It is Never too Young to Start Investing – Says JN Fund Managers
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 of the JN BeWi$e Virtual Summer Camp, which was organised by the JN Foundation.
Giving an example on how one’s investment can accumulate over time when investment is done early, Mr Adams said that if one started to invest at age 25 years with a monthly instalment of $10,000 at an interest rate of eight per cent per annum, they would potentially earn in excess of $27 million after 40 years.
That scenario, he said, is as opposed to another person who started investing at age 40 years with the same monthly contribution of $10,000 at eight per cent, the interest accumulated over 20 years would amount to $3.3 million.
Turning to some investment tips, Mr Adams said one should always do their research, not invest blindly take the time to understand the market, the features of the instruments they are investing in as this would assist them in making the right investment decisions. It is also recommended that you speak with a licensed financial advisor who will guide you through the process.
He suggested to the participants that they can 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 instrument,” he explained.
He cautioned that when investing, the market can sometimes be volatile, however one should not panic and begin to sell. 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 noted, suggesting that the emergency fund should ideally be three to six months income.
The camp, held July 20 to 22 under the theme ‘Building the Young Investor’, was targeted at 12-17 years old. 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.
