Alternative Investments to Boost Your Retirement Fund
Growing old isn’t something that most of us want to think about, especially when it could affect our current disposable income, after all it all seems so far away. However, with the cost of living increasing and benefit and state pension provisions looking more and more unstable by the day, planning for your financial future has never been more important. When deciding how best to secure an income for old age, many people are starting to wonder if traditional pension plans are worth the extra investment considering the poor results they have yielded in recent years and also the volatility of the stock market. If you’re not convinced on the merits and reliability of a standard pension plan, here are some alternative investment ideas that might be worthy of consideration to boost your retirement fund.
With a strong history for long term capital growth, property is a popular alternative pension option for many retirement planners. Although becoming a landlord can seem like a daunting task, property investment not only offers the opportunity for rental income during retirement but also the potential for capital growth that has, in historical terms, not just kept pace with inflation but even outstripped it. With mortgage lending still in the doldrums, a lack of affordable housing developments and also a growing population, strong demand for rental property looks set to continue in coming years making property investment a good candidate for an alternative pension plan.
Although art can be a risky investment, many people are turning to these more risky asset classes when considering their retirement planning. Although art investment will not provide you with a return in the form of income, if you buy the right pieces at the right time, then art investment could prove to be a risk worth taking with the potential for capital investment growth.
The concept of wine investment has always puzzled me but only in a humourous way. The idea of keeping some of the world’s finest wines locked within a bottle never to be tasted just seems like such a waste to me. Similar to art investment, investing in fine wine or other forms of maturing alcohol like whisky can be unpredictable, but if you’re willing to do your research and take a risk then finding the right bottle or case could turn out to be a great long term addition to your retirement fund. If for some reason you don’t get the return you’d expected, at least you’ll be assured of a jolly retirement!
If you don’t feel comfortable picking your own fine wine investments, then you might want to consider investing in a fine wine fund. The Fine Wine Investment Funds prediction of a 14% rise in 2013 shows the potential for capital growth that fine wine has to offer. It’s worth noting that prices have also fallen in previous years so investing through a fund might not provide the same long term capital growth that self-investment could yield.
Antiques have long been considered a good investment but again antiques can be a risky asset class. When investing in antiques it’s important to consider not just what’s popular now but also what might be popular in years to come. The people who are most successful in creating strong capital growth on their antique investments are those who are able to accurately predict future trends and buy now while the value of a specific antique or style is not fully appreciated.
Antique investing is all about knowledge of the market and market trends, so before jumping in to antique investment be sure to do your research. It’s also important to ensure that your antique investments are properly safeguarded and insured.
Start Planning Now
It’s easy to fall into the trap of thinking that you’re too young to be worrying about your retirement provisions; I used to feel the same way but it’s funny how quickly life creeps up on you. Kicking the retirement can down the road will only mean you’ll have to put more money into the pot in a few year’s time and who knows, you might not be in a position to invest then.
Some of the alternative pension ideas mentioned above are riddled with risk. If you’re willing to take the risk though you might find the returns on your investment far outstrip those of a conventional pension plan.