ISA Millionaires

IanManc

lisyloo wrote: »

I get employees NI 12% and employers NI 13.8% on my SIPP contributions in addition to income tax relief.

I won’t get taxed on 25% and PA each year.

No brainier for me below LTA.

I do have ISA as well for access but lesser amount.
No reason you can’t do both so you have the tax relief AND access.

You won't be able to use the whole of your personal tax allowance each year to shelter your drawings from your SIPP because a substantial portion of that allowance will be used up by your state pension income, which is paid gross and is taxable.

redux

Should this thread be reported for breach of copyright?

Ok, it's just an excerpt, but it's unattributed, and thus a bit close to plagiarism by the OP here. It is quoted elsewhere, this Telegraph article and other sites identifying the source.

https://www.telegraph.co.uk/finance/personalfinance/investing/11465471/Britains-first-Isa-millionaire-Lord-Lee-reveals-his-portfolio-and-what-hes-been-buying.html

Lord Lee is reputed to be the country's first ISA millionaire, or at least he may be the first to have such a claim made publicly on his behalf.

This article has a bit more detail on how he did it.

https://www.ft.com/content/1616896a-9851-11e5-9228-87e603d47bdc

pafpcg

capital0ne wrote: »

... it has never been easier to become an ISA millionaire

Yes, it's never been easier - all you need is time!

Assuming an inflation rate of 2.5% pa (so that the Treasury increases the ISA allowance year-on-year) and a gross growth rate of 7.5% (including dividend investment), all you need do is invest the maximum allowed every year and you'll have an account balance of over a £1,000,000 in :

Nineteen years! (2037 if you start today!)

And if growth is only 5%: Twenty-two years (2040).

But by 2037, you'll have had to contribute over half-a-million (£510,000) of your own money.

"Easier" is a comparative term - I think "it has never been less hard to become an ISA millionaire" would be a more appropriate statement. The reason why there are so few ISA millionaires today is simply that twenty-odd years ago, the amount that could be invested was so much less than is allowed today. In twenty years time, there'll be millions of the blighters!

pafpcg

ffacoffipawb wrote: »

Lambeth BS (whatever happened to them?).

Merged with Portman BS and then absorbed into the Nationwide a few years later.

capital0ne

pafpcg wrote: »

Yes, it's never been easier - all you need is time!

Besides the dosh to fund your ISA about 6 hours a week should do it. This is how Balbir Bagria did it.
He and his wife Jasvir have been living off their joint Isa investments since 1999, when Mr Bagria retired at the age of 39. Mrs Bagria stopped working at roughly the same time.
Over the course of the Nineties Mr Bagria and his wife contributed a total of about £176,000, first to Peps and then to Isas.
They stopped adding new money to their respective accounts after 2000. Those initial investments, while substantial, have grown with astonishing success to become a multi-million pound portfolio today, capable of providing an annual six-figure income on which zero tax is payable.

Read the whole article here:

https://www.telegraph.co.uk/investing/isas/isa-millionaire-beat-warren-buffett-earn-six-figure-income-life/
:beer:

capital0ne

Judging by some of the rather simple arithmetic involved a few of you have no chance of becoming even a thousandaire!

A well back to school kids!

ValiantSon

capital0ne wrote: »

Judging by some of the rather simple arithmetic involved a few of you have no chance of becoming even a thousandaire!

A well back to school kids!

Perhaps you should join us all then, as your literacy is rather substandard. What you wanted to write was, "Ah well, back to school, kids!"

Do you find being rude and obnoxious wins you many friends?

John-K_3

teddysmum wrote: »

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

Most of the ones that I know use their full ISA allowance every year.

msallen

capital0ne wrote: »

A well back to school kids!

For English lessons?

talexuser

Back to subject, I don't have all my historic spreadsheets for details but I started in 94 or 95 with Peps and single company Peps. I think there was only one year when I didn't invest at all, most years the maximum allowed, and a few years where I had cash ISAs instead, which I switched to funds a couple of years later when had an alternative cash buffer.

Initially my target for funds was doubling in value every five years, all accumulation, and I had 20% in bond funds, which I dropped maybe a decade or more ago. When I put in my 20k in April it should be pretty much 1/2 million by next April, a large correction or crash notwithstanding. So its perfectly possible to do it DIY... so much easier now with the internet. When I started all I had was the Times and Telegraph money pages and the tip sheet/performance tables from the various intermediaries advertising at the time. If I'd gone for really high risk funds it might be a lot more now (or maybe not).