2 ask long as you don’t go over 20k in a tax year so for example you could put 10k stocks and shares isa and 10k cash isa as long as it don’t go over 20k

[kxjx]

Great video. I think its always worth saying on these intro videos what the year is and emphasise that you are talking about the current rules abd that they may have changed by the time anyone watches it

[stevie]

Always great advice. Wish I started investing sooner. Started an ISA for my daughter and hopefully she will take up the savings bug and advantages of long term compound interest I missed out on.

[liammacaodha]

I opened my first ISA because of you last October. Made 3000 off if Tesla's all time high of approx. $1200/share. Your great. I enjoy investing so much. I plan to put my money into property in the near future but I will go back to my ISA asap.

[danielbradford]

Update: now can pay into unlimited isa’s in the year up to 20k