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It pays to invest early...


Two investors...


Both invest their full ISA allowance over 10 years...

Year Annual ISA allowance
2007 £7,000 £7,000
2008 £7,000 £7,000
2009 £7,200 £7,200
2010 £10,200 £10,200
2011 £10,680 £10,680
2012 £11,280 £11,280
2013 £11,520 £11,520
2014 £15,000* £15,000*
2015 £15,240 £15,240
2016 £15,240 £15,240




Both portfolios grow 5% each year...

* We are aware that the ISA allowance for 2014/15 changed mid-way through the tax year. For simplication purposes we have used an allowance of £15,000 for both Susan and Jane.

Each year, Susan uses her ISA allowance on the first day of the tax year

Jane has money available, but doesn't get around to using her full ISA allowance until the last day of the tax year

Each year Susan gets a years growth that Jane misses out on

Over 10 years this has a compounding effect accelerating Susan's portfolio value

Capital invested over 10 years


Growth over 10 years







At the end of ten years, Susan and Jane have invested the same amount of capital, however Susans's portfolio has grown more by £6,672...

Demonstrating that in this example it pays to invest early

This example is for illustration purposes only. Please remember the value of investments and the income derived from them can fall as well as rise and you may not get back all the money you invested.