Business is booming, your company is growing, your staff think you’re a great boss, and your bank account is getting larger by the day. You might be tempted to make hay while the sun shines and treat yourself to holidays and meals out with that money. However, while many people do think about investing in their pension scheme, they don’t think about other ways in which they could make sure that they have the opportunity to retire in comfort. There are a huge array of possibilities to ensure that you have a little more than your state or company pension to rely on in your latter years. Below are a few ways that you can use some of that hard-earned money now, to make certain you have a more comfortable and secure tomorrow.
Stocks and shares
The first thing people think of when you say the word investing is probably stocks and shares; and for good reason. They are potentially the best way to make sure that you have a nice fat retirement fund in twenty or thirty years time. There are those that like to gamble on the penny shares due to the potential for high returns on investment. If the company share price goes up by even a penny, you’ve made a huge profit on your initial investment. However, the risk is high too, as these companies have cheap shares for a reason; they could go under at any time. Think long-term and safe. Setting up a DRIP, or Dividend ReInvestment Plan, with a large holding company could mean a huge amount of increased profit over a twenty year period. As Matt Frankel points out in his article, $10,000 invested in shares in 1994 would be worth around $50,000 after twenty-two years and would have paid $32,000 in dividends in that time. However, if you invested that money using a DRIP, your shares would then be worth over $300,000 simply due to the compounding effect that reinvestment has on your portfolio.
Just as big company shares will grow over a long period of time, so will property values. The house you bought in your late twenties could easily be worth double what you paid for it when you come to sell up and downsize in your fifties or sixties. However, buying extra property to rent out for a profit is not only a great way of boosting your income while you work, but also a way of securing a sustained income when you decide to retire, meaning that you don’t have to sacrifice your standard of living. Companies like sweetgrass real estate will be within reach thanks to the cumulative effect of your pension, stock, and property investments, allowing you to enjoy your latter years the way that you want to.
Investments are all about spending money on things that will accumulate value, and there is a huge market for collectables. In fact, having a collection is a hobby that many people don’t consider to be an investment at all. They simply see it as having nice things. However, watches, cars, books, toys, glassware, paintings, and many other things can all assemble a tremendous amount of value over time. You just have to have a good eye for what will become rare or sought after in the future.
There you have it, three excellent ways to supplement your pension savings and ensure that you have a comfortable and long retirement. You worked hard; you deserve it.