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The 2025/2026 ISA deadline is next Sunday (5 April). So it’s not far now. Obviously, this means now is the time to make last-minute contributions to your account and use the annual allowance.
However, that’s not the only smart move you can make right now.
The correct type of ISA
One sensible step to take at this time of year is to check that you are still using the right type of ISA for your financial goals. Personally, my favorite vehicle is the Stocks and Shares ISA. Because with this type of ISA, I can contribute up to £20,000 a year, invest in a variety of growth assets, and access my money whenever.
I also like the Lifetime ISA. This one may not be around for long but, for now, it offers bonuses of up to £1,000 to those who qualify.
Of course, a Cash ISA can be useful too. However, personally, I prefer to keep cash savings in liquid, low-risk investments within my Stocks and Shares ISA.
The best account
Another smart move is to make sure you save/invest with a top ISA provider as not all products are created equal. Here, it can pay to consider things like the range of investment options, payouts, customer service, and platform reliability.
To increase the allowances
Of course, spending an annuity is important. When it’s gone, it’s gone. Don’t stress if you can’t top up the allowance for 2025/2026 (most people can’t put £20,000 a year into an ISA). Even small donations can pay off in the long run.
Assessing your portfolio
If you’re looking beyond donations, now is a good time to look at your investment portfolio. Think of this as an MOT for your finances. Is your asset allocation still in line with your financial goals? Is your portfolio optimized for growth/income/savings? Is it separate enough?
These are some good questions to ask at the start of the ISA year.
Looking for investment opportunities
Finally, now is a good time to scan the market for opportunities. Are there stocks, funds, ETFs, or mutual funds that could improve your returns in the coming years?
Another theme I’m interested in over the next few years is defense. This may not appeal to everyone however, as far as I can see, it is now a portfolio requirement. Today, defense companies don’t just sell equipment – they provide the tools countries need to defend themselves in an increasingly uncertain world. And this is reflected in their income and salaries.
For investment exposure here, I went with HANetf Future of Defense ETF (LSE: NATP). This product provides exposure to both traditional defense companies such as BAE Systems again Lockheed Martin and digital/cybersecurity players incl Palantir again CrowdStrike.
In total, there are about 60 stocks in the portfolio. Fees are 0.49% per annum.
In terms of performance, it has done very well of late, returning around 25% last year. Past performance is not an indicator of future returns, of course (niche focus adds risk) however, with NATO countries in the process of increasing their defense spending to 5% of GDP, I hope that performance over time will continue to be strong.
In my opinion, this ETF should be considered as part of a diversified portfolio.
