No savings at 50? I’d buy these 2 FTSE 100 shares today to get rich and retire early

I think these two FTSE 100 (INDEXFTSE:UKX) shares could offer long-term growth potential.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

While it is better to start early when it comes to planning for retirement, it is never too late to invest for older age.

At the present time, there are a number of FTSE 100 shares that appear to offer good value for money. Certainly, they face risks, but the long-term track record of the index shows that a diverse portfolio of shares can deliver higher returns than other mainstream assets.

With that in mind, here are two FTSE 100 shares that could be worth buying today to improve your retirement prospects over the coming years.

Berkeley Group

FTSE 100 housebuilder Berkeley Group (LSE: BKG) recently released a trading update and it said its operating conditions have remained robust. That’s despite economic and political uncertainty being high, with the company experiencing resilient demand for its properties.

The business is taking a long-term view of the UK housing market. Certainly, there is scope for the firm to face difficulties in the near term, with issues such as planning, economic uncertainty and political change weighing on its short-term performance. But with there a lack of supply of new homes in London and other parts of the UK, the long-term prospects for the industry appear to be encouraging.

Berkeley Group currently trades on a price-to-earnings (P/E) ratio of 13.8. This could offer investors a margin of safety when compared to its intrinsic value, since the stock market seems to be factoring in potential difficulties for the wider sector. However, for a long-term investor who can accept a degree of uncertainty for now, the stock could deliver high returns due to its strong market position and resilient demand for new homes across London and other parts of the UK.

Lloyds

Another FTSE 100 share that has been impacted by economic and political uncertainty in the past couple of years is Lloyds (LSE: LLOY). Its recent updates have shown that trading conditions have been tough – especially with ongoing PPI costs hurting its profitability.

Despite this, it has pushed ahead with the delivery of its strategy. The acquisition of Tesco Bank’s mortgage portfolio could strengthen its position in a key market, while the investment it is making in a wealth management joint venture with Schroders has the potential to boost its income over the coming years.

Lloyds currently trades on a P/E ratio of just 8. This could reflect investor uncertainty regarding its near-term performance, which could be impacted by issues such as Brexit and the upcoming general election.

As such, long-term investors may be able to buy the stock while it trades on a low valuation. This could lead to capital growth in the long run, as its strategy of investing in becoming more efficient and the possible end of costs such as PPI lead to more favourable operating conditions for the business.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Berkeley Group Holdings, Lloyds Banking Group, and Tesco. The Motley Fool UK has recommended Lloyds Banking Group and Tesco. 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.

More on Investing Articles

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

With a £20k Stocks and Shares ISA, here’s how to aim for passive income of £228,688!

A £20,000 Stocks and Shares ISA could be an absolute passive income goldmine over the long term. Our writer explains…

Read more »

Two elderly people relaxing in the summer sunshine Box Hill near Dorking Surrey England
Investing Articles

FTSE 100 shares: a long-term chance to get rich?

This writer believes it is possible to build long-term wealth by building a portfolio of carefully chosen, attractively priced FTSE…

Read more »

A senior man and his wife holding hands walking up a hill on a footpath looking away from the camera at the view. The fishing village of Polperro is behind them.
Investing Articles

What sort of shares can make sense to buy for a SIPP?

Thinking about the right shares to buy for a SIPP can involve a long-term view and some self-awareness. Here, our…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

Here’s how £20k of savings could one day generate £841 of monthly passive income

A passive income plan built around investing in dividend shares could be a simple but potentially lucrative way to earn…

Read more »

Road 2025 to 2032 new year direction concept
Investing Articles

Prediction: in 12 months, the recovering aberdeen share price could turn £10,000 into…

After a terrible run the aberdeen share price is finally showing some zip and Harvey Jones says the FTSE 250…

Read more »

Illustration of flames over a black background
Investing Articles

Here’s a FTSE 100 insurer to consider buying for a SIPP

Our writer looks at the pros and cons of including one of the Footsie’s insurance companies in a Self-Invested Personal…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Should every investor be like Warren Buffett and have an insurance company in their portfolio?

Berkshire Hathaway, Warren Buffett’s investment vehicle, has been a long-time investor in insurance. Our writer takes a closer look at…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

3i Group: unravelling the finances behind one of the FTSE 100’s most profitable companies

Mark Hartley breaks down why 3i Group's one of the most profitable companies on the FTSE 100, and the risks…

Read more »