One of the favourite quotes associated with a pensioner is “no hurry, no worry, no money and no boss”. While we all hope that such a dream can evolve into a reality, times are changing. Certain retirement packages are not nearly as secure as they once were. This has forced some pensioners to tap into other financial assets such as an ISA or even a second mortgage in order to make ends meet. However, such drastic measures can be averted if suitable investments are made well in advance of retirement. Now, let us take a brief look at some potential strategies as well as a handful of markets to consider. Some you may already be aware of, others may give an insight or alternative way of reaching your retirement goals.
Taking the Conservative Approach
The entire purpose of any type of pension package is to provide you with stability during your later years. Hence, it only makes sense that this financial “umbrella” consists of conservative assets that are likely to produce predictable growth over time. This is the very same reason why managed funds are largely comprised of medium-yield holdings as opposed to short-term liquid positions. In other words, we are referring to assets such as:
- Blue-chip stocks
While there is nothing inherently wrong with holding a small number of short-term positions, sustainable wealth tends to be amassed by enjoying conservative yields over time.
Smart Investing Techniques: Mobilising Your Money
You will need to adopt a certain sense of pragmatism when managing any type of retirement “nest egg”. As opposed to investing for fun or to turn the occasional profit, the goal of this approach is to provide financial stability for you and your loved ones at a future date. So, be sure that your choices are based off of research as opposed to gut instinct or the ill-fated hot tip. This may create a slower pace of investments initially but will mean you make the right decisions.
Another wise choice is to employ the services of a trusted wealth management firm. Such third-party resources will provide you with a greater sense of how effective your investment strategy will be for reaching your goals. This is particularly wise if you have little experience within the stock markets. The advice of a trained professional can go a long way towards providing you with a greater sense of discipline when approaching your investments.
Another point to keep in mind is that profits do not rise in a straight line. By their very nature, ups and downs will occur. The key takeaway point is to differentiate a long-term downward trend from a short-term anomaly. Once again, this is where the advice of an investment adviser can prove invaluable.
The Golden Years
Smart investment strategies are perhaps the single most effective method to generate a bit of extra liquidity towards your pension. After all, why risk tarnishing the luster of your golden years?