Posted by Tony Alner on 02/04/2022
Many people get into the world of investment because they are looking for a potential way to ensure that their future is as comfortable as possible. Putting away a certain amount every month is, of course, one of the most crucial aspects of retirement planning. As well as ensuring that your place of employment offers some sort of retirement scheme that you can get on board with. However, a great way to expand and potentially exceed your goals is to look at alternative investment opportunities; such as crowdfunding. In this article, we will be looking at some of the potential benefits that come with crowdfunding and how they could help you with your retirement plan.  

It’s important to note that this article should not be taken as financial advice and your capital is always at risk when it comes to investing in crowdfunding projects. Potential investors are encouraged to conduct their own research to determine their affordability and risk appetite.

What Is Potentially the Safest Investment For Retirement?

 When it comes to investment, every opportunity has a certain level of risk which should be assessed before investing your capital. As well as this, many personal requirements should also be considered. For example, what your own risk appetite is, how much money you have available to put into an investment and which areas of investment are of interest.   

At LEOcrowdfunding we believe crowdfunding has significantly changed the investment landscape; making it more accessible and allowing new potential investors to join the ever-growing market. However, this type of investment still, of course, comes with risk. One thing to consider is that crowdfunding is not always a liquid investment option. You cannot usually withdraw your money when desired, so it’s important to understand your own financial situation before investing or looking into potential crowdfunding projects. In addition, investing capital into projects, such as the ones on the investment page of our website, can be lost if the project doesn’t go ahead or fails for whatever reason. It is important to only consider investing what you can afford to lose. 

With the understanding of this, crowdfunding, or in fact, most types of investment, can potentially be a good option to add into your retirement plan, as there are also many potential benefits. 

Direct and Simple Access Through Crowdfunding Platforms 

Before crowdfunding, finding investment opportunities in privately held enterprises required knowing the right people, having access to various networks, a high-net worth status and the correct timing. But over the years, crowdfunding platforms have become increasingly popular as an alternative route into the world of investment; making it more accessible. 

As a crowdfunding platform, LEOcrowdfunding strives to help and educate new investors, as well as welcoming them into the world of investment. After taking the Investor Readiness Test and passing the identification requirements, novice investors are able to get access to a selection of the projects which are currently live on the site. 

So, how does this aid in the possibility of helping investors retire comfortably?
 Crowdfunding, like any other investment, comes with risks. Before placing your capital into any investment, it’s important to understand your own risk appetite. With crowdfunding such as LEOcrowdfunding making investing more accessible, it opens up more opportunities for new investors to get on board. Many people get into investment with their future in mind and whilst investment can come with risks, there are potential benefits.

Invest With as Little As £100

Following on from the point above, investment has traditionally been a costly avenue for many to go down, making it less accessible. In short, it used to be that if you didn’t have a lot of capital, then the investment world wasn’t an option. However, with crowdfunding becoming more and more popular, costs have been lowered for the individual, meaning that as a result, the entire investment process has become accessible.  

With LEOcrowdfunding, you can potentially invest in a crowdfunding project for as little as £100. This leads to individuals being able to potentially increase both their growth and investment portfolio, whilst also shaping an individual to learn about a smarter financial mindset through our education and interactive programs. 

Diversify Your Portfolio 

When you first come into the world of investment, you may hear the term ‘diversify your investment portfolio’ thrown around a lot. Simply put, to diversify your portfolio means to spread your capital across multiple investment opportunities, which potentially reduces the risk as opposed to investing everything into one opportunity. This can become extremely important during times of market volatility and uncertainty. With crowdfunding being an option, you are able to invest your capital across many different potential crowdfunding opportunities and you can decide when to invest and in which opportunity. This is only the case with crowdfunding platforms that don’t offer a default auto-invest facility. 

Depending on how much capital you have and what your risk appetite is, after taking our Investor Readiness test, you can begin thinking about which crowdfunding opportunities which we have live on our site are right for you. Alternatively, if you feel there aren’t suitable projects at that time, you can invest when a more suitable project for you is open for investment. 

Diversifying your portfolio could potentially lead to multiple streams of income. This will, of course, help you with your dream of retiring comfortably, as it could hopefully lead to you having passive income which you in turn, can add to your overall retirement plan.