How to cap the cost of your funeral whilst protecting your loved ones from financial stress at the time of a bereavement.
The key issue is that of inflation and the “real value” of money on deposit. If inflation averages just 2½% per annum, the value of the pound in your pocket reduces by one-quarter every 12-years. Even with interest accumulating, with rates as low as those currently available, particularly after tax, those balances are not keeping pace with inflation.
An Individual Savings Account (ISA) is a “wrapper” for cash and/or investments which confers some valuable tax benefits to UK resident savers and investors.
An Investment Trust is a limited company whose business is the investment of shareholders’ funds, the shares being traded like those of any other public company.