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April 4th, 2017

UTC Back Pay Blog 2017

 

Don’t be a lump sum lightweight

Making the most of a lump sum

What are your plans for your newly acquired lump sum? Are you taking a well-deserved cruise with your spouse?  Would you go on a shopping spree or would you invest in your future? Receiving a lump sum such as back pay or a bonus,can be quite overwhelming because it’s rare to have the opportunity to spend or invest a large amount of money at one time. It’s important to make the right decisions that are in line with your financial goals.

UTC Back Pay Blog 2017

The first step is to take an honest look at your current financial situation and develop a financial plan based on your goals. Remember,  by making a prudent assessment of your financial condition and allocating assets in line with the level of risk you are willing to take,  you can take away some of the fear associated with investing a lumpsum.As a general rule, it’s never a good idea to put all your assets and all your risk in a single asset class or investment.UTC portfolio managers can help enhance the performance of your investment portfolio and identify ways for you to continue to save and invest effectively and generate wealth.

For example, if your time horizon is 20 years, you can invest the entire lump sum of money into long term investments, such as the UTC’s Growth and Income Fund. This is an investment vehicle specifically designed to provide the investor with the potential to earn capital growth and dividend income and a price guarantee feature which affords investors protection of capital once the funds remain invested for a minimum of three years.  It is invested in shares of local companies trading on the stock exchange, government and government guaranteed bonds, short term securities and foreign equities.It could mean simply allocating your income between savings and different categories of expenditure and debt repayment. So try to resist the temptation to splurge and save yourself a lot of stress.

Pay off debt

This should be a priority for anyone that gains a large lumpsum of money. Try to clean up your consumer debt such as car loans, mortgage debt, credit cards or even student loans.Paying off your debtreduces financial burden and gives you financial freedom to invest.

Invest

Whether you put all your cash to work immediately or periodically invest portions, you need to make your decision completely upon your investment objective and risk tolerance – and not based on emotion. No matter your status, what is required is a judicious mixture of mutual funds, equity and fixed income investments that will enable anyone to build a strong investment portfolio. The TT $ Income Fund for example, offers competitive returns for investors who want the ability for their money to earn income whilst maintaining easy access to cash.

Wealth Management

Whichever route you are considering, our Advisory Services team, with a focus on wealth management, can help enhance the performance of an investment portfolio and identify ways for you to continue to save and invest effectively and generate wealth.