total investment

highet

hi, wondered if anyone would know this - if you had invested the maximum amount into the cash component on tessa and then isa since they started in early 90's how much, roughly, would you have accumulated in tax free cash by this year? thanks

alastair_h

From reading something on the forum, I think it's in the order of around £45k. I can't find that particular article at present, but will keep looking.

Obviously the exact figure would depend on how well you had moved your money around to take advantage of the best interest rates available (compound interest earned).

Can anyone else help with a more accurate figure?

jimjames

I can't see anything about Tessa but for ISAs since 1999 it said that someone who has invested their full cash allowance each year since 1999 has a £43,200 pot. The figure was from Mar 2010 so you can add £5100 to that giving a total of £48300.

The article also gave PEP/ISA numbers

If a 50-year-old couple had put the maximum amount each year in personal equity plans (Peps) and Isas since 1987, they would have invested a total of £343,200, according to Killik, the broker. Assuming a 5% return, this would now be worth £604,000 — free from capital gains tax (CGT). And if a married couple were to invest their joint Isa allowance of £20,400 a year (£10,200 each) for the next 25 years, assuming a real rate of return of 5%, this could grow to £1.022m — or £1.186m with a 6% return.