5 ways to help you achieve your financial goals
We all approach savings differently, and each of us will have a different goal, some short term, some longer-term thinking to retirement and beyond. We’ve pulled together some top tips to help you achieve your financial goals, no matter what it may be.
Create A Plan
The first thing you should do is make sure you know exactly what you’re working with. Calculate all income, including any partners that you might pool money with. Then, work out all your outgoings, separating the essential (mortgage, credit card payments, food etc.) from the luxury (yes, those rarely used gym memberships or monthly trips to the hairdressers count!). This will make it much easier for you to plan where you could save, and how much.
Set Realistic Goals
With your plan, set the ideal amount you’d like to save, this could be for a wedding, holiday or to pay off debt, but by giving yourself a target, you’ll have something to work towards.
It’s good to have ambitious goals but avoid setting the bar too high, over-committing may cause frustration and steer you off track with your savings plan and overall goals.
It’s important you set a little spare money aside each month to enjoy yourself and account for any unexpected costs that might pop up.
If you’re willing to take a little more risk, and are looking at longer-term options, consider diversifying and look at alternatives that offer higher interest rates.
Know Your Options & Research
There are so many options out there outside of the standard savings account. With companies like Plum, an AI assistant that automatically sets money aside for you, and other fintech companies, such as Kuflink, that whilst they don’t offer a savings option, do provide ways for you to grow your money through alternative investments.
When looking at alternatives to a savings account, you should always do your research, especially around the risks involved.
If you’re looking at investments or ISAs, factor in the type of access to funds you’ll need, the length of time you want to put money away for and understand risk vs reward when it comes to interest rates and potential returns.
Whether you save through your bank’s everyday savings account, invest in an Innovative Finance ISA, bonds & shares or any other means, always check the terms before committing, and speak to a qualified financial advisor if you need further advice.
Be Determined
There are months where sticking to your budget will be hard, maybe even impossible, but that’s not an excuse to throw it all out the window.
Remember why you’re doing this, it’s better to reach your goals a month or two later than not at all.
Be Happy!
It’s okay if your goals or circumstances change throughout the year and your budget needs reviewing. Remember, a budget is exactly that; it isn’t a life plan, and it shouldn’t encroach on your happiness.
Start thinking outside the box, there are lots of pocket-friendly things to do with friends and family that will keep a smile on your face while allowing you to save.
Kuflink provides blogs for your general information only. Blogs do not constitute advice and should not be relied upon by you for making investment decisions. Products and services referred to will not be suitable for all investors and appropriate independent financial advice should always be sought where necessary.
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Investor Update
We aim to thrive and truly demonstrate the strength and value of innovative Peer to Peer fintech, even with the recent uncertainty and economic turbulence which has caused concern amongst investors.
Our loans are property-backed, managed by a team with previous experience working through turbulent times and we have an excellent track-record to go with it!
We’re built to quickly adapt during challenging times and will continue to be open for business to our investors.
Operations Update
Following the Government’s advice to avoid non-essential travel and work from home if possible during the daily briefing on Monday 16th March 2020, many Kuflink employees are now working remotely.
We’re monitoring the situation closely and will continue to take appropriate steps to ensure it is business as usual for our investors while ensuring the wellbeing of our employees is maintained.
Our lines remain open, 9am – 5.30pm every weekday, ready for your call. Whether you’d like to discuss our latest opportunities, the IF-ISA promotion or steps we’ve taken to mitigate the impact from the coronavirus, call us on 01474 334488 or drop us a line via live chat on Kuflink.com.
IFISA awareness drive hoped to boost inflows
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DERBY COUNTY’S FA CUP SHIRTS TO FEATURE KUFLINK
Derby County is delighted to confirm that property investment platform Kuflink will be the club’s Official Shirt Sleeve Sponsor for the Emirates FA Cup, including this week’s mouth-watering 5th Round home tie against Premier League giants Manchester United.
Kuflink hits £75m investment milestone
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What are the different types of ISA?
Individual Savings Accounts (ISAs), allow you to save up to £20,000 per year (as at 2019/20) tax-free.
There is a range of different ISAs you can choose from – so be sure you understand their unique features before you decide which one best suits your requirements.
You can split the £20,000 allowance between ISAs to spread your funds over a range of investment opportunities. It is worth assessing them all as if you don’t use your £20,000 allowance it will not roll over to the following year.
Read on for an overview of the main types of ISA.
Cash ISA
Cash ISAs are available to UK residents, aged 16 or over, and allow contributions of up to £20,000 per tax year (2019/20).
You can choose either an easy access or fixed-term account, which typically impacts the rate of return based on the length of commitment. Cash ISAs are FSCS protected, meaning you’re covered up to £85,000 of savings per individual, per financial institution.
Stocks and Shares ISA
A stocks & shares ISA is a tax-efficient investment account that lets you put money into a range of different investments, while offering the possibility of higher returns than cash ISAs, but only if you’re happy to take capital risk.
The range of investments can include individual shares, investment funds, trusts and government bonds or corporate bonds.
Innovative Finance ISA
Innovative Finance ISAs (IF-ISAs) are investments that allow consumers to lend and earn tax-free interest through a Peer to Peer lending platform. Innovative Finance ISAs pair up willing lenders (or investors) with individual and business borrowers through an easy-to-use online platform.
With an IF-ISA, you are loaning your money directly to borrowers across a range of project types in different industries. Each IF-ISA providers’ offering will differ so ensure you read their product terms before investing.
Kuflink is an example of a Peer to Peer platform where investors have the security of UK property-backed investments*. Our innovative finance ISA offers 1, 3 or 5-year terms, with interest of up to 7% per annum*. Kuflink pays IF-ISA interest annually and does not charge platform or investment fees.
*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed.
Lifetime ISA
You can use a Lifetime ISA to buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA. You can put in up to £4,000 each year until you’re 50.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. You can hold cash or stocks and shares in your Lifetime ISA or have a combination of both.
Top Tip: If you choose to pay in the maximum amount of £4,000, this will still leave £16,000 that can be paid into different types of ISA.
Junior ISA
This account allows parents or any other friends or relatives to put up to £4,368 (for the tax year 2019/20) into an ISA for a child aged under 18. There is a choice of either cash or stocks and shares. The latter are riskier but generally outperform cash over the long-term. The allowance can be split between both types of investment.
Once the child reaches 18, a junior ISA automatically turns into a standard ISA and control of the account passes to them.
Any questions? Take a look at our ISA FAQs.
Transferring or moving your ISA
You can transfer Cash, Stocks and Shares ISAs and even IF-ISAs you currently hold with another provider. Previous year’s subscriptions don’t count towards your annual ISA allowance but current year subscriptions must be transferred in whole and will count towards your ISA allowance.
However, you cannot simply take the money out of one ISA to put into another, as your funds will lose their ISA status. You need to arrange a transfer with your ISA provider to ensure that the investments remain within the ISA wrapper.
To find out more about transferring, see here.
Choosing the Right ISA for your Investments
You can split your annual allowance of £20,000 between different types of ISA, allowing you to spread your investments, but how do you choose the right one?
You should first consider what it is you want to achieve, how long you are able to invest your money for and the level of risk you are willing to take.
Do your research, look at the reputation of the providers you are exploring and look at what they offer. Pick the provider that does what you need and want it to do.
Each type of ISA has risks, and you should have a clear understanding of how these investments work, and whether they provide the right opportunity for you. If in doubt, speak to a qualified financial advisor for further information.
If you’d like to talk to one of our Investor Relations team about the Kuflink Innovative Finance ISA, contact us here, and we’ll be happy to help.
Kuflink provides blogs for your general information only. Blogs do not constitute advice and should not be relied upon by you for making investment decisions. Products and services referred to will not be suitable for all investors and appropriate independent financial advice should always be sought where necessary.
IF-ISAs: Frequently Asked Questions
The main types of Individual Savings Account (ISA) are Cash, Stocks and Shares, Lifetime, Help to Buy and Innovative Finance ISA.
What is an Innovative Finance ISA?
Innovative Finance ISAs (IF-ISAs) are investments that allow consumers to lend and earn tax-free interest through a Peer to Peer lending platform. Innovative Finance ISAs pair up willing lenders (or investors) with individual and business borrowers through an easy-to-use online platform.
With an IF-ISA, you are loaning your money directly to borrowers across a range of project types in different industries. Each IF-ISA providers’ offering will differ so ensure you read their product terms before investing.
Kuflink’s IF-ISA is available to new investors or those wishing to transfer in funds, with the option to invest up to £20,000 per annum tax-free. Choose from 1, 3 or 5-year terms, with interest of up to 7% per annum*. Kuflink’s IF-ISA pays interest annually and does not charge platform or investment fees.
* Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes.
How many IF-ISAs can I have?
You can have multiple ISAs, but you are only allowed to open one new IF-ISA with a single provider per tax year. As of the 2019-20 tax year, you are allowed to invest up to £20,000 into an ISA, collectively accounting for Cash, Stocks & Shares, Lifetime, Help to Buy** and Innovative Finance ISAs.
**The Help to Buy ISA closed to new accounts at midnight on 30 November 2019
Can I carry my ISA allowance forward?
No. The annual allowance of £20,000 runs from 6 April one year to midnight on 5 April the following year, meaning that if you don’t use your annual allowance within that period, it will be lost.
What if I exceed my ISA allowance?
If you have accidentally exceeded your ISA allowance or opened an account you are not entitled to; you should not attempt to put your mistake right yourself but report it to HMRC by calling 0300 200 3300. They will assess your situation and tell you exactly what to do next.
Should you be unaware of your error, HMRC will also check your contributions and accounts at the end of each tax year. If they find that you have made a mistake, they will contact you and explain the process of how to “repair” your ISA step by step. Please note that any investments that were made in excess of your allowance will not be eligible for tax exemption.
Can I transfer my IF-ISA?
Yes, you can transfer IF-ISAs. Previous years subscriptions don’t count towards your annual ISA allowance but current year subscriptions must be transferred in whole and will count towards your ISA allowance.
Can I switch my IF-ISA mid-year?
Yes. You can switch during the year but be aware that current years subscriptions must be transferred in whole and will count towards your ISA allowance. Previous years subscriptions will not count towards your annual ISA allowance.
Can I withdraw ISA money?
The point at which you can withdraw funds from an ISA depends on the type of ISA you have, so you will need to check the terms and conditions. Some accounts offer instant access. However, with the Kuflink IF-ISA, you will not be able to withdraw funds early, you will need to wait until the end of your chosen term.
What happens to my IF-ISA if I die?
If you are married, you can leave your ISAs to your spouse or civil partner and they may receive an Additional Permitted Subscription allowance equal to the amount held in your ISA accounts. For example, if you leave £10,000 in ISAs to your spouse, their allowance will increase from the normal £20,000 to £30,000 to encompass the inherited funds.
What happens to my IF-ISA if I move abroad?
If you are a non-UK resident, you will only be able to open an IF-ISA if you or your spouse perform duties of a Crown employee, such as being a member of the UK armed forces, a civil servant or a diplomat. These exceptions only apply if the duties are treated as being performed in the UK.
While it is possible to retain access to existing ISAs when you live in another country, you will be unable to open new accounts or make contributions to existing ISAs.
If you’d like to talk to our Investor Relations team, contact us here, and we’ll be happy to help.
Kuflink provides blogs for your general information only. Blogs do not constitute advice and should not be relied upon by you for making investment decisions. Products and services referred to will not be suitable for all investors and appropriate independent financial advice should always be sought where necessary.
Kuflink IF-ISA TV Advert 2020
We’ve just launched a brand-new TV advert where we talk about our Innovative Finance ISA and how it could earn you up to 7% interest pa*.
| Open an IF-ISA | Book a Call | Transfer an ISA |
What is an Innovative Finance ISA?
Innovative Finance ISAs (IF-ISAs) are investments that give consumers the opportunity to lend and earn tax-free interest through a Peer to Peer lending platform. Innovative Finance ISAs pair up willing lenders (or investors) with individual and business borrowers through an easy to-use online platform.
How do IF-ISAs work?
With an IF-ISA, you are loaning your money directly to borrowers across a range of project types in different industries. Each IF-ISA providers’ offering will differ so ensure you read our product terms before investing.
The Kuflink IF-ISA
By opening a Kuflink IF-ISA you can earn up to 7% pa* interest tax-free, with a minimum investment of just £100. You’ll lend to a diverse range of business opportunities all secured against UK property* and, with our easy to use online platform, it only takes a moment to get started.
Can I open multiple IF-ISAs?
You are only allowed to open one new IF-ISA with a single provider per tax year. As of the 2019-20 tax year, you are allowed to invest up to £20,000 into an ISA, collectively accounting for Cash, Stocks & Shares, Lifetime, Help to Buy** and Innovative Finance ISAs.
Talk to us about the Kuflink IF-ISA!
To open your IF-ISA, transfer your existing IF-ISA to Kuflink or if you simply want to discuss the product further, book your call with one of the team here. Alternatively, login to your Kuflink account and visit the IF-ISA page for more details.
*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes. Please read our risk statement for full details.
**The Help to Buy ISA closed to new accounts at midnight on 30 November 2019
