Most of us recognise the importance of putting some money away for a rainy day. But, many of us are still not saving for major life events that are set to occur a long way in the future. For example, 41% of Brits are not building up sufficient funds to pay for their children to go to university or take on an apprenticeship. A similar number are not saving enough for retirement.
Yet, as you will see, there are efficient ways to save money for events that won’t take place for many years. Below, are details of just a few of your options.
Stocks and shares
Historically, over the long-term, the stock market performs better than other financial products do. So you might want to investigate opening a Wealthify stocks & shares ISA.
But you should do a bit of research before you make an investment like this. You need to bear in mind that this type of long-term investment may not work well for time-sensitive events. If you need to turn your investment into cash when your children turn 18 and the market is low at that point, you could end up losing some of your capital. So, this type of investment is not something you should go into lightly.
The same is true of precious metals like gold. Over the long-term, you can usually enjoy a good rate of return. But, again, you do not want to put yourself in a position where you have to sell when the price is low, because you need to meet a pressing financial obligation.
Investing in collectables
If you have a passion for collecting and know what you are doing collectables can accrue a great deal of value, over the long term. This is a relatively high-risk way of investing for the future. But, if you enjoy buying and owning the items, not being able to sell them years down the line for a high mark-up may not be a big problem. You can find out more about making money from collectables by clicking here.
Investing in property
The property market can go up as well as down. But, generally speaking, over the course of many years, real estate tends to increase in value.
You also have to factor in the fact that it will cost you money to maintain any property that you own. However, there are ways to cover this expense. Provided you can rent it out you can usually easily cover these costs and maybe even make a profit.
Last on my list is growing your pension fund. If you have not done so for some time you should get an independent financial advisor to review how you are saving for your retirement.
Everyone should do this regardless of whether they have a personal, stakeholder pension or money tied up in a workplace defined contribution scheme. Knowing how much is in each pot, and how much income each one should produce will help you to work out if you are saving enough for your retirement. If you are not, the independent financial consultant will be able to give you guidance, to help you to solve that problem.
Your budget can easily start to suffer when you retire. You might not have anywhere near the nest egg you want or income you need. A reverse mortgage offers an alternative to a traditional home loan, which would only give you a mortgage bill to pay on top of the expenses you already can’t handle. Just do some research to find top reverse mortgage lenders in your area. Those could include government agencies or private banks. Choosing the right lender is important because expenses like closing costs and interest fees may be different when offered through different lending institutions. Once you are approved, you can immediately start to feel your financial stress melt away.