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Bimonthly Newsletter from VM Pensions Management
Keep Your Future Self Happy
The chance to create your own future is at your fingertips, but are you heeding the words of the wise?
TRACKING INDEPENDENCE: Take stock of our own journey toward financial independence.
AUGUST 2020
Keep Your Future Self Happy “Y
outh is wasted on the young” is more than just something wistful old people like to say. It’s a message from those who have spent their youthful years learning things they would love to have known from the start. Today’s youth, however, are more plugged in than their parents and grandparents ever were. Thanks to technology, you can meet friends, launch a local food drive, learn a new skill or speak your truth to millions of people – all at the touch of a few buttons. Knowledge and the chance to create your own future are at your fingertips, but are you heeding the words of the wise?
THE VALUE OF DISCIPLINE The best time to start planning and investing money for your golden years is the first day of your first job. Of course, a pay cheque in your pocket at 22 years old will take you about as far as the next hot item on this month’s wish list. If you could only hear your financially savvy future-self shouting at you to take 10% (at least!) and religiously put it towards an investment fund. Future Self would go on about the wonders of compound interest, explaining how starting at 19 instead of 35 with just $2,000 a month could mean a difference of $15 million when you’re ready to kick back at 65.
THE VALUE OF TIME Future Self would scoff at the parties every weekend, showing you how the funds you save by cutting your party budget in half can become a hot new ride later on. You would say you have time to get to all that and Future Self would laugh and say time can be a great friend to you. With time on your side, events like the current global pandemic will be small bumps in the road. Over the long term, you have time to recover from dips in the market, learn from your mistakes and rebalance your investments along the way. If time travel was a thing, the value of time is probably the most important topic your future self would come back to tell you about.
THE VALUE OF DEBT Borrowing money today for your future self to pay back with interest is probably your future self’s least favourite of financial habits. However, for most, debt is inevitable, and Future Self understands that debt can work for you when used properly. Using debt to buy assets that will grow faster than the interest rate our future self will need to repay is always a good thing. You can also use it to fund initiatives that will increase your
earning power, like using your credit card to pay for a course that will teach you a new skill. Instead of being an unwanted gift, debt can be leveraged to give gifts to your future self that keep on giving. Today’s youth have a tech-fueled, information-driven opportunity to be active participants in an increasingly
integrated global society. This month the United Nations urges the world’s youth to action through engagement, with the observation of International Youth Day and a slew of related activities. We believe getting your plans and your finances in order as early as possible will give you the foundation you need to contribute to the fullest of your potential.
If you have a plan for retirement, now might be good time to discuss some of these topics with an advisor. Retirement is arguably the most important part of any financial independence plan. It accounts for the part of your journey where you get to reap the rewards of your efforts while actually having the time to appreciate it. It’s also important because you need to be working towards it from day one.
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CONT’D.
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Take a look at goals you had at the start of the journey. Are they still relevant? Do you still want the same things? Given all the recent changes and events worldwide, see if you need to add, remove or redefine any of your objectives. Think about how an event like the pandemic might change the trajectory of the industry you work in. Look at areas of social and economic change. Find out what experts think Jamaica and the world might look like in five, ten or 20 years from now. These are the kinds of variables that could affect your plans for retirement.
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Jamaican Independence season is always a good time to remember to take stock of our own journeys toward financial independence. For some, financial independence means not worrying about the bills. For others, it’s knowing they’re able to care for themselves or loved ones. How you define it is up to you, and how you get there is totally customizable. You just need to keep an eye on the big picture.
While the term financial independence has a special meaning for each of us, there is a common thread we’ve heard in the stories of our clients: peace of mind. On the journey there, retirement planning is one way to ensure you’ll be able to maintain that peace of mind in your later years. It also helps to keep one eye on the news and your financial advisor
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Tracking Independence
Any good plan for your later years should take your present quality of life into account. On the one hand, you shouldn’t be squandering money that could serve you a greater purpose through investment. On the other hand, you shouldn’t have to suffer through 30 or 40 years to achieve an idyllic life when you retire. The key here is balance. Thinking it through, planning and budgeting are great ways to carve out a lifestyle you’re good with now and will be able to maintain – or improve – later.
Tracking Independence
and energy. So, as you strive for you goals, it pays to stay aware of how you’re investing both, and why. Happy journeying!
MEET THE TEAM
on speed dial – not in an obsessive way, but more of an enjoying-life-with-your-head-on-your-shoulders kind of way. After all, life really boils down to time
CONT’D.
MANAGER Risk & Compliance
Meet the Team –Ms. Natalie Bennett joined the Victoria Mutual Pensions Management Team as Manager– Risk & Compliance (Acting) in October 2015. She has the task of identifying and quantifying major risk items, developing mitigation procedures as well as ensuring that the organization remains compliant with the relevant regulatory and legislative bodies.
H E A LT H & W E L L N E S S
Endometriosis is an invisible, often misunderstood disease
She has over a decade of experience as a Pension Administrator and Analyst where she has worked in various organizations such as The Financial Services Commission, Petroleum Corporation of Jamaica and Sagicor Life Jamaica.
It’s estimated that while 10 percent of women have endometriosis, most go 3–11 years before getting correctly diagnosed. A mom of two and a successful model walks us through her journey: •
Worked as a model when her health allowed
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Relief from symptoms … then the unwelcome return of symptoms
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The ruptured cyst that finally got her relief
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At long last, a doctor suspects endometriosis after 27 years
An exceptional and goal oriented individual, Ms. Bennett holds an MBA from Edinburgh Business School and a Bachelor’s of Science degree from the University of West Indies with a major in Actuarial Science.
T E R M S YO U S H O U L D K N OW
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Important post-diagnosis reflections
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Getting her groove back
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Truly living without endometriosis pain
Trustee
Excerpted from an article by Beth Levine and Kacy Church, MD. Read the full article here: https://www.everydayhealth.com/ endometriosis/even-beauty-queensdont-get-timely-endo-diagnosis/?utm_ source=Pinterest&utm_medium=OG
VM Pensions Management Ltd 73-75 Half Way Tree Road Kingston 10, Jamaica
Ms. Natalie Bennett
A trustee is a person or an entity that holds and administers the assets of one or more parties, for the benefit of a third party. What does that mean? Let’s say Bob gives Mary cash on a monthly basis towards John’s retirement plan; along with John’s own monthly contributions. Bob would be the Grantor, John would be the Beneficiary and Mary would be the Trustee because she is holding/ administering the cash (asset) for John until he reaches the age of retirement.
Tel: 876-754-7265 Fax: 876-754-8359 Email: pensions.info@myvmgroup.com