Christmas checklist

Have you noticed that every year seems to go faster than the last? Chancesw are, you had a mixed year. In the midst of the silly season you will hope for some quiet moments when you can take stock of your successes and strategise over the things you weren’t able to accomplish, perhaps mull over the opportunities that you think missed you.
As always, now is the best time to get an update on all your financial matters. This is everything, including your saving accounts, investment accounts, insurance, your pension, and all other things that are important to you.

In doing this exercise you may get an unpleasant shock or two. If so, you may need to make changes, possibly even contemplate a change of institutions.

In addition, if you have monthly drags on your income that are no longer necessary, this is a great time to reduce those recurring expenses.

Prepare a rough outline of the new year and its major activities and obligations. The financial obligations due in the first three months of the year would be the most critical.
All your Christmas spending should take into account these obligations so that you do not start the year off on the wrong foot!

How are you staying informed of investment opportunities? Are you on the mailing list of your financial institution? Do you routinely check the Jamaica Stock Exchange website for the latest news and offerings on the market? Do you follow Kalilah Reynolds on her programme Taking stock or follow her on Twitter?

Of course, the newspapers are very useful too. Investment opportunities can be short-lived, so time is of the essence in terms of staying abreast of things.

Managing your liquidity is key. You need to be able to liquidate your funds relatively easily to be able to take advantage of opportunities.

For long-term opportunities, make sure they are worth your while, as some investments are extremely difficult to liquidate. Unfortunately, we can’t plan for every event, especially illness or natural disasters, so it is critical to keep some short-term money.
Naturally, you would allocate a section of your budget to the less fortunate, for it is in giving that we receive. For your grandchildren and/or children, this is a good time to explore financial gifts. This could be a gift certificate for a financial institution, or you could purchase shares or bonds on their behalf.

These are the types of gifts that keep on giving, both by way of growth (capital appreciation) and income (coupons and dividends)!  Merry Christmas and happy investing!!!

Yanique Leiba-Ebanks, CFA, FRM, BSBA, is the AVP, pensions & portfolio investments at Sterling Asset Management.  Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm  Feedback: if you wish to have Sterling address your investment questions in upcoming articles, email us at info@sterlingasset.net.jm.

http://www.jamaicaobserver.com/article/20191222/ARTICLE/191229953