The Lemon Fool

What do people do when they've maxed out their ISAs and pensions, but still have spare cash to invest? Are financial advisers worth considering?

bernie wrote:What do people do when they've maxed out their ISAs and pensions, but still have spare cash to invest? Are financial advisers worth considering?

If you still want to invest then use a direct dealing account with a platform. Why would you go to an IFA? Anyway, you cannot 'max out' an ISA except in one year. There is always another year. All you are doing is arranging for much of your saving/investments to be protected from tax, but you can always still invest by paying tax on dividends and CGT, transferring assets into an ISA and SIPP in subsequent years.

Dod

You asked what people do. Well, I'm part of "people" so I will tell you what I do. I give to charity. Of my income, about a third goes on living costs, a third goes to savings (no, I don't max out my ISA and pension), and a third goes on having fun and helping out people less fortunate. Foodbanks and https://lendwithcare.org/ are probably my favourites at the moment, although Cancer Research UK is always on the list.

bernie wrote:Are financial advisers worth considering?

I would certainly consider using them (indeed I do), however not necessarily for where to invest.

For example, you could invest funds in a new VCT without consulting a IFA.
They carry significant risk, but you can invest a lot (up to £200kpa), save significant tax (30% tax rebate) and any gains or dividends are tax-free.

No, the reason to consider a IFA is that your financial position is starting to get complicated.

For example, you may want to consider IHT and "gifts out of income".
There are investments that you can only do via an IFA, but they are rarely a great idea. IE structured products. There could be many other examples.

Although we do use an IFA, I've never been in a position to fully fund both a pension and ISA. Neither has my wife, though she did independently buy a few VCT's.

50000 Premium Bonds maybe.

Build a buffer in a taxable General Investment Account - sufficient to buy a car etc if extra funds needed at short notice (separate from the emergency cash).
Then monthly direct debit into kids accounts to cover back to back payment into LISAs.
As this is coming out of surplus income it should be IHT exempt. and it is channeling money where it will most be needed, and gets a government contribution along the way