• Tweet
• Pin It

Article by Ben Barlow

While it was only to be expected that savings rates in the UK would fall as the uncertainty surrounding Brexit continued to rage, the extent of the decline has surprised even the most seasoned experts. The rising rate of savings in nations such as France provide a stark contrast with this, with the RCI Bank now offering returns of 1.10% (as opposed to the Bank of England’s base rate of 0.25%).

 

With this in mind, older savers and those approaching retirement may need to consider seeking out more creative savings alternatives in the current climate. The question that remains, of course, is which vehicles can can deliver the best returns, while also helping you to achieve the ideal balance between risk and reward?

 

3 Alternative (and Viable) Investment Options for 2017

So, let’s take a look at three potential investment vehicles that can help you to optimise your retirement fund in a challenging climate. These include: -

 

1. Peer-to-Peer Lending and Crowdfunding

 

These options are increasingly viable in the modern age, thanks to their increased accessibility and the potential returns that are available to investors.

 

Peer-to-peer lending is also particularly popular among businesses, primarily because it eliminates the middle man (or the bank to you and me). It also delivers lower rates and commission fees to investors, creating a scenario where everyone benefits.

 

Crowdfunding has also become more credible among borrowers in recent times, thanks primarily to the introduction of an equity-based lending model. This means that you invest your capital in exchange for a fixed store of wealth, which can deliver long-term rewards and potentially increase in value over time.

 

1. Precious Metals and Currency

Alternatively, you can also strive to invest your capital in assets available through the financial marketplace. This has also become a more popular concept in the digital age, with online brokerage firms like FXPro providing a platform through which traders can access a number of derivatives.

 

Two of the most viable assets are precious metals and currency, which when combined can create a relatively diverse trading portfolio which creates a viable balance between risk and reward. The former (including gold) tend to serve as a secure source of wealth during austere economic times, while the inclusion of silver can also drive further diversification as this boasts more functional usage.

 

In terms of currency, this is a margin-based derivative that can be traded through the volatile forex market. Although this is a 24-hour market that sees numerous price shifts on a daily basis, the returns can be significantly higher while it is also to leverage short positions and thrive even in a depreciating economy.

 

1. Real Estate

Finally, we come the single most tangible investment asset. This is real estate, which has bloomed as the UK market has seen incredible growth during the last two years.

 

Although real estate can be a relatively inaccessible investment, it is ideal for those who have withdrawn 25% of the pension fund in the form of a single, lump sum. This capital can be leveraged as a deposit for the procurement of property, whether you wish to sell this directly or rent it out for an incremental, monthly income.

 

This is a stable and tangible investment choice that offers huge value at the current time, although you will need to be comfortable of the ideal of making a significant, up-front investment from the outset.

This is for information only. It is advisable to seek independent advice from an independent financial professional prior to making investments.