How a £100 weekly investment in UK shares can become a £1m ISA

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. With the State Pension age continuing to rise, investing in UK shares on a regular basis could significantly improve your long-term financial prospects.The growth outlook for the stock market continues to be relatively positive despite the recent stock market crash. Many FTSE 100 and FTSE 250 shares with improving outlooks trade at low prices that could rise over the long run.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Therefore, now could be the right time to invest £100 per week, or any other amount, in a diverse range of British stocks. Over time, they could improve your retirement prospects and even lead to an ISA valued at £1m.Starting to buy UK shares earlyThe earlier you can start buying UK shares, the more time they will have to produce compound returns. For example, the FTSE 100 has returned around 8% per annum on a total return basis over recent decades. An 8% annual return in itself may not sound all that impressive. However, when it’s achieved every year for a prolonged period of time, it can add up to surprisingly large returns.For example, £100 per week invested in the FTSE 100 at 8% over a 10-year time period could end up being worth around £80,000. While that represents a significant sum of money, the same investment at the same rate of return could be worth as much as £1m over a 35-year time period. As such, the earlier you can start planning for retirement, the more chance there is of obtaining a large portfolio.Buying cheap stocksAs well as providing your portfolio of UK shares with a long period of time to grow, purchasing cheap stocks may improve your prospects of generating a large nest egg. A key reason for this is that the stock market has always posted strong gains in the years following its declines.For example, it surged to new record highs after downturns such as the dot com bubble and the global financial crisis. A similar outcome seems likely after the recent market crash.Therefore, now could be the right time to start building a diverse ISA portfolio of British stocks. Many high-quality companies are currently trading at prices that are significantly below their historic averages. This may mean they can deliver high returns that allow you to outperform the wider stock market.As a result, you may be able to build a £1m portfolio in a shorter amount of time than the 35 years given in the previous example.Of course, UK shares are likely to experience periods of uncertainty and high volatility in the short run. For example, Brexit and the US election could cause investor sentiment to change in the coming months.However, by taking a long-term view and maintaining your regular investment, you can enjoy financial freedom in older age via your generous ISA nest egg. How a £100 weekly investment in UK shares can become a £1m ISA I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images See all posts by Peter Stephens Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Peter Stephens | Thursday, 8th October, 2020 Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997”last_img

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