The 2025/2026 ISA deadline arrives next Sunday (5 April). So it’s not far away now. Obviously, this means now’s the time to make last-minute contributions to your account and take advantage of the annual allowance.
However, that’s not the only smart move to make right now.
The right type of ISA
One sensible move to make at this time of year is to check that you’re still using the right type of ISA for your financial objectives. Personally, my favourite 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 broad range of growth assets, and access my capital at any time.
I also like the Lifetime ISA. This one may not be around for much longer but, for now, it offers bonuses of up to £1,000 for those who are eligible.
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 astute move is to ensure you’re saving/investing with a top ISA provider as not all products are created equal. Here, it can pay to consider things like the scope of investment options, fees, customer service, and platform reliability.
Maximising allowances
Of course, making use of the annual allowance is crucial. Once it’s gone, it’s gone. Don’t stress if you can’t max out the allowance for 2025/2026 (not many people can consistently put £20,000 a year into an ISA). Even small contributions can pay off in the long run.
Checking your portfolio
Looking beyond contributions, now’s also a good time to check your investment portfolio. Think of this as a MOT for your finances. Does your asset allocation still align with your financial goals? Is your portfolio optimised for growth/income/capital preservation? Is it diversified enough?
These are some good questions to ask at the start of an ISA year.
Looking for investment opportunities
Finally, now’s a great time to scan the market for opportunities. Are there any stocks, funds, ETFs, or themes that could potentially enhance your returns in the years ahead?
One theme I like for the next few years is defence. This may not appeal to everyone however, the way I see it, it’s now a portfolio necessity. Today, defence companies aren’t just selling equipment – they’re providing the tools required for nations to protect themselves in an increasingly unpredictable world. And this is reflected in their revenues and earnings.
For investment exposure here, I’ve gone with the HANetf Future of Defence ETF (LSE: NATP). This product provides exposure to both traditional defence companies such as BAE Systems and Lockheed Martin and digital/cybersecurity players including Palantir and CrowdStrike.
Overall, there are about 60 stocks in the portfolio. Fees are 0.49% a year.
In terms of performance, it’s done really well of late, returning about 25% over the last year. Past performance isn’t an indicator of future returns, of course (the niche focus adds risk) however, with NATO countries in the process of raising their defence spending to 5% of GDP, I’m optimistic that performance in the long run will continue to be strong.
In my view, this ETF’s worth considering as part of a diversified portfolio.
