WRITTEN BY: Paul Hutchinson | Sales Manager | Ninety One
Becoming a millionaire is often associated with luck – winning a game show or the national lottery, inheriting wealth, or making a single exceptional investment. However, for most investors, wealth accumulation is far less dramatic and far more predictable.
Consider the following. Since its launch in 1998, only seven contestants have won the £1 million jackpot on the UK version of Who Wants to Be a Millionaire? out of more than 1 500 participants who have sat in the ‘Hot Seat’.
By contrast, the number of UK Individual Savings Account (ISA) millionaires has grown rapidly, with an estimated 17 6002 individuals reaching this milestone by April 2026, which is also more than the total number of people who have ever won more than £1 million through the UK’s National Lottery.
The contrast is striking. One path to becoming a millionaire is rare and dependent on chance. The other is repeatable and grounded in disciplined, long-term investing.
ISAs, introduced in 1999, are tax-efficient vehicles that allow individuals to earn returns free from income tax and capital gains tax.
While annual contribution limits apply, there is no lifetime cap. South Africa’s equivalent, the Tax-Free Savings Account (TFSA), offers similar tax advantages, although with a lifetime contribution cap.
What can South African investors learn from those who have successfully built significant wealth within ISAs? While individual circumstances differ, the following consistent behaviours stand out:
Contributing at the start of the tax year maximises time in the market, allowing investments to benefit from an additional year of compounding and income generation.
Attempting to time the market is rarely successful. Long-term investors remain invested through periods of volatility, recognising that short-term fluctuations are part of the journey.
Tax-efficient investment allowances are valuable and, in many cases, cannot be replaced once used. These vehicles should therefore not be treated as emergency funds, as withdrawals reduce long-term growth potential. Given the lifetime contribution limit on South African TFSAs, using this allowance efficiently becomes even more important.Reinvest income
Reinvesting dividends significantly enhances long-term returns. Over extended periods, dividend income can contribute a substantial portion of total investment growth.
Fees can erode returns over time.While active investment management can play a key role, investors should remain mindful of the overall costs associated with their investment and platform choices, as even minor differences in fees can compound into meaningful differences in long-term outcomes.
Prioritise growth assets
Achieving meaningful long-term growth typically requires exposure to equities and other growth-oriented assets, which have historically delivered higher real returns than cash or bonds.
Diversify globally
Compounding Returns Over the Last Term Turns Consistency into Significant Wealth
Ultimately, building wealth is not about identifying a single “perfect” investment or relying on luck. It is about discipline, consistency, and time. And while outcomes will vary depending on market conditions and investment choices, these principles remain robust over the long term.
For most investors, becoming a millionaire is less about securing a seat on a game show and more about following a well-structured, long-term investment strategy.
All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information, but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate.
Any representation or opinion is provided for information purposes only. The investments referred to in this document are generally medium to long-term investments. Their value may go down as well as up and past performance is not necessarily a guide to future performance. The Management Company does not provide any guarantee either with respect to the capital or the return of a portfolio. Fluctuations or movements in exchange rates may cause the value of the underlying international investments to go up or down. Where performance fees are charged, these are applied daily and quoted net of fees with income reinvested. Except as otherwise authorised, this information may not be shown, copied, transmitted, or given to any third party without Ninety One’s prior written consent. Ninety One Investment Platform (Pty) Ltd and Ninety One SA (Pty) Ltd are authorised financial services providers.