Don't Procrastinate! Invest Early and Reap the Rewards This Tax Year

The new tax year is almost here, and with it comes a clean slate for your finances. But instead of waiting until the last-minute scramble, why not be proactive and invest early? Here's why starting now trumps a last-minute dash:

1. Time in the Market not Timing the Market:

The longer your money is invested, the more it benefits from the power of compounding. Imagine your investment grows every year. Early contributions gives the potential for this growth to snowball over time, leading to a much larger nest egg.

2. Make the Most of Your ISA Allowance:

The UK offers tax-efficient Investment Savings Accounts (ISAs). You get a yearly allowance to invest in these accounts without paying tax on any income gains or dividends. By starting early, you have the entire tax year to utilise this tax efficient benefit.

3. Embrace Pound-Cost Averaging:

Investing a lump sum might seem convenient, but spreading your contributions throughout the year offers a buffer against market fluctuations. This is called pound-cost averaging. By consistently investing smaller amounts, you buy more shares when prices are low and fewer when they're high, potentially smoothing out your overall investment cost.

4. Avoid the April 5th Rush:

Tax year-end can be a stressful time. Investment platforms and financial Advisers tend to be busier, potentially causing delays in processing your contributions. Starting early ensures you avoid the last-minute frenzy and have ample time to make informed decisions.

5. Peace of Mind and Discipline:

Spreading out your investments throughout the year fosters a sense of financial discipline. It encourages you to regularly assess your budget and make consistent contributions towards your financial goals. This structured approach promotes long-term financial well-being.

Taking Action:

Remember, investing is a marathon, not a sprint. By starting early and taking advantage of tax-efficient options like ISAs, you can lay a strong foundation for your financial future.

It's important to do your own research before making any investment decisions.

Please contact a member of the Mercury team if you would like to arrange a no obligation,  financial review.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.