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Here's how an investor could use a Stocks and Shares ISA to target a four-figure second income

The article from MSN Money discusses how an investor can utilize a Stocks and Shares ISA to generate a second income, potentially reaching into four figures. It outlines a strategy where an investor starts with a £20,000 lump sum in an ISA, focusing on dividend stocks to achieve a 5% yield, which would initially provide £1,000 annually. The article suggests reinvesting dividends to benefit from compound growth, and also mentions the possibility of adding regular contributions to increase the investment pot. It highlights the importance of diversification to mitigate risks, and discusses the tax benefits of using an ISA, where all income and capital gains are tax-free. The piece also touches on the potential for stock prices to rise, thereby increasing the value of the investment, and provides an example of how this strategy could lead to a significant second income over time, assuming a consistent yield and stock performance.

Read the Full MSN Article at:
[ https://www.msn.com/en-gb/money/top-stocks/here-s-how-an-investor-could-use-a-stocks-and-shares-isa-to-target-a-four-figure-second-income/ar-AA1xsiMZ ]