Financially Fit & Fabulous - 4 Strategies for Investment SuccessMonday, June 21, 2021
YOU probably know that it is a good idea to save. However, did you know that investing can be more powerful than saving? The thing that makes investing so powerful is compound interest. When you invest, your money can start earning interest right away. Not only that, but any interest you earn can also earn interest.
There are four key investment principles that can help you maximize the growth of your investments over time.
Principle #1 - Invest Early
There is a saying that the best time to plant a tree was 20 years ago. The bigger you want your investments to grow, the sooner you should invest. Not only will you have more time to benefit from the power of compounding, you will also have more time to ride out the market's inevitable ups and downs.
Principle #2 - Invest Regularly
You pay your bills every month, so why shouldn't you pay yourself too? Having a regular monthly investment plan helps you budget your day-to-day life around your investing, so you know you are always getting closer to your goals. It can also lead to more investment compounding and less risk by setting up a pre-authorized contribution. Scotia Investments can even take care of automatic monthly transfers from your Scotiabank account to your investment portfolio at no cost.
Principle #3 Stay Invested
It is customary for market to rise over the long term. That is why it makes sense to create a portfolio of investments that matches your personal goals and stay committed to it. In the short-term, it is nearly impossible to consistently and accurately predict downturns and upswings, and you can end up losing money if you try. However, if you just stay invested, you will benefit from the market's long-term upward trend.
Principle #4 –Diversify
You cannot control the market's ups and downs, but you can reduce their impact on your portfolio. The secret is to own a wide range of investments, including cash, fixed income, and equities from local and international markets. This way, if one investment is down, other investments are up, and your overall portfolio can continue to grow.
It is so much easier to put the principles of investing into action when you have professional support. Your Investment Advisor at Scotia Investments will guide you through a thorough discussion and help you to develop a portfolio to meet your goals. If you have any questions about the information contained in this article, or you wish to talk about how to start investing in you, please contact an Investment Advisor at Scotia Investments at the branch location closest to you or visit our website at scotiainvestmentsjm.com.
Latoya Virgo is a licensed Investment Advisor from Scotia Investments Jamaica Limited.
Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at https://bit.ly/epaper-login