Forget the Cash ISA! I’d buy FTSE 100 stocks to retire early

first_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. 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. Cash ISA interest rates have plunged this year. In what has been a terrible time for savers generally, the best flexible Cash ISA interest rate on the market has fallen from around 1.3% at the beginning of the year, to 0.9% today. At this rate of return, it would take 80 years to double your money. With that being the case, FTSE 100 stocks may present a better option for investors who want to get rich and retire early.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…While these companies may not offer the same kind of protection as a Cash ISA, blue-chip stocks may make up for this with significantly higher returns. Time to dump the Cash ISA? Over the past three-and-a-half decades, FTSE 100 stocks have produced an average annual return for investors of 9%. Over the same time frame, the average yield on Cash ISAs has plunged. Still, a Cash ISA does have its advantages. For example, investors can be sure that when they deposit their hard-earned cash, its value won’t drop overnight. This can happen with blue-chip stocks. But that doesn’t mean cash is entirely safe. Indeed, the biggest threat to savers’ money is inflation. This can eat away at the purchasing power of your money. This means that even though the value of savers’ cash might remain the same, it will buy less in stores. Technically, interest received on cash should stop this from happening. But, for the past few years, that hasn’t been the case. With interest rates at record low levels today, it doesn’t look as if this trend is going to end anytime soon. On the other hand, stocks have proven themselves to be an excellent hedge against inflation over the long run. That’s why FTSE 100 stocks may be the better investment over a Cash ISA. FTSE 100 returns With an average annual return of 9%, FTSE 100 stocks have far outperformed cash over the past 35 years. During this time, the market has seen some significant volatility. On three occasions, the index has fallen more than 50%. Still, on every occasion, it’s recovered its losses and gone on to reach a new high. As such, while a Cash ISA might look like the better bet right now, over the long run, the FTSE 100 could be the better buy. The numbers present a good idea of the sort of returns investors can expect. Over the past 35 years, £100 invested every month in the FTSE 100 would be worth £300k today. The same monthly investment in cash would be worth around £60k. Therefore, buying a basket of blue-chip stocks, or owning the FTSE 100 as a whole, may be the better option than opening a Cash ISA. Investors with a long-term outlook should look past near-term uncertainty in the market and focus on its longer wealth-creating abilities.  “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves | Sunday, 19th July, 2020 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. Simply click below to discover how you can take advantage of this.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Rupert Hargreaves 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 See all posts by Rupert Hargreaves Forget the Cash ISA! I’d buy FTSE 100 stocks to retire earlylast_img

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