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Where is EZ ISA?
We’re based in Ramsbottom, UK

Mark Sekree Posted:
2 years, 42 days ago (August 16th 2015)

Relocation to Ramsbottom

Ramsbottom sign

I’m very happy to say that I, and consequently EZ ISA, is relocating to the great North West- more specifically Ramsbottom. I’ve fallen for a local girl and we’re starting a family so my personal ISA has come in very handy indeed!

The idea is of course that I can serve EZ ISA users just as well from anywhere in the country, by phone or email if not in person (although I will still be dashing around the country as usual).

As current users will know our investment company, SEI, has turned in some impressive performance again last year and is really coming up with the goods. I’m quite gratified to see that they are comprehensively thrashing Nutmeg’s recent performance. While I love Nutmeg’s style (despite them being my closest competition) I have always been slightly doubtful about their underlying investment proposition, which is what it’s all about at the end of the day.

 

 

 

 

Mark Sekree Posted:
2 years, 44 days ago (August 14th 2015)

Financial Advice

The difference between the haves and the have-nots

This video puts very nicely quite how badly distributed wealth is in the US.

It is tragic, and very bad for a society and an economy. It’s partly the result of the US’s much lower/less fair (in my book) Capital Gains and Inheritance Tax rates which allows wealth to be accumulated and passed on largely free of tax.

But the major point comes at 5:14 in- that the wealthiest 1% own half of all US shares, bonds and investment funds- and I’d suggest that that’s exactly why they have quite so much.

Let’s say for very round figures that you get 7% growth on your investments, year in, year out. This is a neat figure because mathematically it means that your money doubles every 10 years (remember the compound growth formula? 1.07^10= about 2).

This ‘exponential growth’ has some crazy implications (Einstein himself called it the 8th wonder of the world)- if your great-great granddad put £1,000 aside for you 100 years ago and it was invested really well and grew at 7%pa (over inflation and charges, with no tax on it for simplicity) how much would it be worth?

£50,000?

£100,000?

£500,000?

Nope, over £860,000. And if you kept that for another 10 years, getting that 7%, because you didn’t spend it all, you’d have twice that- £1.7 million. 10 years later? £3.4 mil. Another 10 years? £6.8 mil, and so on and on.

I believe this is what’s going on in the US (just my hunch, not based on evidence)- many of these top 1%ers’ families probably had some wealth in the past, and given an interest in investment, a long enough time horizon and lenient taxes it has just accumulated and accumulated to the position we see today.

That’s the ‘secret’ to wealth- some money to start with that you don’t spend, some decent growth on it, a long enough time horizon and not paying too much tax. Simple as that.

A major difference between the haves and the have-nots, I believe, is access to excellent quality investments and the motivation to use them.

EZ ISA is here for exactly that reason, to help redress the balance.

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