The recent Federal Budget has made it more important than ever for Australians to secure their financial freedom by saving for retirement. The Budget has raised the retirement age to 70 and raised the cost of living for all Australians – particularly retirees – through co-contribution payments for medical treatment as one of a few new drains on retirees' funds.
While the property market has been a cornerstone of wealth creation for some, the gains from property investments are not as impressive as those from the share market. Workers who are saving for their retirement, whether via superannuation or just their own personal account, now more than ever need to buy stocks which will provide them with significant capital growth by the time they retire.
Here are four growth stocks to help you reach your goals.
1) Coca-Cola Amatil Ltd (ASX: CCL) is appealing for a multitude of reasons. Not only is it trading on a yield of 5.5% but it is also trading near its 52-week low which could offer a good buying opportunity. On top of these positives, CCA has the bottling license for Indonesia which has enormous growth potential.
2) Carsales.Com Ltd (ASX: CRZ) has doubled its profits over the past four years and profit growth is forecast to continue at a double digit rate over the next few years. With the stock trading mid-way between its 52-week high/low and on a price-to-earnings ratio of about 26 times, for the long-term investor Carsales.Com could look like a bargain purchase by the time you retire.
3) Flight Centre Travel Group Ltd (ASX: FLT) has just released updated market guidance which confirms the global travel agent will meet its guidance all-be-it at the low end. The announcement sent the stock price up around 2% highlighting the confidence the market has in continued earnings growth from this high-quality company.
4) Crown Resorts Ltd (ASX: CWN) is the single largest investment for billionaire James Packer. Investors could do a lot worse than ride on Packer's coat-tails as he continues to expand his casino empire. Most recently this has included a move into the Sydney market – at Echo Entertainment Group Ltd's (ASX: EGP) expense – and attempts which may or may not prove successful to gain a foothold in the Brisbane and Sri Lankan markets.
