12:02 28 January 2013
With the increasing life expectancy, experts suggest that we are more likely to spend ¼ of your lives on our retirement years. Making saving for the future much more important than ever, don’t you agree?
Investing for your retirement isn’t rocket science. Here’s what you need to do:
First, estimate the amount of money that you’re going to need when you retire. Consider inflation and additional expenses. For example, you will most likely to need more money for vitamins and medical expenses when you reach 65 years old.
Then, add 10 per cent of that amount just to prepare for other unforeseen events.
Then, look for investment vehicles that will help you realize your goals quickly. If you can save the amount of money you need five years earlier, that would be better. Early retirement sounds exciting, right?
You have the options to invest on bonds, which are considered low-risk type of investment. It means that you’ll most likely to preserve your capital with small profits.
However, if you’re several years away from retirement, investing on stocks and shares maybe best for you. Remember, these are very risky as the stock market is often volatile. However, if you put your money here and leave them there for 10-15 years, you’ll most likely to expect amazing profits.
Self-invested pension plans are also attractive for people planning for their retirement. In here, you can choose where to invest your money and monitor your portfolio on a regular basis.
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