Each tax year presents a fresh opportunity to invest up to £20,000 into an ISA, yet many individuals wait until the final weeks – or even days – to use their allowance. This hesitation can come at a significant cost.
Quoted in MoneyWeek, Bowmore Wealth Group’s research modelled a client investing their full ISA allowance annually into a stocks and shares ISA over a 20-year period. The findings revealed that delaying contributions until the end of each tax year could result in £123,000 less in returns, compared to investing at the start of the year.
Mark Incledon, Bowmore’s Chief Executive, explained: “By investing early, even modest gains can begin generating strong returns of their own, accelerating long-term wealth growth.”
“Those who invest late are much less likely to enjoy strong returns from short-term market growth. By contrast, early and proactive investors take advantage of those months of return, purely because they have more invested.”
This analysis highlights the long-term value of disciplined, early investing.
MoneyWeek: Always late to the ISA party? It may have cost you £123k over the past 20 years
Bowmore Wealth Group Ltd is authorised and regulated by the Financial Conduct Authority.