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By investing in a and aiming to grow the value of the funds invested, I think it is possible to increase the financial basis one has for retirement. As an example, if I had £50,000 I could put into a SIPP now or over the next several years, here is how I would try to build up a value of a quarter of a million pounds even without putting any more money in. Getting the timeframe right Let me begin with what I think is an obvious point but one worth mentioning anyway: this is not a quick plan.

I am effectively talking about the value of my SIPP. I would be happy to own shares that increased by a factor of five rapidly — but they are few and far between. Instead, I take a and would want to keep risks to a level that was comfortable for my own tolerance.



Long-term value creation Simply by buying shares for less than they are worth, I could hope to increase my SIPP’s valuation. Then again, some shares trade for less than their intrinsic value year after year. So, my approach would not focus only on price.

Rather, I would focus on companies I felt had the opportunity to grow their profits over the long term – with share prices that do not reflect that. Growth or income? An example of a share that I think could turn out to be undervalued relative to its long-term commercial prospects is ( ). The sports retailer has set out an ambitious multiyear growth plan that envisages opening hundreds of new shops annually.

This year it has also announced plans to take over a large US riva.

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