The original, released in December last year, was based on her daughters, both of whom are embarking on their professional careers. She stressed that it is never too early to start thinking about investing for the future.
Following on from the popularity of that piece she has returned to share her strategy for investing £10,000 for the future but this time for those approaching retirement.
Living longer
Of greater importance now, more so than ever before, is the need to regularly review investments because, on average, we are living longer. Speaking in the Telegraph, Ms McGrade said:
“We can become pensioners at 55, and 55 is the new 40 – we’re young and therefore we should also consider continuing to invest our spare cash for growth.
“Research tells us we’re likely to live 30-plus years, so our need for growth is just as important as it is for our children.”
With this in mind, her strategy, much like that shared previously, focuses on growth. Quoted in the Telegraph, she had the following to say:
Strategy
“Investing isn’t scary or boring but it does have to be intelligent,” says Ms McGrade. “You should check up on your investments from time to time too. Transparency has become important to financial companies, and investment managers are now producing more user-friendly information. Websites like TD Direct Investing’s are striving to bring you that information all in one place.”
How would I invest my £10,000?
Michelle says: “I like to invest in growth and I am not afraid to take risks, so I have selected a range of funds that together make up a rounded investment portfolio with a bias towards growth.
“These ideas are based on some of the themes we’ve identified in our 2016 outlook. The funds are managed by skilled fund managers who are passionate about achieving their investment goals. I enjoy following them and I hope you do too.”
- “BlackRock UK Fund: The UK is back on track for growth. We have a pro-growth government determined to drive the UK to be the “Greater Britain” over the next 10 years. Wages are rising and chief executives are starting to spend. Productivity is improving and exports are reasonably buoyant.
- “FB WHEB Sustainability Fund: This investment is about ethical views. It is clear that increasingly good corporate governance is rewarded and bad is not (as was the case with VW) and I wish to contribute to the world being a better environment for the next generation.“WHEB’s investment approach is underpinned by the identification of four sustainability mega-trends: resource scarcity, ageing population, rising population and globalisation.
These feed into nine broader themes, five of which are environmental and four social: cleaner energy, environmental services, resource efficiency, water management, sustainable transport, safety, health, well-being and education.
- “Threadneedle UK Equity Income Fund and Schroder Asian Income Fund: If you do not need the income now, buy the accumulation units so you can reinvest the dividends and compound the growth.“The beauty of these two funds is they both invest in quality companies with strong cash flow and growth prospects, with a goal of producing sustainable and growing income streams. Asia is still less developed than the UK so there is more potential return expected from the region.
- “H20 MultiReturns: As I expect the markets to remain volatile I suggest a fund that provides some downside protection. H2O is a global macro-fund available in the UK. It takes a view of global currencies, bonds and equities and makes gutsy allocations to each of these.“The short-term volatility of this fund is not for the faint-hearted, but over a cycle it expects to achieve significant returns with overall low volatility (the short-term volatility irons out). It has an aggressive return target of Libor [London inter-bank lending rate] +4% per annum.”
If you’re keen to find out more about growth, it’s a topic in our most recent Investment Outlook.
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