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Saved money over lockdown? Here’s how to build your wealth now

first_img 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. Image source: Getty Images. Saved money over lockdown? Here’s how to build your wealth now 2020 has been a tough year for many Britons financially. As a result of coronavirus lockdowns, millions of people have either been furloughed and taken pay cuts, or lost their jobs completely. However, there are some people that have actually been able to save far more money during lockdown.With spending opportunities reduced significantly, many of those who are still in full-time employment have found themselves with more money to save each month.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…This is reflected in recent data from the Bank of England (BoE) which shows that households’ deposits increased by a record £25.6bn in May (following strong increases in April and March). That compares to a pre-Covid-19 six-month average of around £5bn per month.If you’ve saved money over lockdown, that’s great news. But what do you do with it now?Where to invest savings nowAssuming you’ve already paid off any high-interest-rate debt and sorted an emergency fund, it could be a good idea to invest your savings for the future.Leave all your savings in a bank account or a Cash ISA and it won’t get you very far. According to the BoE, the effective interest rate on new time deposits was just 0.87% in May. That’s a truly abysmal rate of interest. If you’re earning that kind of interest rate on your money over the long term, you’re only going to go backwards in real terms (i.e. once inflation is factored in).Invest your money in the stock market, however, and there’s a good chance you’ll build your wealth up over time. Historically, the stock market has delivered returns of around 7-10% per year, on average, over the long run, which is an excellent return. That’s well above the long-term rate of inflation, and far higher than the returns from savings accounts.Investing has never been easierInvesting in the stock market is incredibly easy these days. Open an account with a reputable provider, such as Hargreaves Lansdown or Interactive Investor, and you can literally be investing within minutes.My advice would be to open a tax-efficient account, such as Stocks & Shares ISA (where all gains are tax-free), or perhaps even a Lifetime ISA if you’re under 40 (this comes with 25% bonuses on contributions but has restrictions on withdrawals). Then start building a diversified portfolio that contains a mix of UK and international stocks.Build your wealthIf you don’t want to worry about picking stocks yourself, funds can be a great way to invest in the stock market. One of my favourites is Fundsmith Equity. This is a global equity fund that’s returned about 50% over the last three years. Exchange-traded funds (ETFs) and investment trusts can also help you get diversified exposure to the stock market with minimal hassle.Alternatively, if you don’t mind doing a bit of research yourself, consider picking your own stocks. This approach to investing can be higher risk. But it can also generate higher returns. For example, had you invested £2,000 in online fashion retailer Boohoo five years ago, that money would now be worth around £30,000.Just make sure you think long-term. In the short term, the stock market can be volatile. It’s important to be aware of the risks. In the long run, however, stocks tend to produce fantastic returns for investors. See all posts by Edward Sheldon, CFA Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Edward Sheldon owns shares in Hargreaves Lansdown and Boohoo and has a position in the Fundsmith Equity fund. The Motley Fool UK has recommended boohoo group and Hargreaves Lansdown. 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.center_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. 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. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Simply click below to discover how you can take advantage of this. Edward Sheldon, CFA | Wednesday, 1st July, 2020 last_img read more

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