Retirement can seem a long way off when you’re young, but it will get closer to your horizon faster than you expect. The secret to a comfortable retirement is to start early.
My youngest child already has amassed £553,000 in her SIPP (Self Invested Pension Plan) and JISA (Junior Individual Savings Account), all from my partner and I investing smartly as soon as our kids were born. She is ten years old.
Those that can afford a small monthly contribution to a future pension will be giving their children an invaluable financial cushion that can be drawn down for education or simply left to grow for their retirement whenever they choose to do that.
A small sum in the right investment vehicle will grow exponentially for a long time.
Take advantage of tax breaks.
Everything you invest in SIPPs and ISAs is tax-free, up to £20,000 per year. When you use these types of vehicles to accumulate investment profits, tax breaks are available to you.
If you’re an entrepreneur and own a company, there are tax advantages to paying into a pension fund. This is particularly useful at the end of the financial year; it’s an excellent way to reduce corporation tax.
Smart retirement planning is for everyone.
Retirement planning isn’t just for rich or smart people. It’s for people who decide they want wealth and focus on it. With the right education and guidance, for those living in a first world like the UK, the US or Europe, becoming financially well off is accessible to everyone.
~Novel Serialisation: Heavens Fire~
In my 30s, I was sleeping on my brother’s floor with £100,000 in bad debt. Today at 52, I’m a multi-millionaire from my Stock Market investing alone. If I can do it, anyone can – it just takes focus, education and planning.
Reinvest, reinvest, reinvest
Keep an eye on your investments and re-invest as much as possible when you see profits accumulating. Resist the temptation to pull out the profits and indulge in a new car, exotic holiday, or a bigger house. Re-investing your profits to compound your returns will support you in never having to worry about money in your retirement – and even live a better life.
Smart stock market investing is critical. Buy low and sell high is the name of the game here. I’m not talking about fancy investment techniques; I’m talking about buying shares when the price is low and then simply selling when the price goes up.
Take the stock market in March 2020, for example. The markets crashed by 50%, creating what investors call a ‘fire sale’. If you bought shares at the lowest point when the pandemic hit the markets, you would have made a 100% gain.
Everyone loves a bargain
It may seem crazy, but when something is £2 and drops to £1, and you buy when it’s on sale, it just needs to rise back to £2, and you have made a full 100% profit.
Fire sales don’t happen that often, but what a discount of 20% is not to be sneezed at! That’s perfectly normal and tends to happen a few times a year for the average stocks.
If you buy the brands you know and love when discounted, you will do very well over time. Wrap this up in a tax wrapper like an ISA and/or a SIPP; in a few short years, your pension plan will be very healthy.
By Marcus de Maria, Founder and Chairman of Investment Mastery
About Marcus de Maria
Renowned stock market and wealth educator, investor, and entrepreneur Marcus de Maria is the Founder and Chairman of Investment Mastery, one of the world’s leading investment and trading education companies.
A sought-after keynote speaker on wealth creation who has shared the stage with some of the world’s leaders in business, success and philanthropy, Marcus has gained mutual respect from many high profiled individuals, including Richard Branson, Robert Kiyosaki, Tony Robbins and Brian Tracy.
Marcus is also the author of three books, including The Lunchtime Trader, a guide on building indestructible wealth by trading stocks for just 20 minutes a day.
After experiencing financial difficulties, Marcus went from being £100,000 in bad debt and sleeping on his brother’s floor to taking control of his financial future and learning strategies to become financially fit, building multiple pillars of wealth for security. He now uses all he has learned to help others follow this path of wealth creation.
Marcus and Investment Mastery’s greatest adversary is the “Get Rich Quick” mindset – they aim to educate others on creating financial independence, security, and wealth for themselves and their families. He also seeks to teach students about some of the most misunderstood wealth creation vehicles, such as cryptocurrencies and the stock market.
About Investment Mastery
Founded in 2003, Investment Mastery is a premium training and education company delivering easy-to-follow and profitable trading and investing strategies.
Investment Mastery delivers training seminars and workshops online. They have educated over 50,000 people across 25 countries while developing and providing industry-leading online support and training in three different languages.
Led by founder and chairman Marcus de Maria and his expert team of real traders and investors in the fields of stocks, cryptocurrencies and forex, Investment Mastery’s training education is influenced by the exact same proven techniques that Marcus uses to trade and invest his own money.
The team at Investment Mastery do not just help clients to strengthen their finances but their mindset too. This allows clients to uncover, address and break through their limiting beliefs behind wealth creation and find their reasons ‘why’. This unique approach sets them apart from other wealth creation educators and is why clients achieve such incredible results.
https://www.investment-mastery.com/
