3 things I am doing before the new year 2025-26 Isa

The new year Isa 2025-26 is not far now, which means that investors such as me will obtain a new tax-free contribution limit of £ 20,000 to try to build long-term wealth.

Here are three things that I am doing as the new year is approaching.

Keep in mind that tax treatment depends on the individual circumstances of each client and may be subject to changes in the future. The content in this article is provided only for information purposes. It is not intended to be, it does not constitute any form of fiscal advice. Readers are responsible for carrying out their own due diligence and obtaining professional advice before making investment decisions.

Looking back

One is looking back to review my strategy. What worked? And perhaps the most important thing, what is not? I already know something that did not work for me in the last 12 months. That doubled in the companies where the underlying foundations were not really improving.

Take giant spirit Diageo (LSE: DGE), for example. This is a Ftse 100 I had the stock for a long time, even though I didn't act as I expected. It has decreased 47% in three years.

The company has been affected by a series of challenges, including high inflation, weak demand in Latin America and an increasingly sober gene generation.

Despite the warning of management on difficult commercial conditions, I decided that the company's legendary brands, including Guinage, Tankand Johnnie Walker – The general growth would release at some point.

Meanwhile, the action looked good and the dividend yield had increased to 3.5%. So I bought more shares on July 23. The price now? Approximately 12% lower than 20.22!

The thing is that Diageo still looks very much in paper. The price -gain price ratio is 15 and the forecast dividend yield is 4%. Maybe the lower part is inside and sales will be recovered.

However, after years of low performance, my patience finally ended and sold my actions. But I hope you have learned my lesson from this value trap: avoid duplicating a stock in difficulties when there are no recovery signs on the horizon.

In addition, the side of the small capitalization of the United Kingdom of my portfolio has not done very well during the past year. Ashtead technology and Wivo They have had a lower performance, like most of the other actions mentioned by the objective. Therefore, I will not throw good money after bad duplicating small captures.

Thinking about the future

So what plan to do differently during the next year? Well, it's the other face not to add my losers. That is, I plan to add companies in my portfolio that are working well and strengthening themselves.

Some actions I am thinking here include Intercontinental Hotel GroupChips manufacturer Taiwan semiconductor manufacturing (TSMC), and ToastThe Cloud Headquarters Management Software Company. I would like to add these in current assessments.

However, there is a warning here: assessment. There are other companies that I would like to possess more actions, but not at the current price.

The examples include Intuitive surgical, shop, Game workshop, Ferrariand cybersecurity firm Crowdstrike. All excellent companies with strong competitive advantages, but their current market values ​​already reflect this. So I will wait patiently to add them.

Diversification

Most previous names are growth actions. Then, to prevent my wallet from being unbalanced, I plan to opportunely add high performance dividends. While there is no safe payment, I like the appearance of Legal and general from Ftse 100 right now. It is producing a delicious 8.7%.

In similar lines, plan to deepen the investment administrator M & g A little more, while its yield is greater than 9%. That level of income could help increase my ISA return in the next 12 months.