A Guaranteed Return with No Risk …

This is #3 of our series tackling the 3 silent killers of your wealth, the FITs:  Fees. Inflation. Taxes.

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In this note I cover Tax.  I’ll show you how to turn tax on its head for a guaranteed return on your money, with zero risk.

I personally just obtained a guaranteed £15,000 return from £45,000.  Below, I show exactly how.  And our investor community is doing the same.

Simple and legal …

This isn’t some crazy, complex scheme.  It’s simple, mainstream and, of course, totally legal. In fact it’s encouraged by the government.

Turning a fear (tax) into a guaranteed gain is just one of the (sometimes unexpected) ways we help people create wealth inside our Investment Accelerator.

Guaranteed return without risk – most investors neglect this …

The UK tax system offers us something hugely powerful:  Free money … for investing in your own future.

When you contribute into your pension, the government adds an additional top-up via the tax system.

Here’s how it looks in practice:

If you are a 20% taxpayer

• You invest £6,000  (or £500 per month)
• Govt adds £1,500  (20% of total)
• Total into your pot: £7,500 
• That’s an instant and guaranteed return of 25% on your £6k
• Zero risk.  You don’t even need to invest that money (although you should for long-term growth)

If you are a 40% taxpayer

• You invest £6,000  (or £500 per month)
• Govt adds £4,000  (40% of total)
• Total into your pot: £10,000
• That’s a guaranteed return of 67% on your £6k
• Zero risk. 

And to be crystal clear: These are guaranteed risk-free returns, before the money gets invested …

Business owner?  Just as good …

This is my personal favourite route, being a business owner.  It’s exactly how I created that £15k uplift on my £45k outlay.

If you own a business you can pay yourself more efficiently this way – AND get that free money which invests in your own financial future.

So instead of taking income personally (and losing a chunk to income tax + National Insurance), you can:

• Make an employer pension contribution
• Reduce your corporation tax bill
• Invest the full amount into your pension

Worked Example:

• Your company pays £8,000 into your personal pension pot
• Corporation tax saving (at 25%) = £2,000  (it’s a company expense)
• Net cost to your company = £6,000 (or £500 pm)
• That’s a guaranteed return of 33% on the £6k
• Zero risk

Again, these are guaranteed risk-free returns, before your money is (optionally) invested in the market. 

Grow (and protect) your Wealth – Turbo-charged …

To further strengthen your financial future, that money should be invested effectively. 

Our wealth should outpace inflation, not be destroyed by it.

The combination of the free cash and long-term market growth turbo charges our wealth.

Imagine the above examples as not just a one-off – but done consistently, every year.

Below is how £500 per month gets turbo-charged (combining the free money and normal market growth) …

“But what if markets fall?”

Even if markets fall 20% tomorrow (extremely rare), you still would not lose money (25% was the free top-up anyway).

Because:   Tax efficiency isn’t just about saving money … it’s about improving your investment odds from day one.

Important

These tax breaks are highly generous.  But your annual allowance (£60k pa) expires on 5th April.

If you don’t use it, you lose it for that tax-year.

Many people miss this …

Your pension doesn’t have to be 100% in stocks.

You can (and should) have a balanced portfolio including:

• Money market funds
• Short-dated bonds
• Diversified stocks

So even cautious investors can very much capture this.

Your Next Steps.  We’ll help you with this …

Inside our Investment Accelerator, we help clients to do exactly this.  Properly and effectively.

Our next IA cohort starts in late April / May.  But with the 5th April deadline, we’re doing something different …

Enrol now and before the next cohort starts, we’ll immediately work 1-1 with you to help you:

• Capture this free money in real time
• Structure contributions efficiently
• Start to build a long-term, tax-efficient portfolio

If you’re serious about building wealth and securing your financial future, this will be a true game-changing move for you.

 For a brief chat on this or how we can help you, book a call with me here.

Always Remember: Time in the Markets always beats timing the markets Stay Diversified  Minimise those leakages:  Fees, Inflation, and Taxes Financial Markets are a great source of recurring income   ETFs, Balanced Funds and Options achieve all the above Being educated helps you outperform 99% of the population … to ensure your investments work for YOUR financial freedom (not someone else’s)      And …  For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.    Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth.  And Options to create recurring income. Click here to learn about our Investment Academy Finally … – Don’t take the above as advice as it may not apply to you personally – Your Capital is at Risk – You may not be covered by the FSCS – Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now