Our view here at The Motley Fool is clear. Buying UK shares is one of the best ways for us to make explosive returns on our savings. On top of this, we believe the 2020 stock market crash provides an opportunity for us all to supercharge our long-term returns.
Bitcoin still attracts a lot of interest but extreme price volatility here makes it a poor choice for investors. Rising buy-to-let costs, allied with the prospect of weak property price growth as the UK economy struggles, makes property rentals an ineffective way to use your money as well.
Traditional savings products like Cash ISAs are popular with those worried about a severe economic downturn. But the pathetic interest rates on offer here make them completely unsuitable for those seeking any sort of decent return.
Forget Cash ISAs
My research shows that the best-paying Cash ISA currently available offers a paltry 0.95% interest rate. Someone who saved £300 a month for 20 years in one of these products would make just £7,227 profit. Quite a meagre return on total contributions of £72,000, I think you’d agree.
That person would have been much better investing that £300 a month in a Stocks and Shares ISA instead. Why? Well those that buy UK shares and hold them for the long run (say a decade or more) make an average yearly return of 8-10%. A similar rate of return would see our unfortunate Cash ISA saver make a profit of between £98,700 and £143,478 on that £72,000 total investment.
These are the sort of figures that could help you live a very comfortable retirement. You might even be able to retire early by investing in UK shares. The miracle of compound returns — that is the ability to make a fortune by reinvesting your original capital each year along with the interest — means that those who can invest more a month, or for a longer period of time, can make truly spectacular, life-changing returns.
Investing in UK shares
Alternatively, you and I can load up on UK shares following a stock market crash. This is how hundreds of people made millions in Stocks and Shares ISAs over the past decade. They bought quality shares at low prices during the depths of the 2008/2009 banking crisis. They then watched them rebound in value as economic conditions improved.
So, if you don’t have that much to invest, or don’t have that long to save until retirement, the 2020 stock market crash could be just what you’ve been waiting for. Like a decade ago, there are scores of top-quality companies with robust balance sheets that have been grossly oversold. And they’re cheap enough that they provide terrific scope for excellent capital growth in the coming years.
Getting rich with The Motley Fool
So forget about Cash ISAs, Bitcoin and buy-to-let. You’d be much better off buying UK shares after the stock market crash. And The Motley Fool’s treasure trove of special reports can help you make the most of this opportunity. So do some research and get investing today.
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.