By investing in top FTSE 100 stocks, even those who are late to investing can build a healthy nest egg for retirement. Here’s what I’d do if I was 40 and looking to retire a few decades from now.
Cut tax
My first act would be to reduce (or even eliminate) any payments to the taxman. I’d do this by opening an Individual Savings Account (ISA) and/or a Self-Invested Personal Pension (SIPP).
With these financial products, I wouldn’t pay any tax on either capital gains or dividend income. Over time, this can add up to a considerable amount.
On the downside, I won’t be able to access my SIPP savings until I hit my late 50s. But if I’m saving for retirement this shouldn’t be a problem.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be,…
