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My Shares and Dividends ISA is a great alternative to investing. Incredibly, we’re halfway through November, which means I’m starting to shift some of my focus to the coming year. Based on the possible events and uncertainties of the coming year, here are some ways I am trying to protect my portfolio before the end of the year.
Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice. Students are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
Looking for potential winners
I am the owner Bitcoin and other crypto coins. These have done well this year, especially in the short term as the results of the US election have boosted them significantly. Given the progress made in the launch of Bitcoin ETFs this year, it is now easier for me to consider holding these funds in my ISA. Of course, there are also stock options like that Coinbasewhich is a crypto market exchange.
Since ETFs have become more popular and easier to access, I’m looking to get more crypto exposure (which I can hold for a long time) to help my ISA potentially future proof (although I have to accept that future proofing is not guaranteed).
It is important to note that crypto is a very risky asset class and I need to be comfortable with the risk before investing.
The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the complete loss of any funds invested. Students are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
Creating income ideas
Another way I try to help my ISA is to buy dividend shares. The Bank of England committee cut interest rates again last week. I think more rate cuts are coming in 2025. In fact, I think that by this time next year, the base rate will be at 4% or a little lower. Average FTSE 100 paid a dividend of 3.67 %. However there are many good options in the 6%-8% bucket.
A great example of a stock I like right now Land Securities Group (LSE: WORLD). It is the UK’s largest commercial development and property investment firm. paid a dividend of 6.71 %.
Not only can I look to try and lock in this yield now (assuming future yields stay the same), but I should be able to profit as interest rates fall. This is because lower prices make it cheaper for businesses to finance the purchase of new properties. This should help reduce expected costs for next year.
Of course, cheap financing can be seen as a risk as other property companies can offer strong competition for the sites Landsec managers want to buy. However with a portfolio worth £8.7bn and a 40-year track record in the FTSE 100, I think the company can hold its own.
Financial planning
Finally, I look at my personal income. The ISA year runs from April to April. I have a £20k cap on how much I can invest during this period. Although I am nowhere near this limit right now, I want to try and plan to see what I expect to invest in the next six months.
After all, I don’t want to be in a situation where I see a great opportunity and have no spare cash or break the £20k limit somehow!
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