The Motley Fool

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

Image source: Getty Images

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.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

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.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

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.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.