Growth & Jobs | You are never too young to start investing – JN exec
JASON ADAMS, assistant vice-president of sales and client services at JN Fund Managers, says the best time to start investing is when one is young as the funds will accumulate, compound and, over time, provide you with significant returns.
“If you invest consistently, over time, you will generate considerable returns,” he told participants in the JN BeWi$e Virtual Summer Camp, which was organised by the JN Foundation.
Giving an example of how one’s investment can accumulate over time when done early, Adams said that if an individual should start to invest at age 25 years with a monthly instalment of $10,000, at an interest rate of eight per cent per annum, the individual could potentially earn in excess of $27 million after 40 years.
Using a similar scenario, he said that if that person should start investing at age 40 with the same monthly contribution of $10,000 at eight per cent, the interest accumulated over 20 years would amount to $3.3 million.
Sharing investment tips, Adams said that one should always do one’s research and must not invest blindly. The JN Fund Managers executive said prospective investors should take the time to understand the market and the features of the investment instruments as these would assist in making the right investment decisions. He also recommended that you speak with a licensed financial advisor, who will guide you through the process.
Adams suggested to the participants that they could learn more about investment through games such as those offered on the Jamaica Stock Exchange. He advised the participants to carefully choose investments to match their goals.
“Select the right investment strategy that matches your investment goals. Depending on your goals, your time horizon and risk tolerance, your investment portfolio should be allocated accordingly. This could include a mixture of short-term, medium-term, and long-term instruments,” he explained.
The assistant vice-president cautioned that when investing, the market can sometimes be volatile. However, Adams said one should not resort to panic selling. Rather, it is important to keep your goals and strategy aligned.
“When investing for your goals, do not withdraw your money when it reaches a sizeable amount. Think about this as money that you will not be touching under any circumstances. That is why I recommend that you also set up a fund to deal with emergencies that may arise as life can be unpredictable,” he advised, suggesting that the emergency fund ideally should be three to six months’ income.
The camp, held from July 20 to 22, under the theme ‘Building the Young Investor’, targeted 12- to 17-year-olds. Among the organisations that participated in the camp were the JSE, Carib DAO, as well as representatives from JN Group member companies such as JN Bank and MC Systems.