How to become an ISA Millionaire

Tim Walker - Head of Brewin Dolphin Exeter 

The traditional routes to becoming a millionaire – marriage, inheritance, the lottery or a genius business idea – might seem a bit fanciful to many of us but, with ISA season upon us, reports suggest that there may be many ISA millionaires in the UK already. In fact several ISA investors at Brewin Dolphin, through judicial investment directly in equities, have amassed ISAs worth over £1 million. Brewin Dolphin has 15 clients with ISAs worth millions each and 40 with ISAs over £750k; though these clients pursued a direct equity strategy and were certainly prepared to take risks. The total value of all Brewin Dolphin ISA portfolios is over £4.7 billion.

Analysts at Brewin Dolphin have calculated that it could take less than 30 years for anyone using their ISA allowance before the end of the tax year and annually thereafter to achieve millionaire status. With conservative assumptions on growth and income (5% combined) and inflation (2.5%), 2042 would see a total fund of £1,030,953 representing a gain of £522,180 on a total investment of £508,773. The total tax saving over this period would be an impressive £292,215 and a £1 million tax free fund for life.

Tim Walker, head of Brewin Dolphin Exeter said, “ISAs and Peps have been such a valuable savings medium over the past 27 years and we advise clients never to miss a chance to use their allowance, either alone or as a tax-free zone within their portfolio. The total investable amount in ISAs and their predecessors PEPs over the last 27 years now stands at £200,560k”.[1]

Tim Walker said, “Saving in a tax efficient wrapper remains one of the most compelling ways of realising your long term financial ambitions. During its life, the WMA Balanced Total Return index has returned compound annual growth of 8.5% - despite the so-called lost decade for equities after 2000.  Even now, with the FTSE paying seven times as much income as bank deposits, we have assumed a more conservative 5% return and still an investor using their full ISA allowance each year could be a millionaire in 27 years with no tax to pay on their gains.  The importance of compounding, and the benefits of tax efficient saving, can deliver life-changing wealth to those who seize the opportunity.”

ISA millionaire chart

Year	Annual Allowance Inflation Adjusted	Assumed Performance Total Return 5%         (growth & income)	Rolling ISA Pot With Long Run Performance Assumption of 5%	CGT Annual Allowance Inflation Adjusted
06/04/2013	£11,520	5.00	£11,520	£10,600
06/04/2014	£11,880	5.00	£23,976	£10,900
06/04/2015	£12,177	5.00	£37,352	£11,000
06/04/2016	£12,481	5.00	£51,701	£11,100
06/04/2017	£12,793	5.00	£67,079	£11,378
06/04/2018	£13,113	5.00	£83,547	£11,662
06/04/2019	£13,441	5.00	£101,165	£11,953
06/04/2020	£13,777	5.00	£120,000	£12,252
06/04/2021	£14,122	5.00	£140,122	£12,559
06/04/2022	£14,475	5.00	£161,603	£12,873
06/04/2023	£14,836	5.00	£184,519	£13,194
06/04/2024	£15,207	5.00	£208,953	£13,524
06/04/2025	£15,588	5.00	£234,988	£13,862
06/04/2026	£15,977	5.00	£262,715	£14,209
06/04/2027	£16,377	5.00	£292,227	£14,564
06/04/2028	£16,786	5.00	£323,625	£14,928
06/04/2029	£17,206	5.00	£357,012	£15,301
06/04/2030	£17,636	5.00	£392,498	£15,684
06/04/2031	£18,077	5.00	£430,200	£16,076
06/04/2032	£18,529	5.00	£470,239	£16,478
06/04/2033	£18,992	5.00	£512,743	£16,890
06/04/2034	£19,467	5.00	£557,846	£17,312
06/04/2035	£19,953	5.00	£605,692	£17,745
06/04/2036	£20,452	5.00	£656,429	£18,189
06/04/2037	£20,964	5.00	£710,214	£18,643
06/04/2038	£21,488	5.00	£767,212	£19,109
06/04/2039	£22,025	5.00	£827,598	£19,587
06/04/2040	£22,575	5.00	£891,553	£20,077
06/04/2041	£23,140	5.00	£959,271	£20,579
06/04/2042	£23,718	5.00	£1,030,953	£21,093
Source: Brewin Dolphin
	Actual
Inflation Assumption			2.5%
Total Invested			£508,773
Total Gain			£522,180
Total Capital Gain Assuming 60% of growth is gain			£313,308
Gains Tax Saving over 30 yrs			£292,215

Local Office Awarded National Industry Award for South West

Photograph - L-R:

Brewin Dolphin Plymouth Team:

Tracy Smith- Divisional Director / Chris Janes- Divisional Director

Brian James Head of Office/ Ruth Smith – Divisional Director and 

Mike Gerrard Business Development Manager SW)

Brewin Dolphin’s Plymouth office has been awarded the 2013 Citywire Wealth Manager Regional Star award for the South West.  The regional Stars Awards 2013 were presented at the inaugural Citywire Wealth Manager Conference and Awards in London, the discretionary wealth management community’s largest-everceremony of this type.

The awards acknowledge discretionary Investment Managers who have delivered an exemplary service for their clients. Firms were nominated and the awards selected by IFAs and advisers based on their views of the wealth managers in their own region. In the awards they have expressed their view on the level of service they have received, as well as the investment outcomes that were achieved. The advisers ranked individual wealth management offices on four criteria; investment outcome, client reporting, relationship management and efficiency of service.

Brewin Dolphin Plymouth has a very experienced team of investment managers, managing portfolios for a wide range of private clients, charities, businesses, IFAs and other professional introducers.

Brian James, Head of Office, Brewin Dolphin Plymouth says:  “We are delighted to have been publicly recognised within the South West. The team in Plymouth has developed a deep understanding of the local community of both professional and private clients. The appetite to outsource investment management continues to grow and Financial Advisers who are looking to partner with a DFM, like the fact we do not offer in house funds and that each portfolio is bespoke and is managed locally. Trust and mutual respect are the foundation stones of all our relationships. The investment prowess and determination to look to our clients’ best interests in Plymouth is mirrored throughout the Brewin Dolphin Group and this accomplishment is due to hard work and team efforts.”

www.brewin.co.uk/plymouth

CATHEDRAL FINANCIAL MANAGEMENT NAMED IN TOP 100

EXETER INDEPENDENT FINANCIAL ADVISERS IN TOP 100 OF NEW NATIONAL INDUSTRY PUBLICATION

Exeter-based Tim Ames and co-director Emma Ames of Cathedral Financial Management (CFM) − Independent Financial Advisers & Chartered Financial Planners, have each been selected as one of the top 100 new model advisers in a prestigious new trade award.  Citywire compiled a selection of advisers who represent the ‘New Model Adviser^® Top 100’ in a new publication on the 17th September, 2012.

Established in 1993 and operating from three offices in Exeter, Sidmouth and Plymouth with a turnover of £1.8 m and looking after client assets totalling £250m, CFM is no stranger to national awards.  The firm previously won the Citywire’s South West ‘New Model Adviser^® of the Year’ award for 2008 and 2010 and shortlisted for 2011 −the only advisors based in Exeter to have achieved this industry recognition.

Tim Ames, Director CFM / Debra Searle MBE / Emma Ames, Director CFM / David Ingram, Three Sixty Consultating

Tim Ames was one of the first 10 advisers to be profiled by New Model Adviser^®.  Both chartered and certified, he served as the south west regional branch chair of the IFP (The Institute of Financial Planning) between 2008 and 2010.

Tim Ames Director − CFM says: “Emma and I are proud and delighted to have received this esteemed accolade and recognition as leaders in our profession.  To be in the Top 100 with over 20,000 true IFA’s in the UK is a wonderful achievement and our success is based on the quality of the service we give to our valued clients backed up by our robust systems.”

The New Model Adviser^® Top 100 was launched to select the movers and shakers in the industry and highlight some of the leading lights in the community and the contribution they have made to the profession, together with their plans to drive it forward.

“Our Top 100 represents not just the very best in the profession, but those at the vanguard of innovation using new model principles” says Natalie Fast − New Model Adviser^®‘s audience development manager.

www.cfmltd.co.uk

250 mile charity walk celebrates 250th anniversary of local Investment Managers

Employees of Wealth and Investment Management company Brewin Dolphin, based in Langage Business Park Plymouth, walk 250 miles in heavy summer rain to raise monies for St Luke’s Hospice.

The team together with partners and four-legged friends each set off for a 12 mile walk. The combined trek covered a total of 250 miles to celebrate the company’s 250th anniversary and raised a total of £584 for the local charity. The route commencing at Mount Batten incorporated Jennycliffe, Bovisands, Wembury, Newton Ferrers and Noss Mayo with the last leg of the hike ending at Stoke Beach.

Brian James Divisional Director – Brewin Dolphin Plymouth says: “We always support local Plymouth charities where we can and in particular St. Luke’s. Although taking place at the height of the British summer, it was an unseasonal cold day and the rain was relentless and we all got soaked to the skin. It did not, however dampen the spirits of the team and was a great way to celebrate our 250^th anniversary year by raising much needed funds for a very worthy local cause.”

www.stlukes-hospice.org.uk/events/Swimathon.aspx

www.brewin.co.uk/plymouth