Thanks to the novel ISA benefit worth 20,000 pounds just around the corner, he can pay for removing several misunderstandings.

1: You can’t take money

If we put cash in ISA and then pull it out, do we lose this part of our benefit? In fact, some suppliers are more malleable in their ISA actions and actions.

Suppose we pay for 5000 pounds. Then we decide that we need cash and pull it out again before buying shares. Traditionally, it is 5000 pounds used from our annual benefit. But some malleable ISA will allow us to replace cash, which we have not yet used to buy shares without losing any benefits.

It differs between ISA suppliers, so check.

2: Cash Isas overcame inflation

Inflation in Great Britain is 3%. And the best annual ISA rates in cash are about 4.5%. If inflation drops over the next 12 months, it can be an even better offer.

But when inflation was below 2%and the basic rates of Bank of England amounted to 0.5%, it was hard to find cash paying over 1%. We can avoid tax, but still lose money in reality.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice. Readers are responsible for implementing their own diligence and obtaining professional advice before making investment decisions.

This is perhaps only a partial myth. And ISA cash can be a good way to save for a rainy day or for those who want guaranteed percentage without risk. But in the case of stern long -term investments, ISA shares and shares are a champion in my book.

3: ISA actions and shares are hard

When choosing the right sharing and knowing when to enter and go out, he certainly needs expert knowledge. And thousands of ISA millionaires in Great Britain are all financial Whizzkids all day glued to their trading screens, right?

This could not be further from the truth.

In fact, ISA Millionaists put more money on investment funds than other investors and leave them there.

Scottish Mortgage Investment Trust (LSE: SMT) is one of the most popular. Invests in actions of increasing advanced technologies and includes AmazonIN Meta platformsIN Production of semiconductors in TaiwanAND Nvidia In the top ten.

Some investors buy and sell these shares regularly, trying to hit DNA and peaks. They often misunderstand, but they can also quickly build trade fees.

Buy and hold

Really, investors simply buy such actions, thanks to which diversification will soften the risk of growth. And they just stick to long -term, ups and downs. And even with all the recent variability NASDAQ, the Scottish mortgage shares continued to boost by 75% in five years.

Oh, they have gained over 250%over the past 10 years. NASDAQ shows on the way.

The Scottish mortgage is still a more risky investment than others. But ISA investors, which are the most successful, also buy safer investment funds, of which dividends from dividends from a mature British company with blue children are popular.

This is the real secret of ISA millionaires. They disseminate their money to reduce the risk, resist brief -term trade, and simply leave it to connect in the long term. Why hinder?

Post 3 Common myths is broken! The first in Motley Fool UK appeared.

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John Mackey, former general director of Whole Foods Market, a subsidiary of Amazon, is a member of the board of Motley Fool. Randi Zuckerberg, former market development director and Facebook spokeswoman and sister Platforma Meta Platforms Mark Zuckerberg, is a member of the board of Motley Fool. Alan Oscroft He has positions at Scottish Mortgage Investment Trust PLC. Motley Fool UK recommended Amazon, Meta Platforms, Nvidia and Taiwan Semiconductor Manufacturing. The views expressed in the companies listed in this article are the views of the writer, and therefore may differ from the official recommendations that we provide in our subscription services, such as action advisor, Hidden Winners and Pro. Here in The Motley Fool we think that considering various observations makes us better investors.