What To Do If You’re Middle-Aged and Have No Retirement Fund.

This site is built on the premise of doing as much as you possibly can to start saving early and therefore allowing yourself to retire early. But what if you have come to this plan a little later in life? Is it too late for you to start worrying about these things? Should those of us in our 40’s and 50’s shrug our shoulders and say, what’s the point?


Absolutely not. Of course, having little or no savings in your 40’s or 50’s is a worry if you are starting to think about retirement. But there is still time and if you move quickly and make smart choices, it is still very much possible to put together a decent extra income for your retirement. This article will look into how you go about doing exactly that.

Consider Dividend Shares for Long Term Growth

When building a portfolio, investors often don’t think about the potential for capital growth of some dividend shares. Purchasing income shares can be a very useful and quick way to build a half decent retirement portfolio over the next ten or twenty years and a high percentage of the total returns from the stock markets come from reinvesting dividends in this way. The way to maximise this approach is to look at companies who are expected to increase their pay outs to shareholders. These can be spotted by delving into their forecast for profit growth, their overall strategy and the affordability of their dividend, all of which will give an indication how quickly they will be increasing their shareholder pay outs. The reason this is a good strategy is that companies that are able to increase their shareholder pay out will not only provide a better income but will also be more popular with investors and therefore see growth in their share price in the long term, which suits your aims.


Don’t Forget About Income Growth

This is not to gloss over the income returns such shares can provide you. Capital growth is great for your long term plans but that small passive income will also be useful in the long run, particularly when compared with savings accounts or bonds.


Remember to Diversify

By diversifying your shares across not just differing companies but also sectors of investment, you ensure that your capital growth and passive income from dividend shares is well protected. The last thing you want to do is put all your money into one sector so that an issue that comes along and impacts an industry leads to your entire portfolio tanking. Buying dividend shares across numerous sectors should offer some protection from the ups and downs of individual industries and allow your successes to override your failures.


Don’t Panic!

And lastly, remember the mantra we keep stressing throughout all these pages – don’t panic when disaster strikes (such as coronavirus) and the shares take a tumble. This has happened before and will happen again, but the overall, long term movement of the stock market has always been upwards. Don’t rush to sell when the shares drop, just keep thinking about your long term aims – building a decent retirement income for the next stage of your life.