There comes a time when all of us start to think about the future, and a big part of that involves our finances. While most of us will be enrolled in a company pension scheme of some sort, it’s always a good idea to consider ways to generate an additional income on top of this fund to help with retirement. There are a number of ways you can do this, and some of which take more dedication than others. If you’re keen to start planning towards a strong financial future, here are three different methods to help put your mind at rest.
Property investment is one of the most popular ways to invest. Unlike stocks and shares, buy to let is often considered more effective due to offering multiple types of returns through both rental income and capital appreciation. Those who invest in a buy to let property can build an attractive pension fund to help them in the future, thanks to the extra income they generate. Then, when they’re ready to sell the property later in life, they can benefit from having a large sum of money added to their retirement fund.
If you do think property investment is the best solution for you, it’s important to take all the right steps. This includes researching the best locations, looking for properties with the highest yields, and being as knowledgable as possible about the property market. Seek out a trusted property company to work with to make sure you’re in good hands. RW Invest, based in Liverpool and London, is one of the UK’s most popular property investment companies, offering a range of lucrative opportunities.
So you want to invest, but you’re not quite at the stage in your life where significant commitments like property are an option? Micro-investing is a trend that’s been growing in popularity over recent years and involves using a smartphone app to make investing easier. Examples of this include the Moneybox app, in which users are able to ‘invest spare change’ every time they make a purchase. For instance, if you bought a coffee which was priced at £2.50, the app would round up your purchase to the nearest pound and then save the extra. This extra money you accumulate is then invested into tracker funds, determined by the level of risk the user chooses to work with. While this method may take a little longer to make a substantial amount, it’s a good way to get started with investing and generate some extra cash to help you in the future.
With an ISA
An ISA is a savings account that allows users to generate interest on the money they save. The government adds tax-free interest onto the funds added to an ISA, which is why they make a good option for anyone thinking about ways to save for their financial future. One of the most popular ISA’s for this purpose is a Lifetime ISA, in which you can save away a maximum of £4,000 a year until you’re fifty, and receive interest returns of up to £1,000 a year.