At what age should you start in­vest­ing?

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The best time to start in­vest­ing is NOW, even though the rule of thumb is to start af­ter your first pay cheque. Start­ing early cre­ates a ma­jor ad­van­tage be­cause time is of crit­i­cal im­por­tance in mak­ing your money work for you. It might seem chal­leng­ing at first, but “the fu­ture de­pends on what you do to­day” – Ma­hatma Gandhi.

With ev­ery ven­ture there are chal­lenges, and there are com­mon ex­cuses for not in­vest­ing. Young peo­ple may think that they have time on their hands and so pro­cras­ti­nate in­stead of us­ing time to their ad­van­tage. Others may think that their in­come is not enough or they may have too many ex­penses. The con­ve­nient time may never arise, there­fore what­ever your stage in life, it is crit­i­cal to start in­vest­ing im­me­di­ately for your fu­ture. It will re­quire dis­ci­pline and sac­ri­fice, but plan­ning a cred­i­ble bud­get and stick­ing with that bud­get will help to re­duce the temp­ta­tion to use funds in­vested be­fore they are needed.

In­vest­ing early will al­low you to be able to take cal­cu­lated or strate­gic risks with your money. In­vest­ing in­volves risks, but cal­cu­lated risks will equate to reward. At a younger age, you can struc­ture your port­fo­lio with a greater por­tion of funds in­vested in riskier as­sets. These as­sets will have a bet­ter chance to gen­er­ate higher re­turns over the long run. In­vest­ments in riskier as­sets such as stocks have his­tor­i­cally out­per­formed the rate of in­fla­tion. Hence, there will be less con­cerns about the loss of pur­chas­ing power from your in­vest­ment.

CAP­I­TAL GROWTH FUND

Barita Unit Trusts of­fer the Cap­i­tal Growth Fund (a pooled fund) which pro­vides in­vestors with the op­por­tu­nity to in­vest pri­mar­ily in stocks. This is suit­able for in­vestors who have an in­vest­ment hori­zon of at least five years and are able to tol­er­ate short-term fluc­tu­a­tions in the value of their in­vest­ment.

In­vest­ing con­sis­tently is also ex­tremely pow­er­ful, as you are able to ben­e­fit from pe­ri­ods of ex­tended port­fo­lio growth. You are also able to re­cover from pe­ri­ods of ex­tended port­fo­lio de­clines with­out much con­cern about not re­cov­er­ing at least the ini­tial value of your in­vest­ment. Be­ing con­sis­tent al­lows you to gain more from your in­vest­ments through com­pound­ing, which is in­ter­est grow­ing on your in­ter­est, plus your ini­tial in­vest­ment, over time. One such so­lu­tion through Barita is the FX Bond Port­fo­lio, which al­lows in­vestors to pool funds and in­vest in bonds that would oth­er­wise be un­avail­able to them be­cause of the amount re­quired to buy these in­stru­ments in­di­vid­u­ally. The FX Bond Port­fo­lio is US$-de­nom­i­nated and also pro­vides pro­tec­tion against the de­val­u­a­tion of the lo­cal cur­rency.

COM­FORT­ABLE RE­TIRE­MENT

There is an in­come ben­e­fit from in­vest­ing which helps with cur­rent or fu­ture spend­ing. In­vest­ing early can help to se­cure a com­fort­able re­tire­ment with ad­di­tional in­come to sup­port or sub­sti­tute for a pen­sion. Also, there is cur­rent ex­pen­di­ture for which there are many pos­si­ble uses of funds in­vested, such as med­i­cal emer­gen­cies, higher ed­u­ca­tion, your chil­dren’s ed­u­ca­tion or start­ing a busi­ness. Ad­di­tion­ally, some in­vest­ments pro­vide a steady in­come stream which can help to off­set cur­rent ex­penses. One such in­vest­ment so­lu­tion is the Barita In­come Port­fo­lio de­nom­i­nated in Ja­maican dol­lars and com­prises lo­cal gov­ern­ment se­cu­ri­ties, sov­er­eign gov­ern­ment se­cu­ri­ties and cor­po­rate en­ter­prises of high-grade rat­ings. This in­vest­ment al­lows for in­come to be paid at reg­u­lar in­ter­vals while the prin­ci­pal is rolled over to the next in­ter­est­pay­ment pe­riod. Be­cause of the high grade of the in­stru­ments in­volved, the In­come Port­fo­lio is at­trac­tive for in­vestors with a low to mod­er­ate risk tol­er­ance who are seek­ing reg­u­lar in­come.

Don’t wait! Get started to­day! A Barita in­vest­ment ad­viser is ready to help you with your bud­get and will tai­lor the right port­fo­lio for your spe­cific needs.

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