How I’m investing in my ISA and SIPP at 40+

Investing within a tax-efficient account such as an ISA aged 40+ is a savvy move. But what’s the best investment strategy at this age?

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Investing within an ISA and/or SIPP (Self-Invested Personal Pension) in your 40s is generally a smart move. Investing at this age can potentially set up strong wealth streams for the future.

Of course, the challenge is working out where to invest. With these tax-efficient accounts, there are a lot of options and it’s hard to know what the best investment strategy is.

Here, I’m going to discuss where I’m investing my ISA and SIPP in my 40s. This is how I’m trying to build wealth for the future.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

My goals

Before I look at where I’m investing, it’s worth touching on my financial goals and risk profile. This is because my investment strategy is based on these goals and my risk tolerance.

My main goal is to build a seven-figure investment portfolio over the next 15 years or so in order to retire at a relatively young age (around 60).

As for my risk tolerance, it’s relatively high. I don’t mind taking on some risk in the pursuit of higher gains. With an investment horizon of around 15 years, I have time to ride out stock market volatility.

My investment strategy

In terms of how I plan to achieve my goal, I’ve developed an investment strategy that combines ‘growth’, ‘quality’, and ‘thematic’ approaches to investing.

What I’m essentially trying to do is invest in high-quality companies that are poised to benefit from powerful long-term growth themes and trends (the ageing population, the shift to electronic payments, etc), and grow their revenues and earnings significantly over the next decade and beyond.

Ultimately, I’m trying to find businesses that are capable of multiplying my capital many times over in the long run.


Now, I implement this strategy with both investment funds/trusts and individual stocks.

Some funds I own include:

  • Fundsmith Equity – this is an actively-managed fund that invests in high-quality businesses globally
  • Schroder Global Healthcare – this provides broad exposure to the healthcare sector (which looks set to benefit from the ageing population in the years ahead)
  • Sanlam Global Artificial Intelligence – this provides exposure to companies engaged in artificial intelligence (AI)

All of these products have strong long-term track records and appear to have a lot of growth potential going forward.


As for stocks, I own three main types within my ISA and SIPP.

First, I have large-cap US growth stocks. Some examples include Apple, Nvidia, and Mastercard. These are some of the most dominant companies in the world today, and they all look well placed to generate strong growth in the years ahead, in my view.

Then, I have blue-chip UK stocks. Some examples here include Diageo, InterContinental Hotels (IHG), and Sage. These dividend-paying stocks bring stability to my portfolio however, as they still have plenty of long-term growth potential. IHG, for example, looks set to benefit from the retirement of the Baby Boomers.

Finally, I have a mix of smaller US and UK growth stocks. Some examples here include UK software company Cerillion and US data firm Snowflake. These kinds of stocks have the potential to provide blockbuster returns. But they are more speculative in nature, so they have smaller weightings in my portfolio.

A long-term focus

Overall, I think this is an effective way to build wealth over the long run. I expect my portfolio to have ups and downs over the next 15 years. But, over the long term, I think I’ll do well.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has positions in Apple, Cerillion Plc, Diageo Plc, InterContinental Hotels Group Plc, Mastercard, Nvidia, Sage Group Plc, Snowflake, Fundsmith Equity, Schroder Global Healthcare, Sanlam Global Artificial Intelligence. The Motley Fool UK has recommended Apple, Cerillion Plc, Diageo Plc, InterContinental Hotels Group Plc, Mastercard, Nvidia, Sage Group Plc, and Snowflake. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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