How will making withdrawals affect my long-term financial goals?
Investing with us could help you grow your money and achieve your long-term financial goals. Our products are designed for you to be invested for at least 5 years.
It's important to remember that when you make a withdrawal, you reduce the amount of money that's invested. This will then reduce the compounding effect that investing has on the value of your money.
For example, if you have £10,000 in your account and invest for 5 years with a 3% return, that would make a gain of £1,600. However if you withdrew £5,000 first, then over the same amount of time you would only make a gain of £800.
There are also tax implications to making a withdrawal. For example, if you withdraw from an ISA, but replace the amount you withdrew, it still counts towards your annual ISA allowance. Also, if you make a withdrawal from your Investment Account, the withdrawal could be subject to capital gains tax.
Ultimately, it's up to you when you decide to make a withdrawal, but it's important to keep in mind that if you do withdraw early, you may not hit the long-term financial goal you were aiming for when you first invested.