BYLES
THREE TYPES of investment instruments were proposed by teams from Life of Jamaica and its subsidiary Pan Caribbean Financial Services, at their investment seminar at the Bloomfield Great House in Mandeville earlier this month.
The seminar focused mainly on the three major products available for each stage of life. Life of Jamaica Marketing Manager Karl Williams says we are faced with different challenges through each stage in life and as such our priorities keep changing. In addition, the cost of living is always rising, health costs go up each year and overall, people are living much longer.
The three investment instruments are cash, bonds and stocks. For each stage of life, as priorities change, each allotment would be altered.
The Generation Now product is for the individual who is career-focused, socially active, enjoys travelling and image driven while the Priority Us product is more suited for someone who has an established career path, is family-oriented, owns a home and is interested in home improvement or purchasing a second home. The Good Life Plus is geared towards more senior individuals.
For stage one, Mr. Williams pointed out that the bond allocations would be approximately 25-40 per cent, in stages two and three 35-40 per cent, while investments in the stock market would average 45-65 per cent in the first stage and gradually fall to 25 per cent in the final stage.
DIVIDEND-PAYING STOCKS
For senior individuals who are financially independent, and focused on health and well- being, he suggested strong dividend-paying stocks and possibly, equity-focused unit trust or mutual funds.
He recommended that cash allocations be kept to a minimum. Only a 5-10 per cent share should be appropriated.
To supplement each investment package, Mr. Williams suggested various insurance plans that would certainly cover the issue of wellness including health, life and supplemental insurance.
"At the first stage, a general life insurance or health insurance policy would suffice. However, as we get to the next stage, we need to start exploring dependent life and supplemental life, critical illness and health policies," said Richard Byles, chairman of Pan Caribbean and president and CEO of LoJ.
He said, "These have to be taken up in an effort to reach the final stage with very little financial problems."
Mr. Byles concluded that the key strategies for living well at any age are to start early to plan for your financial and physical well-being, account for devaluation and inflation and consult an experienced financial services provider.
Taken from The Sunday Gleaner - May 22, 2005
