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This tiny error could wreck your bid to make a million from UK shares

first_img Enter Your Email Address 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. This tiny error could wreck your bid to make a million from UK shares If you want to make a million to fund your retirement, investing in UK shares is a great way to do it. By pumping regular sums into the stock market throughout your working life, you can amass a sizeable pot of money.The trick is to leave it untouched to grow in value, year after year. So resist the temptation to raid your funds to cover spending, or panic and sell up in a stock market crash. Another thing you should do is invest in a Stocks and Shares ISA, because that way all your capital growth and dividend income is free of tax for life. It’s a huge perk for shareholders. 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…There’s one more thing you must do. This one is vital, and I’ve just discovered I’m not always doing it. Please take a moment to check you aren’t making the same mistake too. Otherwise it could wreck your plans to make a million, or any other sum, from shares.Make a million without slipping upThe key to building long-term wealth from UK shares is to reinvest all your dividends for growth. You should not take the money as income until you retire and really need it. Here’s why. Over the 20 years to 31 December 2019, the FTSE 100 index rose just 600 points to 7,542, a rise of just 8.8%.If you’d reinvested all your dividends, your total return would have been 122%, figures from Schroders show. That’s an astonishing difference. Dividends were particularly important in this period, because the FTSE 100 delivered such little growth, but it shows their long-term value. By reinvesting every penny, you’re often picking up shares when they’re cheap, after stock markets have fallen.This means that to make a million you should reinvest every penny you get, but as I’ve just discovered, I haven’t been doing that.Click to reinvest your dividendsI have money in a low-cost exchange traded fund, iShares Core FTSE 100 UCITS ETF. I thought all my dividends were being reinvested, but then I noticed I had built up a cash balance of £449.34. The dividends were sitting idle in my cash account earning zero interest, rather than being pumped back into FTSE 100 stocks.This means that instead of buying the index during the crash in March, when it traded 20% lower than today, I bought nothing. That’s no way to make a million.I’d forgotten to click the button on my trading platform that ensures all my dividends are automatically reinvested back into the stock or fund that paid them.It took seconds to sort out. I went into the Dividend Reinvestment section, and amended my settings. Now all the money in my portfolio is going to work, rather than sitting idle.I’m not great with technology, so you probably won’t make the same mistake. It’s worth checking though. It could be the difference between making a million and falling short. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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.center_img Our 6 ‘Best Buys Now’ Shares 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. See all posts by Harvey Jones Harvey Jones owns shares of iShares FTSE 100. 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. “This Stock Could Be Like Buying Amazon in 1997” Harvey Jones | Friday, 9th October, 2020 last_img read more