I’ve spent the final yr shopping for bargain-priced UK shares inside a self-invested private pension (SIPP) with one goal in thoughts. I would like the liberty to retire early and reckon constructing a portfolio of blue-chip shares is one of the best ways to attain it.

I’m not saying I truly will retire early, as a result of I like what I do for a dwelling. I simply need it to be a chance, say, if I fall sick, get burned out, or fancy taking issues a bit extra simply.

If I had a spare £20,000 (I want!) I wouldn’t hold round. I’d go searching for FTSE 100 shares proper now.

I’m shopping for FTSE 100 bargains

Time is of the essence for 3 causes. First, the earlier I begin investing, the longer my cash has to develop.

Second, now appears like a superb time to purchase FTSE 100 shares at inexpensive costs, earlier than the subsequent inventory market bull run kicks in.

Lastly, I believe that bull run is getting nearer, as rates of interest fall and worldwide traders wake up to the chance within the UK. International fund managers at the moment are obese on UK shares for the primary time since July 2021, in line with the Financial institution of America International Fund Supervisor.

I believe FTSE 100 financial institution NatWest Group (LSE: NWG) is a superb instance of the worth UK shares supply.

The massive banks have been out of favour because the monetary disaster in 2008, however now they’re staging a restoration.

That NatWest share price is up 43.28% within the final yr. But it nonetheless doesn’t look costly, buying and selling at 6.87 occasions earnings. The common FTSE 100 inventory is greater than twice as costly, buying and selling at 15 occasions earnings.

Higher nonetheless, NatWest presents the potential for a gradual dividend revenue stream. Right now, the inventory has a trailing yield of 4.92%. That’s forecast to rise to five.41% over the subsequent yr, then to five.58% the yr after that. With luck, that’s simply the beginning.

Excessive and rising passive revenue

With shares, nothing is assured. NatWest nonetheless has to maintain producing loads of money, to fund shareholder payouts. Web curiosity margins – the distinction between what banks pay savers and cost debtors – are prone to fall when the Financial institution of England minimize charges. That would squeeze income.

But I nonetheless imagine with a long-term view NatWest ought to ship a tidy mixture of revenue and progress.

I wouldn’t put my full £20,000 into one inventory, removed from it. I’d diversify by investing throughout 5 totally different shares, placing £4k into every.

Off the highest of my head, I would complement NatWest with insurer Aviva, whose shares yield a bumper 6.81%. I would add vitality community Nationwide Grid, which yields 5.28%. Each look affordable worth.

Shopper items large Unilever is swinging again into kind after a troublesome spell. It presents strong revenue and progress prospects. I’d spherical off my 5 with mining large Rio Tinto, which appears low-cost buying and selling at 9.3 occasions earnings and has a bumper 6.48% trailing yield.

Share costs are typically risky within the brief run, however historical past exhibits they beat each rival asset class over time. That’s why I’m basing my retirement plans round them.