An Individual Savings Account, more commonly known as an ISA, is a tax-efficient opportunity to shelter your savings and investments from both capital gains and tax on income. The current allowance in the 2017/2018 tax year that can be invested into an ISA is £20,000, which can be through either a Stocks & Shares ISA or a Cash ISA.
Our approach at DMT is first and foremost to understand your investment objectives, and to provide bespoke advice to help you achieve such objectives. With the annual allowance of an ISA capped at £20k, it is essential that your appetite for risk is adhered to, whilst maximizing the opportunity for capital appreciation.
At the heart of DMT’s investment philosophy is value, with our team working to identify investments that meet the principals of the father of stock analysis and value investing, Benjamin Graham. With ISAs we marry the investment approach of Benjamin Graham with the UK’s first ISA millionaire, Lord John Lee, who believes in the following five points:
1. Reinvest Dividends – “This is where investors make the majority of their returns. So unless you need to take the income, reinvest the dividends.
2. Buy And Hold – “Those who apply common sense and patience will reap the rewards over the long term.”
3. Avoid Businesses With Debt – “Businesses with rising levels of debt aren’t reliable dividend payers. Instead seek companies with lots of cash.”
4. Avoid Funds – “There are no guarantees that someone you pay to buy shares on your behalf will get it right. To avoid disappointment make your own investment decisions and learn from your mistakes.”
5. Don’t Worry About The FTSE 100’s Ups And Downs – “Those who play the long game and reinvest dividends should be less concerned about trying to find the best time to enter the market.”
Setting up your ISA with DMT is straightforward. Please use the links to the right of this page to request a call from one of our investment managers, or contact us for more information.