The Motley Fool

Retire a millionaire? You can do it by investing in cheap FTSE 100 shares

Image source: Getty Images.

Who wouldn’t like to retire a millionaire? Aside from billionaire status, that is. It would make your later years far more pleasurable, to have a decent retirement pot to fall back on.

It’s possible for ordinary investors to build a million-pound retirement fund, if they start early enough and stick with it. Now could be a good time to accelerate your efforts, by investing in cheap FTSE 100 shares. After the stock market crash, there are plenty to choose from.

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...

Even if you don’t manage to retire a millionaire, you will be a a better position than if you never tried. Investing even relatively small amounts in a tax-free Stocks and Shares ISA is always better than investing nothing at all.

FTSE 100 stocks going cheap

It may not seem like it, but now’s a good time to get started. The stock market crash has frightened many investors, but it’s also thrown up plenty of opportunities. Many top FTSE 100 stocks are now trading at cheap valuations, by historical standards.

There are good reasons for that, as the world slips into recession. Companies in some sectors will struggle to recover, even after the UK edges out of lockdown. Others will fly out of the traps though, and could be stronger than before.

There will be consolidation in some industries, and financially-strong companies will thrive as weaker competitors flounder. Some will even look to acquire rivals on the cheap. They will take advantage of this buying opportunity, and you should too.

You can retire a millionaire

Naturally, we don’t know how deep the recession is going to be, and how long it will last. But history shows investors who took the plunge and bought shares in previous recessions did well when markets recovered.

Also, we’ve seen share prices decouple from the wider economy. That’s because the world’s central bankers have effectively backstopped the market with trillions of dollars worth of stimulus. As that money flows into the market, share prices could fly.

Some of you may be tempted to wait until the picture is clearer. I wouldn’t recommend that. As we saw after the lows of 23 March, when markets rebound after a crash, they move upwards swiftly. If you try to time your entry point, you’ll almost certainly miss that early surge.

Those who are planning to retire a millionaire need to show a bit of pluck and buy FTSE 100 shares when they’re down. Personally, I would target companies with strong balance sheets, loyal customers, steady revenues, high barriers to entry, and plenty of net cash. That should see them through current troubles, and put them in a strong position for the recovery.

The next leg of the stock market recovery could arrive faster than you think. By investing before it comes, you can take another step on the road to a million pound retirement.

This is where I'd start.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Harvey Jones 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.

Our 6 'Best Buys Now' Shares

The renowned 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.

Simply enter your email address below to discover how you can take advantage of this.

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.