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I’m using the stock market crash to buy cheap FTSE 100 stocks and retire early

After the stock market crash, there are cheap FTSE 100 stocks everywhere you look. Some major companies have been mothballed. Many have cut their dividends until further notice. Others have pulled their profit forecasts, as worthless. I’ve never known anything like it. Nobody has.

These are unnerving times, as millions lose their jobs and see their financial plans shattered. However, the share price crash could also be an opportunity for investors to scour the FTSE 100 for bargain stocks. Buying today could help you get rich and retire early.

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You have to be brave to buy cheap FTSE 100 stocks, even at today’s low prices. However, history shows that, in the longer run, you’ll be rewarded for showing courage today.

Cheap FTSE 100 stocks galore

I’m old enough to remember Black Monday in 1987, the bust in 2000, and financial crisis in 2008. I remember how desperate investors felt at the time, as they watched the value of their portfolios plunge in the stock market crash.

The opportunity to buy cheap FTSE 100 stocks didn’t last long. On every occasion, the market recovered, often with surprising speed. After the bear market, a lucrative bull run generally followed.

Those who bought at the bottom of the stock market crash, when most investors were feeling too nervous to invest, got in ahead of the recovery. They were the ones who made serious money, by picking up cheap FTSE 100 stocks, before they started to become a lot more expensive. While the recovery may be slow and uneven, I believe we have a similar buying opportunity today.

Stock market crash is an opportunity

If you want to build a big enough investment portfolio to help you retire early, then you don’t want to miss this chance. You have a brand-new Stocks and Shares ISA allowance, and can invest anything up to £20k in the months ahead.

By loading it up with cheap FTSE 100 stocks at today’s bargain prices, then simply leaving them for the long term, you could accelerate your plans to retire early. That’s what I’m doing, whenever I have money to spare.

You could simply buy a FTSE 100 tracker, as I have, or go searching for FTSE 100 bargains. Oil majors BP and Royal Dutch Shell could tempt at today’s super-low valuations. If you want solid dividends, tobacco manufacturers British American Tobacco and Imperial Brands are potential picks.

Get rich and retire early

Cheap FTSE 100 stocks, such as spirits maker Diageo, pharmaceutical company GlaxoSmithKline, and household goods specialist Unilever all look tempting at today’s bargain prices too.

These are just a few suggestions. After the stock market crash, the index is jammed full of cheap FTSE 100 stocks. If you start investing in them from today, you could build a big enough portfolio to retire early.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline and Unilever. The Motley Fool UK has recommended Diageo and Imperial Brands. 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.