By Ernest Bako WUBONTO
The Executive Director of Fidelity Securities, Akwasi Adu-Boahene, has urged young individuals to prioritise their investment needs and align them with their savings plans.
According to him, in today’s volatile economic landscape where uncertainties prevail, it is imperative for investors to diversify their investments into different portfolios and match them with their needs – be it short-term needs or long-term goals.
He explained that savings must be designed to assist individuals in various aspects of life. For instance, savings must be tailored to needs such as education financing, rent, marriage and other social activities in the short-term, while long-term savings for property acquisition, life and insurance must also be exclusive.
Mr. Adu-Boahene encouraged the youth to take charge of their financial future by making informed investment decisions.
“What we have realised over the years is that people have only one investment portfolio that hosts all their life savings and in terms of short-term or long-term needs, they are found wanting depending on which investment instrument they have. So, it is important to spread investment and match the needs with the funds. To do this, one must first clarify their short-term needs and long-term needs. Investments for short-term purposes should go to that portfolio and vice versa,” he said.
Mr. Adu-Boahene made these remarks during a panel discussion at The Money Summit, a foremost platform for discussing issues relating to Ghana’s financial sector. Themed ‘Accelerating Savings and Investment Climate for Sustainable Economic Growth: Ethical Standards and Professionalism are key’, the summit was organised by the B&FT in Accra.
He and the rest of the panel agreed that due to increasing living expenses, an unpredictable job market and the necessity for long-term financial security, depending solely on savings might not suffice for achieving future objectives. They, therefore, entreated the younger generation entering the workforce to actively contemplate investing their savings to potentially generate returns and secure a comfortable future.
The investment analyst emphasised that investing is not exclusive to individuals with significant financial resources. Even small and gradual investments made early in life can accumulate over time, providing a much-needed cushion during critical stages such as retirement or emergencies.
“It is essential to educate oneself about different investment options and seek guidance from professional financial advisors to make informed decisions that align with personal goals and risk appetite. This also enables individuals to handle unexpected expenses without tapping into their investment accounts prematurely,” he added.
Ethical standards and professionalism
The Fidelity Securities Executive Director also touched on the need for investment bankers and financial services providers to uphold ethical standards and integrity.
“While some actions may be within the confines of the law, ethically such decisions might not be right. Therefore, players in the industry must always keep an eye on the ethical aspect to build trust and confidence in the sector.
“It is important that we place the client’s interest first. They have entrusted you with their funds because they believe you are an expert that can protect and grow the funds; so make sure that whatever you do, consider the long-term goals of the organisation and industry,” he said.
He further advised financial services providers to be mindful of environmental, social and governance factors in the banking industry.
