No savings at 40? I’d use the stock market crash to buy cheap UK shares in an ISA to retire rich

first_imgNo savings at 40? I’d use the stock market crash to buy cheap UK shares in an ISA to retire rich 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. Image source: Getty Images The 2020 stock market crash has meant that the FTSE 100 and FTSE 250 currently contain a wide range of cheap UK shares.Certainly, they could experience further declines in the short run. The recent market rebound could run out of steam as political and economic risks remain high.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…However, the long-term prospects for many British shares appear to be relatively positive. As such, they could offer impressive returns over the long run. And that could lead to a surprisingly large ISA retirement portfolio.The outlook for cheap UK shares after the stock market crashThe prospects for cheap UK shares may remain challenging in the coming months. A wide range of FTSE 100 and FTSE 250 sectors face weak operating conditions caused by the difficult economic outlook, as well as heightened political risks. As such, the prospect of a second stock market crash cannot be ruled out.However, the long-term performance of British shares could be relatively positive. Many cheap stocks have valuations that may not accurately reflect their financial positions and competitive advantages. Therefore, investors may be underestimating their ability to survive short-term challenges and to adapt to a changing world economy. This may mean their valuations have scope to increase significantly over the long run.Time horizon when investing money in FTSE 100 and FTSE 250 sharesThe performance of cheap UK shares could prove to be dependent on the time period over which they’re held. For example, investing money in FTSE 100 and FTSE 250 shares today for a period of months may mean high volatility and paper losses for investors, due to elevated levels of risks.However, their performance over the long run could be far more impressive. Indeed, both indexes have solid track records of making new record highs after bear markets as severe as the 1987 crash and the global financial crisis. Both of those events caused greater declines in index price levels than the 2020 stock market crash.A long-term outlook to build an ISA retirement portfolioAs such, having a long time horizon may mean cheap UK shares are attractive at the present time. They could catalyse the performance of an ISA so an investor can enjoy a generous passive income in older age.In fact, it may be possible to obtain an annual return that’s in excess of the stock market’s high single-digit historic rate. Doing so may produce a larger ISA portfolio in the long run – especially with a stock market recovery being likely in the coming years.Therefore, now could be an opportune moment to use the 2020 stock market crash to buy cheap UK shares. They appear to offer wide margins of safety that may provide scope for capital appreciation as the stock market recovers after its recent crash. “This Stock Could Be Like Buying Amazon in 1997” 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Peter Stephens Enter Your Email Address Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Peter Stephens | Sunday, 15th November, 2020 last_img

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