Retirement savings: why the coronavirus bear market could boost your passive income

first_imgSimply click below to discover how you can take advantage of this. Image source: Getty Images. 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. Buying stocks to make a passive income after a market crash can be a difficult process for any investor. There’s a realistic chance stock prices could move lower in the short run due to economic challenges that may lie ahead.However, the high yields that are on offer across a number of industries may make equities attractive on a relative basis for income-seeking investors. Likewise, for investors who are seeking to build a retirement nest egg over the long run, the low valuations on offer across the stock market could provide buying opportunities that boost your returns in the coming years.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…Passive income opportunitiesInvestors who are seeking to generate a passive income from their capital today can now access higher yields in many cases than they could at the start of 2020. The recent market crash has caused a wide range of companies to trade at lower stock prices. This means their yields will have risen as long as their dividends are being maintained.Some companies that are continuing to pay dividends in 2020 due to coronavirus, not impacting materially on their financial performance, have still experienced falls in their stock prices. Investor sentiment towards equities has declined over recent months, as investors have sought refuge in safer assets, such as gold, bonds, and cash.As such, now could be the right time to buy companies that have solid finances and affordable dividends while they offer high yields. On a relative basis, they could produce high income returns that boost your passive income over the long run.Building a nest eggFor investors who are building a retirement nest egg and don’t require a passive income from their portfolio for many years, now could be an excellent time to buy stocks.The stock market’s track record shows it has experienced infrequent, but somewhat regular, bear markets in its history. They have been hugely challenging for investors at the time, since they cause paper losses in many cases. But the stock market has always been able to successfully recover from all of its downturns and bear markets to produce long-term growth.As such, buying stocks after a market crash has been a sound strategy pursued by many successful value investors. Although it can produce short-term losses, should the outlook for the economy worsen and investor sentiment weakens, over the long term a recovery is highly likely. For investors who’ve a long-term time horizon, therefore, buying high-quality companies today could be a highly profitable move that increases the size of their retirement nest egg and passive income.Risk considerationsClearly, diversifying across a range of businesses to generate a passive income is highly important at all times. It is, however, even more crucial during periods of economic uncertainty where some industries can come under severe pressure.Therefore, building a portfolio of stocks that operate in different sectors could reduce your overall risks, and strengthen your returns in the coming years.  Our 6 ‘Best Buys Now’ Shares Enter Your Email Address 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Peter Stephens | Monday, 8th June, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Peter Stephens Retirement savings: why the coronavirus bear market could boost your passive incomelast_img read more

What’s the best way to invest £100k?

first_img Image source: Getty Images 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. Enter Your Email Address Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Greencoat UK Wind. 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. Rupert Hargreaves | Saturday, 28th November, 2020 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! What’s the best way to invest £100k?center_img Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” If I had a lump sum of £100,000, I think the best way to invest this money today would be to use what I like to call a bucket approach. The best way to investThe idea behind this is simple. Rather than putting all of the money into a selection of stocks and shares or funds, I’d allocate a percentage of the funds to different buckets.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…For example, I could invest 30% in individual stocks and shares. Another 30% in low-cost index tracker funds. 30% in actively managed funds, and the final 10% in alternative investments. I think this approach is sensible because it combines the best of both worlds. I can buy the individual stocks and shares that I know and understand well and effectively outsource some of this management to active fund managers. This may be more suitable for small and mid-cap companies. These shares tend to be riskier than their blue-chip peers.As such, I think it could be better to leave it to the professionals. The additional diversification provided by actively managed funds also reduces overall risk. Actively managed investment funds also offer a good route for me to own overseas investments.Indeed, while most stockbrokers offer access to equities in other developed markets such as Europe and the United States, accessing stocks in emerging and frontier markets, such as China in Vietnam is not always possible. That’s where actively managed funds can come in handy. However, research shows that many actively managed funds underperform the market in the long run. That’s why I think the best way to invest could be to split my money between active funds and passive funds. If active funds underperform, passive investments can pick up the slack. Alternative investments Finally, with regards to the alternative investment bucket, I think this provides additional diversification. Some alternative investments include Greencoat UK Wind, which owns a portfolio of wind farms around the country and provides a steady income stream for its investors.Another option is investment trust RIT Capital Partners. This firm owns a portfolio of hedge funds and private companies. Its goal is to protect and grow its investors’ wealth over the long term. The best way to invest in individual stocks, in my view, is to buy a basket of high-quality blue-chips. Companies that own household names tend to have strong competitive advantages. This can help them outperform competitors in the long run. Reckitt Benkiser, the owner of the Dettol and Air Wick brands, is a perfect example. I’d buy these stocks for my £100k portfolio with the view to holding them forever. I think the approach outlined above is the best way to invest a large lump sum. I’m already using a similar strategy to manage my existing portfolio. In my opinion, in the long run, the combination of all four buckets should lead to large total returns.  Simply click below to discover how you can take advantage of this. 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. See all posts by Rupert Hargreaveslast_img read more