MENU 4 things within your control that can make or break your retirement dreams Paul Summers | Saturday, 13th July, 2019 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. Image source: Getty Images. Since we have no control over the daily movements in the prices of stocks we own, it makes sense to focus a little more on the things we can influence. Especially if these can have a huge impact on our ability to build wealth and secure a more comfortable retirement. Instead of fretting over your winners and losers this weekend, why not make a point of checking that you’re doing the following. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval… We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio. Click here to claim your free copy now! Keep an eye on costs Arguably, far too little attention is paid to costs by investors and yet these are the one thing we can be completely sure of. This is particularly important if you choose to invest in actively-managed funds since, even if your chosen manager is able to beat the market consistently (and most don’t), any outperformance made may be cancelled out when fees are extracted. That’s partly why investing in passive vehicles like index trackers and exchange-traded funds can make a lot of sense. They can’t outperform the markets they follow but the costs are so low (as little as 0.07% compared to managed funds that can charge 1-2%) they often generate a better outcome than their active equivalents after fees. Another way of cutting costs is to take advantage of regular investing plans from brokers that invest your cash on roughly the same day every month for a relatively small charge compared to their usual buying fees. It’s also worth checking whether your platform provider charges a flat or percentage-based annual fee for their services as the former can be the far cheaper option for those with large portfolios. Save tax where you can For the vast majority of private investors, it makes sense to hold your investments in a tax-efficient wrapper such as a Stocks and Shares ISA or Self Invested Personal Pension (SIPP). Fail to do this and you’re liable for tax on any capital gains you make and any income you receive. In the 2019/20 tax year, it’s possible for one person to save a total of £60,000 if they hold both kinds of account. You’ll also get tax relief on cash paid into the latter. Thanks to the power of compounding, this can dramatically enhance your returns over time. Invest according to risk While you can’t decide what assets do, you can control your exposure to them. That’s why it’s vital to understand your risk tolerance, which will be determined by your personal circumstances, financial goals and how long you’re willing to stay in the market. Generally-speaking, a young investor can afford to take on more risk to grow their wealth since they have more years ahead of them in which to smooth out returns. Someone approaching retirement, however, may be wise to dial down their exposure to equities and divert their wealth into less volatile assets. Get a grip on yourself One of the biggest contributors to success that’s very much within our control is the ability to manage our emotions. Unfortunately, it’s actually very easy to lose your cool when markets tank and sell out at the very time you should, in fact, be buying. To avoid sabotaging your own progress, consider simply checking your portfolio less often. So long as your holdings are suitably diversified by sector and geography, any stress-fueled tampering can be kept to a minimum. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Our 6 'Best Buys Now' Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW. So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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 click below to discover how you can take advantage of this. Enter Your Email Address 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. See all posts by Paul Summers One FTSE “Snowball Stock” With Runaway Revenues From 2015-2019, this UK company saw its revenues increase 38.6%, its net income go up 19.7x, and since 2012, revenues from regular users have almost DOUBLED. We think the opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money... So why sit on the side lines a minute longer? You could have the full details on this company right now. To get your copy of this research report for FREE, simply click the button below. Click here for all the details! COMPARE TOP-RATED SHARE DEALING ACCOUNTS Looking for a new share dealing account or to switch providers? Use our broker comparison centre to read free, in-depth product reviews and to apply online! 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