And this excludes dividends. For its past 10 financial years, “the largest and the most successful hobby miniatures company in the world” (its own words), has declared payouts of £23.65 per share. Include these and the total return goes up by over £97,000.

However, for those that didn’t invest, is it too late? Could the stock be one of the best performers over the next 10 years? Let’s explore.

Then and now

Compared to a decade ago, the group — most famous for its Warhammer franchise – is operating on a different scale. At the time of publishing its results for the year ended 29 May 2016 (FY16), it was valued at around £150m. Now, it has a market-cap of around £6.3bn.

Revenue has increased four-fold over the period. Earnings per share has soared more than 13 times.

Some of its success can be attributed to various licensing deals. During FY16, it earned £5.9m in royalites. In FY25, it was £52.5m. These are highly lucrative as they have no associated direct costs. Impressively, the group reported a 78.8% gross profit in FY25.

On the expensive side

However, as is common for a group that’s grown so rapidly, its shares aren’t cheap. They trade at around 33 times forecast earnings for FY26.

This is a double-edged sword. Yes, it’s a sign that the company’s highly rated by investors. But it also means any slowdown in earnings or a failure to live up to expectations, could see a sharp drop in its share price.

Of concern, given the current uncertain economic outlook, disposable incomes could be squeezed leaving less left over for hobbies.

What next?

I suspect it’s highly unlikely the group’s success over the past 10 years is going to be repeated over the next decade. Going forward, I reckon it’s likely to be more of a steady performer. But that doesn’t necessarily mean it’s too late to take a stake.

A well-run company with a strong brand will, generally speaking, continue to deliver over the long term. I have no doubt that Games Workshop will be able to sell more to existing customers. Whenever the group launches something new, it’s enthusiastically received by its passionate fan base.

But it also needs to find new buyers. That’s why I think its ongoing TV project with Amazon could be a gamechanger, although it might not be launched until 2028.

Final thoughts

When discussing the group, there’s often a debate as to whether it’s a niche business or a mainstream player. I suspect most people’s opinions are shaped by whether they buy its products. But I don’t think this really matters: the group’s impressive track record – and huge loyal following — shows it’s very good at what it does.

Importantly, it’s vertically integrated. This means it controls everything from the design to the distribution of its models. Impressively, it also has no debt on its balance sheet. Undoubtedly, Games Workshop is a British success story. I reckon it’s still a stock to consider.

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Plus, because no tax is paid on dividends or capital gains inside an ISA, more returns stay invested, which can really turbocharge compounding. As a result, it’s perfectly possible to grow a really attractive second income over time, even £10k a year. 

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.

Looking back 

A high-quality business will grow its earnings and often dividends over time. This should result in its shares becoming more valuable, as more investors want a piece of the thriving enterprise.

Take Games Workshop (LSE:GAW) as a prime example. Back in 2016, the Warhammer maker reported earnings per share (EPS) of 42.1p and a 40p dividend. Fast forward to 2025, EPS was around £6 and the dividend 520p.

The FTSE 100 company has also become far more profitable over this time, with its operating margin ballooning to 42% from just under 15%.

Someone who invested £2,500 a decade ago would now have roughly £90,000, with dividends taking the total return above £100,000.

Rare breed

Admittedly, Games Workshop is a rare outlier. Indeed, it’s the best-performing UK share of the last two decades. But it also shows what’s possible from an income perspective.

Unfortunately, for investors buying the stock today, it’s less of an income bonanza. The dividend yield is only 2.3%, which is lower than the FTSE 100 average of 3.2%.

Moreover, rising inflation doesn’t help the disposable income of Games Workshop’s customers. With the stock also valued highly, this isn’t one I will load up on today.

That said, I won’t be selling my existing Games Workshop shares. It’s one of the UK’s best-run companies, with a growing global army of loyal customers, unique IP, and long-term pricing power.

Looking forward

In a bid to increase my passive income, I bought shares of Londonmetric Property (LSE:LMP) in February. And I couldn’t have timed it any worse, because the real estate investment trust (REIT) has fallen 16% in four weeks!

The problem is the threat of higher interest rates, which would make it more difficult for Londonmetric to grow its portfolio (REITs tend to rely on debt to fund property acquisitions).

However, taking a long-term view, I’m still bullish. The REIT’s portfolio is built around four resilient sectors, including healthcare (12.5%) and urban logistics (54%). The latter is in tight supply, which favours long-term rental growth.

I like the balance here, with logistics assets having shorter leases due to high demand, while leisure is decades-long (Alton Towers, for example). The average number of years left on tenants’ contracts is 16.4. 

While dividends are never ultimately guaranteed, I’m optimistic about this one’s long-term income prospects.

Passive income

Returning to my original question then, how big does an ISA have to be to generate a £10k second income?

Well, Londonmetric’s now sporting a 7% dividend yield. If an ISA’s overall yield matched this, its value would need to be around £143k for £10k in dividends.

Assuming an average 8% return, with dividends reinvested, it would take 13.5 years to reach this amount by investing £500 every month.

The post How much do you need in a Stocks and Shares ISA for a £10,000 second income? appeared first on The Motley Fool UK.

Returns can vary from one year to another. But over time, investing in the stock market has generated higher returns than keeping money in cash.

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.

Five-year returns

Different investors get different returns from their Stocks and Shares ISAs for one simple reason. They don’t all buy the same things. 

One of the simplest investments is a fund that tracks an index like the FTSE 100. A good example is the Vanguard FTSE 100 UCITS Accumulating ETF.

In the last five years, that’s returned a total of 79.77%, which is an annual average of 12.44%. But individual years have been very different.

In 2022, returns were less than 6%. But 2025 was a banner year for the index, generating a return of more than 25% for investors. 

A 12.44% annual return is enough to turn a £20,000 investment into £35,954 over five years. And I don’t see a way to do that with cash.

What to buy?

At today’s prices, investors who put £100 into a FTSE 100 fund end up with £6.71 in Shell and 27p in Bunzl. And they might not want that.

With my own investing, I prefer to focus on companies that:

• Have good long-term prospects.
• Are relatively easy to understand.
• Trade at reasonable valuations.

From this perspective, I don’t think Shell is 25 times more attractive than Bunzl. And this is why I’m not buying a FTSE 100 fund.

That’s one example – there are others. But anyone looking to invest in an index fund needs to be sure that’s what they want.

In my case, it isn’t. I’m happier with my portfolio focused on a few high-quality names, with other stocks from elsewhere.

A FTSE 100 standout 

Games Workshop (LSE:GAW) is just 0.22% of the FTSE 100. But it’s a bigger part of my portfolio and that’s the way I like it.

The risk with the company is that it’s exclusively a Warhammer business. And that means there’s a risk of its products falling out of fashion.

The firm, though, does have all of the features I look for in a stock to buy. Its products are impossible to copy, which is key to its long-term strength.

The company’s growth plan is also pretty clear. It’s planning to expand in the US and an upcoming film is a key part of this. 

A price-to-earnings (P/E) ratio of 27 sounds high. But the firm’s converts almost all its income to free cash, which makes the stock cheaper than it looks.

Quality stocks

Games Workshop has outperformed the FTSE 100 over the last five years. That’s without including dividends, which have been big.

A £20,000 investment in the stock from five years ago is now worth £36,168. Add in another £4,209 and it’s not even close.

I don’t think this is an accident. And I think the company’s key strengths that have generated this outperformance are still intact.

As a result, I’m looking to keep adding to my investment steadily. I don’t want every FTSE 100 stock in my ISA, but I do like this one.

The post £20,000 invested in a Stocks and Shares ISA 5 years ago is now worth… appeared first on The Motley Fool UK.

So those with £3,000 to invest right now, here are two companies I think would deserve a closer look – one of which is already in my own portfolio!

1. A niche compounder

Few UK shares share the same tremendous track record as Games Workshop (LSE:GAW). Fun fact: when including dividends, anyone who put £1,500 to work 20 years ago is now sitting on a jaw-dropping £228,330!

But even after such a legendary performance, the growth story looks far from over.

What started as a niche, nerdy, tabletop wargame has evolved into a still-nerdy but enormous hobby ecosystem. Warhammer‘s now more popular than ever, with millions of players and collectors buying the miniature kits, paints, and books every year.

Yet management keeps doubling down. It’s capitalising on the powerful Warhammer IP through licensing deals with video game development studios and Amazon to adapt its various worlds and expand its reach to new audiences. And we’ve already seen a taste of the success this strategy is having.

The enormously successful launch of Warhammer 40,000: Space Marine 2 not only sent the firm’s licensing revenues through the roof, but also lured new customers to the core miniatures business, leading to record sales and profits.

Yet, with the massively anticipated launch of Total War: Warhammer 40,000 potentially releasing in late 2026/early 2027, we might soon see a repeat performance. That’s why I’m bullish on this business.

Of course, success isn’t guaranteed. If this new video game fails to live up to player expectations, investors could be left disappointed – a problematic outcome for a premium-priced stock.

Something else to watch is consumer spending. Like Games Workshop’s share price, Warhammer miniatures aren’t cheap. And with an ongoing cost-of-living crisis, the business could be susceptible to slower sales from macroeconomic pressure – a risk for investors to consider carefully.

2. A once-in-a-decade buying opportunity?

If Games Workshop shares trade at a premium, Rightmove (LSE:RMV) shares are the complete opposite. Looking at the online property portal’s price-to-earnings ratio, its shares haven’t been this cheap in over a decade. And it’s why the analyst team at Peel Hunt have flagged it as a potentially top-notch growth pick in 2026.

Management recently announced plans to aggressively invest in artificial intelligence (AI) to maintain its platform’s technological dominance. But since this strategy’s expected to reduce near-term growth, investors weren’t exactly thrilled, leading to a sell-off over the last six months.

Yet despite this stock falling by almost 40%, the business remains rock solid. Rightmove still controls a monopoly-like 85%+ of property search traffic, its free cash flow’s still gushing, and if management’s AI bet works out, growth’s on track to reaccelerate to double-digits by 2030.

Obviously, success isn’t guaranteed. But it’s rare to see companies of this calibre trade at such a cheap multiple. That’s why I’m seriously considering adding Rightmove to my Stocks and Shares ISA, despite the risks. And it’s not the only ISA-worthy stock on my radar right now…

The post £3k to invest? 2 UK shares to consider buying in a Stocks and Shares ISA in 2026 appeared first on The Motley Fool UK.

Angela Smith, senior investment director at Rathbones, notes that “the idea of becoming an ISA millionaire can feel like a distant dream reserved for high earners or lucky stock pickers. But the reality is far more encouraging“.

I hold one of these tax-efficient vehicles myself. And while I’m some way off getting a seat on millionaire’s row, I’ve seen some soaraway successes over the years. Here are three steps investors should consider if they’re targeting a £1m Stocks and Shares ISA.

1. Increase regular contributions

Investing can be harder for many people today as the cost of living crisis rolls on. But being able to regularly put money in the stock market — and to steadily increase contributions over the years — is critical to supercharging one’s ISA.

Let’s say someone invests £500 a month and achieves an 8% average annual return. After 33 years and five months, they’d have built their £1m ISA.

But what if they start with £500 and increase their monthly contributions by 2% each year? If they did this, they’d reach that magic million-pound portfolio in 31 years and two months.

2. Build a diversified portfolio

The next step involves building a Stocks and Shares ISA that spans different regions and industries. This is critical, as it spreads risk across the portfolio and helps provide a stable return over time.

I personally hold between 20 and 30 shares, trusts, and funds at any one time. Games Workshop (LSE:LSE) is one I’ve recently bought more of for my portfolio. With an average annual return of 16% since 2015, I think it’s easy to see why! No other FTSE 100 company has delivered that kind of performance.

The tabletop gaming hobby remains a niche one, but it’s rapidly growing across the globe. And with its Warhammer line of products, Games Workshop has essentially cornered the market. Sales here rocketed 11% in the six months to November, a period in which it again beat City forecasts.

Can the FTSE company keep outperforming, though? It will have to paddle hard as competition increases and consumer spending remains under pressure. Yet I think it can continue impressing, helped by increasing its mass media exposure through mammoth licensing deals like the one with Amazon.

3. Stay patient

The third most important thing to do is to remember that successful wealth creation almost always takes time to achieve.

Smith of Rathbones notes that the key to building a large ISA “isn’t perfect timing or extraordinary risk‑taking, but patience, time, and an iron‑clad discipline to keep investing and resist the temptation to tinker unnecessarily“.

I buy shares with a view to holding them for at least a decade. This way, I give my investments time to compound towards a million pound Stocks and Shares ISA.

The post 3 easy steps to target a £1,000,000 Stocks and Shares ISA! appeared first on The Motley Fool UK.

Here’s how.

The power of dividends

As a predominantly growth-focused investor, my Self-Invested Personal Pension (SIPP) income portfolio is relatively modest at around £18,000 compared to my six-figure growth-focused Stocks and Shares ISA. But the passive income it generates, even with minimal contributions in recent years, has begun accelerating drastically.

In 2025, my portfolio of dividend stocks generated £513.86 in income. But looking at the latest analyst forecasts, this payout is on track to grow to just over £600 by the end of 2026, even without adding any additional capital.

That’s significantly ahead of the £369.87 I earned in 2023 when my income portfolio debuted. And it translates into a 17.5% annualised dividend growth rate.

Assuming this level of payout expansion is maintained over the long run and that I continue to automatically reinvest all the dividends I’m receiving, last year’s £513.86 could transform into over £1m in roughly 44 years.

But if I also drip feed an extra £513.86 each month into my SIPP (£642.33 after 20% tax relief), that journey’s slashed to just under 19 years – a perfect set up for early retirement!

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.

A top dividend growth stock to consider

A double-digit dividend growth rate’s possible when investing exclusively in highly cash-generative businesses with the flexibility to keep rewarding shareholders.

A perfect example of this from my income portfolio is Games Workshop (LSE:GAW).

When I first bought shares, my initial yield was pretty modest at around 3.2%. But over the last three years, with revenues, earnings, and cash flows continually hitting new record highs, management’s comfortably more than doubled its shareholder payouts. And in turn, my initial yield has since expanded to over 7%.

Yet despite this rapid growth, I still see plenty more long-term dividend expansion potential on the horizon.

Bull versus bear

The business remains an unrivalled monopoly with extraordinary economics within the tabletop miniature gaming market.

While certainly niche, the cult-like customer culture has translated into phenomenal pricing power and enviable average customer lifetime value as hobbyists keep coming back for more. And with a highly anticipated Amazon TV series in the works, the global Warhammer fanbase appears well-positioned to expand even more aggressively over the coming years.

However, the exceptional financials and impressive growth trajectory of the business haven’t gone unnoticed. And Games Workshop shares trade at a pretty lofty premium as analyst expectations ramp up.

Premium valuations, even well-earned ones, open the door to volatility. And in 2026, there are some potential temporary headwinds that could weigh down on currently lofty sentiment.

Weaker consumer spending across both the UK and US markets is already causing core revenue growth to slow. And management has also warned of an incoming sharp drop-off in its licensing royalties this year, which may put an end to the firm’s multi-year streak of hitting record sales and profits.

Nevertheless, when looking to the long run, Games Workshop’s barely scratched the surface of its potential market opportunity, in my opinion. That’s why, if the shares do suddenly take a tumble, I’ll be ready to start buying more.

The post How I’m using top dividend stocks to try and turn £513.86 a month into a million appeared first on The Motley Fool UK.

When this kind of combined pressure builds, it often sends share prices tumbling. Scary stuff — but only for those who aren’t prepared.

With a bit of cash set aside, I’ve got my eye on two shares I’ve wanted to buy for some time: Antofagasta (LSE: ANTO) and Games Workshop (LSE: GAW).

Both trade on sky-high multiples — Antofagasta at 37.6 times earnings and Games Workshop at 27.6. That means they’re priced like growth stars, leaving little room for more gains unless everything goes perfectly. That’s a risk I don’t want to take, unless the prices dip a bit.

Here’s why I’m bullish on these two Footsie superstars.

Antofagasta

This Chilean copper miner extracts the precious red metal needed for everything from EVs to power grids. In its latest full-year results for 2025, earnings jumped 55.4% year-on-year and revenue rose 26.3% to $8.6bn. This was thanks to higher copper prices and strong by-product sales like gold and molybdenum.

EBITDA hit a record $5.2bn, up 52%, showing solid cost control even as capex peaked at $3.7bn for growth projects.

Debt-to-equity sits at a manageable 0.74, and a P/E growth (PEG) ratio of 0.69 suggests the high earnings multiple might be justified by expected growth.

However, rising energy costs from oil spikes could squeeze margins. Other risks include copper price drops if a crash hits commodities hard, or delays in big projects like the recent Centinela expansion.

Still, with copper demand set to boom with renewable electricfication trends, I expect big things from Antofagasta.

Games Workshop

Games Workshop designs and sells Warhammer miniatures, books and games — think hobbyists building armies of tiny fantasy warriors. Sounds niche, but it’s wildely popular.

Its half-year results to November 2025 showed core revenue up 17% to £316m, with operating profit rising to £126m on a stellar 69% gross margin. Return on equity (ROE) is an impressive 67.9%, net margin 31.7%, and debt is tiny at just £49m, giving it a solid balance sheet.

Still, the threat of tariffs and supply chain issues could hit costs. The main risk is slowing hobby sales if consumers cut fun spending in a downturn, or flops in new releases like the recent Space Marine games.

Fortunately, the 3.24% dividend yield adds some income on top of growth, and licensing deals like video games promise extra revenue.

Preparation is key

If markets crash, having cash set aside can provide a rare chance to grab these top FTSE 100 names at a bargain. Antofagasta for its high-demand copper growth potential and Games Workshop for its loyal, income-driving consumer base. 

They’re not cheap right now, but a 20%-30% drop would make those valuations far more palatable. That would provide a decent entry point to stock up on two proven earners with promising futures. 

For UK investors, a moderate price dip would make them well worth considering for a long-term growth-focused portfolio.

The post 2 ‘overpriced’ FTSE 100 shares I’ve got my eye on if the stock market crashes appeared first on The Motley Fool UK.

Portfolios concentrated around the ‘Magnificent Seven’ and other tech stocks have suffered some sharp pullbacks. And a long list of FTSE stocks have also proved to be lacklustre investments so far this year, with double-digit drops for Autotrader, WPP, Sage Group, and Hikma Pharmaceuticals, among others.

Navigating volatility is a normal part of any investing journey. But there’s no denying how unpleasant it can be to watch a steep drop. Luckily, there are always lucrative opportunities to explore. And one FTSE stock I’ve got my eye on right now is Games Workshop (LSE:GAW). Here’s why.

An incoming growth spurt?

Like the other FTSE stocks, Games Workshop has also seen its share price dip in 2026, albeit by only around 5%. However, when zooming out a little further, it’s actually down over 12% since its December highs. And that may have set the stage for a more attractive entry point, particularly with big growth catalysts seemingly on the horizon.

The group’s Warhammer miniatures continue to be enormously popular with its established cult-like customer base, who keep coming back for more. And with the 11th edition of Warhammer: 40,000 rumoured to be released later this year, new starter kits, launch boxes, books, and miniatures could keep the growth engine chugging.

But crucially, come 2027, growth could be primed to accelerate. The expansion of the firm’s manufacturing capacity following the completion of its new factory opens the door to higher sales volumes worldwide.

At the same time, a series of new video game projects that have licensed the Warhammer IP are set to be released towards the end of 2026 including Warhammer 40,000: Dawn of War IV.

In other words, the group’s exceptionally profitable royalty revenue stream could be getting ready for a pleasant surge over the next 12-18 months, reaching a far broader audience and luring new players into the core tabletop hobby.

With all these catalysts converging at a similar time, the recent weakness in Games Workshop shares could soon start to reverse. That’s why investors looking for growth may want to consider this business for their Stocks and Shares ISA.

Of course, no investment’s ever without risk. So what do investors need to keep an eye on?

Risks to watch

While licensing revenue in 2027 appears to be heading in a strong direction, the same can’t be said for the group’s 2026 fiscal year (ending in June). In fact, management’s explicitly warned that licensing revenues in the near-term are expected to take a big hit due to a lack of blockbuster releases during the period.

This perfectly demonstrates the lumpy nature of these cash flows, which are almost entirely dependent on third-party game developers shipping projects on time that also meet player expectations – two notoriously unreliable variables.

Something else to keep an eye on is the group’s core miniature business. While still growing at a steady pace, there are some emerging signs of potential deceleration, which could undermine Games Workshop’s premium valuation.

Nevertheless, with a stellar track record and a wide competitive moat, I’ve already added Games Workshop to my portfolio, and other growth-seeking investors may want to consider doing the same.

The post Stocks and Shares ISA in the red? This FTSE stock could help fix that appeared first on The Motley Fool UK.

Some of these can be really interesting opportunities. But in terms of requiring minimum work for maximum return, it’s hard to beat the income generated by strong FTSE 100 companies.

Pokémon cards

The other day, a friend of mine showed me an app called Whatnot. As far as I can tell, it’s full of people selling Pokémon cards – and making a very nice income by doing so. 

What I saw was a super-high-speed (literally 10 seconds) auction where people sell individual cards and unopened packs. And the amount they were pulling in was pretty spectacular. 

It looks kind of fun and really easy and I can’t deny that I didn’t think of trying to do it myself. But there are a few things that are putting me off setting up my own operation. One is that it looks very competitive. And another is that all the buying, selling, packaging, and shipping looks like it would take a lot of time and money to turn it into something significant.

Passive income

Investing in the stock market, by contrast, takes much less effort. Investors do need to think carefully about which shares to buy, but once they’ve done this, all that’s left to do is… watch.

Compared to the work involved with running a Pokémon card operation, that’s a big help. It means investors can go and work on some other way of making money in the meantime. Or not.

Equally important is that the cost of investing has come down significantly. Investing £100 wasn’t really a viable strategy when it meant paying 10% of that in costs. That however has changed. With trading fees now minimal on most platforms and virtually zero on some, the amount of cash it takes to start investing is much lower than it once was.

Dividends

Pokémon is an amazing franchise – some cards sell for up to £500,000. But so is Warhammer, which is owned by Games Workshop (LSE:GAW) – my largest FTSE 100 investment.

The firm manufactures miniatures that it sells in its stores, online and through third parties. This doesn’t usually mean high margins, but strong intellectual property makes a difference.

Operating margins for 2025 were above 40%, which is very high. And with most of its costs fixed, these might expand further if sales keep growing.

Meanwhile, there’s another huge advantage. Low capital requirements mean the firm can return the vast majority of the cash it generates to shareholders as dividends. That makes it incredibly attractive for both growth and dividends.

Collecting a second income

Games Workshop’s high margins means its merchandise isn’t cheap. And this can be a risk when consumer spending comes under pressure, which is the case in the US right now.

That’s where the firm’s targeting major growth over the next few years, so it’s something investors need to keep in mind. But from a long-term perspective, the business looks really strong.

There’s good money in collectibles, especially from franchises like Pokémon or Warhammer. But in my case, I think there’s a more attractive opportunity in the shares than the products.

The post Forget Pokémon cards! Dividend stocks are my top way to earn a second income appeared first on The Motley Fool UK.

That first part requires a number of years — an investing timeline. This timeline mean years for the investor to squirrel away cash from the day job, while also giving enough time to let compound interest work.

For those of us over the age of 40, something like a 20-year investing timeline might be about right. Two decades from now takes us to 2046. So how much might an investor need to put in over the timespan? And how much might be in a Stocks and Shares ISA at the end of it?

The magic of compounding

A recent study found the average saving amount for Britons is £227 a month. Let’s go with that and see where we end up. After 20 years of financial discipline, the total saved is £54,480. Not a bad start.

What happens if we invest that amount? The end total depends entirely on the rate of return from investments. Many choose 10% as a target as it’s close to historical averages. Applying a 10% average over the same timeframe means our nest egg is now £163,044.

It’s worth highlighting the difference between those two end figures. By investing in the stock market, we’ve earned an extra £100k. That means around 67% of the amount in our ISA comes not from what we’ve saved, but the interest generated from share price appreciation or dividends.

We have to remember, though, that 10% isn’t guaranteed. We may generate less than that.

And of course, we’re going to want to dial down the percentage when we start withdrawing. Something like 4% is considered safe in the event of market downturns to keep our sum total in-tact. Applying that as a drawdown rate gives a passive income of £6,521 a year. Nice going.

Cornerstone

The cornerstone of a great investing strategy is — surprise surprise — great investments. This is why many of us don’t just rely on index trackers and like to add individual stock picking into the mix. By throwing our money in with a company capable of above-average growth over the long run – like British tabletop games maker Games Workshop (LSE: GAW) – we might boost that passive income even higher.

In Games Workshop’s case, that involved going from a popular-but-niche hobby, to having a cult following around the world. The share price has risen 3,253% in a decade that has seen its models from its Warhammer and Warhammer 40k world surge in popularity.

I think long-term decision-making and management – for example, not shirking on quality and continuing to produce all models in British factories – could mean there’s plenty of road left to run here. That said, the expense of maintaining such quality levels could be a hindrance too.

There are undoubtedly many British stocks available now that will grow precipitously in the years ahead. It’s not always simple to identify them, but I’d not be surprised to see Games Workshop as a terrific winner in 10 or 20 years’ time. One to consider, if you ask me.

The post How much do you need in an ISA for £6,751 passive income a year in 2046? appeared first on The Motley Fool UK.