10 top tips for a comfortable retirement

1. Review your expenditure

Start with your current outgoings then revise which are important.

Work out what your    1. Your basic minimum std of living will be £???? pa

                                 2. your comfortable std of living may be £???? pa

Don’t forget to include any housing costs, transportation costs, medical supplies spending money, food costs, travel/holiday budgets & out of pocket expenses.

Importantly one of the best tips I can give is an obvious one and that is: Reducing unnecessary monthly outgoings is ALWAYS a valuable income boost but especially  in retirement

2 Make a list

Of all your assets which have the potential to generate a future income.

Such as: State pension benefits, insurances, Investments, savings, rental property,

spare rooms, garage rental, working part time, rent or sale of unwanted items/valuables. etc

3 Think about the real growth

You need to account for the real effects of inflation.

Try to focus on the difference between the inflation rate your investment returns.

For example – a inflation rate of 4pc per annum and an investment return of 5pc

provides a real return after inflation of just 1 per cent. But that is real growth

Remember - If you live a long time then inflation will be your biggest enemy!

With so many mortgage deals available, all with varying types of rates, fees and monthly payment together with finding the right lender for your needs, it really does make sense to use an independent adviser like us.

With remortgage rates from just  1.15% pa (APR 2.2%) and fee free deals from 2.95% (APR 4.1%) 

There is even fixed rate deals from just 1.75% over 2 years and 1.95% over 5 year.

 

For customers wishing to remortgage, there are a number of 3 or 5 year 2.9% deals with no valuation fee and no legal fees, just our adviser fee of £295

For that £295 fee. we research the whole market for the best type of deal for you, then we select top 2 deals that match your needs and then we deal with all the arrangements with the new lender until you complete.

 

Why not read our client reviews, especially the mortgage reviews, as each one has been verified by VouchedFor.com and is a current client of First option

 

As Bob says: "Clients need independent financial advisers more than ever"                            

                                       

                               You can call us now on 02920 811532

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 Warning: Your home may be at risk if you do not keep up the mortgage payments on it

Interest rates can varying over time and you may need to ensure affordability beyond any short term discounted deal

 

When new clients come to us, we always set ourselves certain goals for all our new & existing clients:

We try to

1. Ensure you are financially better organised than when we first met you
2. Maximize your investment returns and ensure they fit within your Risk & Comfort levels.
3. Provide the right protection for you and your family
4. Reduce your tax liabilities
5. Careful manage your financial risks
6. Ensure you have sufficient cash reserves

When you have more money  coming in than going out or even a lump sum,
you may be wondering,how to make the most of it.

 

1. Saving and investment are very different
Since the recent oil crash, the China v US Trade wars, Corona Virus and the oncoming recession,its natural for careful savers to want a safe place for their money where they can get at it easily or just turn to tap on for monthly income.
Clever Investors will always want their money to grow by at least inflation plus and accept that it may be tied up for some time typically 3-5 years but with always access if required.

 

2.Each investment has it own level of risk
Just as in life, there are usually no guarantees that you will make money or even get your money back but getting the timing right on your investments is always profitable.

 

 3. The greater the Risk, the greater the potential for reward or Loss

nflation risk The threat of rising prices eroding the buying power of your money Specific risk If you invest in individual companies or shares, there’s always a chance that unforeseen events will scupper your portfolio Currency risk You’ll face this risk if your money is invested in stock markets outside the UK Manager risk Some fund managers may consistently beat their benchmarks, but there’s a huge variation in the investment performance of individual managers.Read more: https://www.which.co.uk/news/2020/08/coronavirus-how-to-protect-your-investment-portfolio/#safe - Which?
nflation risk The threat of rising prices eroding the buying power of your money Specific risk If you invest in individual companies or shares, there’s always a chance that unforeseen events will scupper your portfolio Currency risk You’ll face this risk if your money is invested in stock markets outside the UK Manager risk Some fund managers may consistently beat their benchmarks, but there’s a huge variation in the investment performance of individual managers.Read more: https://www.which.co.uk/news/2020/08/coronavirus-how-to-protect-your-investment-portfolio/#safe - Which?

They are many risks with investing your hard earned cash!

Inflation risk

The threat of rising prices greatly reducing the buying power of your money which is even more critical , in today's increasing prices which seem to be much higher than expected.

Specific risk If you invest in individual companies or shares, there’s always a chance that unforeseen events will scupper your portfolio and create big losses or gains but its risky!

Currency risk

You’ll face this risk if your money is invested in stock markets outside the UK as well as political risk with the uncertainty of Brexit which just around the corner and the damaging effects may last for years.

Manager risk

Some fund managers may consistently beat their benchmarks, but most don't ...so there’s a huge variation in the investment performance of individual fund managers.

So why take the risk always use a good experienced IFA with high client reviews and low adviser fees like First Option for example.

 

nflation risk The threat of rising prices eroding the buying power of your money Specific risk If you invest in individual companies or shares, there’s always a chance that unforeseen events will scupper your portfolio Currency risk You’ll face this risk if your money is invested in stock markets outside the UK Manager risk Some fund managers may consistently beat their benchmarks, but there’s a huge variation in the investment performance of individual managers.

Read more: https://www.which.co.uk/news/2020/08/coronavirus-how-to-protect-your-investment-portfolio/#safe - Which?v

flation risk The threat of rising prices eroding the buying power of your money Specific risk If you invest in individual companies or shares, there’s always a chance that unforeseen events will scupper your portfolio Currency risk You’ll face this risk if your money is invested in stock markets outside the UK Manager risk Some fund managers may consistently beat their benchmarks, but there’s a huge variation in the investment performance of individual managers.

Read more: https://www.which.co.uk/news/2020/08/coronavirus-how-to-protect-your-investment-portfolio/#safe - Which?

 4. The greater the ease of access, normally the lower the Reward

 Most effective investments need to be able to run for at least 5years or more but you can have access to your money if you need to. But the longer you can invest, the more potential to have greater returns in the long run.

 

5.Always, Always do your research first

If you are considering investing with a Insurance or Investment company yourself then carefully research their strength, costs and ongoing charges & client reviews to establish their reputation and importantly their investment fund performances.

If you give your money to someone to invest or manage you need to be certain there is no danger of mismanagement, poor investment performance or even fraud.

 

6. Never risk a sum of money you can't afford to lose

Always speak to an IFA before parting with your hard earned cash! (See our article on how to choose an IFA)

  If you are approaching retirement - you may be considering your retirement options and How best to prepare for it? 

At FIRST OPTION - We can offer you independent Retirement advice catering for all the key factors such as...

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