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Planning for the future is always beneficial. Whether you’re still working, or you’ve recently retired, it’s wise to take steps to boost your pension pot so that you can make the most of your retirement. There are several investment opportunities you may be thinking about exploring to grow your money and increase your savings balance. In this guide, we’ll take a closer look at some of the most common investment options and help you decide which is best for you.
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Investing in property
Buying bricks and mortar often represents a relatively safe bet, but it’s not a guaranteed golden ticket to a stress-free retirement. To benefit from buying property, you have to make the right calls at the perfect time. The property market can be volatile and unpredictable, and there is always a risk of losing money if you buy or sell at the wrong time. If you are thinking about putting money into property, it’s crucial to consider the kind of investment you want to make before you start scouring listings or booking viewings. Do you want to buy a house or flat to let, are you looking for a holiday home you can hire out, or are you interested in taking on a renovation project and then selling up?
Once you’ve decided which route to take, the next step is setting a budget. Before you decide on a maximum outlay, analyse your finances carefully, arrange to speak with mortgage advisers and get an idea of how much you can realistically afford to spend. It’s vital to be realistic and to avoid stretching yourself too far. You don’t want to be panicking about paying bills or keeping up with remortgage payments.
When you’ve set a budget for your property search, think about the tenant or buyer you’re hoping to attract. It’s critical to remember that you’re buying a house or an apartment to make money, rather than trying to find your dream home. Look for features and amenities that will appeal to your ideal buyer or tenant, for example, good transport links for young professionals, proximity to university, restaurants and bars for students and access to excellent schools for families.
Consider the location, and be prepared to cast your net slightly further if you can’t afford the most sought-after areas. Investing in up and coming neighbourhoods is often a smart move. Keep an eye out for signs of redevelopment and regeneration. Conduct extensive research on the local market to find out more about rental and sale prices and demand for properties.
If you plan to take on a fixer-upper, cost out every expense in advance. Budgeting is more complex with this kind of project because you’ll need to add the purchase price to the cost of the renovation.
Before you submit an offer on a property you feel ticks all of the boxes, gather information from the agents. If the house has been on the market for a long time, for example, it’s a good idea to go in with an offer that is lower than the asking price. You can always increase the value if the initial offer is rejected.
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Commodities and collectables
If you have an interest in art, antiques or collectibles, such as figurines, coins, vintage toys or ceramics, you may find that you can use your passions and your knowledge to increase the value of your pension. You may have seen TV programmes where people sell an old vase or a gold clock for a fortune, or perhaps you’ve watched adverts for buying or selling gold. If you’ve been inspired to invest in collectibles or try your hand at making money by buying gold, it’s important to do your research to maximise the chances of seeing returns. The supply of gold is finite, and there is always a demand for products made from gold.
You might not be able to afford to fill a basement with golden nuggets and bars, but there is an opportunity to benefit from purchasing smaller quantities or investing in funds. Gold bar weight is an important consideration, but it’s also critical to consider purity. Before you decide to buy or sell, do your research, compare offers and make sure you deal with reputable, reliable vendors. Apply the same rules when acquiring antiques. Look for hallmarks and signs of value and exclusivity, and if in doubt, ask an expert to cast their eye over an item before you shake on a price or sign on the dotted line.
To make money from commodities and collectibles, there has to be a demand. If you’re new to this kind of investment, take a look at what people are buying, analyse sale prices and try to predict the next big thing.
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Stocks and shares
If you’ve ever seen The Wolf of Wall Street, you’ll know that there is a lot of money to be made from investing in stocks and shares. The trouble with this type of investment is that it comes with significant risks attached. The market can be extremely tumultuous, especially amid political or economic uncertainty, and there is no guarantee that you’ll make your money back, let alone boost your income.
If you’re not au fait with how trading works, or you’ve never bought stocks and shares before, it’s helpful to seek expert advice and to make use of trial programmes and virtual opportunities before you part with any cash. Dummy runs enable you to get a feel for how the systems work and to gain an insight into how the market moves.
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Are you looking to invest to grow your pension pot? If you have savings you’re keen to use to grow your income, or you want to use a portion of your salary to plan for your retirement, it’s worth exploring different opportunities and calculating the risks. Always undertake thorough research before making any decisions, seek advice from experienced, trustworthy experts and take your time. You should never feel pressured to spend money or to sign up to schemes or make purchases that you’re not 100% sure about.
