Friday, August 12, 2016

How to Increase the Value of Your Pension

It has become increasingly important for everyone to put a sensible pension strategy into place - why? 

Well first of all we are living longer and therefore our pension has to last longer, second the price of living has gone up dramatically in recent years and finally, the majority of people would like to retire early from their career, giving them more quality time in their senior years

With interest rates being so low, for such a long time the savvy pension saver has been looking for new ways to increase the value of their pension. So how can this be done?

Investment Diversification

The answer for many people is by diversification. Putting money into a number of pots is one way of making that capital work a little, or a lot, harder. 

Using a percentage of your pension capital, let's use 20% as an example and investing it in the financial markets, while leaving the remaining 80% in an interest accruing account, pension scheme or ISA can be a great way to maintain a high level security and at the same time apply some speculation into the equation.

A Trusted Broker

Using Hantec Markets to invest in markets such as Forex or tracking index funds can be a really effective way of increasing the value of your pension. 

This can be done over a long period of time or a shorter period of time and the best part is that the potential profits can far outweigh those you will get from any other type of financial investment. 

Using an online trading platform you are able to access a wide range of financial markets and stay in control of your capital. You can also take advantage of professional help and advice in order to maximise your potential for success.

Forex Fast Track

Investing in the foreign currency markets (Forex) is a high risk/high return strategy. If you have an in depth understanding of trading platforms, global politics and economics, trading Forex can be a highly effective way to make large profits in a short amount of time. 

Forex is traded 24 hours a day and trillions of dollars worth of currency changes hands in any such time period. Currency rates can move up and down quickly meaning the potential for profit is great and for those who become good at it virtually unlimited.

Such gains come with risk, however and if you are inexperienced, then you can also suffer large losses.

Tracking Index Funds

Tracking index funds work by, as the name would suggest, tracking financial indexes such as the FTSE 100. 

They are a low cost way of getting exposure to a wide range of shares and are relatively low risk, especially if entered into as a long-term investment. 

Using tracking index funds means you avoid having to choose specific shares and the associated costs, in return investors can expect a modest return on their pension investment year on year.

Increasing the value of your pension provision effectively is a balancing act, which if got right can mean a comfortable and happy retirement.

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