Stock market crash: I’d drip-feed £300 a month into cheap UK shares in an ISA to make a million

Rising Stocks & Shares ISA allowances make it easier for investors to make millions. Here, I explain why buying UK shares is a proven way to get rich.

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Want to make a million from UK shares? If you’re serious about wanting to get rich through stock investing then you’re going to have to think differently from the pack. In the context of 2020, that means piling into UK shares while everyone else sits nervously on the sidelines.

Don’t mistake my enthusiasm for recklessness. The profits picture for many UK shares has darkened considerably following the Covid-19 breakout. A great many other British companies face turbulence as US-led trade wars worsen and a no-deal Brexit creeps menacingly into view. It’s probable that the number of corporate bankruptcies could soar in the event of a prolonged economic downturn.

However, those that do their research and make some sage stock buys stand to make a fortune following the stock market crash. Many financially-robust UK shares with strong operating models have been shockingly sold off alongside the genuine duds. This gives eagle-eyed investors a chance to buy them at current low prices. And then get rich in the coming years as they’ll likely soar again in value.

Say no to Cash ISAs

Here at The Motley Fool, we believe buying UK shares is one of the best ways you can use your money. You can forget about Cash ISAs. Low interest rates here mean that the money you save in one of those is being ravaged by inflation. The possibility of making any sort of positive real-world return is dead. Instead, the value of your hard-earned cash is eroding over time.

The letters ISA (Individual Savings Account) on dice on stacks of gold coins on a white background.

On the other hand, buying UK shares is a tried-and-tested way for Britons to make a great return on their savings. Studies show us that long-term investors make an average return of between 8% and 10% per year. This means someone aged 30 who invests £300 a month in UK shares can realistically expect to become a millionaire by the age of 65.

Buying UK shares to make a million!

There’s plenty of help from the experts at The Motley Fool to help you hit that milestone. Our huge library of special reports can help you avoid stock market traps, identify the best UK shares, and provide you with plenty of broader investment advice to help you make a fortune.

As I said earlier, buying after stock market crashes can also significantly boost your returns. Hundreds of Stocks and Shares ISA investors became millionaires after investing heavily in UK shares after the 2008/2009 crash. They also benefitted in the pocket as ISA profits are shielded from the taxman.

In recent years, the ISA allowance has risen to £20,000 per year. As a consequence those who can afford to invest more than £300 a month stand an even better chance of making a million from UK shares.

So what are you waiting for? In my opinion the 2020 stock market crash provides a rare opportunity to supercharge the returns you make on your money. And The Motley Fool can help you make the most of this chance.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

Royston Wild 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.

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