Are you one of thousands making this retirement investing mistake?

first_imgAre you one of thousands making this retirement investing mistake? Kevin Godbold | Sunday, 28th June, 2020 Enter Your Email Address If your retirement investing strategy relies on putting regular money in a cash savings bank account, you could be making a BIG mistake.Bank interest rates have recently lurched down another notch. The highest rates I can find are around 2.75% for regular saver accounts and some current accounts. But you can’t save much with those because of upper limits for monthly and total sums saved. And, often, the deals only last for a year before reverting to very small interest rates.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 investing needs gains above inflationIndeed, the landscape is barren when it comes to investing in bank accounts for saving cash. And one of the main dangers is the value of your money in cash accounts will likely lose ground against general price inflation.Instead of declining, your retirement savings need to work hard for you and increase in value over time above the rate of inflation. And to achieve that, you need a higher rate of annualised return.Many people turn to the stock market for these higher returns. Over the long haul, shares in general have outperformed the other major classes of assets, such as property, bonds, and cash savings.Rising share prices can combine with income from shareholder dividends to produce annual returns that beat the interest rates paid by cash savings accounts. And if you compound those gains by ploughing them back into shares, your pension pot could grow nicely, over time.One way to get involved with share-backed investments is to put regular money into a fully-managed pension fund. If your employer has a workplace pension scheme, that’s usually a good option. Indeed, your employer will often add extra money on top of what you pay in each month, which can be a big boost to your pension pot.On top of this, saving in a pension scheme is tax-efficient. But if you can’t get into a workplace scheme, you can simply invest in a fully-managed personal pension on your own. And that’s still a good deal when it comes to tax.Controlling your own stock market investmentsIf you want more control over the investments going into your pension pot, you can choose a Self-Invested Personal Pension (SIPP). Or you can go for a Stocks and Shares ISA. Both have tax advantages and are worth considering.Within those ‘wrappers’ you can invest in managed funds of your choice. Or you can choose low-cost index tracker funds, such as those that follow the fortunes of the FTSE 100, FTSE 250, America’s S&P 500, and many others. And if you’re prepared to work hard at research, you can invest in the shares of individual companies too.Some retirement investors build a core of well-diversified funds in their portfolios and add a few shares of individual companies as well. Individual company shares can help you beat the returns from the general stock market, if you choose carefully. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! Our 6 ‘Best Buys Now’ Sharescenter_img See all posts by Kevin Godbold 5 Stocks For Trying To Build Wealth After 50 Simply click below to discover how you can take advantage of this. 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. 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