I’d drip feed £100 a week into FTSE shares to try and retire early

Many people like to end their working life at a young age to enjoy their retirement. But to retire early takes planning. Life without work doesn’t pay for itself.

One approach I can take to try to fund early retirement is to regularly put money consistently into FTSE shares. Here’s how I do it, using £100 a week.

Drip, drip, drip

Having a lump sum to invest can be a source of future income. But for many people who are busy juggling careers and everyday living expenses, there is no big bag of money lying under the bed.

That’s where the principle of doing little, often comes in handy. By setting aside money on a regular basis, I hope to develop a consistent saving habit. I hope that I will feel the impact of the money leaving my account once I get used to it, when, in the long run, regular contributions can add up to a significant amount.

While £100 per week is not a small amount, I think it is manageable based on my own financial situation. I would drip-feed into a share-dealing account, or a Stocks and Shares ISA.

Build a portfolio of FTSE stocks

Saving my own money can help me prepare for retirement. But for early retirement, I would put that money to work in the stock market. If I’m profitable, the stocks I buy can grow in value, pay dividends – or both.

Some stocks perform well while others perform poorly. So I will invest my funds in a diversified portfolio of stocks instead of letting one or two specific stocks dominate my retirement planning.

With an eye on the long term, I will try to invest in proven, successful companies that have demonstrated the ability to generate profits. I will therefore focus on stocks in the FTSE index as in FTSE 100. While these component companies are not guaranteed success, they usually have reached a size significant enough to be included in the index.

In the pool of companies, I will choose those that I know and think have a competitive advantage in business areas with resilient customer demand. If the stock is trading at an attractive price, I will consider buying it for my portfolio.

Building for retirement

An example of a FTSE 100 stock that I would consider for my retirement portfolio if I had the money to invest in is a financial services giant. Legal & General.

I expect demand for insurance to remain strong. Legal & General’s strong brand provides a competitive advantage when attracting and retaining clients.

With a dividend yield of 7%, Legal & General will hopefully provide a dividend stream. By reinvesting, I was able to build my portfolio faster using dividend cash as well as a fixed contribution of £100 per week.

Hopefully, with patient investing over the years, it will help me retire early.