Stocks and Shares ISA Deadline: Is a Robo-Advisor a Good Choice?

Stocks and Shares ISA Deadline: Is a Robo-Advisor a Good Choice?
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Tuesday, April 5 is the last day you can open, or add, a Stocks and Shares ISA and still benefit from the 2021/22 ISA allocation.

So if you want to open an ISA before the deadline, should you use the services of a robotic advisor? We’ll see.

When is the ISA deadline for stocks and shares?

The ISA deadline is April 5. This is the last day you can contribute to a ISA stocks and shares (or any other ISA type) in fiscal year 2021/2022.

the ISA Assignment It’s £20,000. This means that you can invest up to this amount within the current tax year. Any future income you earn will not be subject to any tax as long as your investment remains in an ISA.

On April 6, a new tax year begins, which will give ISA holders a new allowance of £20,000 to use until April 2023. However, if you don’t use your allowance for the 2021/22 tax year by next Tuesday Don’t get another chance. This is because you cannot carry over any proportion of an ISA allocation that you do not use.

Should I Open a Stocks and Shares ISA Through an Automated Advisor?

A robo-advisor is an automated investment tool that can choose investments for you based on your risk appetite.

In order for the robotic advisors to calculate your risk profile, you will be asked a series of questions when you open an account. Your answers will give your AI advisor an understanding of your attitude towards investing. This will give your robo-advisor the ability to allocate a suitable portfolio.

With robo-advisors, the fees are quite transparent. So if you use one, you won’t have to cost management fees, business or platform costs that are normally associated with normal costs. investment accounts.

Automated advisors have been gaining in popularity in recent years, mainly due to how easy they are to use. For this reason, they are normally aimed at novice investors.

So, if you appreciate artificial help in choosing your investments and value transparent fees, then opening a ISA stocks and shares through a robo-advisor could be a decent option.

However, if you prefer to pay the lowest fees possible, but want to invest in a mix of asset classes, it is often possible to pay lower fees through a regular stock ISA. In other words, if paying low fees is your main concern, you may want to take a sharp swerve to auto advisors.

The same can also apply if you prefer freedom when it comes to choosing investments. This is because robotic advisors are designed to choose investments for you based on your risk profile. So if you prefer to have more flexibility, auto investing tools are probably not for you.

Which robo-advisor accounts are popular?

Before you consider a robotic advisor, understand that with any type of investment, the value of your portfolio can go down as well as up. This applies even to carefully selected investments made through a robotic advisor.

If you’d like to explore the possibility of opening a robo-investor account, it’s worth knowing that they’re available through a number of providers, including Nutmeg, get rich and money farm. They all have their pros and cons, so take the time to read the details of each The Motley Fool account.

For more options, also take a look at the list of Top Rated Robotics Consultants in the UK.

Looking to act before the ISA deadline? Opening a stock ISA through a robo-advisor is usually easy, as the option to open your account within an ISA is well marked within each robo-advisor app.

Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. The content of this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

Don’t leave it for the last minute: fix your ISA now!

stocks and shares isa icon

If you are looking to invest in stocks, ETFs or funds, then Opening a Stock and Share ISA could be a great choice. Protect up to £20,000 this tax year from the Taxman, there is no UK income or capital gains tax to pay for potential gains.

Our Motley Fool experts have reviewed and classified some of the best ISA Stocks and Shares available, to help you choose.

Investments involve various risks and you may get back less than you invested. Tax benefits depend on individual circumstances and tax rules, which may change.

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