3 reasons why I’d buy FTSE 100 shares today to beat the State Pension and retire early

first_img Image source: Getty Images Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” 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. Peter Stephens has no position in any of the shares 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. The State Pension age is set to rise to 67 over the next decade. Further rises would be unsurprising in the long run, since increasing life expectancy and an uncertain economic outlook could mean the political consensus focuses on reducing the cost of retirement benefits.Alongside a rising State Pension age, the low level of payment to retirees means having a second income is highly important for most people. The State Pension currently amounts to just £8,767 per year, which is unlikely to provide financial freedom in older age.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…As such, with the FTSE 100 offering a strong track record of growth, low valuations and an opportunity to diversify, now could be the right time to start building a retirement portfolio to help you beat the State Pension.Track recordWhile having cash savings and investing in bonds may have been worthwhile in the past, low interest rates mean the FTSE 100 could offer significantly higher returns in the coming years. It has recorded an annualised total return of around 9% since its inception in 1984. With cash savings and bonds currently offering returns struggling to beat inflation in many cases, their potential to catalyse your retirement portfolio seems to be slim.Of course, the FTSE 100 may experience periods of decline in the coming years. Risks such as Brexit, US political uncertainty, and geopolitical challenges in the Middle East may hold back investor sentiment and could produce paper losses for investors. But adopting a buy-and-hold strategy could lead to high returns, with the index’s track record showing it has always recovered from its lows to post new highs.Low valuationsAt present, the FTSE 100 appears to offer good value for money. It currently yields around 4.4%, which is above its long-term average. This suggests there’s a wide margin of safety on offer, and that the index may produce stronger total returns than it has done in the recent past.Attractive valuations also suggest investors may be able to lower their overall risks, since many of the uncertainties facing the world economy appear to be priced in to FTSE 100 stocks’ valuations. This could mean the risk of losing money is relatively limited, since investors may already be expecting a difficult period in the near term that’s currently reflected in lower valuations across the FTSE 100.Diversification potentialWith the UK facing a transitional period as it leaves the EU, diversifying across the global economy could be a good idea when it comes to building your retirement portfolio. The FTSE 100 currently generates around two-thirds of its income from outside the UK, which means investing in it could reduce your overall risk and enable you to benefit from strong growth rates in emerging economies. This could further improve your returns and help you to beat the State Pension and retire early.center_img Our 6 ‘Best Buys Now’ Shares See all posts by Peter Stephens Enter Your Email Address 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. 3 reasons why I’d buy FTSE 100 shares today to beat the State Pension and retire early Peter Stephens | Saturday, 8th February, 2020 last_img

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