#2 Erica's Investment Journey: Which account type?

hi guys erica white here again so this is the second video in my investment journey series so if you missed the first video make sure you check that one out first so from the first video you will know that i'm starting my investment journey with a thousand pounds using charles stanley direct which is a do-it-yourself online investment platform now that i feel totally ready to get started i'm going to start with the signup process but first i'm going to call my colleague and friend rob morgan he's an investment analyst as well as a market expert with two decades of finance experience to help me out here hey rob how's it going hey erica how are you doing thank you so much for chatting with me so i just started my onboarding process with charleston direct and already honestly i'm feeling a little bit overwhelmed so the options i have here are for an account and i don't even know which one i need can you walk me through the options here sure yeah in terms of how you hold your investments there's a couple of options a standard investment account is the most straightforward it's just a normal account in your name where it's possible to hold a wide variety of investment types however it's generally a good idea to prioritize tax efficient ways of holding your investments and here there's two main possibilities individual savings accounts self-invested personal pensions abbreviated to sips these could save you from paying income tax and capital gains tax on on profits on your investments so that could boost returns in the long term they can hold largely the same range of investments as a standard investment account so it doesn't mean narrowing down the options think of them as a wrapper around the investments they're the packaging rather than the contents so you mentioned a sip can you tell me what the difference is between that and an isa yeah if you're saving specifically for retirement you might want to consider a sit you can't get your hands on your money until retirement age but there's a huge advantage with the sip in terms of the ability to get tax relief on your contributions so for a lot of people it's a more tax efficient way of saving but if you're saving for shorter term needs ie before retirement then an isa could be a better starting point for you tax efficient i like the sounds of that um can you tell me a little bit more about the iso so it's basically a an account where you can hold a wide variety of assets you can access your money at any time which you can't with a sip so they're suitable for a variety of needs so short medium and longer term there's also a junior iso for children with a lower annual allowance but the tax benefits are the same as an adolescent okay cool thank you so much rob before you go i have another question um they're asking for a lot of details why are they asking for so much information from me yes that information is required by all investment service providers to safeguard investors and you'll probably need to provide that wherever you choose to invest don't worry though once you've provided all the information then the rest of the process is really straightforward awesome thank you so much rob you might be hearing from me later so don't go anywhere okay you've no problem all right guys so i've now registered and decided to open an isa but what should i invest in there's a lot to choose from check out my next video as i call rob for some more guidance on how best to choose my investments stay tuned for that [Music]

Channel: Charles Stanley

Views: 15,136

Keywords:

Id: j0sjvlnRp2o

Length: 3min 30sec (210 seconds)

Published: Wed Sep 16 2020