Many of us dream of retiring from work early and with enough money to keep us in the style to which we have become accustomed. The benefits of doing just that can be dramatic and wide ranging, for example, better health, more time to see the ones you love the most and more time to do the things you love the most.
One way of considerably boosting your retirement funds is to “downsize”. This is the process of selling your house and then buying a smaller one that is less expensive to run. The money left over and the money you save on running costs can then be put into your retirement fund.
Overpaying into your pension scheme or salary sacrifice is a great way of boosting retirement funds and the sooner you start, the sooner you are likely to be able to retire. What’s more is that the money is taken out of your salary before you pay tax or National Insurance and so you don’t pay as much. In short this is a really good way to save money tax free.
Don’t Put All Your Eggs in One Basket
Investments are another good way of boosting your retirement fund. Buy-to-let is one way of investing for the future, this is where you buy a second property and rent it out. When you want to retire, you sell the house and pocket the equity. According to the This is Money website, only equity investments performed better that bricks and mortar in the period 1985 to 2014.
Which brings us to stock investments and shares, there are lots of way to invest money on the stock exchange and not only is it a complex business, it also comes with varying amounts of risk. The higher the risk of course, the higher the potential gains and vice versa. For the majority of people the best way to go about investing in stocks and shares is to seek help from an independent finance professional who can talk you through the many options you have and the associated risks.
The ways in which you can invest for the future are broad ranging and sometimes complex, two things you need to do in order to get the most out of your money are firstly to seek advice from independent financial professionals and second to start your saving strategy as soon as you can.