If you’re thinking about retiring early, your twenties are the ideal time to plan ahead. At this time, you have the magic of compound interest to benefit your savings. With a plan and discipline, you can build a handy nest egg that will give you plenty of financial options in the future.

There is a range of different ways to invest in your twenties for the longer term. With a timeframe that is well above the recommended minimum of five years, you can afford to invest in the stock market. This is a wise course of action given past returns – but remember that past returns do not guarantee future returns. A balanced portfolio of savings and investments is a must.

Use an IFA

An independent financial advisor can help you to build a financial plan and portfolio that will set you up for the future. Yes, there will be a cost for this service but think of it as having a private wealth coach with all of the experience that you need to achieve your goals – https://www.moneysavingexpert.com/savings/best-financial-advisers/.

An IFA will use a mix of knowledge, insight and software for IFAs. Examples of this software for IFAs can be found at Intelliflo and give you an idea of the sorts of things in use to benefit clients.

Do it yourself

If you are confident, ready to learn about the financial markets and personal wealth and keen to retain full control of your investments, then there are software package such as online brokerages which allow you to invest in funds or buy shares directly. Each approach will be attractive to different people, depending on their appetite for risk and self-involvement.

Building a portfolio

Remember to build a balanced portfolio whichever approach you take. This means paying down debts whilst putting money into the stock market for the longer term, cash accounts for emergency savings and potentially other vehicles such as property. Again, your appetite for risk and the amount of money you have to put away are key here.

Remember, too, that it is essential to make use of any pension that you have, as it is a tax-free form of saving and instantly boosts your contributions by 25%. Even better, if you are employed your employer will be putting in contributions for you too.