ISA Millionaires

A_Flock_Of_Sheep

Radiantsoul wrote: »

Sadly not.
As other have said I bet most have transferred money in from other types of tax free accounts that existed pre-ISA.
I suspect there are more pension millionaires!

I managed to re find the article and PEPs were mentioned. I had heard of them years ago but never bothered to get informed. Hindsight being a wonderful thing.

In another online article I have just seen PEPs were not used.

Drp8713

I read the same article somewhere a while back.

They maxed out their allowance and all bought shares rather than funds.

I assume some there is a mirror image of people who did the same and lost most of it. Thats the gamble, funds are safe but also dilute any gains if some of the conpanies in the fund do especially well

evenasus

planteria wrote: »

"However, I only have cash ISAs - so no, I'm not a millionaire."

long-term, that is a mistake, i feel. i only use my ISA allowance for shares/equity funds nowadays.

I did venture into the PEP world in 1997. A Marks & Spencer 3year one - it lost value. But on the bright side, I went for a capital protected one.
I'm extremely risk averse, so this experience put me off S&S ISAs.

My husbands M&S PEP, which matured the year before mine - had a good return. Although, he's stuck to cash ISAs ever since.

gadgetmind

We did PEPs pretty much as soon as they came out, ditto TESSAs, and (finally) ISAs. We've always gone with S&S whenever possible and tend to hold cash unwrapped and/or in NS&I linkers.

We've never taken a penny back out, so we have a very nice six figure sum in ISAs, but no-where close to a million.

We might get to a million by state pension age, but it might only buy a pint of milk by then!

atush

evenasus wrote: »

I've opened an ISA every year, since the days of TESSAs back in 1991.

However, I only have cash ISAs - so no, I'm not a millionaire.

Just think, had you invest just half you would be.

atush

lisyloo wrote: »

Probably but not everyone knows what to do S&S wise and unfortunately there are traps for the unwarey.
I knwo there are good advisors about but in general I don't think the industry does itself any favours.

you don't need an advisor for buying lifestyling funds, or a spread of low cost trackers.

jimjames

noh wrote: »

ISAs have been available for 14 years since 1999.
PEPs were available between 1987 and 1999 and existing plans became ISAs in 1999.
Therefore some may have 26 years of contributions in their S+S ISA their contributions if maxed each year would be somewhere around £210000

Even with funds it is entirely possible to have done that. Over the last 10 years if you had put the full amount into First State Asia Pacific Leaders you would have quadrupled your money.

Obviously you wouldn't have 100% of your money in a single region fund for a balanced portfolio but it would be possible to have got to over £1m with some good choices and maxed out contributions.

gadgetmind

jimjames wrote: »

it would be possible to have got to over £1m with some good choices and maxed out contributions.

I did one of those.

Lakeuk

Looking at an example if you and your partner put in maximum per year since 1987 earning 7% per year return, then as a couple you'd be a millionaire. If you're doing it alone then it's going to be hard to reach that goal without taking big risks and being very lucky.

With hindsight I would of been well on the way if I'd followed my instinct and gone for the likes of pace, arm, apple but then I don't like taking risks - turns out playing safe can also be risky - re banks

gadgetmind

Lakeuk wrote: »

With hindsight I would of been well on the way if I'd followed my instinct and gone for the likes of pace, arm, apple

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