Savings and Investments
Regular premium retirement investing
Saving for retirement should be a lifelong pursuit – setting aside regular sums to give the greatest chance of your investments working as hard as possible for your later years.
It pays to make salting away even a small amount each month into an investment plan a priority, as this can make a huge difference to your pot over the long-term. So how exactly how does regular investing boost your wealth?
For a start, by investing regularly you smooth out the peaks and troughs of the market. You buy fewer shares when prices are high and more when they are low. So you do not have to worry about the right time to invest, and this can give you valuable peace of mind.
You could choose to pay premiums monthly, quarterly, half-yearly or yearly depending on your circumstances and the investment you pick.
Income reinvestment for growth
Picking investments that pay out dividends may considerably boost returns if you choose to reinvest this income. It will boost your original pot, providing a greater base for it to grow in value. Dividends magnify the impact of compound interest, which Einstein called a ‘wonder of the world’ – and can help build long-term wealth.
Even during volatile stock market periods, income reinvestment makes it important to stay in the market. When markets fall, stocks continue to pay out dividends. If you can hold your nerve, your patience is likely to be rewarded over time.