The problem with Premium Bonds

Premium Bonds aren’t hard to fathom. For every £1 you save, you’ll receive a bond. Each bond you own has an equal chance of winning a prize in a monthly draw. Just like the lottery, the more bonds you own, the better your chances. Prizes range from £25 to a staggering £1m! However, it’s important to recognise that there’s a high chance you’ll win absolutely nothing. As such, it’s probably better to look at the annual prize rate. 

This has been calculated as a paltry 1.4%. In other words, you’ll receive just £1.40 for every £100 you put in. It gets worse. In September, NS&I announced that the prize rate will drop from 1.4% to 1% from December. That’s barely above inflation.

The fact that prizes are paid tax-free isn’t even an incentive anymore. After all, the Personal Savings Allowance — introduced in 2016 — means that any interest earned on savings is paid tax-free. Unless you’re earning more than £1,000 interest a year as a basic rate taxpayer, you’ll never pay a penny back.  

Given the above, I’d be far more likely to put my money in another ‘national’ investment.

Steady share

When it comes to defensive shares, FTSE 100 member National Grid (LSE: NG) is up there with the best of them, I feel. Regardless of whether the economy is tanking or not, we all need power. The Grid supplies gas and electricity to millions of customers every day. It’s perhaps no surprise that today’s interim numbers were, well, unsurprising. 

Thanks to the coronavirus, underlying operating profit fell 12% to £1.1bn over the six months to the end of September compared to the same period in 2019. The company also had to deal with bad debts and costs relating to storms. 

Dividend delight

But let’s not beat about the bush: National Grid will never double its share price overnight. The primary attraction of the shares will always be its dividends. Today, the £34bn cap revealed a 3% rise to its interim payout to 17p per share. 

If analysts are correct, we should expect the FTSE 100 constituent to return 49.5p for FY21 as a whole. Based on the current share price, that gives a juicy yield of 5.2%. That’s a lot more tempting than throwing my cash at Premium Bonds. 

Sadly, these dividends can never be guaranteed. Nevertheless, I find it hard to fathom a situation in which the Grid fails to pay up.

If I really want to grow my wealth, the strategy is simple: just reinvest what I receive back into the market, sit back and let compounding work its magic. 

Dividend investing won’t quicken the pulse, but it’s more likely to be successful than buying Premium Bonds.

The post Forget NS&I Premium Bonds. I’d buy this FTSE 100 share for its 5% dividend appeared first on The Twelfth Magpie.

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• Are National Grid shares entering a new valuation era in the FTSE 100?

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.

Worryingly, both savings products are about to become even more ineffective. This week, NS&I made big changes to the returns offered from both Premium Bonds and Income Bonds. Below, I’ll discuss the recent NS&I changes. I’ll also explain how I’m targeting much higher returns than these savings products offer.

Changes to Premium Bonds and Income Bonds

With Premium Bonds, NS&I is making two key changes. They kick in in December. Firstly, it’s slashing the prize rate from 1.4% to 1%. This means less total prize money up for grabs. Secondly, it’s changing the odds of winning a prize from 24,500 to one to 34,500 to one. The estimated number of prizes is being reduced by 1m.

With Income Bonds, the interest rate offered is set to be cut from 1.16% AER to just 0.01% AER in November. This change is the biggest shock. You don’t need me to tell you that that’s a terrible interest rate. Stick £10,000 in Income Bonds for a year at that interest rate and you’re looking at interest of just £1 for the period. That won’t even buy you a cup of coffee. It’s a grim situation.

Much higher returns

If it’s long-term savings you’re looking to invest, I say forget about Premium Bonds and Income Bonds and take a look at dividend stocks. Dividends are cash payments that many companies pay to their shareholders, out of their profits, on a regular basis. Dividend stocks can be a great way to generate passive income.

Right now, plenty of well-known UK dividend stocks offer very attractive dividend yields. For example, Unilever, which owns a number of well-known brands including Dove, Ben & Jerry’s, and PG tips, currently offers a yield of about 3.3%. Major defence company BAE Systems currently offers a yield of about 5%. Meanwhile, insurance giant Legal & General offers a yield of 10%!

I’ve personally received cash dividend payments from all three of these FTSE 100 companies this month. It’s always great seeing cash payments hit my account. 

I’ll point out that dividend stocks aren’t without risk. In the short term, the share prices of dividend stocks go up and down constantly. Unlike with Premium Bonds or Income Bonds, your capital’s at risk. In addition, dividends aren’t guaranteed. A company can reduce its dividend, or cancel it completely, if it wants to.

However, overall, dividends stocks can be a great way to build long-term wealth. Pick the right dividend stocks and you’ll not only enjoy regular cash payments, but you’ll enjoy share price gains too.

Compared to Premium Bonds and Income Bonds, I see dividend stocks as a no-brainer.

The post Forget NS&I Premium Bonds and Income Bonds. I’m targeting much higher returns here appeared first on The Twelfth Magpie.

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Edward Sheldon owns shares in Unilever, BAE Systems, and Legal & General Group. The Motley Fool UK has recommended Unilever. 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.

Personally, I see very little appeal in Premium Bonds. Here, I’ll explain why I’d give them a miss, and look at where I’d park my long-term savings instead.

Premium Bonds: not worth it

From a wealth-building perspective, Premium Bonds have several major flaws, in my view. For starters, they pay no regular income. This means they’re not really suitable for anyone who is (a) looking for a regular return on their savings (i.e. retirees), or (b) looking to take advantage of the power of compounding (earning interest on interest).

Secondly, the odds of winning big cash prizes are poor. Overall, the odds of winning a cash prize for each £1 bond number are 24,500 to one. Meanwhile, the odds of winning the jackpot are around 41bn to one. These odds are summed up well by the Money Advice Service: “Your chances of winning the top prize are very slim – most people will win smaller prizes or nothing at all.”

Finally, even if you do average a return of 1.4% from Premium Bonds, that’s still a very poor return. That kind of return isn’t going to protect you from inflation. Ultimately, if you’re earning 1.4% on your money over the long run, you’re going to be going backwards financially.

So, all in all, I see Premium Bonds as a lousy investment.

Returns of 7-10% per year

If you’re investing for the long term, I say forget about Premium Bonds, or any other cash-based savings products, and invest in the stock market instead. This is where I invest the bulk of my own long-term savings.

Yes, stocks can be volatile in the short term. Earlier in the year, we saw just how volatile stocks can be when markets crashed due to Covid-19. However, in the long run, stocks tend to produce much higher returns than cash savings products, such as Premium Bonds.

Indeed, over the long run, stocks tend to produce returns of around 7-10% per year. For example, the S&P 500 index, which is the most followed stock market index in the world, has returned about 10% per year, on average, since its inception in 1926. Earning that kind of return on your money can make a big difference to your wealth over time.

It’s even possible to do better than this if you pick the right investments. For example, the very popular Fundsmith Equity fund, which I’ve invested in, has returned nearly 20% per year over the last five years. 

Of course, the stock market isn’t suitable for all investors. Stocks are a higher risk investment as your capital is at risk. However, if your goal is to build wealth over the long term, as mine is, stocks are a bit of a no brainer, in my opinion.

The post Forget Premium Bonds. I’m aiming for returns of 7-10% per year here appeared first on The Twelfth Magpie.

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Views expressed 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.

This is disappointing news for Premium Bonds savers. The annual prize fund interest rate was already quite low relative to inflation and it’s set to be reduced further. So what’s the best move for savers and investors now?

Can you do better?

Personally, I think this reduction in the interest rate could be a good excuse to ditch Premium Bonds for a better alternative, as I see them as a rather poor way of saving for the future.

The thing I don’t like about Premium Bonds is that they pay no regular income. Yes, they offer savers the chance to win large cash prizes, however, the odds of winning a prize are not great and are set to get worse. This means if you have an unlucky streak, your overall returns could be very disappointing. 

In addition, the overall annual prize fund interest rate is less than inflation. This means that, unless you win a major prize, you’re basically going to get poorer in real spending terms, over time.

All things considered, I think there are much better options for saving and investing in the UK. But what are some alternatives?

Short-term savings

If your savings goals are short-term in nature, it’s worth checking out the top savings account interest rates on offer at the moment. Right now, there are some reasonable interest rates around (2%+) from the likes of Coventry Bank and Virgin Money, although these tend to have restrictions on how much you can deposit per month. You’re not going to get rich with these kinds of accounts, but they could help you get a little more out of your money.

Long-term savings

If your savings goals are more long-term focused, I’d consider an investment in the stock market. While stocks are quite volatile in the short term, over the long run they tend to produce much higher returns from cash savings products.

For example, since its inception in 1984, the FTSE 100 index – the stock market index made up of the largest 100 companies listed on the London Stock Exchange – has generated annualised returns of around 9% per year. Meanwhile, the main stock market index in the US, the S&P 500, has delivered returns of about 10% per year since 1926. These returns are far superior to those from cash savings over the long term.

I’ll also point out that there are many well-known UK income stocks that offer fantastic dividend yields right now. For instance, Royal Dutch Shell shares currently offer a yield of around 7.5%. Similarly, Lloyds Bank and Legal & General shares offer yields of around 6.2% and 5.9% respectively.

Picking up that kind of yield and reinvesting it to compound your money (earning a return on your past returns) could make a big difference to your wealth over time.

Of course, it’s important to understand the risks of investing in the stock market. You may not get back what you invested. However, history suggests if you invest with a long-term view, you’re likely to be rewarded.

The post The Premium Bond interest rate is to be cut. Here’s what I’d do now appeared first on The Twelfth Magpie.

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• Up 132% and surging, how is this FTSE 250 share STILL so cheap?

Edward Sheldon owns shares in Royal Dutch Shell, Lloyds Banking Group and Legal & General Group. The Motley Fool UK has recommended Lloyds Banking Group. 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.

That said, if you want to give your children a financial advantage in life, it’s crucial to invest in the right assets. You need assets that will grow at a rate above inflation and enable you to compound your returns over time, as this is the key to building wealth. With that in mind, here’s a look at why NS&I Premium Bonds aren’t a great investment for children.

Low growth 

The main problem with Premium Bonds, from a wealth-building point of view, is that they pay no regular income. While they advertise an interest rate of 1.4%, this is only paid out in prizes and the odds of winning a prize (24,500 to one for each £1 bond) are quite unattractive. This lack of regular income means that, as a long-term compounder, Premium Bonds are highly ineffective.

Even if you did manage to pick up a return of 1.4% per year on average through Premium Bonds, the original investment wouldn’t grow much over time. For example, if you invested £2,000 in Premium Bonds for a child when they were born and you let this money grow until their 21st birthday, it would only be worth around £2,678 in the end, according to my calculations. By their 30th birthday, it would be worth just over £3,000. When you factor in inflation, the money would most likely be worth less, in real terms, than it is worth today.

Given this lack of inflation protection, Premium Bonds probably aren’t the best asset to go for if you’re saving for your children.

Life-changing wealth

If you’re looking to set your children up financially, an investment in stocks, within a Junior ISA (where all gains are tax-free) is a much better idea, in my view. Over the long run, stocks tend to generate returns of around 6%-10% per year on average (well above inflation), meaning they’re a very effective way of building wealth. Over time, stocks can turn a little bit of money into quite a significant sum.

For example, let’s say you invested £2,000 in a diversified portfolio of stocks for a child when they were born and you let this money grow until their 21st birthday. Assuming a return of 8% per year on average, this money would be worth just over £10,000 by their 21st birthday, which is a fair amount of money. And if you left it until their 30th birthday, it would grow to over £20,000! That’s the power of the stock market for you – over time, the results can be very impressive.

In summary, if you’re looking to invest for your children, I say ditch the Premium Bonds and invest in stocks instead. Your children will thank you for it down the line.

The post Investing in Premium Bonds for your children? That could be a huge mistake appeared first on The Twelfth Magpie.

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• Up 132% and surging, how is this FTSE 250 share STILL so cheap?

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.

Are Premium Bonds worth it?

The way Premium Bonds work is that instead of paying out regular interest in the way that a savings account does, they pay out monthly tax-free cash prizes of between £25 and £1m.

The more bonds you own (each bond costs £1 and you can own up to 50,000), the greater chance you have of winning a prize. Overall, the prize fund is based on an interest rate of 1.4%.

Now, while this sounds good in theory – in reality, it’s a flawed way of saving, in my view. For starters, the odds of winning a cash prize are poor, at 24,500/1. This means that those with only a few bonds are unlikely to win much at all.

As for the top prize of one million pounds – forget about it. Here, the odds of winning with a £1 bond are around 41bn to one. Yes, billion! To sum up the odds of winning a Premium Bonds prize, take this ‘top tip’ from the Money Advice Service: “Your chances of winning the top prize are very slim – most people will win smaller prizes or nothing at all.”

In addition, the fact that Premium Bonds pay no regular income is another major flaw, in my opinion. This means that they’re not really suitable for those who are looking for income in retirement, or those who are looking to boost their wealth by compounding their earnings (earning interest on interest).

Finally, unless you win one of the larger cash prizes, Premium Bonds won’t protect you from inflation. In other words, your money is likely to lose purchasing power over time as costs rise.

All things considered, I don’t think Premium Bonds are worth it.

Other saving and investment options

The good news, however, is that there are plenty of other ways to build your wealth. For example, you could put your money into a high-interest savings account such as Marcus by Goldman Sachs and pick up interest of 1.45% per year. Or, if you’re aged between 18 and 40 and saving for a house deposit or for retirement, you could put money into a Lifetime ISA and pick up a risk-free 25% return from the government.

Alternatively, you could consider investing in the stock market. While your capital is at risk when you invest in stocks, meaning it’s possible to lose money, history shows that over the long term, stocks tend to generate much higher returns than other assets such as savings accounts and Premium Bonds. For example, according to the most recent Barclays Equity Gilt study, UK stocks have returned around 5% per year, above inflation, since 1899.

To my mind, when you consider the amazing performance of the stock market over the long run, the choice between Premium Bonds and stocks is a no brainer.

The post Premium Bonds offer millions in prizes. But are they worth it? appeared first on The Twelfth Magpie.

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• Up 132% and surging, how is this FTSE 250 share STILL so cheap?

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.

Every month, three million bondholders are selected at random to receive a prize ranging from £25 to £1m. The bonds don’t pay any interest, so the prize draw is the only way savers can get a return on their money. As a bonus, all prizes are tax-free.

However, there are some significant downsides to Premium Bonds. The chances of you winning a prize every single month are just one in 24,500. They offer neither a regular income nor guaranteed returns and, with the annual prize fund interest rate currently sitting at 1.4%, they don’t provide protection from inflation either.

In other words, the chances of you making a million by investing your hard-earned money in Premium Bonds are slim at best. Even if they offered a regular income of 1.4% per annum, it would still take a decade of saving more than £1,000 a month to make a million.

Looking at other assets

Luckily, Premium Bonds aren’t the only investment out there. Investors have a range of stocks, bonds and other assets they can buy and hold to generate well alongside these government-backed securities.

These are the investments I would buy to make a million. While there’s always the chance share prices can drop to zero, eliminating your initial investment, if you buy the whole market, the chances of this happening are almost non-existent.

Over the past 100 years, UK stocks have produced an average annual return for investors in the region of 5.5%, after the impact of inflation. Significantly higher than the return currently on offer with Premium Bonds.

Premium returns

The figures tell the whole story. If you had a goal of making £1m in 20 years, you would need to put £3,700 a month in the Premium Bonds. This is assuming that the bond generates an annual return of 1.4%. As that return isn’t guaranteed, it could take even longer to reach a million.

On the other hand, I calculate it would take a monthly deposit of £1,700 to make a million in the space of two decades using UK stocks. In this example, I have used the pre-inflation return figure of 8% per annum.

The best way to replicate these returns is to buy a low-cost FTSE All-Share tracker fund. The FTSE All-Share is an index of 600 of the largest companies listed in London. I believe this is the easiest way to track the entire UK stock market as these companies account for around 90% of the London market as measured by market value.

So, that’s why I would ignore Premium Bonds and invest my money in the stock market instead, to make that million.

The post Forget Premium Bonds! I’d aim to make a million like this appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share 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.

It’s the desire for this kind of life-changing wealth that makes the National Lottery and NS&I Premium Bonds so popular in the UK. The former offers the chance to win many millions in cash prizes multiple times a week, while the latter offers bondholders the chance to win a million every month. As a result, around 70% of people over the age of 18 in the UK buy a National Lottery ticket on a regular basis, while 40% of the population owns Premium Bonds.

However, when you crunch the numbers, it quickly becomes clear that in reality, those playing the National Lottery or investing in Premium Bonds are unlikely to win a million pounds.

Wasting your money 

With the Lottery, the odds of winning the jackpot are 1 in 45,057,474 (the human brain is not wired to process those kinds of odds but I’ll give you a tip – the odds of winning are NOT good). Meanwhile, the odds of winning the major £1m prize with Premium Bonds is a staggering 1 in 40bn per bond (that makes the National Lottery odds look good, which says how poor the odds are).

The takeaway here is that while both the National Lottery and NS&I Premium Bonds do offer the chance to win a life-changing amount of money, in reality, it’s very unlikely that you will win a major prize and pocket a million. The harsh truth is that you’re wasting your money.

An easier way to make a million

In my view, if your financial goal is one million pounds (or any figure for that matter), a much more sensible approach to building wealth is investing in the stock market.

The reason I say this is that the stock market is a proven wealth generator. Due to the fact that the stock market tends to rise over the long run, stocks have turned hundreds of thousands of people around the world into millionaires over the years, and there’s no reason to believe that this won’t continue to happen in the future.

Just look at the long-term performance of the stock market. Since the FTSE 100’s inception in 1984, it has risen from 1,000 points to nearly 7,300 points, which means that when you include dividends, it has provided a total return of around 9% per year. Meanwhile, the US’s S&P 500 index has performed even better than this. Since 1926, it has delivered a return of around 10% per year.

Past performance is no guarantee of future performance, of course. However, as an example, if you were to invest £5,000 per year into the stock market and you generated a return of 9% on your money every year, your portfolio would be worth one million pounds in 35 years. Double your investment to £10,000 per year and you’d hit one million in just 27 years.

It’s these kinds of simple calculations that lead me to believe that stock market investing is one of the best ways to create wealth. Stocks won’t make you rich overnight. However, unlike the National Lottery and NS&I Premium Bonds, the odds of generating life-changing wealth are in your favour if you invest for the long term.

The post Forget the National Lottery and NS&I Premium Bonds. I’d aim for £1 million like this appeared first on The Twelfth Magpie.

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• Up 132% and surging, how is this FTSE 250 share STILL so cheap?

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.

Premium Bonds

Put simply, investing in Premium Bonds is an extremely ineffective way of saving for the future. The reason I say this is that Premium Bonds pay no regular interest, meaning they won’t protect you from inflation. While they advertise an interest rate of 1.4%, this interest in only paid out to monthly prize winners and the odds of winning money are abysmal. Overall, the odds of winning a prize are 24,500 to 1, while the odds of winning a million are 36bn to 1. To quote the Money Advice Service: “Your chances of winning the top prize are very slim – most people will win smaller prizes or nothing at all.” Given these poor odds, putting money into Premium Bonds isn’t a smart strategy.

The National Lottery

Meanwhile, those playing the National Lottery are literally throwing money away. Sure, there’s a possibility of winning life-changing money through the lottery. Yet the odds of winning a major prize are very much stacked against you – according to the Lotto website, the chance of winning the National Lottery jackpot is 1 in 45,057,474 while the odds of getting five numbers plus the bonus ball are 1 in 7,509,579. You don’t need to be a maths genius to realise that these are extremely poor odds.

A better way to generate wealth

A much more effective way of building wealth, in my view, is to invest in the stock market. While stocks can be volatile in the short term (meaning it’s possible to lose money), history shows that they’re an excellent way of building wealth over the long term.

For example, according to the 2019 Barclays Gilt Equity study, UK stocks have generated a return of around 5% above inflation since 1899. More recently, the FTSE 100 index was able to deliver a return of 6.6% per year for the five years to the end of July, despite the pullbacks associated with the Brexit vote in 2016 and the US/China trade war last year. Had you invested in a global equity fund such as Fundsmith over the last five years, you could have nearly tripled your money.

When you consider figures like these, it becomes clear that stocks offer a vastly superior risk/reward proposition compared to Premium Bonds or the National Lottery, despite the fact that share prices can fluctuate in the short term.

If you’re looking to learn more about investing in the stock market, you’ve come to the right place.

The post Premium Bonds & the National Lottery: 76% of over-55s could be making a huge mistake appeared first on The Twelfth Magpie.

More reading

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• Up 446% in 12 months! What’s next for the Ceres Power share price?
• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• Up 132% and surging, how is this FTSE 250 share STILL so cheap?

Edward Sheldon has a position in Fundsmith. 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.

By contrast, it’s possible to build a portfolio of FTSE 100 shares that offers an income return which is as much as three times higher than the average return offered by Premium Bonds. Large-cap shares may also deliver capital growth in the long run, which could increase your chances of building a large nest egg so you can retire early.

Low returns

As mentioned, Premium Bond returns are relatively low for most people. They could remain below inflation over the medium term since the annual prize rate is linked to interest rates. The Bank of England may increase interest rates over the coming years, but it could do so at a modest pace due to the uncertain outlook for the economy. As such, Premium Bond holders may see their returns increase, but it may take time.

Furthermore, interest rate rises are often prompted by a rising inflation rate. This can mean even if a higher interest rate is present in a couple of years’ time, for example, it may still be lower than inflation. As such, Premium Bonds may continue to offer negative real returns, and reduced spending power for their holders.

Improving prospects

Although investing in the FTSE 100 carries a risk of capital loss, its risk/reward opportunity appears to be highly favourable in comparison to Premium Bonds. Even if the index doesn’t move higher, an investor could generate a net 5%+ annual return simply from holding a range of dividend stocks in a tax-efficient account such as an ISA.

However, the index could realistically deliver impressive capital returns in the long run. With the FTSE 100 having risen from 1,000 points at inception in 1984 to trade at over 7,000 points today, its track record of growth is encouraging. It shows that while the index may experience periods of disappointment that include bear markets and market corrections, its long-term growth trajectory is generally positive.

Certainly, the potential for a global trade war means there may be a period of volatility ahead. But, for long-term investors who are focused on building a nest egg over a period of many years so they can generate a passive income in retirement, this could certainly present a buying opportunity. As such, FTSE 100 dividend stocks appear to be a better means of achieving the goal of building a nest egg and retiring early, compared to Premium Bonds.

The post Forget Premium Bonds! I think FTSE 100 dividend stocks can help you retire early appeared first on The Twelfth Magpie.

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Peter Stephens 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.