Via Yahoo Finance

Fancy becoming a stock market millionaire? Of course you do. And it might not be either as difficult, or as costly, as you may think. I’m not going to pretend that it’s easy to make a fortune with UK shares. But those who invest regularly and do some careful research before spending their cash really can expect to make life-changing returns.

History shows that long-term investors make an average annual return of between 8% and 10% a year. This sort of return can make you a life-changing lump sum over a number of years. Say you’re 25 years of age and can afford to buy just £181 worth of UK shares a month. By the time you reach 65 you could realistically expect to have broken that £1m barrier.

Making millions like ISA investors

A terrific return, I’m sure you’d agree. But say you don’t want to wait for 40 years in order to join the millionaire’s club. There’s a number of steps you can take to try and make a million much quicker. You can choose to invest more each month, of course. You can boost the quality of your research by reading articles and special reports from experts like The Motley Fool.

Image of person checking their shares portfolio on mobile phone and computer

And you can buy in the aftermath of stock market crashes. Using this method, you and I can pick up cheap quality UK shares that have been sold off along with the dogs as part of the broader correction. We can then watch them soar in value as the economic cycle picks up, company profits rebound, and the value of these stocks soar from their lows.

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Thousands of Britons made millions this way following the 2008 banking crisis. A large many of these bought UK shares in tax-efficient products like Stocks and Shares ISAs too, to improve their returns still further. And this army of newly-minted millionaires didn’t comprise born-and-bred investment gurus either. It was formed mainly of ordinary investors like you and I. Investors who saw a rare chance to supercharge their long-term returns and did some diligent research to make the most of the opportunity.

Getting rich with UK shares

Is there any reason why UK share investors today can’t follow their example? I don’t think so. First of all, history shows us that stock prices always recover strongly in the years following severe market corrections. And secondly, central banks are repeating the extensive support that helped the economic recovery following the stock market crash of 12 years ago by slashing interest rates and embarking on huge quantitative easing programmes.

I’ve continued to buy UK shares following the 2020 stock market crash. And I reckon you should too. This way we can supercharge our chances of making a million, perhaps more. So do some research and get investing today!

The post Stock market crash: I’d invest £181 a month in cheap UK shares in an ISA to make a million appeared first on The Motley Fool UK.

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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.

Motley Fool UK 2020

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