Forget buy-to-let! Here’s how I’d invest £20k today to get rich and retire early

Forget buy-to-let! Here’s how I’d invest £20k today to get rich and retire early

first_img 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 | Saturday, 8th February, 2020 “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. 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. Investing in buy-to-let properties has historically been seen as a dependable means of generating high returns in the long run. After all, property prices in the UK have generally risen at a brisk pace over recent decades. This has provided landlords with capital growth, while rental growth has offered them an above-inflation increase in income.However, property is a cyclical market. It may now be set to experience a period of slower growth due to factors such as affordability concerns, tax changes, and a challenging economic outlook. As such, there may be a better place to invest £20k, or any other amount, to improve your prospects of retiring 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…A changing outlookThe ratio of average house prices to average incomes is currently close to a record high. This indicates property is becoming increasingly unaffordable, which may limit its potential to deliver ongoing capital returns in the coming years.Of course, low interest rates have been a contributing factor to house price growth since the financial crisis. While they may not move higher in the short run, the Bank of England is likely to adopt a tighter monetary policy in the long run. This could make it more difficult for prospective buyers to afford properties, and may force prices to moderate.In addition, demand could be negatively impacted by tax changes to buy-to-let investing. Additional stamp duty and landlords being unable to offset mortgage interest payments against rental income in many cases could lead to lower overall demand for property. This may mean price rises are less favourable than they have been, and could reduce the returns available to investors.An improving outlookWhile the outlook for buy-to-let investing could change significantly in the coming years, the prospects for the stock market seem to be relatively attractive. For example, the FTSE 100 and FTSE 250 currently contain a number of stocks that offer low valuations given their growth prospects. Buying those companies could produce market-beating returns, while the indexes themselves have solid track records of generating total returns of around 9% per annum over recent decades.Moreover, both indexes provide investors with the chance to invest in the growth potential of the world economy. The FTSE 100, for example, generates two-thirds of its revenue from non-UK markets, while the FTSE 250 obtains half of its income from international economies. At a time where the political and economic risks facing the UK are potentially higher than they have been in the past, geographical diversification could be a useful ally for investors.In addition, investing in the stock market can be undertaken on a tax-free basis. Accounts, such as a Stocks and Shares ISAs, are cheap and easy to open, and offer tax efficiency. As such, now could be the right time to avoid buy-to-let investing and, instead, focus your capital on the stock market to improve your chances of retiring early. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Forget buy-to-let! Here’s how I’d invest £20k today to get rich and retire early 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. Our 6 ‘Best Buys Now’ Shares See all posts by Peter Stephenslast_img

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