LIVE
VOL 2, ISSUE 6
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LEARN
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GROW
DECEMBER 2021
Bi-monthly Newsletter from VM Pensions Management
Is Your RETIREMENT PLAN READY for 2022?
SIX WAYS TO DO A STAYCATION
Transform Your Everyday.
IS YOUR RETIREMENT PLAN READY FOR 2022?
The end of a year is always a good time to learn lessons and make plans. This year, do your future self a favour and take a look at your retirement plan. If you’re a retirement geek then you’re probably all set. But with less than 12% of Jamaicans reporting to be part of a private pension plan, chances are your retirement plan could benefit from a little learning and planning session.
FIRST THE LEARNING If you’re part of a workplace pension plan find out if your contributions are maximized. Pension contributions are deducted before taxes, so the more you contribute, the lower the taxes you pay on the remainder. You’ll also have a bigger nest egg for future you, especially if your employer matches your contributions.
Retirement has a timeline. So working back from the date you plan to retire, look at where you are now and how much closer you’ll get to your goals over the course of next year.
If you have an approved retirement scheme (ARS), you should also check to see if your contributions are maxed. If you got a raise, or if business revenue changed significantly last year, you should increase your monthly contributions accordingly. You’ll thank you later. Instead of the usual annual review, look back at the last
three years. Look at your spending habits to see if there are any funds you could reallocate. See if there are any changes in your circumstances or the markets that you need to account for in planning for the year ahead.
The pandemic brought with it lots of changes over the last
not have a say in how the funds are managed, but it’s
two years, but some were one time events, while others
still a good idea to be informed. If you have a flexible
might need you to adjust your plans or revise your goals.
ARS portfolio, talk to your investment officer about any
Recent global events have made some investors more open to risk as the urgency of their desire to achieve goals
rebalancing that might be needed to keep your goals on schedule.
has increased. Others have become more conservative
If you’re just getting started with an ARS, look for a
in their approach, as securing their future has taken
communicative provider with a solid track record. Choose
on greater importance. Do a self check to see if your appetite for risk has changed or if you’ve had any shifts in perspective that should be accounted for in your plans for the year ahead.
THE PLANNING
portfolio options that give you the flexibility to find your own risk-reward balance. Reach out to your investment officer as needed along the way. Their knowledge of the markets can keep you pointed in the right direction and help you stay on track.
Armed with lessons learned and a fresh look at your post
Once your new plan is completed, keep the written or
pandemic goals, it’s time to put pen to paper. Or cursor
printed version somewhere you can see it or access it
to screen if that’s more your thing. During your planning,
regularly. With the long-term nature of retirement planning
writing is a great way to get ideas out of your head so you can organize them. Retirement has a timeline. So working back from the date you plan to retire, look at where you are now and how much closer you’ll get to your goals over the course of next year. This is the part where you brainstorm ways to cut expenses so you can boost your contributions or see how you can increase your income. You’ll also want to look at how your pension is being
invested. If you’re on a superannuation fund, you may
it can be challenging to stay motivated. Another idea is to keep a picture of your ‘why’ — a vision board screen saver or photo of a loved one can be a great motivator when you start to wonder if the sacrifices are worth it. Whether 2022 is the first year or the next year in your retirement plan, the key to success is essentially the same. Learn by looking back and looking around, plan by looking ahead and liaising with the pros as needed. Your future self is rooting for you and you’ll get there — one year at a time.
THRIVE | DEC 2021 | 3
Six ways to do a
STAYCATION
As we enter another year of safety requirements and movement restrictions, mental health remains high on the priority list for many. Working from home can lead to an unhealthy blending of work time and personal time, resulting in overwork, increased pressure and creeping stress levels. Working from the office also has its stresses: new protocols, traffic and the constant threat of contagion. Add to that nightly curfews and restrictions on social interactions, and it should be easy to see why we need to prioritize mental health, especially now. Breathing exercises, regular gym time and organizational tactics might help, but there are other ways to nurture your peace of mind that might be more fun. Here are a few: THE BEACH – It should go without saying on an island, but it’s easy to forget about available options when we’re mired in day-to-day activities. A beach is a great option for
individuals and small groups. We’re surrounded by water, so accessibility is relatively easy. It’s outdoors, so you get a break from the four walls of the office or home. And you also get a good dose of vitamin D from the sunshine, which is good for both mind and body. HERITAGE SELF-TOURS – Visiting historic sites around Jamaica is a great way to get some education about the nation while getting out and about. This is a great way to see Jamaica, as many of the sites tend to be off the beaten path, allowing visitors to see parts of the island they’ve never seen. The stories that go along with these locations are a great way to teach kids their nation’s history. FAMILY VISITS – As long as the gatherings are small and masked social distancing is being practised, you can visit family or friends you haven’t seen in a while. Whether near or far, these visits can boost spirits and strengthen or rekindle
bonds. The pandemic has seen a resurgence in awareness of the importance of our circles and the roles they play in maintaining our well-being. BRUNCH IN ANOTHER PARISH – Take a day trip to a side of the island where you’ve never stopped before. If it’s not too long, the drive can serve as a refreshing break. You’ll also help support local businesses, some of which have been having a tough time since the onset of travel and gathering restrictions. So saddle up and go break bread in a small town somewhere. Chances are you’ll make some nice memories to go with the meal. BOOK A STAY – With the slowing of incoming tourist traffic, many local accommodations have special rates for the local crowd. Spending a couple of nights in a place where you don’t have the usual things to worry about that go along with work and home can feel like a true vacation, even if it only
took 30 minutes to get there. Look out for places that pay special attention to cleaning between stays. THE TRAPPINGS OF HOME – If you have reservations about leaving home, there are ways to Staycay without going through the gate. You might need to prep for it by getting any supplies you need -- stock the fridge, store your favourite tunes or reading material and get ready to stream some movies. Then, on a day or weekend that works, unplug your devices (gasp!) and spend some unadulterated ‘you’ time. Or you-and-boo time if you prefer. The best staycations are affordable, accessible and memorable. As long as it puts your mind at ease, and provides a break from your usual hustle and bustle, go ahead and design your own. Be as creative or as boring as you want. The important thing is that it works for you and it’s safe. So, go create some memories with your backyard adventures, just remember to post the pics!
MEET THE TEAM
Paul Anderson SENIOR PORTFOLIO ACCOUNTANT, FINANCIAL REPORTING
Paul plays a pivotal role among the VM Pensions Management Limited team leads. He spearheads the Pooled Funds Financial Reporting unit. He is a Fellow of both the Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants of Jamaica (ICAJ). He also holds a MSc in Professional Accounting from the University of London.
H E A LT H & W E L L N E S S
4 Mental Health Tips for Creating an Even Better 2022 New Year’s is a time for fresh starts, reprioritizing and goal setting. As you’re reflecting on the physical, professional and financial goals you hope to manifest in 2022, don’t forget to take your emotional wellbeing into consideration. No matter your goals for the new year, here are four positive mental health tips that will help you feel healthier and happier along the way: 1. Focus on self-compassion over selfimprovement. 2. Set (and keep) your boundaries. 3. Practice forgiveness. 4. Ask for help. Read the full article here: https://www.harvardpilgrim.org/ hapiguide/4-mental-health-tips-forcreating-an-even-better-2022/
Paul is an agile professional, with over fifteen years of experience in auditing, accounting and managing business processes towards achieving strategic objectives and real business growth. Paul enjoys a good road trip especially if it entails a pit stop at one Jamaica’s famous culinary spot, Boston.
TERMS YOU SHOULD KNOW TRUSTEE The trustee of a pension plan has the primary fiduciary responsibility for ensuring plan assets are managed for the best interests of the plan participants and their named beneficiaries. In particular, trustees must follow the plan’s rules in administering the plan, and they must follow the standard of care that a reasonable fiduciary would follow in fulfilling their responsibilities. Source: The Motley Fool
VM Pensions Management Ltd 73-75 Half Way Tree Road Kingston 10, Jamaica Tel: 876-754-7265 Fax: 876-754-8359 Email: pensions.info@myvmgroup.com
Transform Your Everyday.