The secrets of ISA millionaires

colstencolsten Forumite
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An interesting insight into the investments made by the 1,365 or so ISA millionaires.  You'll have to register a free account to read the article, and you might want to use a spare email account to register.
https://citywire.co.uk/funds-insider/news/the-secrets-of-the-isa-millionaires/a1470332

What the article doesn't cover explicitly is how much of their own money these ISA millionaires invested. I believe the maximum anyone could have invested in ISAs to date is £224,320.

Note: please don't get carried away and think if you throw money at the few investments mentioned you will be a millionaire sooner or later. Your selection of investments should be more sophisticated, and tailored to your own risk profile and needs.
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  • AlexlandAlexland Forumite
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    colsten said:
    What the article doesn't cover explicitly is how much of their own money these ISA millionaires invested. I believe the maximum anyone could have invested in ISAs to date is £224,320.
    If it's in their ISA it is all their money now although some may have benefited from Additional Permitted Subscriptions.
  • dunstonhdunstonh Forumite
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    I believe the maximum anyone could have invested in ISAs to date is £224,320.

    I think it would be £246,560 in ISAs.  £64,200 in General PEPs and £24,000 in single company PEPs.   TESSAs would have added another £10k or so.

    APS will have an impact with some people already but increasingly more over the long term.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • colstencolsten Forumite
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    dunstonh said:
    I believe the maximum anyone could have invested in ISAs to date is £224,320.

    I think it would be £246,560 in ISAs.  £64,200 in General PEPs and £24,000 in single company PEPs.   TESSAs would have added another £10k or so.

    APS will have an impact with some people already but increasingly more over the long term.

    I might have left off the odd ISA year but you are right, their tax-free investment journey will probably have started with TESSAs and PEPs. Regardless - the essence remains the same - prudent investments can grow substantially.

    Alexland said:
    colsten said:
    What the article doesn't cover explicitly is how much of their own money these ISA millionaires invested. I believe the maximum anyone could have invested in ISAs to date is £224,320.
    If it's in their ISA it is all their money now although some may have benefited from Additional Permitted Subscriptions.
    Thanks Alec.
  • dunstonhdunstonh Forumite
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    I might have left off the odd ISA year but you are right, their tax-free investment journey will probably have started with TESSAs and PEPs. Regardless - the essence remains the same - prudent investments can grow substantially.

    The ISA millionaires story seems to be repeated across several news outlets. Including 5 people at HL.   What surprises me is a) only 5 people at HL (when they have 90% of the DIY platform business) and b) why the focus on just ISAs.     I have a few dozen millionaire investors on my books and they have it in multiple tax wrappers/products (GIA, ISA, pension, SCARPs and offshore bonds with the odd VCT thrown in).     Multiply that across advice firms and DIY investors and you have a much "richer" source of information on how to achieve wealth.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 23 February at 11:09PM
    ThrugelmirThrugelmir Forumite
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    edited 23 February at 11:09PM
    dunstonh said:
    I might have left off the odd ISA year but you are right, their tax-free investment journey will probably have started with TESSAs and PEPs. Regardless - the essence remains the same - prudent investments can grow substantially.

    b) why the focus on just ISAs.

    Limited capital invested to generate the returns. First ISA to hit the million some years back. Held just a portfolio of 10 shares. Went big and bold. No contribution from any of the current major US shares either. 
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • IvanOpinionIvanOpinion Forumite
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    This story seems to surface at about this time every year (for several years now).  One might think that the industry was trying to sweet talk joe public into handing over their money.
    Ivan has left the building ... but reserves the right of reply!
    Use PM to keep in touch
  • AlbermarleAlbermarle Forumite
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     at HL (when they have 90% of the DIY platform business)

    Is it really that high ?

    I thought HL had 'over a Million ' customers . II with about half a million ( after various takeovers ) Fidelity and AJ bell in the 250,000 area, with the former set to double when the L&G transfers come over . Presumably Vanguard have built up a reasonable number of customers as well 

    I do not know reliable these figures are though and whether it covers non active customers , or maybe HL customers hold bigger funds. 

  • dunstonhdunstonh Forumite
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     at HL (when they have 90% of the DIY platform business)

    Is it really that high ?

    I thought HL had 'over a Million ' customers . II with about half a million ( after various takeovers ) Fidelity and AJ bell in the 250,000 area, with the former set to double when the L&G transfers come over . Presumably Vanguard have built up a reasonable number of customers as well 

    I do not know reliable these figures are though and whether it covers non active customers , or maybe HL customers hold bigger funds. 

    I have seen varying figures over the years.   Including that they have more of the DIY platform business than the rest of the DIY providers put together.  Although most of these are going back in time.  I dont know the validity on the current situation but they still have a significant market share of the DIY platform business.  I have never really questioned it but it was platform, not provider business.  I also suspect it was AUM rather than client numbers.   
     AJ Bell and Fidelity's AUM includes advised cases.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jimjamesjimjames Forumite
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    dunstonh said:
    I might have left off the odd ISA year but you are right, their tax-free investment journey will probably have started with TESSAs and PEPs. Regardless - the essence remains the same - prudent investments can grow substantially.

    The ISA millionaires story seems to be repeated across several news outlets. Including 5 people at HL.   What surprises me is a) only 5 people at HL (when they have 90% of the DIY platform business) and b) why the focus on just ISAs.     I have a few dozen millionaire investors on my books and they have it in multiple tax wrappers/products (GIA, ISA, pension, SCARPs and offshore bonds with the odd VCT thrown in).     Multiply that across advice firms and DIY investors and you have a much "richer" source of information on how to achieve wealth.

    According to the HL website it's 500 clients who have over £1m in ISAs which might be more along the lines you were expecting
    https://www.hl.co.uk/news/articles/how-3-clients-used-isas-to-become-millionaires
    Remember the saying: if it looks too good to be true it almost certainly is.
  • dunstonhdunstonh Forumite
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    jimjames said:
    dunstonh said:
    I might have left off the odd ISA year but you are right, their tax-free investment journey will probably have started with TESSAs and PEPs. Regardless - the essence remains the same - prudent investments can grow substantially.

    The ISA millionaires story seems to be repeated across several news outlets. Including 5 people at HL.   What surprises me is a) only 5 people at HL (when they have 90% of the DIY platform business) and b) why the focus on just ISAs.     I have a few dozen millionaire investors on my books and they have it in multiple tax wrappers/products (GIA, ISA, pension, SCARPs and offshore bonds with the odd VCT thrown in).     Multiply that across advice firms and DIY investors and you have a much "richer" source of information on how to achieve wealth.

    According to the HL website it's 500 clients who have over £1m in ISAs which might be more along the lines you were expecting
    https://www.hl.co.uk/news/articles/how-3-clients-used-isas-to-become-millionaires
    That is more in line with what you would expect given their scale.   Sometimes the media gets the complete wrong end of the stick with their articles (or it was a typo).  Thank you jimjames.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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