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Investing in FTSE 100 and FTSE 250 shares has proven a great way to build wealth over time.
Since its inception in 1984, the Footsie‘s provided an average annual return of around 7%. The FTSE 250‘s long-term return is even greater: it’s 11% since the index’s creation in 1992.
If you’re looking to build big wealth with UK blue-chip shares, here are some top tactics to consider.
Open an ISA or SIPP
The first thing to think about is how to minimise or eliminate the tax due on returns. Over time, this can add up to tens, or even hundreds, of thousands of pounds.
Rather than investing in a general investment account (GIA), I myself own shares in an Individual Savings Account (ISA), and more specifically the Stocks and Shares ISA. I also hold stocks, funds, and trusts in a Self-Invested Personal Pension (SIPP).
With these accounts, investors don’t owe the taxman a…
