What is an ISA and Why you should have one | Understanding Stocks and Shares ISA UK
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- Опубликовано: 21 сен 2024
- I used to think Stocks and shares ISA's were a waste of time and useless investment strategy. However now I love geeking out about them, I wanted to create a video for you to explain what an ISA is and how it works so you can understand how stocks and shares Isa's work!
I also go to talk about LISA investing and how you can get £1,000 free!
Let me know about what you think about this video in the comments below!
Disclaimer: I’m not a financial advisor and this shouldn’t be taken as financial advice. This video is simply my opinion
Here you go, here's the spreadsheet: bit.ly/isamillionairecalc
Hargreaves Lansdown - www.hl.co.uk (I don't get anything from this link it's just their home page!)
Want to learn more about property and how to get into the property industry then make sure you subscribe to the Jamie York Channel to not miss the latest videos about property, entrepreneurship, and business.
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Downloading a compound interest calculator, whacking in statistically proven average returns on s&p500 and looking at the result was the best thing I ever done. It showed me that this WORKS. Anyone on the fence - do it, DO IT NOW.
Yes Kevin!
Is interest compounded on an ETF though, doesn’t your investment just track the value of the stock?
The BEST non-financial advice from a non-financial adviser! Spreadsheet please Jamie! ☺
"zero point fuck-all interest rate" had me in stitches
;)
Morning Jamie, you woke my ISA brain up on a Sunday morning. Thank you. Be Lucky 🍀 Paul.
Morning!
Great video Mr York, love your explanations they're so clear and concise. Have been binge watching your videos and really appreciate your work! My family isn't financially literate so being able to learn from you has been a blessing, pls do keep up the videos. You're changing people's lives
Awesome, thank you!
Spreadsheet. Great video thank you very helpful. 😊
Drawing of the stocks going up and down, your best Drawing so far :)
You are so right! I'm going to quit RUclips and be an Artist!
Great video with a huge amount of information, just wish I'd seen it 20 years ago, too late for me now as I'm 47 but I am going to show this to my nephew and hopefully he will use the info to make it work for him.
I think I found you at the right time in life. Thank you for this information.
No worries, really glad it's giving you some value!
You may not be my financial advisor but I'm definitely sold!
Haha thanks!
Didn't know much about stocks and shares LISAs but that seems to be a cool option for a retirement fund, thanks for bringing it up.
Any time!
Learned more from this video alone than a course
Haha, ah thank you
Jamie York, such great content. Thank you for sharing your knowledge
Jamie I will be working with you one way or another you are a top notch,humble and amazing 👍👍
Great video once again Jamie. I'll be sharing this with family. Thanks
Amazing!
Hi Jamie, the ISA millionaire spreadsheet doesn't include the fact on the government website it says you cannot pay £4000 into your LISA once you reach 50 - the spreadsheet makes out you can and therefore is a bit misleading. I've been focusing my efforts on my LISA but now realise I will be much less off than I thought - already a home owner so can't get it back without penalty until I am 60
Well, after thinking ISA and Lisa were not for us, I’m now thinking this is a good way to pay dividends from the Ltd property company to my kids who are shareholders …into a lifetime ISA ( trots off to email accountant …..)
Thanks Jamie , as ever , clear and transparent explanation on a …let’s face it , fairly dry….(dry as a plasterers overalls ) ….subject ! Well done 👍😁
Spreadsheet please. I doubt you'll read this but I was slightly disappointed that you didn't touch on something most people miss about the LISA. That 25% bonus from the govt. amounts to what you would get from saving in a pension via salary sacrifice (assuming 20% income tax). If you are in the 40% tax bracket, you would save more through salary sacrifice than you would gain through LISA bonus.
The only thing remaining to consider is value of the tax free ISA returns (covered in this video) vs the value of avoided tax drag from investing in an ISA after being taxed 20% at the outset, annually on the contribution to the LISA. I've wanted to do the maths on that for a bit but it will require a holistic view and scenarios of how the pension pot is moving, the ISA pot is moving, and how much you lose to tax over the span of both pots maturing. My gut feel is that the LISA should still come out on top but given the avoided tax drag on a pension and 25% tax free withdrawal of pension amount, I don't know if the benefit will be much greater.
you're absolutely right, but most don't have the power to set up a SSAS and I was basing it on if people have already got the money in their personal name :)
Spreadsheet is in the description mate
SPREADSHEET
A brilliant video Jamie.
Another great video. I’m making sure I watch a video per day of yours.
Please do!
Next October I am going to create this
Sounds great!
Been binging all your property videos lately, mate. Great to see you have videos on finances too. Cheers for the great info!
Glad you like them!
Hi Jamie, big fan of your videos, but, the LISA example in the end of the video is incorrect.
You can only contribute into an LISA until you are 50. That means there is a maximum of 32 contributions if you start at 18. After you're 50, you can only assume the 7% yearly increase.
Ah damn, I missed that off. You're right! Best get on it eh!
Obviously there's still the ISA :)
Spreadsheet. Get video, the effect of compounding interest is very remarkable
I LOVE compounding interest: bit.ly/isamillionairecalc
Spreadsheet, exceptional content 🙏🙏
Appreciate it, the link is in the description bud :)
You are soo smart ! thank you for sharing!
Thanks for watching! Glad it helped!
If you are doing ETFs/Index funds, the only real choice is Vanguard. 0.12% annual feels, 0% trading fees when you buy at the next available price. The con is that they only offer vanguard funds, but that isn't an issue given that they are the cheapest ones in the industry.
Spreadsheet please. Great videos as always. Learning loads here.
Spreadsheet. What a knowledge and great content! 😄
Glad you enjoyed it! bit.ly/isamillionairecalc
SPREADSHEET!! - excellent video!
Thanks mate, it should be in the description
Fantastic. You made that super easy to digest.
Glad you liked it!
Good videos on property investments , very educative indeed. Thank you so much.
Glad you enjoyed it
This video has blown my mind...wish I knew about LISA's in my 20!! One thing I didn't quite get was where the 7% came from? Is this general inflation?
Stocks and shares LISA mate
@@JamieYork thanks...just did my research and saw! I've subscribed to your channel as well excellent stuff
Great content Jamie am a new fan. Spreadsheet if you have it would be great. Excellent insight into ISAs
Spreadsheet. Fantastic content!
Much appreciated! the link bit.ly/isamillionairecalc
You'd be a great teacher of finance
Hi Jamie, I would like the spreadsheet please.
I AGREE
bit.ly/isamillionairecalc
Spreadsheet please? You are doing a great job Jamie, please, keep it up!
SPREADSHEET. Fantastic content as always!
Much appreciated Lewis: bit.ly/isamillionairecalc
Thanks for the education.
Our pleasure!
Great video mate. Really goes to show the power of compound interest!
Absolutely
The lisa doesn't work on compound interest unfortunately
Very useful content! Thanks. Spreadsheet please.
Done! bit.ly/isamillionairecalc
Spreadsheet, nice info for the future. would be nice a video on the ETF's, stocks and apps used. I personaly use Freetrade is nice ,easy and free for a beginer like me
Great suggestion! Here is the Spreadsheet: bit.ly/isamillionairecalc
Would love the spreadsheet thank you so much
J V bit.ly/isamillionairecalc
Spreadsheet please. Great videos thanks for a free property education
Great contents😍 Jamie, spread sheet.
Thanks bud, check it out in the description!
I've always saved in a Cash Isa. Just learning about LISA for the first time. That sounds like great investment value
Change that bad boy over to a stocks and shares!
Great video! Loving these types of videos, very interesting :)
Glad you like them!
Spreadsheet, great content 👍🏽
Fantastic video again jamie 👏
Thanks again!
Thanks and wish you nice weekend 👍
Thank you! You too!
thanks
You're welcome :)
spreadsheet - great video
Done! bit.ly/isamillionairecalc
This is all very interesting. But can you make a video and explain how to take money out of ISA. My biggest concern is to pay a lot if taxes if you do at you retirement age.
You can take it out no problem. There’s no tax to pay when you take it out. You just can’t put it back in above £20k a year
Good content, thank you for sharing
Glad you enjoyed it
Lovely video Jamie,
Quite informative.
#spreadsheet pls
Spreadsheet please. Great videos thanks
Would be interesting to do a vid about Nexo..If is ok to invest or not,invest protection,...great video...subscribed
Cool idea, I'll add it to the suggestion!
Interesting video. I think the spreadsheet would be interesting to see too.
Done! bit.ly/isamillionairecalc
Spreadsheet. Great video
I have been saving 400 a month in a everyday saver will transfer the money to a LISA and copy what you have Said
Great video, I learnt a lot! However, I am slightly confused regarding the link between the LISA and the S&S ISA... How does paying into the LISA affect the value of the S&S ISA? Or have I missed something? I thought once I put money into the LISA, you cannot take it out until age 60 or a first house. Thanks :)
Perhaps he is talking about an S&S LISA
Someone else mentioned it but he is talking about having a 'Stocks and Shares Lifetime ISA' and a standard 'Stocks and Shares ISA'. You put £4000 in the S&S LISA and £16000 in the S&S ISA
Hi Jamie, thanks for this.. for info I use Trading 212 Stocks & Shares ISA - they offer commission free / fee free trades / transactions.
I also use a Lifetime stocks & shares ISA with AJ Bell for the gov 25% bonus (first time buyer) however like many brokers they charge fee’s.
Thanks for sharing!
Spreadsheet! Love your content mate. Any chance of a video on your HL investment portfolio. Thanks
Great suggestion! bit.ly/isamillionairecalc
Very helpful Jamie
Glad it was helpful!
Your content is really helpful
Thanks!!
Can you do a video on starting g pensions for kids. £240 per month and they get 20% tax relief, they can be pension millionaires at a very young age. Grandparents can do this for their grandkids, without any comeback from HMRC as long as they have the income
I'll take a look into it!
great video Jamie, what online platform you invest in / buy stocks on? for example Coca Cola
19:14 I do not think LISA payments incur any compound interest or any interest for that matter. It is simply £4000 plus £1000 government contribution (i.e 25% max) every year. No one seems to mention any interest on top of these two payment. Please can you verify this.
That’s the cash isa. Get a stocks and shares Lisa
Could you do a video on creating an investment plan?
I defo could do
I understand than LISA is top by the government till you are 50, so effectively you could do it for 32 years. And you can just use it to buy a property (up to 450k) or retirement. I would consider for retirement a SIPP. But I agreed ISAs are a great way to save money
Exactly that. I prefer SSAS rather than a SIPP, but each to their own of that of course
Really good content. Thank you very much for sharing. I can see your channel growing very quickly very soon.
I do have one question around the 7% compound interest on the lifetime ISA. Around the 21 minute mark in the video. From what I understand, a lifetime ISA is just the saving of £4000 per year, and the government gives you 25% each year? Where does the 7% compound interest comes from? Is on top of the 25% government contribution?
My gut feeling is that somehow the lifetime ISA can be invested in stocks and shares somehow? But from what I understand I think these are different types of Isa?
Thank you so much for any help you can give. Keep up the channel, it's really great content!
In my opinion, I would put the LISA into a S&S version, which typically builds at 7% per annum in an index such as the FTSE100
Great video. I really like how you explain everything so clearly. Can I have your spreadsheet please?
Here you go! bit.ly/isamillionairecalc
Hi @@JamieYork, amazing content, really appreciated! Can't access your spreadsheet, would you mind to have a look? Thank you
Very helpful
Hi as a 20 year old myself is there any video or anything you can recommend on which Lisa to go for and also how to exactly set one up so that the money comes out of my bank out automatically every month
Great video.It will be good to understand how you came to the conclusion that HL is the best among peers group. :)
I'll note it down!
whilst the compound illustration is excellent, the information regarding the LISA is mis-leading. You cannot pay anything in to a LISA, or receive the £1K bonus after you turn 50 but the account remains open and you continue to see growth, just without the £4K or £1K going in.
Yep, I bloody knew that as well, forgot to put it in 🤓
we should have started at 18 as early as possible to maximise the full compound growth. too late now 😥
Hey Jamie, great video, could I have the spreadsheet?
Spreadsheet please! :)
Love your content
And I love you
Spreadsheet, thanks
No problem! bit.ly/isamillionairecalc
@@JamieYork thanks Jamie, appreciated. I’m 45 and looking to get my first investment BTL, better late than never! Thanks for being so inspiring
Could I get a copy of that spreadsheet too? Nice informational video! thanks!
Done! bit.ly/isamillionairecalc
Great video!!
Thanks!
Great video! Would like to get the spreadsheet:)
In the description my man1
Great video! Very well explained!
Just one small point, it’s not math, it’s maths!
Your audience is mainly in the UK, not the USA! 😉 😁😁
Haha, I knowwww
Great video Jamie. Defo looking at Lisa for our daughter next year when she turns 18.
You should!
Spreadsheet. With the rise of affordable housing assistance, does this cause concern for the impact on your buy-to-let?
Nope, I'm still going full steam ahead! Link in the description bud :)
Hi great video, could I have the spreadsheet pls 👍 appreciate the video’s an older one thxs
💡 never knew you could make that much from 4k. Would be interested to use your spreadsheet.
Cheers
Yes you can! Here you go bit.ly/isamillionairecalc
Thanks for nother really nice video! You got me wondering why you use HL for a S&S ISA with so many options out there where you can trade for free (inside an ISA). Not so much for the LISA, where there are much less options of course. You also mentioned you use other platforms for trading in general, I am assuming outside an ISA? Which platforms do you use? Thanks and keep up the good work!
I'm just a big fan. I only use them for ISA and LISA. Outside of that, I like nutmeg and freetrade also
Hi Jamie, just started watching your videos and really enjoying the content. Also live in Leeds so its great to see someone local! If you had the choice to either put the 20k towards a property investment say a low risk 3 bed semi at a reasonable yield or put it into an ISA which would you go with? We are at the point now of buying our 1st btl and wanted to know your thoughts. Cheers, josh
I'm 100% into property so that's always going to be my answer
Great video, the link to the spreadsheet is broken though
Hey Jamie, in short ... does LISA = Help to Buy: Equity Loan ?
and also do you have a video on how you can build generational wealth with a life insurance ?
No, they are different, for very different purposes
I'm looking into life insurance now as it goes
Hi Jamie - very useful for you youngsters but can you advise on best way to invest for someone in their late forties?!
Absolutely!
@@JamieYork Great - Have you done a video on this already?
Wow who needs a pension. Love your videos!
Thank you so much for all the insight
So with isa's can we take money out at any point?
Also spreadsheet please :)
Thanks
Superb video
Thank you so much 😀
Learn to delay gratification, so many sell off at a loss because they want to get rich quick or they are too attached to their invested money
Spot on!
Spreadsheet. Cheers
always take in consideration inflation, in 30 years 1 million will not have the same purchasing power of today.
Very true… but then it’s still wayyy better than not having a million in 30 years eh.
Could you do a video on your thoughts on vanguards? Nice content man
I've got a LISA, I didn't think I would be allowed to then use the LISA to invest with I thought the government would just take the 1000 back? If I own a property can I get another Lisa to then do this with? I already have a S&S so how would I use my LISA to fill the S&S up?
Yeah I sure can do
Great vid Jamie, thanks for sharing. However, I’m a bit confused on how you would get a 7% annual interest rate on a LISA, I would’ve thought in this day in age you’d be lucky to get over 1% AER. Could you please advise?
Please advise on this . I’m also puzzled
@@jeygilg It's a (conservative) average of what investments in the stock market make. The 1% you mention is what you get in Cash Isa's.
@@paulogravey I was thinking this but as far as I’m aware you can’t benefit from both a 7% annual growth rate and a £1k bonus from the government. You would either have a S&S ISA and receive c7% growth or a LISA and benefit from the £1k bonus
Stocks and share LISA my man - you get the 25% bonus AND you can buy stocks with it! My money is in JD sports with the LISA money :)
@@JamieYork ABSOLUTE GAME CHANGER!! Cheers Jamie