Forget Premium Bonds and the National Lottery! I’d invest in a Stocks and Shares ISA today

first_img Investing in the stock market through a Stocks and Shares ISA has become simpler and cheaper over recent years. Online share-dealing has helped to make Stocks and Shares ISAs more attractive to a wider range of people, yet they are still not as popular as they perhaps should be, given their long-term return potential and tax efficiency.Certainly, the return potential of Premium Bonds and the National Lottery may be higher than the stock market. But, realistically, the chances of winning £1m+ on either of those products are slim. As such, now may be the right time to open an ISA and buy a range of FTSE 100 and FTSE 250 stocks for the long run.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…Realistic returnsThe chances of winning the National Lottery jackpot are just one in 45m. This means that the vast majority of people who buy lottery tickets are likely to lose their stake. Likewise, Premium Bond winners are few and far between. This means that the average annual return on Premium Bonds is around 1.4%.By contrast, it is realistic to assume that investors can generate a high-single-digit annualised return from the stock market. Evidence of this can be seen in the FTSE 100’s past performance. Since its inception in 1984, the index has recorded annualised total returns of around 9%. Although these returns have not been uniform, investing over a long period could mean that you are able to generate similar returns.Tax efficiencyAs with Premium Bond and National Lottery wins, investing through a Stocks and Shares ISA is tax-free. Unlike a bog-standard share-dealing account, there are no taxes charged on the investment gains and dividends made within an ISA. This could mean that your portfolio has a better chance of improving your financial future – especially with taxes on dividends, for example, having increased in recent years as a result of the dividend allowance being reduced to £2,000 per annum.In addition, withdrawals from a Stocks and Shares ISA are tax-free. This could make them more attractive to some investors than a SIPP or workplace pension – especially since withdrawals can be made from ISAs at any time without penalty.AccessibilityAs mentioned, the growth in online share-dealing has made Stocks and Shares ISA more accessible. It is possible to open an ISA online in a matter of minutes, while the cost of administering it can be minimal. In addition, building a diverse range of shares is cheaper and simpler as a result of services such as regular investing. They can reduce dealing costs to as little as £1.50 per trade and help to improve your overall returns.Therefore, while Premium Bonds and the National Lottery may provide the chance to win £1m+, the reality is that investing modest amounts in shares through an ISA could be a more profitable move in the long run. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Simply click below to discover how you can take advantage of this. 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. 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. Forget Premium Bonds and the National Lottery! I’d invest in a Stocks and Shares ISA today Our 6 ‘Best Buys Now’ Shares 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. Peter Stephens | Thursday, 30th January, 2020 Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” See all posts by Peter Stephenslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *