JN Be Wi$e Virtual Summer Camp - Building the Junior Investor
Keep building your financial knowledge with resources here and stay tuned for more sessions that will help you find a way to financial freedom.
Young Investor FAQs
What is an investment?
An investment is an item, asset, or interest acquired with the intention for it to appreciate in value and/or generate income over time.
In the world of finance investing is the act of putting your money to work for a period of time in a project, business, or undertaking in order to generate positive returns (i.e., profits that exceed the amount of the initial investment) investopedia.com
What types of formal investment exist?
Investment in training and education, Stocks, Bonds, Mutual funds , Annuities, Retirement funds, Initial coin offerings and cryptocurrencies, Comodity futures, Security futures, Insurance.
Who are the regulated investment brokerage firms in Jamaica?
JN Fund Managers, Barita Investment Limited, CUMAX Wealth Management Ltd., FHC Investment Ltd., GK Capital Management Ltd., Ideal Securities Broker Ltd., JMMB Securities Ltd., M/VL Stockbrokers Ltd., Mayberry Investments Ltd., NCB Capital Markets Ltd., Proven Wealth Ltd., Sagicor Investments Jamaica Ltd., Scotia Investments Jamaica Ltd., Stocks and Securities Ltd., Victoria Mutual Wealth Management Ltd.
What is risk appetite and risk tolerance?
These terms are often used interchangeably but have their distinct meanings- appetite refers to the level of risk you can accept at the expense of pursuing your financial goal while risk tolerance refers to the preparedness to face these risks.
I want to create a financial plan. How do I start?
First step in creating your financial plan is to decide on your financial goals and everyone has a unique set of goals and when they want to achieve them. Once you have your goals decided follow the next few steps:
- Track your money and budget for your goals – whether it be lunch money, christmas gifts or the extra change from going to the shop plan for how you will manage it and what portion will go toward your financial goals
- Seek potential income through entrepreneurship, doing extra chores for an allowance, tutoring, becoming a Youtuber etc.
- Wherever possible protect assets, investments and human resource through insurance
- Avoid high-interest debt at all costs
- Save and invest – while savings gives a sturdy platform for your financial goals to build wealth you must invest.
- Pad your security blanket – as you move toward and even achieve your financial goals never stop adding to your retirement fund, insurance and emergency fund.
How to set financial goals?
Here are … easy steps to setting your goals.
- Order your priorities (eg. education, new device, sport gear, starting a new business etc.)
- Ensure your goals align with your passions
- Write them down – you can even try creating a vision board
- Pace yourself – make reasonable timelines to attain each goal
- Create a budget and stick to it
- Celebrate each goal and plan for the next level
What are stocks, bonds and mutual funds?
Stocks are essentially shares in the ownership of a company. Bonds are designed to raise money for corporations and the government. While you may get a return on investment from stocks by buying/selling stocks and dividends, with bonds you receive interest on the cost of the bonds after a period of time. Stocks come with a greater potential to return than bonds but bonds create a stable environment for stocks to thrive.
A mutual fund is money collected from various investors taken together to buy a large variety of securities. A mutual fund gives an investor instant diversification. Mutual funds are not the same as stocks. When you invest in a mutual fund, you do not own shares of the stock invested in but own a piece of the fund. Stocks, Bonds, and Mutual Funds – Overview, Characteristics
What is the stock market?
An established venue (place) where buyers and sellers exchange equity shares in publicly traded companies/entities. Stock markets exist in free-trade economies because they create public access to source capital and trade investments.
What is ROI?
Return on investment refers to interest or dividends earned on any transaction.
What is the Junior Stock Exchange?
A stock marketplace that encourages and promotes investment in entrepreneurs and small-medium businesses trying to raise capital.
Explain a diversified investment portfolio
A diversified portfolio has a variety of complementary investments: stocks, bonds, mutual funds and undertakings that will minimise overall risks.
How can I invest in myself?
You can take hold of opportunities to train, receive formal education, and improve your knowledge; acquire new skills and knowledge through courses, research, observation and networking.
Explain Generational Wealth
Is acquiring long term assets that will benefit your children and grandchildren, these assets may even continue increasing in value over time (appreciation). Generational wealth also involves protecting your assets against risk and inflation through insurance, emergency funds and continuously seeking new opportunities to invest.
What is Forex trading?
Is the trading of one currency for another with the intention of earning higher interest rates. Before you start forex trading it is important to understand the forex market – is where currencies are traded. It is the only truly continuous and nonstop trading market in the world. In the past, the forex market was dominated by institutional firms and large banks, which acted on behalf of clients. But it has become more retail-oriented in recent years, and traders and investors of many holding sizes have begun participating in it. What Is Forex Trading? A Beginner’s Guide There is no central marketplace hence trading is fully online.
What is compound interest?
It’s return on interest earned on a loan or deposit calculated based on the first deposit (initial) added to the accumulated interest from periods before.
How does the 10/10/80 rule work?
Save and invest 10% of anything you earn or are gifted, give away (donate or tithe) another 10%, while the last 80% should take care of bills, expenses and other obligations