AS the year comes to a close and the festive spirit fills the air, it’s the perfect time to reflect on your financial goals and chart a course for 2025 and beyond. Much like preparing for the holidays, planning your finances requires thoughtfulness, balance, and a touch of cheer. Here are four key questions to guide your financial strategy, infused with Jamaican wisdom to inspire and uplift your plans:

1. What Are Your Primary Financial Goals for the Next 5-10 Years?

The foundation of any financial plan lies in clearly defining your objectives. Are you saving for retirement, buying a home, building generational wealth, or funding your children’s education? Knowing your “why” helps you stay focused, even when the market gets unpredictable.

Jamaican Proverb: “Yuh cyaah boil cow foot an’ nuh put it fi soak.”

(You can’t achieve results without preparation.)

Take this festive season as an opportunity to outline your goals. Like trimming a Christmas tree, every decision should add to the beauty and purpose of your long-term vision. Whether you aim to preserve capital, generate steady income, or grow your wealth, knowing what you’re working toward makes each step meaningful.

2. How Can You Balance Risk and Return in Today’s Market?

The market, much like life, comes with its ups and downs. Balancing risk and return is essential to weathering economic shifts while seizing growth opportunities. Consider diversifying your portfolio to include stable investments such as bonds, growth-oriented funds, and liquid options for flexibility.

Jamaican Proverb: “Tek time mek haste.”

(Move carefully but efficiently.)

You don’t need to take excessive risks to achieve success. Instead, craft a mix of investments that offer steady returns while allowing room for calculated risks. This could mean combining high-grade global bonds for stability with emerging market opportunities for growth, ensuring that your portfolio aligns with your risk tolerance.

3. Do You Have Sufficient Liquidity to Adapt to Changing Circumstances?

Liquidity is the financial equivalent of Christmas leftovers — it ensures you’re prepared for unexpected situations. Whether it’s an emergency expense or a sudden investment opportunity, having funds accessible can make all the difference.

Jamaican Proverb: “Save fi rainy day, because sun nuh shine every day.”

(Prepare for tough times because good times won’t last forever.)

Short-term investments like repos and promissory notes provide liquidity without compromising returns. Use these tools to keep your financial plans flexible, allowing you to adapt and pivot as needed while still enjoying the fruits of your labour.

4. Are You Leveraging Global Investment Opportunities to Diversify Your Portfolio?

In a globally connected world, keeping all your investments tied to one currency or market can limit your potential and expose you to unnecessary risks. By exploring global investments, you open the door to opportunities that can strengthen your portfolio and hedge against local economic challenges.

Jamaican Proverb: “Di higher monkey climb, di more him exposed.”

(Overconcentration increases vulnerability.)

This holiday season, think globally. Diversify your portfolio with international bonds or mutual funds. The global market offers a wide range of possibilities that can align with your financial goals while spreading risk across different regions and currencies.

Spreading Holiday Cheer with Financial Wisdom

As you sip your sorrel and share gifts with loved ones, remember that financial planning is a gift to your future self. Take time this season to reassess your goals, evaluate your investments, and consult with your advisor about the best ways to make 2025 a year of financial growth and resilience.

Remember, “every mickle mek a muckle.”

(Every small effort adds up to something big.)

The small steps you take today — whether setting goals, rebalancing your portfolio, or diversifying your investments — will bring joy and security for years to come.

Here’s to making smart, strategic money moves that set the foundation for growth and prosperity. Happy investing!

Tenagne Thompson is Manager, Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm

Feedback: If you wish to have Sterling address your investment questions in upcoming articles, e-mail us at: info@sterlingasset.net.jm

Tenagne Thompson