How to become an ISA millionaire

Anyone can become an ISA millionaire in 20 years, and some can do it much sooner.

If you can save £500 per month, over 20 years you will put away £120,500.

If you invest that money, and achieve average returns of 11% (between 1978 and 2021 the average annual investment return from the MSCI world index of equities is 11.17%) it will grow to just under £438,000.

If you can stretch to saving £800 per month, your 20 year investment pot will total just under £700,000 (from your investment of £192,800).

If you have a professionally designed portfolio, that is reviewed each year, and achieve returns of 14% on average, your investment will total: £1,053,877.02.

£861,077.02 is investment gains.

Is 14% possible? Over the last 5 years legendary investor Warren Buffet’s company Berkshire Hathaway has achieved just over 15% annual average returns. So yes, professionally designed investment strategies can achieve these returns.

The quickest you can become an ISA millionaire is probably 15 years - this assumes you save the maximum allowed into an ISA each year and achieve an average return of 14%, which would usually require you to have a professionally managed portfolio.

An Indepenent Financial Advisor has the tools and knowledge to help you navigate economic downturns, stock market volatility and changing markets over the course of the 15 to 20 years.

Once you achieve ISA millionaire status, you can withdraw a tax free income from this - for example withdrawing 7% a year would give you an income of just over £70,000 tax free and the capital would still be protected against inflation.