We know last year was tough – particularly for those in the education sector. Whilst 2021 may not have had the greatest start for you professionally, it looks like we’re finally starting to see a light at the end of the tunnel.
There’s a lot going on in the world of education at the moment – virtual learning, home-schooling and teaching the pupils that are still in school. With a lot to juggle right now, there might be one important person who has slipped to the bottom of your priority list – and that’s you.
Looking after yourself and your own needs is just as important – including your finances.
The last year or so allowed many of us to build up our savings. According to the Bank of England, between March and November 2020 we’ve collectively saved £125 billion more than we normally would.
If this is true for you, have you thought about how you could use your extra savings to support your financial plans? One way to do this is to look at how you could save or invest tax-efficiently.
Of course, tax isn’t the most thrilling subject out there. But making use of your annual tax allowances could really help.
There are some good tax benefits available to you
A great place to save or invest tax-efficiently is to look at an Individual Savings Account (ISA). ISAs can provide you with tax benefits and form a strong part of your long-term financial planning.
With a yearly allowance of up to £20,000 available, you don’t have to pay any income or capital gains tax on the growth you achieve. Over time, these tax benefits could make a difference to your financial future.
At a time of low interest rates, every penny counts, and putting your money inside an ISA wrapper means you keep more of the returns you make.
Choosing an ISA that’s right for your future needs
It’s likely you have short-term aspirations. A well-deserved holiday, buying a shiny new car or planning some home renovations. A suitable option which could help you achieve these kinds of goals could be a Cash ISA.
You’ll also have long-term goals. Objectives that are more than 5 years away. For these, a Stocks & Shares ISA could be an option. It provides you with the potential for your money to grow as it’s invested.
If you’ve got extra funds available that could be working harder for you, inflation could very well eat away at it, year on year. Investing could be a good way to combat the effects that inflation might have on your money and offers the potential for greater returns than you might get with a Cash ISA. But you should be aware that, with a Stocks & Shares ISA, the value of your investment could go down as well as up and you may get back less than you invest.
Something you should also consider is the split between your short and long-term goals. If you focus all your efforts on saving for a new car, your retirement pot may suffer as a result. This is where financial advice could help you build a blend that’s suitable for your needs.
How financial advice could help you make a plan for your money
There are many options available out there for your money, and it can sometimes seem feel like a minefield. Likewise, you may have a good idea of what steps to take, but you’re struggling to find the time to act on them.
That’s why NAHT Personal Financial Services are here to help NAHT members like you to consider your financial options. A meeting with one of our expert financial advisers could make a difference in the choices you make when it comes to making your money more tax efficient.
We’ll find out what’s important to you and what you’d like to achieve with your money. On top of this we’ll review your current circumstances – including the existing financial plans you have. We’ll look at coming up with a plan that could make the most of the tax-efficient allowances available to you.
We fully appreciate there’s no one size fits all approach when it comes to financial advice. That’s why any recommendations made are tailored to your needs. We’ll explain everything clearly to you, plus outline any charges that may apply beforehand. There’s no pressure to act – you can take the time you need to decide if you’d like to act on the advice.
Our recommendations are likely to include stock market-linked investments. These aren’t like bank and building society savings accounts as your capital is at risk and you might get back less than you originally invested. The tax treatment of your investment depends on your individual circumstances and legislation, which both may change in the future.
Get in touch
NAHT Personal Financial Services is a trading name of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey Skipton. N. Yorks BD23 1DN