Connect with us

Investing

Potential Sources of Retirement Income and Tips to Use Them

Published

on

Potential Sources of Retirement Income and Tips to Use Them

Investing in multiple sources of retirement income while working allows you to create significant savings and a steady flow of money you can rely on once you have retired. Identifying and sorting through sources of retirement income can however be a problem, when you have several to choose from and do not know what makes one better than the other. This is where doing research on the Internet and reading relevant articles come in handy, and in addition we are here to guide you through the process of finding the best sources of retirement income.

Retirement Does Not Mean That You Need To Stop Working

Most people believe that once they retire, income from a job completely disappears, however in many cases this is not true as many continue to work. In fact many retirees choose to work either full-time or part-time in order to supplement their pension they are getting during retirement.  Others just choose to keep working because they just want to remain fit and healthy and feel that they have a lot to contribute to the professional world.  Many have to keep working, because they do not have a good source of retirement income due to inadequate planning or their pension is quite small.

Investing or Owning a Business

Many retirees have skills that are useful for businesses and entrepreneurs. So it is not surprising that some set up businesses of their own once they retire.  Owning part of a business, allows for retirees to use their skills and experience to bring in more customers while not having to work throughout the day. Retirees most often however choose to create a small business in an industry they have worked in, as this is a safe choice.

Social Security Payments

Especially among Americans and others who have access to Social Security, it continues to constitute about 30 percent of retirement income. Experts estimate that this percentage will increase over the years as investments in other sectors do not perform well. Those who are classified in the baby boomers age frame and will hit 65 years in the next decade are going to increasingly rely on Social Security and so it is important that people understand what benefits they can get. When it comes to claiming social Security it is better to wait rather than availing 100 percent of it once it is available.  Waiting for several years before claiming social security, results in benefits growing by 8 percent per year. As a result many in the United States prefer to wait and claim social security benefits before the age of 70, which is the cut off age when benefits stop growing every year.

Reverse Mortgages or Moving To Smaller Home

Dipping into equity in a home is another way to meet retirement expenses and is a popular option among people who have paid off most of their mortgage or own their residence outright. Taking a reverse mortgage allows people to continue living in their home for the rest of their life. They can then opt to receive the reverse mortgage payments as monthly installments or a line of credit. Some retirees even move into a smaller home or rent, after selling a bigger home and use the money to finance their retirement.

401(k) or Similar Accounts

Among Americans contributing to a 401(k) account is a major way of saving money for retirement and the similar offerings are available in other countries. As part of the 401(k) account which is normally run by the company that a person works for, up to $18,500 can be saved per year if the person is under the age of 50. People who are over the age of 50 can save more and the amount permitted in 2018 is $24,500 a year. Saving in the 401(k) account also gives people some tax benefits and companies even contribute a portion, which in some cases can be about 50 percent of what the employee puts in. However, in spite of saving a large chunk of money per year in such accounts it is recommended that they should not be relied on completely when planning for your retirement. The risk involved in such accounts is that, in cases of bankruptcies or closures people who own stock in a company through their 401(k) will find that their investments are of no value. So it is essential that people who are opting for a 401(k) account decide where to invest the money saved.

Opting for Annuities

Buying an annuity is what many people who are about to retire do.  After making an investment people can opt to receive annuity payments immediately. A deferred annuity results in the initial amount being invested and payments being provided once you have retired. Usually there are hundreds of annuities available for people who are about to retire or who are still going to be working for a few years. Financial advisors can help you find a good annuity offered by an insurance company or another institution and ensure that you do not make a bad choice.

Pensions

Employees can also avail of pension when they retire and have been working in companies for several years. However, pension payments can be quite small if you have only worked for a company for a few years so you should ideally be looking to cultivate several sources of retirement income when working.

Stocks

Investing in stocks is another sound option when planning for your retirement. However you need to invest in stocks that are safe and increase in value over the years. Since all stocks do not go up in value, you will need to keep an eye on prices, sell ones that are under performing and reinvest your money.

Whether you plan to write a book and use the royalties after you retire or rent out a property or home, you need to make a plan when you are part of the workforce and invest in several sources of retirement income. Additionally since all sources of retirement income are not 100 percent safe you need to spread your investments around to ensure their safety.

Investing

Reuters Events Launch Global Investment Summit Online Edition Uniting Institutional Investors, Asset Owners & Financial Institutions

Published

on

Reuters Events – today announced the agenda for their Global Investment Summit (Dec 3rd -4th). The 2-day strategic summit has been reimagined in the era of social distancing and will be broadcast free of charge to the public.

This Summit, with a diverse range of international voices and anchored by Reuters News-led sessions, is the only place for institutional investors, asset owners and financial institutions to come to terms with the events of 2020.

Click for more information and for complimentary registration to the online edition

The Energy Transition team report an industry leading speaker faculty for 2020, including:

  • Eileen Murray, Chair, Finra
  • Philip Lane, Chief Economist, European Central Bank
  • Gregory Davis, Chief Investment Officer, Vanguard
  • Hanneke Smits, CEO, BNY Mellon Investment Management
  • Pascal Blanque, Chief Investment Officer, Amundi
  • Desiree Fixler, Group Chief Sustainability Officer, DWS
  • Joe Lubin, CEO, Consensys
  • Bahren Shaari, CEO, Bank of Singapore
  • Mark Machin, CEO, Canada Pension Plan Investment Board

The agenda released by Reuters Events Investment is both ambitious and comprehensive, and will cover four key themes: Market Outlook, Asset Management Strategies, Industry Deep-Dives and the Future of Investment.

View the full agenda here

Continue Reading

Investing

Halliburton & Baker Hughes CEO’s join Reuters Events: Energy Transition 2020

Published

on

Reuters Events – today announced that CEO’s of two of the world’s leading energy service companies, Halliburton and Baker Hughes, will join the speaker faculties for their flagship Energy Transition Summit.

The event will explore the creation of the future energy ecosystem and offer companies, from across the asset spectrum, a definitive guide to their net-zero strategies. The alignment of the two biggest O&G global service companies, Halliburton and Baker Hughes, represents a significant step in the transition to low-carbon energy

More information on the Europe and North America editions can be found below. Registration for the LIVE stream is free.

Alongside their CEO speaker representation, Halliburton join as Platinum sponsors of the North American edition. Baker Hughes join as gold sponsors for the European edition of the flagship energy transition program.

The Energy Transition team report an industry leading speaker faculty for 2020, including:

  • Lorenzo Simonelli, Chairman & CEO, Baker Hughes
  • Jeff Miller, CEO & President, Jeff Miller
  • Tristan Grimbert, CEO, EDF Renewables
  • John Pettigrew, Chief Executive, National Grid
  • Pratima Rangarajan, CEO, OGCI Climate Investments
  • Alex Schneiter, CEO & President, Lundin Energy
  • Gretchen Watkins, President, Shell Oil Company
  • Calvin Butler Jr., CEO, Exelon Utilities
  • Francis Fannon, Assistant Secretary ERB, S. Department of State
  • David Lawler, Chairman & President, bp America
  • Andreas Schierenbeck, CEO, Uniper

More information on the Europe and North America editions can be found below. Registration for the LIVE stream is free.

Governance & Cooperation – Does the energy transition face a ‘governance deficit’? To understand how the energy transition will develop over the next decade, it is crucial to understand the driving governing forces behind it. Will the Green Deal provide the first domino, how can we ensure progress in the shadow of Aberdeen and ensure that we translate targets into action?

Financing Energy Transition – We must address the elephant in the room; who is going to pay for it all? An understanding of where the funds are likely to come from is key to staking claim to the infrastructural projects that will redefine the modern world in the 21st century.

New Energy Infrastructure – Low-carbon energy supply and consumption will need a radical overhaul of infrastructure. As well as revamping the old, we’ll need entirely new assets and new systems of energy delivery. It’s an unprecedented opportunity with estimated spending at $70 trillion over the next decade. Knowing which technologies are ready to be scaled first is the key to understanding opportunity

Business Model Innovation – Who will provide leadership through the age of transition and how do we want our future energy system to look? Speed and timing will be crucial if you are to stay on the right side of the transition. Join us in setting business led, evidence based, targets as industry drives towards net-zero

More information on the Europe and North America editions can be found below. Registration for the LIVE stream is free.

At Reuters Events, we’re committed to tackling the Energy Transition head on; to shed light on the defining issue of our time and help energy companies meet a uniquely difficult challenge. That is, to be both an energy company of today, and the energy companies of tomorrow. In a period that will be defined by uncertainty we can, together, lighten the way forward.” – Owen Rolt, Head of Energy Transition, Reuters Events

Contact

Owen Rolt

Head of Energy Transition

Reuters Events

UK: +44 (0) 207 375 7596

E: [email protected]

Continue Reading

Investing

COVID-19 is changing people’s preferences when it comes to BTL investments

Published

on

COVID-19 is changing people’s preferences when it comes to BTL investments 1

By Jamie Johnson, CEO of FJP Investment

Throughout 2020, investors have had to navigate increasingly treacherous and volatile market conditions as a consequence of the COVID-19 pandemic. No country has been immune to the coronavirus outbreak, particularly here in the UK.

Yet even as the country enters another phased lockdown of sorts, demand for UK property has remained strong. After a brief period of suppressed demand after initial lockdown measures were introduced in late March, the UK’s implementation of the stamp duty land tax (SDLT) holiday triggered a rush in demand for bricks and mortar. As a result, both house prices and transactional activity is rising.

With this new surge in demand resulting in an 18-year-high of UK house price growth, according to the Royal Institute of Charted Surveyors, buy-to-let (BTL) investments have also substantially increased in popularity.

It’s easy to understand why. BTL investments offer landlords both long-term capital growth and regular returns in the form of rental payments. And now, as the SDLT holiday deadline beckons closer, investors keen on taking advantage of the comparative discounts on offer must act quickly.

My advice to those considering a BTL investment in the UK is to understand and appreciate the longstanding market changes that have been brought about by COVID-19. Traditional BTL hotspots are being challenged by a rise in tenant demand for real estate in up-and-coming cities and regions.

For example, the COVID-19 pandemic has resulted in the majority of the workforce working remotely from home. Recent data from property listing site Rightmove makes clear the shift in demand away from central London and towards less densely populated regions; with areas like Cambridge and Oxford seeing 76% and 64% more rental searches respectively and searches in areas like Earl’s Court dropping by 40%.

This is the clear result of previously London-based professionals realising the benefits of working from home. As businesses identify the financial drawbacks and COVID contagion risks of having all their staff physically present five days a week, employers will seek out smaller commercial workspaces.

At the same time, we are also seeing workers looking to rent larger, cheaper properties that might be further away from their office. This is due to the fact that they are unlikely to need to commute every working day to their office, even once the COVID-19 outbreak has been contained.

But, where exactly are the best larger, cheaper properties to be found? Where are the UK’s emerging BTL hotspots that need to be on the radar of prospective investors? I explore these pertinent questions below.

Liverpool life

Those who have been closely following the UK’s housing market will know just how primed Liverpool is for BTL investment. As a key recipient of the UK Government’s Northern Powerhouse funding, and with massive developments like Liverpool Waters and Wirral Waters soon to be completed, the city’s housing supply is ready to meet the demands of those taking part in the aforementioned London professional exodus.

With Liverpool constantly ranking No.1 in rankings of UK cities for BTL investment, it’s evident why investors would be keen on completing purchases of Liverpool property before the end of the SDLT holiday. Though even after the SDLT holiday ends, there’re still plenty of reasons to be optimistic about Liverpudlian BTL investment. Prime Minister Boris Johnson’s government is firmly committed to ‘levelling up’ the North of England through regional regeneration, and planned high speed rail connections between Liverpool and other northern cities will only add to the investment potential of the city.

Leeds living

Although Liverpool boasts the highest rental yields for BTL landlords in real terms, Leeds was recently named the most profitable city to become a landlord in the whole of the UK by CIA landlord. By evaluating numerous metrics; including mortgage costs, average rent, average monthly landlord costs and average property prices, they determined that Leeds was the best city for potential buyers to make their first foray into BTL investment.

And, looking at recent trends, it’s easy to see why. Leeds may benefit more from the London exodus than other cities due to its unique position of being a brain gain city’, i.e. one where more students remain after graduation than move away. As a result, it boasts the largest financial services sector in the nation after London, making it an ideal locale for employers in the financial services sector who are seeking cheaper commercial rent outside of London; likely bringing investment and employees with them.

With its strong urban economy likely to be bolstered by its designation as a ‘Northern Powerhouse’ leading business hub, Leeds is ideally positioned for BTL investment over the long-term.

Cardiff’s regeneration

And finally, the capital of Wales brings much to the table when deciding between different BTL investment destinations. With a metropolitan area population of over 1.1 million residents, forecasted to grow by 20% by 2035, demand for property in the city is set to rapidly increase over the next decade. Those able to capitalise on this population growth will be able to access considerable long-term investment opportunities – as recent reports suggest.

Thankfully, it’s unlikely that there’ll be any shortage of housing supply in Cardiff for BTL investors to invest in. Cardiff Bay has emerged as Europe’s largest waterfront development, and the upcoming Central Quay and £500m coastal developments will assist in attracting further investment into the city.

BTL remains a sound investment opportunity

COVID-19 has made evident just how resilient British real estate is as an investment asset. By offering the best of both worlds, namely long-term capital growth and regular rental returns, BTL has successfully remained an attractive and popular investment choice. And, with demand for housing still outstripping supply, the market need for rental accommodation looks set to only grow.

COVID-19 has permanently changed the UK’s housing market and, as explained above, new BTL hotspots are surely due to emerge over the next year. With renters seeking out larger homes in cheaper areas, flexible working patterns will forever change the landscape of the UK’s residential real estate market, and those able to capitalise on it may benefit hugely as a result.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2020
2020 Global Banking & Finance Awards now open. Click Here

Latest Articles

Research exposes the £68.8 billion opportunity for UK retailers 2 Research exposes the £68.8 billion opportunity for UK retailers 3
Business2 days ago

Research exposes the £68.8 billion opportunity for UK retailers

Modelling shows increasing the proportion of online sales by 5 percentage points would have significantly boosted retailers’ revenues during the...

Want to serve your customers better? An effective online strategy is what financial institutions need  4 Want to serve your customers better? An effective online strategy is what financial institutions need  5
Business2 days ago

Want to serve your customers better? An effective online strategy is what financial institutions need 

By Anna Willems, Marketing Director, Mention A strong online presence matters. Having a strong online presence, that involves social media...

The rise of AI in compliance management 6 The rise of AI in compliance management 7
Technology2 days ago

The rise of AI in compliance management

By Martin Ellingham, director, product management compliance at Aptean, looks at the increasing role of AI in compliance management and just...

Simplifying the Sector: How low code can aid digital transformation in financial services 8 Simplifying the Sector: How low code can aid digital transformation in financial services 9
Technology2 days ago

Simplifying the Sector: How low code can aid digital transformation in financial services

By Nick Ford Chief Technology Evangelist, Mendix From online banking to contactless payments and Apple Pay, it has been well...

Why the Boom is Long Overdue (and Here to Stay) 10 Why the Boom is Long Overdue (and Here to Stay) 11
Business2 days ago

Why the Boom is Long Overdue (and Here to Stay)

By Roger James Hamilton, CEO, Genius Group Virtually every aspect of our lives has been taken over by tech, so...

5 Sustainability Lessons That Are Crucial For Business Success 12 5 Sustainability Lessons That Are Crucial For Business Success 13
Business2 days ago

5 Sustainability Lessons That Are Crucial For Business Success

By Michael Stausholm, founder of Sprout World (sproutworld.com) Sprout World is the eco-company behind the world’s only plantable pencil, with...

Why financial brands need to understand consumer vitality 14 Why financial brands need to understand consumer vitality 15
Business2 days ago

Why financial brands need to understand consumer vitality

By Carolyn Corda, CMO at data consortium ADARA Our day to day lives have been turned upside down. Office workers have...

Why and how a modern marketing strategy should put customer experience first 16 Why and how a modern marketing strategy should put customer experience first 17
Business2 days ago

Why and how a modern marketing strategy should put customer experience first

By Jim Preston, VP EMEA, Showpad In 2004, the Leading Edge Forum coined the term ‘consumerisation of IT’, defining a...

Leading from the front - why decision makers must embrace automation 18 Leading from the front - why decision makers must embrace automation 19
Technology2 days ago

Leading from the front – why decision makers must embrace automation

By Jeppe Rindom, Co-founder & CEO, Pleo Ask any decision maker at a business about admin and you’re likely to...

Business first, not compliance only is the future for accountants 20 Business first, not compliance only is the future for accountants 21
Business2 days ago

Business first, not compliance only is the future for accountants

By Peter Bracey, MD at Bracey’s Accountants.  The past few months have underlined the need for better business insight to reduce...

Newsletters with Secrets & Analysis. Subscribe Now