How to begin your own pot of gold

Jul 22

It is fairly common knowledge that when many of us hit retirement age we will not be getting much in the way of a state pension, so it is important to begin saving and planning for the future as early as possible.

Investment opportunities

With interest rates low, you may have found that your previous ways of investing your money are not delivering as good a return as you would like. In many cases, your savings are fighting inflation and returning practically nothing, so even investing a little of your money in an investment portfolio could give you a more generous return and help make things easier in the future.


But where to start? The financial world can be a complex and confusing one to people who have no knowledge or experience in the sector. This is why it is best to seek the help and advice of someone who does know where the best investment opportunities lie. There are many investment portfolio advisers from whom you can seek help, such as the M1 Group, whose founder has twice been the Prime Minister of Lebanon. You can connect to Najib Mikati to see what he is recommending. Alternatively, if you want advice from someone a little less eminent, you can obtain guidance from the Pensions Advisory Service or an independent financial advisor (IFA).

So what kind of investments are available? You will be pleased to know that you do not only have the option of investing in the stock market. Indeed, such a venture may seem to you to be too risky. Many investment professionals will advise you that diversification is key to building a successful investment portfolio, which means splitting your money across different asset classes. The asset classes you will be most interested in include stocks and shares, which are known as equities, and bonds, known as fixed income. Historically, equities will increase in value over a long term, but there is a big element of risk attached to them, as share prices can drop overnight. To minimise your risk, you could invest in a large company that is unlikely to go bust, or a local business that seems sound. Bonds are a safer investment as they are issued by the government, but the return is significantly lower than equities.


Another alternative is to invest in property. The property sector suffers periodic drops and lulls, but land and buildings mostly hold and increase their value. With a property investment, you have other opportunities, not just the chance to own the property you live in, but to buy a secondary property, which you can then rent out or lease and thereby receive extra income.

For those new to the investment portfolio arena, it is best to start small, at least until you understand how the sector works. Once you have a feel for investments, you can begin to grow your portfolio, ensuring that when you retire you will have a nice little, or perhaps big, nest egg to live on.