The 2025 actions and actions are in the ISA countdown! It's time to plan

We have less than a month left to make the most of our actions and actions of 2024-25 ISA! On April 5 it marks the last day to use our contribution limit of £ 20,000. And even for most who does not have so much to invest, every £ 1 that we did not put is a lost tax opportunity of £ 1.

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.

Here are some possible approaches:

Option 1: Cash Isa

It can be tempting to look for an ISA in cash, with some rates close to 5%. It is a choice made by many who do not want, or simply do not need, to assume any risk market risk. And I think it could make sense as a short term possession, while the rates are high, with a transfer of cash to ISA actions and actions when the reward risk balance changes.

But as a long -term investment, I think it is not ideal. I would be surprised if Isa's cash rates can be kept above 2% for a long time when the interest rates of the Bank of England fall.

What could be achieved £ 20,000 per year, monthly, 2% per year in 10 years? My calculations put the result at £ 221,350.

That is a modest return of savings, but …

Option 2: greater dividend

What about Isa's actions and actions and put all the money every year in the Ftse 100 stock with the highest dividend yield? Actually, I see myself like crazy to put all the eggs in a basket like that, and I will not consider it for a moment myself.

But I just want to see what I could do as high in the foot in the foot. And right now, that's Phoenix Group Holdings (LSE: PHNX) with a dividend yield forecast of 10.3%.

We can immediately see that picture that the price of Phoenix shares has had five poor years. And that will take part of any investment yield. In addition to having a single action that is horribly risky, the insurance and investment business is possibly one of the most volatile in the stock market.

And the price of Phoenix could have had a bad performance because investors do not expect the dividend to remain. That said, I think it is worth considering the Phoenix group as part of a diversified ISA. Even if the dividend cannot keep up with this performance, I am convinced that it could still provide decent long -term income.

But if you can reach 10.3% consistent, the same £ 20,000 annually inverted every year for 10 years could grow to £ 341,140.

But considering how risky it could be …

Option 3: Ftse 100 average

In the last 20 years, the total yields of FTSE 100 have averaged 6.9% per year.

If that continues, it could be enough to convert an investment of £ 20,000 per year in £ 285,200 in 10 years. More than 20 years? £ 841,000.

That is below the upper dividend yield performance, but overcomes an ISA pants in cash. And the propagation of Isa Investments actions and actions in a wide range of FTSE 100 shares should be much safer.

With a careful selection of shares, I think that starting with the FTSE 100 average and then be to overcome it with some carefully selected dividend stocks is a strategy that is worth considering.