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.

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

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Here’s how someone could start investing in 2025 with just £1,000

Planning to start investing in 2025? This writer highlights two very different stocks that might be worth considering for a…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

I asked ChatGPT which UK stocks Warren Buffett might look to buy. It suggested these 5 names

ChatGPT has some ideas about FTSE 100 stocks Warren Buffett might have been buying. But Stephen Wright thinks a closer…

Read more »

Investing Articles

Up 14% today! Here’s one growth stock that Elon Musk likes

A UK growth stock has signed another contract with SpaceX. But does this mean it deserves a place in my…

Read more »

Investing Articles

I asked ChatGPT if the FTSE 100 would hit 10,000 this year. It’s feeling bullish!

The FTSE 100's flying and Harvey Jones is feeling bullish. His obvious next step was to ask a chatbot where…

Read more »

Investing Articles

Near 52-week lows, are these FTSE 100 stocks now unmissable bargains?

Two FTSE 100 titans just can't stop falling in value. Paul Summers looks at whether investors should see this as…

Read more »

Investing Articles

Bill Ackman just loaded up on this top stock for his FTSE 100-listed fund

The well-known hedge fund manager has announced a massive holding in this tech stock for his FTSE 100-listed investment trust.

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Billionaire Bill Ackman has just made a huge bet on this S&P 500 growth stock

Bill Ackman just bought 30m shares in this well-known S&P 500 company. He believes it’s currently trading well below its…

Read more »

Investing Articles

40 and no pension? Here’s what £400 a month in a Stocks and Shares ISA could become

It's never too late to start investing for retirement. Here's how regular contributions to a Stocks and Shares ISA could…

Read more »