A good time – and a productive one – was had by all. Our friends at Business Cloud hosted an excellent breakfast seminar on the future of FinTech this morning. Three separate panels offered trenchant views and brought worthwhile news to the fore.
Money&Co. co-sponsored the event, and our CEO Nicola Horlick made a couple of pithy points. Asked why she has moved into alternative finance from the mainstream markets, she said that technology has made financial markets more efficient – specifically, the universal availability of information is a great leveller. As a consequence it has become much harder for fund managers to consistently outperform an index or market.
We’ll bring you from this event over the next few days.
A Process Guide To Innovative Finance ISA Investment
We offer an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates on site. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2018/19 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.