Ndubuisi Egwim compares two investors putting £20,000 yearly into identical funds for 18 years. Priya uses an ISA and ends with £808,000. Claire uses a SIPP with tax relief and reaches over £1 million, a £200,000 difference from the same contributions.
Both Priya and Claire, they're 42 now. Both plan to retire at 60. So that's 18 years of consistent investing and compounding. They are both buying the same fund, a global index fund, same market. We are not comparing 2 different investments. Both Priya and Claire are in exactly the same fund, well-diversified global one. The return assumption is, is the same for both. So basically what we are comparing is purely the vehicle, the wrapper, the sequence, nothing else. So for every year for 18 years, Priya puts $20K into her IRA. From her take-home pay, Claire puts the same 20K from her take-home pay into her SIPP. HMRC adds 5K on top of that every year for Claire, so 25K gross, and then she claims another 5K in self-assessment. Okay, we already established that the same 20K out of their pockets, but they applied it differently for 18 years. Here's what they finally end up with. Drum roll. Um, yeah, I'm running a free masterclass. Basically, we're going to look at investing, look at SIPP, ISAs, NHS pension, how to combine them. It's going to be a free investing masterclass. Class for doctors. Now, over 1,800 doctors have already attended previous masterclasses and we've had hundreds of testimonials. If you want to attend, you want a free ticket, I've got one for you. If you check the link in the description, you can click to get a free ticket to attend my next free investing masterclass. It's 90 minutes. We're going to learn what medical school didn't teach us and what many doctors have spent so many years trying to figure out. If you head over to moneywisedoctor.com/masterclass, you can grab a ticket. Or check the link in the description to get one. Now, for Priya, ISA at 8% for 18 years will give her £808,000, and for SIP that Clare has invested in will be over £1 million. So Clare gets over the million pound mark. The gap between them is about £200,000. That's a massive difference.
