The one thing all of us have in common is that we want to retire rich. Certainly, there are many other goals we may have as investors, such as paying off the mortgage and sending children to university, but retiring rich is likely to be a common wish for all of us.
Clearly, investing in shares is a great way to go about making it happen. After all, the stock market can deliver superb returns over a long period of time, which provides the potential to significantly boost all of our retirement funds.
With that in mind, here are three shares that have very bright futures and, as a result, could help you to retire rich.
Santos Ltd
The last five years have been something of a disappointment for Santos Ltd (ASX: STO). Indeed, the company's bottom line has fallen at an annualised rate of 10.8% over the period, while its share price is down 13% — way below the ASX's gains of 11% over the same time period.
However, with PNG LNG set to make a major impact on the company's bottom line over the medium term, now could be a good time to buy shares in Santos.
Indeed, earnings are forecast to rise by 39.2% per annum over the next two years, which makes a P/E ratio of 19.6 seem rather cheap. In fact, it equates to a price to earnings growth (PEG) ratio of just 0.5, which shows that Santos, while having a disappointing track record, could prove to be a catalyst to push your retirement fund northwards.
Origin Energy Ltd
It's a similar story at Origin Energy Ltd (ASX: ORG). Disappointing company performance in recent years looks set to be left behind as the bottom line is due to rise at an annualised rate of 32.3% over the next two years.
Certainly, a P/E ratio of 22.3 looks rather high on the face of it but, when combined with such strong growth rates, it appears as though Origin Energy may merit an even higher premium to the ASX's P/E ratio of 14.9. That's because it has a PEG ratio of just 0.69, which indicates growth at a very reasonable price.
Furthermore, with a yield of 3.4%, Origin Energy could deliver a promising income return as well as capital gains to make your retirement a more abundant one.
Rio Tinto Limited
Although Rio Tinto Limited (ASX: RIO) is set to report declining earnings this year of 32.8% due to an iron ore price that has fallen to a five-year low, it still could prove to be a strong long term play.
That's because an efficiency drive has seen the company retain its super-low cost curve, which should bode well for margins and profitability moving forward. Indeed, next year Rio Tinto is expected to increase earnings by an impressive 11.6%.
With shares in the company trading on a P/E ratio of just 10.3 and yielding a fully franked 3.8%, they could make a positive contribution to your retirement fund.
