Once you have an investment portfolio in place it should evolve as your life evolves.
Remember That Insurance Forms A Critical Component In Your Financial Plans At Each Of These Life Stages.
When you get your first job:
· Start a savings account to build a cash reserve.
· Start a retirement fund and make regular monthly contributions, no matter how small.
When you get a raise:
· Increase the amount you put aside each month to invest.
When you get married:
· Determine your new investment contributions and allocations, taking into account your combined income and expenses.
When you want to buy your first house:
· Invest some of your non-retirement savings in a short term investment specifically for funding your down payment, legal fees, closing and moving costs.
When you have a baby:
· Continue saving for your retirement.
· Begin saving for the child’s tertiary education.
· Consider moving to lower-risk investments.
When you change jobs:
· Review your investment strategy to accommodate a new salary and a different benefits package.
· Consider your distribution options for your company’s retirement savings or pension plan.
When all your children have moved out of the house:
· Boost your retirement-savings contributions.
· Review your retirement investments to adjust for the shorter time frame.
· Continue saving for retirement
Tracking and Monitoring Your Investments
In addition to scheduling regular reviews with your investment advisor, you should receive monthly or quarterly statements of how your investments are doing. Review these statements carefully and call your advisor if you have any questions. A regular investors’ newsletter is a great way to keep in touch with the big investing trends. If you want, you can track changes online or through your local print media.
What Your Sagicor Advisor Can Do
Using information you provide about your financial goals and life-stage requirement, a Sagicor Advisor can help you analyse and understand your personal investor profile and recommend a plan of action to help you achieve your investment goals. A Sagicor Advisor can help you answer the following questions:
- What are my financial goals and objectives?
- What is my investor profile?
- What investment options do I have based on my investor profile?
- How can I set up a plan to meet those financial goals?
- Tip: If you are a long-term investor, (called ‘buy-and-hold’ in the industry) avoid the temptation to check your stocks, bonds and mutual funds every day. Chances are, there will be a lot of volatility and you might be fooled into acting on a short term event.