An easy long-term investment plan

We would all like to retire, when that time comes around, with a comfortable amount of money to live on, pay our bills and still treat ourselves to the nice things in life. Right girls? but unfortunately many people vastly underestimate the amount of money they will need to finance their retirement.

It all comes down to one thing…saving money. We all love to spend it, that’s easy, but saving it and watching it grow takes discipline and committment. But if you are patient and can spare some cash each month here is a way to save some serious money for the future…start an easy to manage long-term investment plan.

 In other words, take whatever spare cash you have every month ( aim to have some ) and invest 70% in a basic, low-fee stock index trader fund, and the remaining 30% in a bond fund, which you take out through a discount broker or fund supermarket (where the fees are lower than going direct). Then leave it until you retire. Literally. Learn to live without it.

The benefit of tracker funds are that they cost very little to invest in and they are run by machines so don’t take silly risks like their human counterparts. Instead, they follow the fortunes of a particular market, which over the long term is likely to be much better than a savings account. Bond funds are even lower-risk investments in Government and company IOUs. The big risk is if a company goes bust, but a fund will spread that risk for you.

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