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Retirement savings: why I think it’s never been easier to become an ISA millionaire

Making a million has never been an easy task for any investor. However, the appeal of the FTSE 100 and FTSE 250 could make it easier than it has been with both indexes appearing to offer good value for money.

Furthermore, changes to ISAs in recent years means that they’re potentially more appealing compared to online sharedealing accounts. Increased allowances and the emergence of products such as Lifetime ISAs, for example, could lead to higher returns in the long run. As such, while it’s still not easy to make a million, there may be a better chance of doing so today than there has been in the past.

Appealing investments

While the stock market has experienced a bull run in the last decade, the FTSE 100 and FTSE 250 appear to offer wide margins of safety at present. A number of their members have delivered disappointing share price performances in recent months as a result of political and economic challenges that have caused investor sentiment to decline.

With risks such as Brexit and a global trade war being somewhat persistent, there could be a range of opportunities for investors to capitalise on low valuations for a range of stocks in both indexes. Through buying while both appear to offer good value for money, an investor may be able to improve their risk/reward ratio and increase their chances of generating high returns in the long run.

ISA changes

The increase in the annual ISA allowance to £20,000 over recent years could make it easier for investors to generate a seven-figure portfolio in the long run. Although many investors may not be able to commit the full £20,000 per year, the fact that the allowance is almost three times as much as it was a decade ago means many people may be able to commit a larger amount than they would previously to their ISA each year.

In addition, the introduction of new products such as the Lifetime ISA could provide a boost to your long-term financial prospects. It offers an annual bonus of 25% of all contributions. Since up to £4,000 can be paid into a Lifetime ISA each year, this could amount to an annual bonus of up to £1,000. As such, it could be a worthwhile product for anyone under the age of 40 to open.

Making a million

With the FTSE 350 appearing to offer good value for money at present, as well as growth potential, there are a wide range of investment opportunities available to improve your chances of making a million. Although achieving that goal may not be easy, changes to ISAs in recent years could make the task more realistic for a larger number of people. As such, now could be the right time to start investing in shares through an ISA.

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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.