Grasp The Tools to Take Control
The first port of call for investors trying to provide for a comfortable future is the tax-efficient haven of individual savings accounts (Isas). Indeed, since personal equity plans (Peps) were introduced in 1987, and replaced by Isas, one could have salted away £171,600 in these tax havens. Assuming a modest growth rate of 5 per cent, your combined Pep and Isa portfolio would today be worth £302,000, excluding this year's £10,200 allowance, according to Killik & Co.
That's a tidy pot and an indication of how much investors starting out today could accumulate in a few decades. But whether you have already invested or are about to start, you could end up with an unwieldy, rag-bag collection of funds, trusts and individual shares that could leave you dangerously under or over-exposed to investment opportunities and risks. Our opening feature provides some helpful pointers in this respect, combined with pension strategies.
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