Optimising Your Stocks & Shares ISA

In the UK we have two primary tax-efficient savings vehicles: ISAs and SIPPs. In this video, I’ll show you how the two actually work very well together and how you can use ISAs both before and after retirement to provide flexibility and boost your income in a tax-efficient way.

Capital at risk. InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority (FRN: 801128)

This video is for educational purposes only and is not financial advice. If you need financial advice then please seek the help of an independent financial adviser.

Timestamps
0:00 Introduction
0:35 Types of ISA
1:50 Changes In The ISA Rules for 2024
3:17 Benefits of an ISA
4:30 Pre-Retirement Benefits & Contrasts With A SIPP
5:54 Illustration of Tax Efficiency of SIPP vs ISA
6:51 ISA vs SIPP fees
7:36 What To Invest In A SIPP
8:41 Complex So Advice or Our Membership May Help
9:40 Benefits of Combining an ISA & SIPP in Retirement
11:01 Illustration of ISA Growth and Income It Can Generate
12:58 Inheritance of ISAs and SIPPs

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[Pensioncraft]

Capital at risk. InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority (FRN: 801128)

[blumousey]

It's worth mentioning that if you run a limited company, you can pay directly into your SIPP from the company account. This avoids corporation tax AND personal tax, but there is then no uplift from the government. However, it is the MOST tax efficient way to save into a SIPP, even better than 40% uplift paying in from your personal account.

[ianschofield]

What an excellent educational video Ramin. This should be shown to all school and university leavers entering the work arena. In fact I suspect 90% of the UK would benefit from your clear and well explained presentation.

[pistopit]

Great episode Ramin as always, thanks. SIPPs and ISAs combined together are indeed a very powerful tool to financial independence. I think many people in UK including myself would be interested how these two efficient tax wrappers work when you move abroad, (for example popular Spain) for your retirement. Do you then need to close your SIPP/ISA, do you need to pay different taxes, can you still make contributions, and so on.There is very little information on that accross different blogs/vlogs that I follow, so maybe it is a good subject to consider for the future episode. All the best and keep up the good work Sir.

[stevegeek]

I recently retired (aged 55) and if I could turn the clock back I would have maxed out S&S ISA for the last 10+ years. Unfortunately I only understood the tax efficiency 5 years ago, when I began maxing. I plan to take £16k per year from my SIPP tax free (as discussed in the video) and top up what I need from my ISA and premium bonds. This tax efficient approach should last me until I'm old enough to get state pension. My SIPP should also generate most of the £16k needed from annual dividends...fingers crossed!

[sirzee]

Thanks for another terrific video. I retired recently and your videos have been invaluable for guiding my journey . Always objective and detailed information to help with my decisions. Thank you again.

[ripvanmarlowe]

So glad I found your channel, it's incredibly helpful and well made. Thank you for this invaluable advice!

[WobblycogsUk]

Yet another video that is absolutely solid gold. Thanks, Ramin

[musheopeaus]

Excellent - I’m now putting 30 % diversion of sipp money into isa global fund.

[daveg]

Thanks you, it's been a relief to come across such clear and straightforward information, I wished I'd found you years ago, and not now when I'm soon to retire.

[koneism]

Thank you Ramin, unfortunately didn’t have this knowledge earlier in life, but i can definitely help out my kids & family. Really appreciate your advice!.

[ms.scooterrider]

In the last 3 months, my investments have returned over an average yearly salary which blows my mind. My ISA is up +16K, SIPP +£25K, LifeTime ISA +£5K, and GIA +£13K. 🤯

[hounslowparks]

This is the exact strategy I have help set up my daughter with. She will have a DB pension through her job as a paramedic and she has a ISA's to give her options along with a GIA to help with car and holiday purchases. It' nice to know it's not a bad route to take when you are young.

[CobraTackle]

Absolutely fantastic video. Sadly I am 35 and knew nothing about pensions until last month. Better late than never though!

[wegottagamer]

Very nice, simple and easy to watch and understand video.

[tomstopper]

I got a Cash ISA with Virgin Money @ 5.57%, seems pretty good to me!

[David-qecn]

Advantages of a SIPP (pension) are the 25% tax free PCLS (pension commencement lump sum) and tax treaties may protect individuals who spend time resident outside the UK.

A disadvantage of an ISA for individuals who spend time resident outside the UK is that other jurisdictions look through the ISA tax wrapper. Any funds, ETFs or ITs in the ISA when an individual becomes US resident will be subject to draconian PFIC rules.

[Gemok]

Slight difference you can invest with in a LISA until 50 but you can only open them before 40.

[ostrajazda]

7:30 - SIPP is a bit more expensive. But if you have money saved in ISA, you won't get benefits. While SIPP is not counted towards benefits, so you can claim benefits and still use your SIPP ;)

[rodgerq]

They should definitely be upping the ISA annual limits, especially given the recent inflationary pressures on spending power.