Why I’m buying cheap stocks in an ISA to try and retire early

My plan for bringing forward my retirement date is to make the most of my Stocks and Shares ISA. I think it might be the best weapon I have available in trying to build wealth over time.

In general, the UK has a reputation for being risk-averse when it comes to investing. But there are some terrific incentives available for those who want to participate.

Stocks and Shares ISAs

There are lots of challenges when it comes to investing. These include figuring out what to buy, working out when to buy them, and deciding how to build and balance a portfolio.

None of those questions is straightforward, even for the best fund managers. And opening a Stocks and Shares ISA doesnât really help make things any easier.

What it does do, however, is let investors keep more of their returns. Investors who keep their investments in an ISA donât have to pay taxes on capital gains or dividends.

That can be a big advantage over time, especially for those who do well. And thereâs another big advantage to a Stocks and Shares ISA for someone like me wanting to retire early.

Unlike a Self-Invested Personal Pension (SIPP) or a Lifetime ISA (LISA) investors can take money out of a Stocks and Shares ISA at any time. They donât have to wait until retirement.

Thatâs why itâs my vehicle of choice. As someone looking to retire early, the tax advantages and the opportunity to access my returns at any time are a powerful combination.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

What to buy?

Opening a Stocks and Shares ISA, though, is only half the battle. The other â arguably more important â half is figuring out which stocks to buy in it.

One that Iâve got an eye on is Brown & Brown (NYSE:BRO). Itâs a US-based insurance broker that UK investors might not be familiar with, but I think itâs well worth checking out.

The stock fell 23% in 2025, for a couple of reasons. A weak insurance market meant lower commissions and the firm also made a major acquisition that it now has to integrate.

Both of those risks are ongoing in 2026, but the stock is unusually cheap as a result of its falling share price. And thatâs why Iâm interested in buying it.

The company has a market value of $26.5bn. Adding in another $6.5bn in debt takes total enterprise value to just under $33bn.

In that context, $1.2bn in annual free cash flow implies a return of just under 4%. And I think thereâs a lot of scope for both recovery from the ongoing challenges and future growth.

Investing for retirement

Brown & Brown isnât much of a dividend stock â it typically looks to reinvest the cash it generates to drive higher returns in the future. And thatâs fine with me.

The key thing for the company is that thereâs still a huge number of potential acquisition targets going forward. Thatâs why Iâm expecting further growth in future.

Realistically, Iâm still quite a way from retirement. But I donât think itâs ever too early to start thinking about a Stocks and Shares ISA and what to put in it.

The post Why I’m buying cheap stocks in an ISA to try and retire early appeared first on The Motley Fool UK.

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Stephen Wright has positions in Brown & Brown. 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.