How to spread my balance?

First Time Investing šŸ£
#1

Hi, Iā€™m new so sorry about this but,
I have an emergency fund made, I want to invest the rest into mostly long-term investments like the S&P.
I also want to invest a little into individual stocks.
What would be best way to do this?

I know I have a GIA and a S&S ISA and thereā€™s some benefit in terms of tax to the ISA, Iā€™m just not sure whether thereā€™s some good way to set this up like, invest into index funds with the GIA and then perform individual stock investments with the ISA, something like that?

#2

The only reason to use a GIA if you have an ISA is if you want to invest more than the ISA maximum. Otherwise do everything in your ISA.

2 Likes
#3

HI Tom,

The isa in essence is a wrapper for your investments that shields them from capital gains and dividend taxes.

You do have annual allowances that you can earn before things are taxed but if youā€™re investing over the long term, youā€™re best off putting as many things into the isa as possible rather than in the GIA which could attract tax.

Donā€™t forget tax rules can change so annual allowances as they are now, can go up or down.

1 Like