I’d aim for a million buying blue-chip shares

I direct millions from my investments. If I can hit that number in my account, it means financial security, a larger amount to pass on to my kids or grandkids, and a regular income when I start withdrawing.

The data shows that thousands of people in the UK have put £1,000,000 into their ISA accounts. I hope to join them some day. And the key to my strategy is to invest in blue-chip stocks.

Why blue-chip stocks?

Blue-chip stocks refer to stocks from well-established and highly regarded companies. In the UK we have a boatload of these companies in it FTSE 100which consists of the 100 largest public companies in London Stock Exchange.

Their blue-chip size means they operate around the world and in different regions. This makes them resistant to the effects of downturns in certain geographic locations or markets.

In addition, they tend to pay good dividends to their shareholders. So if I own a blue-chip stock, I will get regular payments from the company. And dividends can keep my account higher even in tough times.

Share this I like? Well, the next time I have some free money, I’m going to open positions in two financial service providers Legal & General and mining companies Rio Tinto. They are two British multibillion pound companies that offer weighted dividends.

Another company on my watch list is a supermarket chain Sainsbury’smedicine man GSK and energy infrastructure companies National Grid.

Choosing the right company is important if I want to make millions, so research will be important here.

How long before I hit a million?

If I invest in a company in the FTSE 100, I can plan for an 8% return on my holdings every year. That is the historical average return. But I will go down a little to give myself a buffer. A 7% return seems reasonable (although I know I can undershoot that as the return is not guaranteed).

Here’s what investing £600 a month in those blue-chip stocks would look like with a 7% return, if I started from scratch. I will hit the million mark after 35 years.

I can bring the amount of the year down with more savings or return more than the stock I invested in. But of course, it can take a lot more if I invest less or it’s been a long time where I can’t save.

Investing now rather than later is critical

One investment truth that almost everyone agrees on is that ‘time in the market beats timing the market’. This means that instead of trying to predict the daily ups and downs of the stock market, it is best to invest for the long term.

So what does that mean for me? Well, if I want to make a million or more from investments, I should start as soon as possible. Before I invested, more time my money mushroomed into an impressive amount.