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How can I generate an 8% annual total return?

These investors want to accumulate as much wealth as possible by the time they retire
March 31, 2021 and Paul Derrien

These investors want to accumulate as much wealth as possible by the time they retire and hope for an average annual total return of 8%

They are looking to do this with a concentrated portfolio of direct shareholdings 

But they should consider reducing the proportion of their assets they have in any one holding

Reader Portfolio
Peter and his wife 38 and 34
Description

Sipps and Isas invested in UK and US direct shareholdings, junior Isa invested in global fund, cash.

Objectives

Have as much wealth as possible when retire around 2045, average annual total return of 8 per cent, minimise cost of investing, buy home within next five years, maintain cash holding as emergency fund.

Portfolio type
Investing for growth

Peter, age 38, earns around £400,000 a year, although this can vary. His wife is not currently working and they have a four-month-old baby.

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