- We are only three years into the plan, but £80,000 has been invested and transferred into their joint ISA portfolios over that time. The ISAs are currently valued at just under £90,000.
- The funds are on course for their return targets, albeit that we are still in the earlier stages of the 9-year plan for investment and 16-year plan to draw funds until age 57, when the SIPP could be accessed.
- The SIPP has also increased in value over that time period to £1,200,000.
- Mike and Stephanie have annual reviews to ensure the plans and cash flow forecasts are updated to provide a more realistic picture of the amount that could be drawn from age 50.
- Mike and Stephanie have recently started to review other sources to provide further tax benefits alongside the annual ISA contributions, such as investing other excess income into VCTs. This will provide tax relief on the contributions to further increase annual savings and also create another form of tax free income each year from annual dividends produced by the VCT.
If you’re looking for another case study, feel free to check out Eric’s story.