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My stocks and Shares ISA is a great way to invest tax efficiently. Incredibly, it's mid-November, which means I'm starting to focus on next year. Based on potential events and uncertainty next year, here are some ways I'm trying to protect my portfolio before the end of the year.
Please note that tax treatment depends on each client's individual circumstances and may be subject to change in the future. The content of this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any type of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
Looking at the possible winners
I have some bitcoin and other cryptocurrencies. These have done well this year, especially in the short term, as the US election results have lifted them even higher. Given the progress made in launching bitcoin ETFs this year, I am now finding it easier to hold these funds in my ISA. Of course, there are also stock options like Coinbasewhich is a crypto market exchange.
With ETFs becoming more popular and easier to access, I'm looking to gain more exposure to cryptocurrencies (that I can hold long term) to help potentially future-proof my ISA (although I have to accept that preparing for the future is not). Not guaranteed).
It is important to note that cryptocurrencies are a very risky asset class and I must be comfortable with the risks before investing.
The content of this article is provided for informational purposes only. It is not intended to be and does not constitute any type of investment advice. bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry various risks, including complete loss of the money invested. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
Develop income ideas
Another way I try to help my ISA is by buying more dividend stocks. The Bank of England committee cut interest rates again last week. I think more rate cuts will come in 2025. In fact, I think by this time next year, the base rate could be at 4% or even slightly lower. the average FTSE 100 The dividend yield is currently 3.67%. However, there are many good options in the 6% to 8% segment.
A good example of a stock I like right now is Territorial Value Group (LSE: LAND). It is the UK's largest property investment and business development company. The share price is down a modest 1% in the last year, with a current dividend yield of 6.71%.
Not only can I try to lock in this return now (assuming future dividends remain the same), but I should be able to benefit as interest rates fall. This is because lower rates make it cheaper for the company to finance the purchase of new properties. This should help reduce projected costs for next year.
Of course, cheaper financing can be seen as a risk, since other real estate companies could offer tougher competition for the land that Landsec management wants to buy. However, with a portfolio valued at £8.7bn and a 40-year track record in the FTSE 100, I think the company can hold its own.
Plan finances
Finally, I'm looking at my personal cash flow. The ISA year runs from April to April. I have a £20,000 limit on how much I can invest within this period. Although I'm nowhere near this limit right now, I want to try to plan and see what I expect to invest in over the next six months.
After all, I don't want to be in a position where I see a great opportunity and I don't have extra money or have somehow gone over the £20,000 limit.
