ISA stands for Individual Savings Account and allows you to save whilst earning interest and is tax-free. You can save up to £20,000 in a tax year tax-free. Having an ISA helps people to save for things like a house deposit as this a great, money-efficient way to save large amounts.
Cash ISA
This is similar to your regular current accounts as you are paid interest on your balance in the account. This is a simple way to save tax-free in a secure account for your money.
Cash ISA’s have interest rates of 5% or more currently.
Those over 16 can set up a cash ISA.
Stocks and Shares ISA
You can save up to £20,000 tax-free each year and your money is invested into various stocks and shares. This could help your account grow however there is a chance the value can go down as well. You can either choose where you money is invested or the bank will randomly invest your money into different stocks.
Only once you are 18 can you set up a stock and shares ISA.
Lifetime ISA
These are used to help you pay for your first house or alternatively to save for retirement.
This can be in the form of a Cash ISA or a Stocks and Shares ISA where you can save up to £4000 a year tax-free. The government will then add a 25% bonus which has to be used to help you buy a house such as pay for a deposit or for a retirement fund only. If you use this account to pay for anything else then there will be a 25% penalty rather than a reward at the time of withdrawal.
Only those between 18-39 are eligible for a lifetime ISA.
Withdrawing from your ISA
Your ISA will have certain rules regarding when you can withdraw as this is an account specifically for saving.
If you have an instant access Cash ISA you will be able to withdraw money at any time without any changes to your tax-free balance as this account will be for short-term savings.
If you have a fixed rate Cash ISA this will lock the money for a certain length of time and usually the interest rate for these accounts will be higher.
Then, there is the flexible Cash ISA here you will be able to make a limited number of withdrawals without losing any benefits of the ISA.
For the Stocks and Shares ISA you will usually be able to withdraw money at any time as long as you have cash in the account. If you want to withdraw money and you have no cash then you will have to sell shares at the current market price meaning you be losing money.
Why should you have an ISA?
If you are saving for something in particular and can afford to have savings which are in effect untouchable then having an ISA will be very beneficial to you. The money in your ISA should be separate from your personal savings in order for your ISA to be saved for your first home or retirement fund and to reap all the benefits.
With an ISA you are saving more with less.
Traditional options that don’t include crypto investments are nearly always favoured by the investor as a “safe bet”, with many investors shunning the infamous volatility of cryptocurrencies.
Despite the well-documented peaks and crashes - not least the recent crypto crash this year that will be at the forefront of all our minds - investors who choose to invest their assets solely in stocks and shares could be missing out on what could be the greatest investment opportunity of our lifetime. This is not about scaremongering or adding to the FOMO (fear of missing out) culture that shrouds crypto investments but based on my experience, I firmly believe that where there is risk, there is also great opportunity for those willing to educate themselves and take advantage of the possibility of high returns.
Cryptocurrencies aren’t going anywhere
Since the debut of Bitcoin in 2009, the volatility of trading in crypto has been no secret. Even 2022, which was predicted to be one of the best years for crypto investment, has been rocked with bad PR for the blockchain industry, as it battles the FTX scandal amongst other issues.
The crashes and booms documented on a chart are dramatic in their peaks and troughs - but looking at the bigger picture, what is clear is that as each storm is weathered, the industry bounces back with even more fervour. For investors, this is our opportunity to gain. For example, shortly off the back of the latest crash just this year, the news quickly broke that the world’s largest asset manager, BlackRock, partnered with the world’s biggest Crypto exchange, Coinbase. It’s clear in my mind and the minds of those who follow the market, that cryptos are here to stay. Once investors are prepared to acknowledge this, the possibilities are endless but to ignore this, is possibly missing out on lucrative investment opportunities it provides.
It's also worth noting here that crypto is the currency used in the metaverse – another indication that crypto could be the currency of the future.
Ride with the ups and down
Volatility can seem scary but can also be a benefit for traders. As one of the fastest-growing markets that we are likely to witness in our lifetime, the possibility of losses has to be taken into account alongside the equal possibility of high returns - higher than could ever be gained through traditional investments. Prices can collapse and rise again at the drop of a hat, but these fluctuations can help investors earn significantly. The sky is the limit for those who watch the market closely and hold their nerve. One of my favourite quotes by Warren Buffet encapsulates this: “Be fearful when others are greedy and greedy when others are fearful.”
Portfolio diversification
Diversification of investment portfolios has always been one of the most important pieces of advice I encourage traders to follow. Cryptocurrencies naturally lend themselves as a new and different option independent of traditional investments, which might not always follow the market. It makes sense for traders to have such an alternative within their portfolio. This gives them the opportunity to not put their eggs all into one basket, which is a big benefit when expanding into cryptocurrency investment.
Easy, fast, secure transactions - accessible 24/7
One of the key selling points that arguably triggered some of the early success of cryptocurrencies is the ease and security of transferring funds. With no third-party intermediatory like a bank or credit card, almost anyone can complete a transaction almost anywhere. In addition, investors are no longer tied to weekdays and business hours. Crypto markets can be accessed at all hours of the day or night. This accessibility opens up the world of investments to a new type of trader who might not have had the opportunity to do so otherwise.
Crypto is an opportunity not to be missed
With opportunities for high returns, diversifying portfolios and taking advantage of easy, secure and fast transfers, it’s hard not to see why crypto investors believe that those avoiding the market altogether are missing out on the opportunities and benefits offered by cryptocurrencies over and above traditional investments.
As we enter a new era of instability across all markets, it seems ever pertinent to take stock and review our preconceived notions of what it means to invest in cryptocurrencies.
I am very much looking forward to seeing how this plays out over the next few months and what’s in store for the cryptocurrency market in 2023.
Marcus’ Top Tips
For investors looking to take the first step into crypto investment, here are some quick dos and don’ts to get you started:
1. Start small – there’s nothing to be gained from putting all your investments into one pot. A small percentage of your overall portfolio invested in crypto can start you off.
2. Appreciate your appetite for risk – the up-and-down nature of crypto investment might not be for the faint-hearted. Once you understand your own personal appetite for risk this can help you make informed judgements rather than snap decisions in the heat of the moment.
3. Education - take 20 minutes of your day to educate yourself on investment. Follow the market closely as you would with traditional stocks and shares. Get interested in new and emerging coins and be prepared to immerse yourself in the cryptocurrency world. It’s important to understand that what drives the price of crypto is very different to what drives the more traditional markets.
4. Hold your nerve. You don’t need to sell just because the market is dipping.
About Marcus de Maria
Renowned stock market and wealth educator, investor, and entrepreneur Marcus de Maria is the founder and chairman of Investment Mastery, one of the world’s leading investment and trading education companies.
A sought-after keynote speaker on wealth creation who has shared the stage with some of the world’s leaders in business, success and philanthropy, Marcus has gained mutual respect from many high-profiled individuals including Richard Branson, Robert Kiyosaki, Tony Robbins and Brian Tracy.
Marcus is also the author of three books including The Lunchtime Trader, a guide on how to build indestructible wealth by trading stocks for just 20 minutes a day.
After experiencing financial difficulties, Marcus went from being £100,000 in bad debt and sleeping on his brother’s floor to taking control of his financial future and learning strategies to become financially fit, building multiple pillars of wealth for security. He now uses all he has learnt to help others follow this path of wealth creation.
About Investment Mastery
Founded in 2003, Investment Mastery is a premium training and education company delivering easy-to-follow and profitable trading and investing strategies.
Today, Investment Mastery delivers training seminars and workshops, online and live in-person, annually. They have educated thousands of people across 25 countries, while also developing and delivering industry-leading online support and training that is delivered in three different languages.
Led by founder and chairman Marcus de Maria and his expert team of real traders and investors in the fields of stocks, cryptocurrencies and forex, Investment Mastery’s training education is influenced by the exact same proven techniques that Marcus uses to trade and invest his own money.
The team at Investment Mastery do not just help clients to strengthen their finances, but their mindset too. This helps clients uncover, address and break through their limiting beliefs behind wealth creation and find their reasons ‘why’. This unique approach is what sets them apart from other wealth creation educators and is why clients achieve such incredible results.
https://www.investment-mastery.com/
Brown Butler worked closely with Black Solicitors during the reorganisation process. Vickers-Lee Holdings is an independent, family-run business in Yorkshire that supplies products for the capture and containment of waste and recyclables. The company, which also owns both CPR Manufacturing Limited and Cromwell Polythene Limited, is helmed by directors and shareholders James and Debbie Lee. As a result of the share reorganisation, directors’ sons Angus, Alex and Henry have become shareholders in the business.
Brown Butler advised on the reorganisation with a team comprising tax director Craig Hughes and director and principal Steve Hornshaw.
Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.
Home Depot
Home Depot is the multinational giant of home improvements, tools, building materials and a paradise for DIY enthusiasts. The first wave of the Covid-19 pandemic might already seem like a lifetime ago to some, but Home Depot was one company that did in fact benefit from the Covid-19 lockdown restrictions.
The pandemic ‘DIY boom’ that occurred as a result of populations being restricted to their homes sent shares in the company soaring, with the earnings per share (EPS) metric initially peaking at $4.02 in Q2 2020. The performance of shares since has remained respectable, albeit erratic with quarterly EPS fluctuating between $2.65 in Q4 2020 and $4.53 in Q2 2021.
The share price has recovered from the lows and is testing resistance, with the 200-day moving average not out of sight either.
Q1 2022 proved to be better than expected: earnings per share reached $4.09, up from $3.86 a year earlier and higher than analysts’ predictions of $3.69 per share.
However, it remains to be seen whether this solid performance can continue. As housing markets across the US and Canada continue to slow, how robust will the demand for home improvement be?
It’s not only a matter of choice. In the red-hot pandemic housing market, many buyers waived the usual due diligence and checks to get ahead of the pack and ensure their offer was accepted. In further good news for Home Depot, home improvement isn’t solely driven by the cycle of the housing market, especially in today’s new working paradigm when working from home has become far more commonplace.
As much of the current slowdown in the property market has been attributed to the increase in mortgage rates, this could also incentivise people to stay put, ride out the storm, and improve their existing homes rather than looking to trade up and pay a higher mortgage rate.
For Home Depot, it doesn’t really matter what their customers’ motivations are. If they’re still making improvements, they’re still buying. Therefore, the bigger risk is a downturn in consumer spending altogether; likely the biggest headwind with inflation continuing to rise across the globe.
There’s been plenty of talk of ‘squeezed’ consumers, but companies haven’t yet reported a huge squeeze on profits this earnings season, with consumer spending having held up far better than expected.
Home Depot surpassed estimates for its quarterly results, published on 15th August. Investors have eagerly been anticipating this upturn to continue and are expected to home in on the company guidance, both from the consumer perspective and the profitability point of view. Many raw material and input costs have fallen back from their peaks, which could relieve concerns about profit margins soon coming under pressure.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Not investment advice. Past performance does not guarantee or predict future performance.
The SEC filings show Musk’s transactions occurred between August 5 and August 9, shortly following the electric vehicle company’s 2022 annual shareholder meeting on August 4 in Texas.
Previously, Musk had announced on social media that he had “no further TSLA sales planned” after April 28.
The CEO’s latest stock move has prompted supporters of the EV brand to question if Musk is now truly finished selling Tesla shares and if he might repurchase the shares in the future.
In response, Musk said, “Yes. In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.”
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Brooks-Johnson will remain CEO until Rightmove posts its full-year figures in February 2023. The company has said the outgoing chief will help find a replacement to ensure a smooth handover.
Brooks-Johnson joined Rightmove in 2006. He became its COO in 2013, then its CEO in 2017. Previously, he worked as a management consultanr with Accenture and the Berkeley Partnership.
Following the news of Brooks-Johnson’s resignation, shares in the FTSE 100 were down as much as 7.1%.
In a statement, the resigning CEO said, “With Rightmove progressing well on its mission to make home moving easier and our strong trading from 2021 continuing into 2022, I have decided it is an appropriate time to seek a new challenge.”
How do football clubs make their money?
Football clubs generate their revenue through several different sources, including matchday sales, stadium hiring fees, sponsorship deals, merchandise sales, TV broadcasting deals, prize money, and player transfers. The primary source of income naturally varies from club to club. Though, as an example, FC Barcelona’s primary income for the past three years has come from media and commercial sources, according to Statista. FIFA also reported that, between 2011 and 2020, the football transfer market saw spending of $48.5 billion.
Wins over profit
While football clubs are businesses, their top priority is success on the pitch. Vast sums of money are spent on boosting chances of winning trophies, league promotions, and avoiding relegation — though these efforts don’t always materialize into success. However, this isn't to say that all football clubs are unprofitable and incapable of returning to shareholders via dividends. Manchester United, for example, has awarded a dividend of 14p per share in each of its past four financial years, paying out £23.3 million to shareholders in 2020 alone. But, with a revenue of £835 million, Manchester United is one of the highest-earning clubs in Europe. A club with lower earnings may not be able to deliver the same returns.
Image source: https://sqaf.club/most-profitable-football-clubs/
Is a football club a good investment?
Many institutional investors, including fund manager Nick Train, have chosen to include football clubs in their portfolios.
“The value of sports franchises is going up and up, and it's easy to understand why when you see the billions of dollars or billions of pounds being pumped into the sports industry by these big media companies, and now by these giant internet companies all looking to muscle in onto televising live sports,” Nick Train said in a 2020 interview with Interactive Investor.
“When I look at the investments that we have in these franchises, the three that you've mentioned, I mean actually they've been pretty good investments over the period that we've owned them despite ups and downs of their performance on the pitch. And I guess I'd also say, just repeating the three that you mentioned, Manchester United, Celtic, Juve, Juventus, you know, they are pretty high calibre, pretty high calibre sports franchises.”
Football is, and will likely always be, an incredibly popular sport with strong underlying demand. But, nonetheless, most people choose to invest in a football club simply as another way of supporting their team. Generally, an investment in a football club is seen as a novelty, despite your money being invested in a company that is very much real.
This is largely because there’s no real way of forecasting how shares are going to perform. The figures vary massively from one club to another. For example, Manchester United gained just 4.47% in value over the past 5 years, while Juventus has experienced gains of 156.25% over the same period. Other clubs have gone the other way entirely. Borussia Dortmund, for example, made a loss of 14% over a 5-year period.
In his book The Price of Football, Kieran Maguire notes that football is a high-risk investment with relatively low returns, and goes on to note that many investors invest from an emotional perspective rather than a financial one. Fans may be keen to support their favourite club, but the decision to invest in a football club is one that shouldn’t be taken lightly.
This article does not constitute financial advice. The author and Universal Media Ltd. are not qualified financial advisers. All investments are made at the reader’s own risk.
The deal was shaken upon on Monday after weeks of speculation about the social media giant’s future following Musk’s emergence as the platform’s largest single shareholder on 4 April. Ten days later, Musk then declared a takeover bid, offering $54.20 per Twitter share.
Initially, Twitter’s board appeared to be against the takeover and introduced a “poison pill” in a bid to block the sale. However, they warmed to the idea after Musk announced a funding package for the deal, which includes $21 billion of his own wealth as well as debt funding from Morgan Stanley.
In the past, Musk has criticised Twitter, claiming it does not allow free speech. In a tweet that followed confirmation of the deal being accepted, Musk wrote, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated [...] I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating spam bots, and authenticating all humans. Twitter has tremendous potential - I look forward to working with the company and the community of users to unlock it.”
Twitter shares were up more than 5% in the premarket on Monday, following reports from Reuters and Bloomberg that a deal could be reached very shortly.
Prior to the US stock market opening, share trading in Twitter’s stock sent the price up 5.1% to $51.57. However, this figure is still below Musk’s offer price.
Per share, Musk offered $54.20 — $43 billion in total for the social media giant, which he has previously accused of failing to uphold free speech.
While Twitter recently adopted a “poison pill” strategy in a bid to resist a hostile takeover, some investors want to see the social media giant take Musk’s offer into serious consideration.
Shares were up by as much as 6% in after-hours trading following the news.
Automotive revenue hit $16.86 billion, up 87% from the same period last year. Meanwhile, automotive gross margins soared to a record 32.9%, with the EV company reporting a gross profit of $5.54 billion. Regulatory credits made up $679 million of Q1 automotive revenue.
Tesla said revenue growth was pushed forward partly by an increase in the number of vehicle deliveries, as well as an increase in average sales prices.
Earlier in April, Tesla reported making 310,048 vehicle deliveries worldwide for the first quarter. Its Model 3 and Model Y vehicles made up 95% of deliveries in the period ending March 31, 2022.
Despite ongoing disruption from the Covid-19 pandemic as well as the conflict in Ukraine, Tesla CEO Elon Musk remains confident that the company can grow at least 50% over figures from the previous year.
“It seems likely that we’ll be able to produce one and a half million cars this year,” Musk said.
Netflix’s share price initially dropped close to 20% on the news that it had lost 200,000 subscribers globally during the first quarter. Wall Street had predicted the company would gain 2.5 million subscribers over the period. In the current quarter, Netflix believes it will lose 2 million global subscribers.
Netflix has blamed its sudden drop in subscribers on a range of factors, including increased competition, the cost of living crisis which is leaving households with less disposable income, and the ongoing conflict in Ukraine.
In a statement to investors, the streaming giant said: “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.”
Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should buy this week.
Microsoft
In light of recent political triggers, markets are more prone than ever to volatility. For investors, it’s best to focus on big companies during this – given their high transparency and rigid business models.
Valued at over $2 trillion, Microsoft is a great example of a robust company. However, even the most robust companies are vulnerable to market volatility, as shown by shares falling by over 22% from the highs of $311 before rallying to $303.
Whilst buying during the dip has been a winning strategy for investors in the past, they need to exercise extra caution given the impact of political triggers on stocks currently. The stock market is facing heightened pressure and as a result, stocks aren’t performing in line with investors’ expected patterns. This means investors need to be certain they’re making rational and realistic decisions, rather than following the zeitgeist.
Despite this, Microsoft stock is still a sustainable choice for investors given its track record of healthy returns. Also, given the growth runway, Microsoft can reap from the cloud, there’s a great opportunity for extra revenue for the company. By considering gaming and the emerging metaverse, the company can also look at expanding its offerings exponentially.
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Not investment advice. Past performance is not indicative of future results.
Disclaimer: The information contained within this article is for educational and entertainment purposes ONLY. The commentary provided is the opinion of the author and should NOT be considered as personalised advice or recommendation. The information provided in this article should NOT be a person’s sole basis for an investment decision. All investments are made at the reader’s own risk.
