I lose track of the retirement age here in the UK but I think it’s late sixties.

I’m in my late thirties, so by the time I reach my late sixties I’ll probably have had a bunch of malfunctioning organs, ligaments, and maybe even bones replaced.

Medical advances will be so amazing that I don’t imagine our brains can currently process the possibilities.

If you watched the excellent Years & Years recently on the BBC you will have seen an elderly lady given her sight back.

She had some degenerative disease, but £10,000 and a few short operations later she had perfect eyesight.

The programme wanted us to look forward roughly ten years into the future, and this type of operation was just one of a bunch of impressive predictions of how our lives will have changed.

But back to retirement ages.

By the time I’m sixty I imagine the retirement age will have pushed out to eighty, at least.

As people live longer due to medical advancements, the state (and companies) simply won’t be able to afford to pay people for a further thirty of forty years – depending on your viewpoint, they can’t even afford to pay people for twenty now.

So you should be preparing yourself to work until your seventies or eighties before you can access a pension, depending on your current age.

Which makes it all the more important to start to build up other streams of income.

Some of these can be used for your day-to-day living expenses, but others should be treated as set and forgeters, meaning you can compound the returns.

Por ejemplo…

Say you put aside £10,000 for set and forget investing, and you’re aged 40.

If you get a 1% return on this each year, by the time you’re 65 (when you would like to retire), that pot has grown to £12,202 (if you reinvest the capital plus interest each year).

Which is rubbish, so if almost all your money is currently sat in a savings account – broaden your mind please.

At 5% it will grow to £26,533, still not exactly amazing, and don’t forget inflation which means everything will likely cost more in twenty-five years’ time.

At 10% it will be £67,275, and at 20% per annum it will be £383,376.

Now we’re talking.

20% might sound like an outrageous return, something which must contain so much risk that it will probably wipe out your £10,000 in the first year instead.

Maybe, but also maybe not.

Now imagine you’ve created numerous pots, and have them all out doing different things.

Working until you’re sixty might not even be necessary.

The August guide that goes out to Guerrilla Investors talks about an investment area that is often overlooked but is probably a no-brainer for higher-rate tax payers.

It’s got an impressively long track record, and is most definitely suited to those who are high net worth individuals, sophisticated investors, or those who would like to self-certify as such in the not too distant future.

Reading the subscription details here will probably take a minute & minute:

www.guerrillainvestors.com/subscribers

All the best,

Stephen Wallis

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