by Haris Quintana
You’re probably fairly young and hopefully in good shape. Maybe you own a property, maybe two and probably you have a decent job. Some of you will have a family to support, some won’t but whoever you are and whatever you do, chances are you often spend time looking towards the future and figuring out what it might hold for you.
For many of us, the prospect of an earlyish retirement coupled with great health would be enough. The chance to see the world, spend some more time with the people we love and live comfortably would be the icing on the cake. Sadly, we can’t as yet predict the future but we can decide how and where to invest our money so that the future does indeed look rosy.
In this guide we talk you through some saving and investment opportunities for older age:
Image courtesy of Pexels
In The First Place
Make a Will. You know it makes sense so just get it done and get it drawn up and officiated by a lawyer, like the Doug Newborn Law Firm, PLLC. Leave it with your lawyers or have it safely stowed in your home, just let family members know where it is so there will be no issues if the worst should happen to you.
Think Investments
It really is never too early to start investing for a more comfortable older age and if you’re looking for longer term outcomes, there are several options on the table, from straightforward higher interest saving accounts to investments in property, stocks, shares and bonds. What’s right for you will vary according to your experience, lifestyle and the amount of risk you’re willing to take on.
If you feel that you’re happy with a savings option, you’ll find shopping around is your best solution. You may find that online banks offer you the best results as they carry fewer running costs. Take a look, for example, at CIT and what it has to offer a saver. Often the most effective solution is to keep part of your nest egg in a high interest account which you can’t touch for a fixed term, say five years and then shop around to see if there are better options on the table after that and do the same again. With any additional savings you might consider stocks, shares or property.
Property
This can turn something of a hobby into a serious money-making scheme and there are two main ways to go about reaping a financial reward. First, as a hands-off investor. With a little knowledge, some good advice and a nose for a great investment you will be able to plough some cash into a building development, either at home or abroad and see your investment come back to you and more as properties are sold.
Secondly, you might be thinking about going into development yourself, buying up a site and creating a development or narrowing the process down to one house at a time. This option is really only viable if you do have some experience in the development or building industry and can quickly become a money pit if budgets aren’t adhered to strictly.
Shares
Somewhere along the way you may have acquired some shares but even if you haven’t, shares are another way of generating some income and ultimately some savings. Again, you have two real options. Either you’ll want to go it alone and create your own portfolio, spreading the risk across several different companies or you’ll want to invest as part of a fund.
This fund will afford you some protection though you may not have as much control over where your investment is spent. Whichever option you choose you’ll want to see shares as a mid to long term opportunity. You will see a lot of ups and downs over several years so think about sticking with them for at least five before you consider selling for a decent profit.
Art and Collectibles
You might have developed a fondness for a certain artist over the years, a style of furniture or a period of particular jewellery making. You may then consider expanding your hobby into an investment that, when the time’s right, will be worth much, much more than you paid for it. Of course, this doesn’t come with any guarantees and you’ll need to keep your art and other collectibles in spotless condition to make sure they maintain maximum saleability.
Collections can also see a boost in value by accompanying personal artefacts so the original letters of an artist to a friend or a sketchbook. Look out for collector’s auctions online and consider setting some money aside to add to your collection. Always make sure to update your house insurance with every purchase.
Bonds
Also known as Fixed Interest Securities, these bonds are effectively loans made by you to a government or business. During the course of the agreement you receive interest on the loan and at the end of the term you receive back the full value of the loan.
With a fixed rate you will know how much you are to receive each month, which takes the guesswork out but you are subject to the fluctuations of interest rates. which will cause your loan to become either more or less valuable as you go through the term.
With this option it’s always worth sticking with tried and tested institutions to avoid the risk of bankruptcy and a company unable to pay to back your initial loan.
Pension
You may have one or several through the work you’ve carried out but it’s a good idea to set up your own pension pot if you have some money to invest.
One of the best ways to go about choosing a pension is to talk to an independent pensions adviser for advice but if you check out comparison sites, you may arrive at the same conclusion in any case. You’ll find pensions traditionally offered by banks, building societies and insurance providers but you might also find different options if you are self-employed.
Make sure that you’re happy you can afford the minimum payment and that you know about any extra fees that might be headed your way. There will be a certain level of risk taken with your investment, so again make sure you’re happy that it’s risk you’re fine taking on.
Always have a lawyer or pensions expert check over the paperwork if you’re not sure about the deal and before you sign on the dotted line.
Older age is something exciting and new, to be planned for properly and enjoyed in its entirety. There’s no reason at all why you might not still be able to enjoy good health and squeeze every moment you can out of not being at work.
Start looking today at where to start making some good investments. Whether that’s in shares, in art, in a straightforward pension or savings scheme or even in a property the earlier you make your money work for you, the more you’ll have to enjoy after you drive home from the office for the last time.
If you’re in any doubt about what to do with your investments then talk to an independent financial adviser about how much money and how much risk you’re happy to shoulder and consider diversifying your investments across several options.
Then sit back and reap the rewards of a life spent working for just this moment and enjoy the freedom that great investments will give you.