ISA Millionaires

ValiantSon

capital0ne wrote: »

4. Avoid funds
“There are no guarantees that someone you pay to buy shares on your behalf will get it right. To avoid disappointment make your own investment decisions and learn from your mistakes.”

What a lot of twaddle!

dmelife

5. Avoid taking advice from someone not regulated to do so, particularly if they are named after a credit card aimed at the sub prime market.

Alexland

teddysmum wrote: »

I imagine that most millionaires take advice on better places, than ISAs, to put their funds.

It's quite easy to be a millionaire these days with property and pension wealth so ISAs are still a useful instrument in the toolbag.

Alex

Ifts

teddysmum wrote: »

I imagine that most millionaires take advice on better places, than ISAs, to put their funds.

Investing through the tax free ISA route is probably one of the best places to hold your investments:

No capital gains tax
No tax on dividends
No record keeping
Can benefit from APS

Ifts

Does anybody here know:

(a) How much would the total be if you had made use of the full annual contribution limits when ISA's first started - what would the total contribution be?

(b) The same as above but including full annual contributions limits to Tessa's & Pep's (I think that's what they were called, before my time!) - I'm not 100% sure but I remember being told those who had invested through these benefited transferring any money built up in these tax-free into ISA's when they were launched.

Thanks

nb73

capital0ne wrote: »

There are more than 250 ISA millionaires now and it's easy to do this yourself.

I like the post, but don't think it is easy.

1. Prospective ISA millionaires need to have the money to fund their ISA each year.

2. Because of the annual limits to ISA subscription, it will take:
2a) decades- or
2b) unusually successful investments-
to hit 7 figures.

3. Along the way, life needs to throw no curveballs which will prompt the investor to cash in their chips.

Meeting conditions 1+2+3 is far from easy, which is probably why there are only a few hundred ISA millionaires in a country of over 60 million people.

ValiantSon

Ifts wrote: »

Does anybody here know:

(a) How much would the total be if you had made use of the full annual contribution limits when ISA's first started - what would the total contribution be?

Assuming you mean combined cash and S&S ISA limits (there was a time when the cash ISA limit was different) then the total possible contribution was £186,560.

Ifts wrote: »

(b) The same as above but including full annual contributions limits to Tessa's & Pep's (I think that's what they were called, before my time!) - I'm not 100% sure but I remember being told those who had invested through these benefited transferring any money built up in these tax-free into ISA's when they were launched.

With PEPs = £264,560
With TESSAs = £195,560
With PEPs and TESSAs = £273,560

Ifts

ValiantSon wrote: »

Assuming you mean combined cash and S&S ISA limits (there was a time when the cash ISA limit was different) then the total possible contribution was £186,560.



With PEPs = £264,560
With TESSAs = £195,560
With PEPs and TESSAs = £273,560

You assumed correctly!

Thank you very much for your quick reply with the figures, much appreciated.

ffacoffipawb

ValiantSon wrote: »

Assuming you mean combined cash and S&S ISA limits (there was a time when the cash ISA limit was different) then the total possible contribution was £186,560.



With PEPs = £264,560
With TESSAs = £240,560
With PEPs and TESSAs = £318,560

Are you sure you could pay £54,000 into a TESSA?

The maximum pay in for these was £9,000 over a 5 year period with a maximum of £3,000 in year one and £1,800 per year in years two to five. It would take 6 x 5 = 30 years to pay in £54,000 and they were around for only 10 years I think.

ValiantSon

ffacoffipawb wrote: »

Are you sure you could pay £54,000 into a TESSA?

The maximum pay in for these was £9,000 over a 5 year period with a maximum of £3,000 in year one and £1,800 per year in years two to five. It would take 6 x 5 = 30 years to pay in £54,000 and they were around for only 10 years I think.

Ooops! Yes, I managed to multiply too many times.

I'll change the figures in the original post.