Retirement is an odd thing to plan for, as it has to be done many years before you even consider handing in your retirement letter and winding down. When it comes to retirement, there are many different options you can choose from to look after yourself, and possibly your partner, but what if you want to do more than that? What if you want to provide for your family – children and grandchildren – even after you’re gone? Here are a few options from the experts.


  1. Invest in Unit Trusts


Unit trusts offer an easy, convenient way to invest for your future. Explained by Old Mutual, it is where a “pool of investors’ money is used to invest in financial instruments such as equities and bonds. This pool is then divided into equal units where each unit contains the same proportion of assets in the fund.” Investors – those who pay monthly towards this growth - then share in the gains and losses, and income and expenses of the fund.


The great thing about unit trusts, is that you can determine your investment amount – something you should consider with your financial advisor. These monthly contributions will build up in your unit trust and will be available to you when you need it. Another option is to leave your unit trust to an individual in your family and they’ll have access to this money when the time comes.


  1. Risk-Free Investing


If you’re looking for a risk-free way to earn some interest on your invested money, Moneyweb suggests a “’high’ yield savings account”. With an account like this, you earn “a nominal amount of interest just for keeping your money on deposit”. Over time, this lump sum will grow. The great thing about this type of investment is that you’ll have access to the money if you need it for a rainy day or if you need to transfer the money to a family member.


  1. Invest in Property


Items like cars and cell phones are not seen as good investments, because as soon as you start using them, the value starts to depreciate. Property, on the other hand, is an investment well worth making. Many individuals who are looking to provide for their families will consider investing their spare money into a flat or townhouse, and for good reason! Investing in a buy-to-let property, can be profitable if managed well, according to Private Property.


While the property is not needed by family, it can be rented out to cover the bond and make back a small amount each month. The property can ultimately be handed over to a family member to either stay there – rent free - or rent it out to make extra money for themselves. This investment serves as a great little nest egg.  


When it comes to planning ahead for your retirement, the sooner you start the better. The longer you invest for, the larger the amount of money you’ll have when the time comes to hand it over to your loved ones. Advice will vary from one financial advisor to another, but with so many options out there, there’s a lot you can do to look after your family when you’re gone.  


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Disclaimer: bsmart does not provide financial advice. The above article is for information purposes only, to share current economic and financial topics and trends. Please consult a suitable and qualified financial services provider if you require financial advice.