Assessing Your Finances Is Critical Before Investing, Says JN Fund Managers 

Delories Jones, Senior Vice President Sales and Marketing at JN Fund Managers recommends that before one invests for the long haul, they do an assessment of their finances to know how much money is available to invest.  

“It wouldn’t be prudent to put money in an investment portfolio until you have gone through a comprehensive financial planning process,” she advised. 

Mrs. Jones made the recommendation within the context of Financial Literacy Month being observed in April. 

She suggests that one should commence by reviewing one’s assets, and debts by setting up a reasonable debt management plan, factoring in how much is required for an emergency fund as opposed to an investment fund. 

In addition, a clear understanding of one’s risk tolerance will assist in determining what investment options to venture into based on the risk factor associated with each of these investment option. 

“By first undertaking this assessment, with the assistance of a Licensed Financial Advisor, if this is required financial this will ensure that one’s funds are invested in the appropriate investments options,” she said. 

Mrs Jones cautioned that withdrawing funds early from long-term investments jeopardizes one’s goals and poses other financial challenges, such as additional fees and taxes. 

She recommends the following strategies:  

Know your goal & timeline. 

Everyone has varying investment goals, with some common ones being, retirement planning, paying for your children’s university education, and purchasing a home. 

“No matter what the goal, the key to all long-term investing is understanding your timeline. Typically, long-term investing means five years or more. By understanding when you need the funds you’re investing, you will have a better sense of suitable investments options to choose and how much risk you can afford to take on,” she said. 

Pick a Strategy and Stick with it.  

She noted that once you’ve established your investment goals and timelines, you should choose an investment strategy and stick with it. It may even be helpful to break the overall timeline into segments to guide the choice of asset allocation. 

Mrs. Jones stated that based on the target date of goals, one can categories their investment goals in a similar fashion. For example, one could have a five to 15-year goal; a 15 to 30-year investment plan, or one that is more than 30 years, especially in the case of younger investors.   

Familiarize yourself with investment risks. 

She warned to avoid knee-jerk reactions to market volatility, one must be sure to understand the risks associated with investing in different assets before buying them. However, this does not mean you should not take the time to read the market after investing, as market trends can change over time. 

“Consulting with your financial advisor can assist you in this process,” she informed. 

Stocks she said are riskier investments and recommends trimming stock allocations as one approaches their goal.  

Diversify for successful investment. 

The JN Fund Manager advisor says that spreading one’s portfolio across a variety of assets classes allows one to diversify their portfolio thereby, ensuring a healthy mix of assets which reduces volatility in your portfolio.  

Diversification via Mutual Funds  

She explained that to improve diversification, one may choose to invest in mutual funds instead of individual stocks and bonds. She said mutual funds provide the advantage of easily building a well-diversified portfolio with exposure to a wide range stocks and bonds. In addition, JN Fund Managers Mutual Funds are managed by professional fund managers. 

“We encourage you to speak with your financial advisor who will provide guidance in this process of building a winning investment portfolio.,” said Mrs. Jones.