Lessons for investment drawn from the 'blue zones' of longevity, as explored by ANDREW OXLADE.
In the world of investments, a diverse portfolio is key. Some exchange-traded funds (ETFs) are delving into the crypto industry, with funds like the iShares Blockchain Technology ETF and VanEck Crypto and Blockchain Innovators ETF holding shares in companies linked to the crypto sector. However, it's important to note that direct crypto holdings in a Self-Invested Personal Pension (SIPP) are not allowed due to regulatory restrictions. Andrew Oxlade, a director at Fidelity Personal Investing and former This is Money editor, has a small amount of his SIPP in the VanEck Crypto and Blockchain Innovators ETF.
Investing early can significantly boost retirement savings. For instance, a £1,000 annual investment at age 25 with a 5% annual return could accumulate £121,000 by 65. Increasing contributions over time, such as a 10% contribution from a £30,000 salary at age 25 with 3% annual pay rises, could result in a sum of £504,000 by age 65.
Diversification across global stock markets is also beneficial. Index-tracking funds, also called passive funds, are a cheap and easy option for diversification.
Cryptocurrencies are increasingly seen as a potential source of super returns. In fact, a recent report found that one in 10 investors named crypto investments, such as bitcoin, as the best bet, with crypto enthusiasm being highest among 20 and 30-somethings. On the other hand, one in 10 investors named property as the best opportunity for the next year, rising to nearly one in five of 30-somethings.
Now, let's take a detour from investments to discuss longevity. The 'Blue Zones' are regions around the world with an unusually high number of centenarians. The primary factors contributing to this exceptional longevity are lifestyle-related rather than genetic. These factors include a predominantly plant-based diet, regular physical activity, strong social engagement, stress management, a supportive environment, and other lifestyle habits such as maintaining a sense of purpose and close family relationships.
For example, the islanders of Okinawa in Japan are supercharged by a particular type of purple sweet potato, while the Sardinians in Italy eat well, walk uphill a lot, and live in a close-knit community that values volunteering. The Seventh Day Adventists of Loma Linda in California live a decade longer than the average American, and they don't drink, they don't smoke, and they care for each other in a close-knit community.
In the Nicoya region of Costa Rica, residents eat a lot of black beans in corn tortillas, which contains niacin (vitamin B3) and free amino acids for absorption.
In conclusion, balance is crucial in both diet and investment portfolio. A wide range of evidence-based, tried and tested common sense approaches, such as early investment, diversification, and lifestyle choices, can lead to positive outcomes in both areas.
Affiliate links may be used in this article, meaning This is Money may earn a commission if a product is taken out. Investment platforms that offer SIPPs include AJ Bell, Hargreaves Lansdown, Interactive Investor, InvestEngine, and Prosper.
- While traditional investments like stocks and bonds remain key, some investors are exploring new opportunities in cryptocurrencies, with funds like the iShares Blockchain Technology ETF and VanEck Crypto and Blockchain Innovators ETF focusing on companies linked to the crypto sector.
- Personal-finance strategies like investing early and contributing consistently can significantly boost retirement savings, with a £1,000 annual investment at age 25 potentially accumulating £121,000 by 65.
- Diversifying across global stock markets using index-tracking funds is another beneficial approach, as it offers a cheap and easy option for diversification.
- Outside of finance, focusing on lifestyle factors can also contribute to exceptional longevity, as observed in regions like Okinawa, Sardinia, and the Nicoya region of Costa Rica. These regions share factors such as a predominantly plant-based diet, regular physical activity, strong social engagement, and a supportive environment.
