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Wednesday, September 4, 2013

5 inventive ways to invest for your retirement

By David Sheen 

Saving for retirement is something which many people put off thinking about, but for those of us who are interested in seeking new and interesting ways to invest for a pension, there are some very inventive retirment planning strategies to take, the top 5 of which are here! 

Financial independence and decision making are possible via self-managed pensionsSelf managed pensions

These are a steady and reliable route to investment for those who don’t like much risk! The number of people taking out self managed pensions has risen sharply in recent months; changes in the way pensions are offered and the end of final salary pensions have galvanised people into action as has the realisation that due to people living longer, more active lives today than every before…many of us could be retired for 20 or 30 years! That’s a significant amount of time and a good income is an obvious thing to plan for. 

A self managed pension is simply a way of saving which is managed by the saver…so an ISA or an increased contribution to a company pension would ensure that you remain in charge of your savings but many people have taken it a step further and taken out a self invested personal pension. 

Self invested personal pensions are easy to manage and are also tax efficient; they are a great way to save with cash, shares or bonds and those who have property can benefit too by using the assets as savings.  Self invested pensions are perfect for those who want to remain in control; some initial advice from a financial advisor is wise as there are some complex issues around setting up the best pension for your needs and a financial advisor will root out the best deals too! 

Land and property

ROI on real estate is sometimes very high depending on locationBuying land can be a savvy way to make an investment and since land prices have fallen considerably, now is as good a time as any!

Looking at emerging markets is an old investor’s trick but the key is to keep ahead of the game and buy before word gets out. Equally important is knowing when to sell!

Many people lost money when property prices shot down in Dubai for instance. Poland is tipped to become the next hot spot and has already seen some busy investors looking at apartments in larger cities as well as country properties. 


Investing in valuable art is considered a viable alternative to conventional investingFor decades art has been looted, coveted and desired by many and it remains a solid way to see a return on your money. Of course you need to know what you’re doing to some extent but by buying unusual pieces or pieces by younger artists you could see a return sooner than you think.

Visit smaller but well respected galleries such as The Rokeby Gallery in London which offers a scheme whereby small loans can be made available to people who want to start their own art collection; the scheme is run by The Arts Council and is a fantastic and innovative way for people to get their foot in the door of serious art collecting. 

Profits can be achieved via antiques and vintage item tradingVintage and antique collecting

It’s no secret that some older items of high couture clothing can fetch thousands of pounds at auction; but the chances of finding an original Dior on Ebay for a few pounds are slim to none…however that does not mean that you can’t make money from buying and collecting older items which you love. If you have a passion for anything old…take it seriously and build a collection. Time spent putting together a cracking bunch of vintage clothing could see you make a tidy profit in another twenty years time when those items are even rarer than they were when you began buying. 

Lenders can choose their rates and loans via peer-to-peer lending

Peer to Peer Lending

The idea is simple but genius; instead of turning to big banks for loans, people turn to their peers…that’s you and hundreds of others…to lend them their money. Because the lenders chip in to supply the loan, there is much less risk involved but there is profit to be made on your investment even if only a small one. The larger peer to peer lending companies have safety nets in place to protect your investment from those who may default. It’s a win-win situation! 

Investing for your pension doesn’t have to lack in creativity; it can even be fun! Thinking outside of the box when calculating your pension can even help to make it grow! Follow your instincts and learn to take carefully calculated risks and you will reap the benefits!

About the author: David Sheen has written for a number of great finance sites and has used a range of apps to help him including Money Vista among others. He loves trekking and the great outdoors.

* Image licenses: 1. Ericortner; RBG Stock royalty free, 2.- 4. MorgueFile; royalty free, 5. Lusi; RGBStock royalty free 

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