Isa millionaires outnumber lottery millionaires, new study claims | FT #shorts

Ever dream of winning the lottery? Well, the number of Brits who've made a million pounds from their tax-free investment accounts outnumbers those who've become millionaires by winning the National Lottery jackpot. It's estimated that 10,000 people in the UK have become ISAs as the value of investments in their stocks and shares ISIS has exceeded a million pounds. A life-changing sum. But it's not just down to luck. Let's roll back to 1999 when ISAS first began. Even if investors had started then and invested the maximum amount permitted per year every year, that would only add up to £330,000. So the bulk of that growth has come from investment gains compounded over time. And this is where ISES come into their own because those investment gains are tax-free. Yes, if those 10,000 investors were to sell up tomorrow, there would not be a penny of capital gains tax to pay on their considerable profits. If they withdrew money, they wouldn't have to pay income tax either. A key difference from investing in pensions. And while many people do use stocks and shares to invest for their retirement, you can withdraw money anytime you want. You don't have to wait until you reach retirement age. Investment platforms say that most ISA millionaires are in their 60s and 70s. And they've hit the jackpot by gradually building up a diverse portfolio of investments through the decades, benefiting from tax-free compounding. But some have taken riskier bets on individual stocks. AJ Bell says its youngest ISA millionaire is just 33 years old. Want to get the most out of your ISA? Tap the link in our bio for more.