How you can become a Stocks and Shares ISA millionaire in 25 years

How you can become a Stocks and Shares ISA millionaire in 25 years

first_img Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” How you can become a Stocks and Shares ISA millionaire in 25 years 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. 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. James J. McCombie | Monday, 30th March, 2020 Our 6 ‘Best Buys Now’ Shares 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.center_img James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! It is possible to become a Stocks and Shares ISA millionaire. Investors shooting for a seven-figure portfolio need to save regularly and earn a decent return. The most important factor for building a million-pound portfolio, however, is time. Starting saving as soon as possible is the best thing a budding millionaire investor can do.Stocks and shares The ISA deadline of 5 April is fast approaching, and many investors might be scrambling to make the most of the current annual £20,000 contribution limit. It is no bad thing to save as much as possible, and perhaps the looming deadline will prompt investors who have been delaying to start investing. However, I have found that a regular savings plan beats investing a lump sum. Once this year’s allowance has been taken advantage of, it is important to take regular slices of the next, and so on.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…Some investors may be shying away from the stock market altogether, given the recent crash. This is a mistake. Stocks and shares have historically outperformed both bonds and cash, and a decent return on investment will make a million-pound portfolio more likely.The longer the investment horizon and the higher return, the more annual taxes consume investment gains. Given that a million-pound portfolio will typically take a long time to build even with a high rate of return, an ISA account is perfect for the job. ISA accounts offer tax-free savings, even for stock investments and the capital gains and dividends they offer.Now, stock market investments are riskier than cash or bonds. But a regular investment plan carried out over a long time horizon will help smooth out the volatility in the stock markets, by buying when stocks are falling (getting cheaper) and rising (becoming more expensive).Making a millionAccording to the Office for National Statistics, the median after-tax monthly household income in the UK was £2,450 in 2019. The FTSE 100 has returned 8.3%, including dividend reinvestment, on average over the last 10 years. Over 25 years, the average FTSE 100 return has been 6.4%.Let’s assume a £1,000 initial investment, and a long-term average annual return of 7%. Over time different amounts of wealth can be built up, depending on how much is saved each month:It might be disappointing that see that saving 60% of the median household monthly income with a 7% annual return does not net a million-pound portfolio. However, £750,000 is a significant amount of money and could provide a substantial degree of financial freedom. Saving a bit over £100 a month could grow to over £66,000 in 20 years. That is a decent-sized pot that could supplement a pension nicely.If an investor has 25 years or more, then million-pound portfolios are possible:Investing for 40 years might sound fanciful, but it is possible for someone starting in their early twenties, or even thirties if retirement is delayed. Another point worth mentioning is that £980 a month might be out of reach at the moment, but that’s no reason to delay starting. Once mortgages get paid off or children leave the nest, it may be feasible to save £950 or another previously unthinkable amount each month.Although becoming a Stocks and Shares ISA millionaire is possible, other amounts may look more achievable. Whatever the amount, the only way to get there is to start investing. Right now is as good a time as any. Simply click below to discover how you can take advantage of this. See all posts by James J. McCombielast_img

Leave a Reply

Your email address will not be published. Required fields are marked *