FTSE shares rebound: I believe investors can retire rich

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first_img Tezcan Gecgil, PhD | Wednesday, 10th June, 2020 Retirement years can be expensive. For many people, their golden years will likely last a couple of decades. Spending only £20,000 or £30,000 per year can amount to a considerable sum in that time frame. Therefore we must all prepare for it well in advance. Yet there’s good news for all of us. If you’d like to be wealthy in retirement, regular and long-term investing can help considerably. And as many FTSE shares rebound from their recent lows, they also offer considerable long-term investing value. Let’s see why.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Retirement knowledge is powerAs people near retirement, their biggest worry centres around money, or rather the lack of it. Surveys point out that many people over the age of 55 have low levels of monetary wealth and very little in assets other than their homes. A large percentage believe they’ve failed to plan for retirement adequately.Financial knowledge and planning are clearly related. People with higher financial literacy are more likely to plan successfully for retirement. But you don’t have to be a financial guru, or insider, to make sensible plans for your future.The first step would be to think about how much your retirement may cost and how you’ll pay for it. Then look at the various financial products available to save for retirement. One of the key channels in which you could invest your hard earned money is the stock market.Long-term is the name of the gameMy Motley Fool colleagues have written at length about funds and stocks to consider for a diversified retirement portfolio. They’ve pointed out that the stock market returns about 6-8% annually, on average. And that includes market sell-offs like we’ve recently witnessed.Let’s assume you’re aged 25, would like to invest £2,000 in a fund now, and would make an additional £3,600 of contributions annually at the end of the given year. That means you have at least 40 years to invest. The annual return is 7%, compounded once a year.At the end of 40 years, the total amount saved becomes £798,943. If the annual return increases to 8%, the amount becomes £1.050m. Yes, that would mean you’d retire a millionaire!If you can increase how much you can save per month, say to £400 (or £4,800 a year), the amount at the end of 40 years at an annual return rate of 8% is £1.386m.Put another way, we can pretty much all become millionaires in our lifetimes. Just remember to start early and invest a definite amount regularly each month. FTSE sharesThe London Stock Exchange is home to many companies that have made long-term investors wealthy.In the FTSE 100, I believe BAE Systems, British American Tobacco, GlaxoSmithKline, Pennon Group, Tesco, Unilever and Vodafone could be solid picks for a personal pension portfolio.If the FTSE 250 is on your radar screen, then you may research the fundamentals for Britvic, Centamin, Dechra Pharmaceuticals, Moneysupermarket, and Tate & Lyle.A diversified portfolio is always recommended. But you don’t necessarily have to look for the next big company set to skyrocket to success.You may also consider investing via Exchange Traded Funds (ETFs), which you can easily buy or sell like you would any other share. An example would be the iShares UK Dividend UCITS ETF which is a basket of the 50 highest-yielding stocks from the FTSE 350 Index.  Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” FTSE shares rebound: I believe investors can retire rich I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares tezcang has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Britvic, GlaxoSmithKline, and Unilever. The Motley Fool UK has recommended Moneysupermarket.com and Pennon Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Tezcan Gecgil, PhDlast_img read more