The secrets of ISA millionaires

Alexland

dunstonh said:

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 don't really know where you got the number 5 from as the article linked above has HL having 579 isa millionaire customers?

colsten

dunstonh said:

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.

The article talks of 579 ISA millionaires at HL - which tallies with the "over 500" HL mention on their website. Citywire are normally pretty good with sticking to facts they can substantiate.

dunstonh

It wasn't the Citywire article that I read.  It was one of the number of the "ISA millionaire" articles doing the rounds at the moment.    That was why I was so surprised when it read 5.

Sorcerer2018

I think you will also find a lot of these people are pretty rich outside of the ISA, since their are not a lot of people who are able to  invest even the older amounts. I would also add a word of caution because what people are investing in now, doesn't not reflect what they did to make the actual million in the first place. I doubt many kept the same holding all the way through. I worked out I could be an ISA Millionaire at 65,  if I continue at a performance rate of 6% a year for the next 19 years.

someone

Related I've always found the ISA stats published by ONS interesting. Those accessing S&S ISAs are most likely to be using the full £20k allowance. It would be interesting if they published how many consecutive years the full subscription an individual has contributed. The full document can be found here https://www.gov.uk/government/statistics/individual-savings-account-statistics but I've added to charts below.