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FEBRUARY 2021
Bi-monthly Newsletter from VM Pensions Management Ltd
Challenge Your Ideas About Retirement
FLIP THE SCRIPT ON SACRIFICE As International Women’s Day approaches, it seems like a good time to #ChooseToChallenge ideas around retirement.
GIVING AND GIVING UP: When it comes to your finances and preparing for retirement, there is wisdom to be gained from both practices.
Challenge Your Ideas About Retirement As International Women’s Day approaches, with this year’s stated aim of challenging biases, it seems like a good time to #ChooseToChallenge ideas around retirement planning, especially in the case of women. Unfortunately, the pay gap between men and women contributes to women having less funds set aside to see them through for their golden years. While millennials seem to be closing the knowledge gap, women tend to be less likely than men to know all they need to know about investing for retirement, which, for some, leads to lessthan-optimal planning. Some women also place the needs of their loved ones ahead of their own, and their retirement plan ends up falling low on their priority list.
happen starting from right where you are. Sure, you may need to make some concessions if your time horizon is relatively short, but chances are you’ll still be able to design a retirement life your future self will be happy with. »
TREAT RETIREMENT LIKE A VERB – Be proactive about designing the post-9-to-5 life you want. If you’re part of a company’s retirement plan, find out how much you’re currently contributing and how much your company is putting in. You’re allowed to contribute up to 20% of your salary tax-free and some companies match your contribution. So if you can afford to max out your contributions, do it. If you’re not part of a company plan, start your own as soon as possible. Approved Retirement Schemes (ARS) are available for individuals and offer many, if not more, of the same benefits as a company plan. INVEST LIKE YOUR MENTORS – Combined with investment advice from reputable institutions, find successful investors you like and follow their strategies. Find out what they say, and more importantly what they do, for long term investments and retirement planning. Read books they’ve written or recommended. Subscribe to their blog if they have one. You’ll get practical advice that can be applied to help guide you along your own financial path, and you’ll learn more about investing along the way.
Here are 4 ideas that might help shift the way you think, and what you do, about retirement. Whether you are male of female, these hold true. »
YOU’RE A PRIORITY – Your loved ones no doubt appreciate all the care you give them, but you can only continue to do so if you’re okay. Taking care of your own needs, particularly your finances, must be a priority for you. It’s a good idea to keep a notebook handy to write down new information or questions when they come to mind. Use the notebook whenever you talk to your financial advisor. The internet is also a great resource for answers and learning what you need to boost your financial IQ.
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DESIGN YOUR LIFE – The idea that you can’t have the life you want in retirement is a lie. It is true that the more time you have to plan, the better your returns will be. But if you define the life you want and work out how much you need monthly to sustain it, you’ll be able to sit with an advisor to figure out the best way to make it
Retirement is closer than you think, even if you’re 22 and just starting your first full-time job, so approach it with your eyes open and arm yourself with as much information as you can. The important thing to remember is, when it comes to the life you want for your future self, you’re in the driver’s seat.
month? Even amounts that seem small can add up. $5,000 each month adds up to $60,000 at the end of the year. If you include 6% compound interest, in ten years that $5,000 per month will be $819,000. Wherever you find monthly savings, you’ll find money you can add to your retirement contributions at work. If you’re not part of a retirement plan at work, it’s time to get started with your own Approved Retirement Scheme (ARS). You’re allowed 20% of your income toward retirement tax free. So, if you’re not there yet, there’s room to increase your contributions. The important thing is to think about your pension fund contributions as just that, contributions to your future self, instead of a sacrifice. Researchers found that we’re more likely to put more toward retirement when our future self is more real to us. So, create a vision board or pick out a new wallpaper for your phone – anything to make your retirement a more tangible experience today. It will help you make decisions today that you’ll appreciate in the future.
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Sacrificing today for tomorrow is essentially what investing for retirement is all about. And the money you put away today becomes a gift to yourself in the future, with the added bonus of compound interest. This season might be a good time to look for areas where you can shave down your monthly budget. How much is cutting out meat taking off your family’s supermarket bill? Let’s say you stopped drinking. How much more would you have in your pocket at the end of the
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This month marks the beginning of Lent, the Christian season of preparation for Easter. For many, it’s a time of sacrifice and reflection. For 40 days, some people refrain from certain foods, drink or behaviours to ready themselves for the new cycle marked by Easter. Some choose to use the time to give of themselves to others through activities like volunteering. When it comes to your finances and preparing for retirement, there is wisdom to be gained from both approaches.
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Flip the script on sacrifice
The good thing about ARS portfolios like the ones at VM Pensions is you get to choose, based on the level of risk you’re comfortable with, how much of a gift your sacrifices can be to your future self. Whether you’re interested in preserving your capital, or benefiting from the growth potential of equities markets, chances are there’s a portfolio that will turn the sacrifices you’re willing to make today into gains you’ll be able to enjoy when you’re ready to chuck your 9-to-5 and explore your ‘bucket list’. So, the next time you’re choosing what to give up for your pension plan, step into your future shoes and look at what you’re getting.
MEET THE TEAM
Ms. Michelle Smith ASSISTANT MANAGER PENSIONS ADMINISTRATION VICTORIA MUTUAL PENSIONS MANAGEMENT
Michelle joined the VM Pensions Team as Assistant Manager, Pensions Administration in November 2018. Prior to this, she was the Manager, Billings and Account Receivables, Employee Benefits, Guardian Life Ltd and has over 25 years of experience in the insurance industry. Michelle holds an MBA in Marketing from the Mona School of Business and a B.Sc. in Management Studies & Accounting from the University of the West Indies, Mona. She also holds Certificates in Project Management, Customer Service and Supervisory Management.
H E A LT H & W E L L N E S S
Healthy Resolutions
Serving people and providing exceptional customer service are hallmarks of her work ethos.
Here are some healthy resolutions worth a commitment in 2021.
Michelle is a Christian and an avid Sports enthusiast with the English Premier League being her favourite league to follow and watch. #Gunners.
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Get 7 Hours of Sleep (or More) Adults should try to get at least seven hours a night, according to the Centers for Disease Control and Prevention. Get Moving Your resolution could be as simple as a daily 15-minute walk or 10 minutes of yoga each morning.
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Lift Weights Weights help build lean muscle mass, fire up your metabolism, and enhance your cardio sweat sessions, too
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Drink More Water Don’t wait until thirst hits. Sip fluids regularly throughout the day and with each meal.
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Ditch Sugary Drinks Kicking a soda, sweetened coffee, or juice habit in favor of plain water is vital for good health.
Read the full article here: https://blog. cheapism.com/healthy-new-years-resolutions15236/#slide=6
VM Pensions Management Ltd 73-75 Half Way Tree Road Kingston 10, Jamaica
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TERMS YOU SHOULD KNOW PENSION PLAN ADMINISTRATOR A plan administrator is a person or company responsible for managing a retirement fund or a pension plan on behalf of its participants and beneficiaries. The plan administrator is tasked with ensuring the funds are properly collected and distributed to all qualified participants. For example: If Denise is the Pensions Administrator for VM Pensions Management she would be required to complete duties such as: liaising between company and scheme members, maintaining records, preparing statements, calculating and processing pension contributions and payments, keeping up to date with and adhering to pension and tax laws.
Tel: 876-754-7265 Fax: 876-754-8359 Email: pensions.info@myvmgroup.com