How I’d try and turn a £20k Stocks and Shares ISA into a recurring £16,634 income

The MotleyFool

Story by John Fieldsend

Here’s how drip-feeding £200 a month into a Stocks and Shares ISA might grow into a recurring £16,634 income – received year after year, come rain or shine – that wouldn’t even eat into the nest egg.

The ISA is crucial. The Financial Times called ISAs “arguably the best investment ‘wrapper’ in the Western world” and it’s hard to disagree.

I can deposit up to £20k a year – with no balance limit – and every pound gets a lifetime tax exemption on interest, capital gains or dividends. These taxes can take off 39%.