That said, when volatility strikes, we tend to react more emotionally to the possibility of losses than we do to gains. So, it’s only natural to pause and ask, “Should I wait to invest?”
Especially when the action you take at times like this – or don’t take – can shape outcomes both now and further down the line.
Making quick decisions based on short-term movements can be costly. And this is perhaps magnified as we approach the end of the tax year. Because while markets rise and fall, your ISA allowance works to a fixed timetable. Once the tax year ends, any unused ISA allowance cannot be carried forward.
Secure your ISA allowance first. Invest it later
If uncertainty is making you hesitant, there’s a practical middle ground.
You can contribute to your ISA now – securing this year’s allowance – and hold the money as cash within the ISA while you decide how and when to invest it.
This allows you to protect this year’s tax-efficient space without the pressure of making an immediate investment decision. It gives you time to think. And, if you prefer, you can phase money into the market gradually.
The important step is getting the money inside your Stocks and Shares ISA. Once it’s there, you remain in control of how and when it’s invested.
The benefits of regular investing
If sharper market movements are what’s holding you back, regular investing can help steady the journey.
By investing monthly, you spread payments across different market levels – buying more when prices are lower and fewer when prices are higher. Over time, this can help smooth the impact of short-term volatility.
It also turns investing into a habit rather than a reaction – which can help take some of the emotion out of investing.