10 Step Investment Plan: Part One
So we knew we needed to start investing for our retirement but where did we start. I had a few small investments in shares and a little deposited with a peer-to-peer lender but not much else.
We also have a limited income so there was also a need to find other ways to make extra money. I have now created a Personal Earning Plan that is producing at least £100 per month minimum income. I am looking to increase this each month with the targets for Jan/Feb/Mar being £100 per month.
I started to look around at investment options not only the traditional stocks and shares but also the alternative investments that may be a little riskier but could give higher rewards and are fun to be a part of.
So starting from April 2015 when I realised there was only 8 years before my husband reached state retirement age I set out to increase our investments. The investments need to make us either capital growth that we can use from 2023 (selling property we part-owned etc) or produce a monthly income.
So here are the 10 areas we are currently invested and the % of our portfolio we are looking to invest in each:
1, Shares 20%
2, Property 20%
3, Peer-to-peer lending 20%
4, Business 10%
5, Solar 10%
6, Cash/Premium Bonds 8%
7, Commodities 3%
8, Antiques 3%
9, Lego 3%
10, Whisky 3%
Numbers 1-5 provide us with passive income (we have invested once and need do no more) we will be paid dividends or interest. Numbers 1 and 2 could also give us capital growth.
Number 6 is there because between us we hold £5 in premium bonds from our childhoods and neither of us have ever won. But it did make me think that given the low interest rates currently being paid by banks and building societies should we invest and hope to win.
It’s also a good idea to always keep some of your investments in Cash in case you have an emergency.
Numbers 7-10 are there for capital growth, we will need to sell them to make money and an increase is not guaranteed, in fact there values could go down. They are there for a bit of fun and with only minimal investment.
That’s our 10 different investment areas. In parts two and three I will go into more details of our investments including where and what they are invested in. Part four will look at plans and targets for the next one to two years and the ultimate goal.
Which areas of investments are you in?
Parts 2, 3 and 4 to follow giving more information about the various investment areas.