In previous articles, we covered financial goals and strategies you can adopt to achieve them. In this article we are going to explore how to invest the savings you have made. Most people invest to help them achieve their goals. Consequently, one must have a clear and compelling purpose for investing. To have long term success in the investment game, you will require practice and mastery of two character traits more than any; sacrifice and discipline. This is part of the reason why you need a compelling reason to commit to the investment process and not be distracted along the way.

Let me illustrate with a personal story. Some years ago, not long after the N1 highway was opened, I was driving through Abekah Lapaz intending to branch to Darkuman. The driver in front of me was not moving, while the other lanes were moving very fast. This continued for 1 minute. Then I saw other drivers exiting the lane onto the fast moving lane and so I did same. When I got ahead, I discovered that lane was meant for those going straight ahead and not for those turning to the Darkuman side. Unfortunately for me, traffic lights for my new lane turned red before I could cross. Then I observed the cars in my former lane started moving. I had to wait and go all the way to Kwashieman to make a U turn. It took me 15 minutes extra because I could not wait for 1 minute and entered the wrong lane. Sounds familiar to you?

Investments are like that. If you do not discipline yourself to pursue your own goals, you will follow other people and risk missing your investment goals by several years. Just in case you are thinking I could have switched lanes like the commercial drivers do, in investments and asset allocation parlance, you cannot do so without incurring significant costs. In many cases, you can lose or lock up your entire money. What do you want to achieve with your money?

One will need to grasp the importance of assets and liabilities. Robert Kiyosaki of rich dad, poor dad, defines assets as things that bring money into your pocket and liabilities as anything that takes money out of your pocket. To meet your financial goals, you will need to accumulate assets and discard liabilities. The process of acquiring and accumulating assets is known as investment. Just think of your assets as hiring an army which will be strong enough to fight your war.

There are many financial assets to invest in with each class of assets having their own sets of returns, risk and liquidity characteristics. Experts generally classify investment objectives into three broad categories. Your investment objectives can be translated into one or a combination of these three groups below;

1. Income (need periodic income e.g. interest, dividends or rent)
2. Growth (want your money to grow)
3. Stability also known as protection of your principal

For some type of people it will be sensible to pursue one objective or another. Your Axis Pension Advisor can help you work through a process to discover your most important objective. You may also contact me for help via (This email address is being protected from spambots. You need JavaScript enabled to view it. or Tel: 0201629863). So what is or are your investment objectives, your main reason(s) why you have come to the market with money looking to invest?

Factors to Consider when setting your Investment Objectives

I. Time Horizon: When will you need your money back, 10, 3 years etc.? The general rule is the longer your time horizon, the more risky (and potentially profitable) investments you can make. It does not mean everyone with a long time horizon will pursue growth objective though. Other factors explained below come into play.

II. Risk Tolerance: How comfortable will you be to see the value of your investments go up 20% in one month and the next three months it drops by 15%? If you cannot sleep comfortably with that, then income or stability objectives are suitable for you, not equity or real estate. Do not then join those lanes even if they are making 150% returns, just stay with predictability.

III. Liquidity Needs: Liquidity refers to how quickly you can sell an investment for cash. Real estate can be very profitable but selling it can take years and to be able to sell it quickly, you would have to sell at a high discount. Following closely to real estate are equities listed on the Ghana Stock Exchange. If you have a job or other regular sources of income, then you can pursue aggressive growth investments than someone else who has only one source of income.

In conclusion, your circumstances with regards to the 3 factors discussed above will guide your choice of investment objectives and therefore the mix of investment vehicles (financial assets). It is important not to copy another person’s investments. Stick to your own, especially those you understand.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

Assuming you went through the goal setting process correctly, you will have a list of goals to be met and time span you want to achieve them. If you have not yet set your financial goals, read this previous article to learn the factors to consider when setting your goals. You can also speak to an Axis Advisor to support in your goal planning process.

If you have set your goals, then it is important to know that there are several strategies one can adopt to ensure those objectives are achieved. One can choose to:

I. Establish additional income streams

II. Cut costs - spend less than you earn.

III. Pursue a mixed strategy - A combination of cost cutting and multiple income streams.

It is just like decisions company managers make when faced with choices to meeting a set return on equity. The company either will seek to sell more of its products or pursue cost efficiency. You should see your life as the company and you as the board chairman of your company to be able to make important strategy decisions. Ensure the strategy you choose is relevant to your goals and circumstances. Do not pursue drastic cost cutting to increase your savings when you know your spouse will get angry or saving and investing all your money when your children are sacked from school.

So, decide how you are going to generate the savings to put in an investment in order to meet your financial goals. Whether to do something else to earn extra money on the side or to reduce your expenses is up to one to decide. The financial gurus place emphasis on the fact that one should not embark on a savings or pursuing a financial goal just because someone says it is worth embarking upon. Your first objective is to pay down your debt if you have one. Debts come in the form of unpaid student loans, car loan, credit card, mortgages etc. Debt left unpaid quickly compounds and will crush you. More information on compound interest will be shared in a subsequent article.

Your next most important step is to save towards an emergency fund. Financial planning experts say you should have enough savings up to 6 months of your salary. If you lose your job or source of income for any reason, you should be able to depend on the emergency funds until you are able to re-establish an inflow of income. I will advise that you start now and prioritize this financial objective. The COVID-19 pandemic has taught the important lesson of having some savings to cushion you and your dependents during an extended lockdown situation we are facing.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

All of us have aspirations in life which we strive to meet. These are usually varied from person to person. Financial goals are basically life expectations which will require money to fulfil or meet. From paying your next rent advance, down payment on your mortgage, buying a land, getting married, getting an education, buy a car, supporting your religious organization etc. How much money will you require to meet whatever goals you have ahead of you?

Setting your goals are the most important part of investing, and Khen Elazar of seekingalpha.com agrees. He says your goals will help you and your financial advisor determine the right strategies to achieve them. Besides, your goals will help you stay on track and not get distracted by other life factors.

Investors are different and have different needs based on their ages, income levels, savings rates and other circumstances. For instance, if your parents are alive, one financial goal would be to organize birthdays, anniversaries and funerals one day. If you do not have any living parent, then funeral money will not be one of your financial objectives. I have been married for ten years and so getting married is not my goal, but this will not be the case for someone who is single and just out of University. They will need to save to cover wedding clothing, reception, decorations and apartment where they will live after getting married.

However, some financial goals are common to everyone; some day we will retire from work and no longer get salaries from jobs. Not everyone will need to buy a car but every human being will need means of transport. The recent covid-19 lockdown has taught all of us an important lesson of saving towards an emergency. Many people have been left financially naked, having no savings to cover living expenses for 2 weeks.

It is therefore imperative to not follow another person’s life and investment goals, but set and pursue appropriate financial goals suitable to you. An Axis Pension Advisor can assist you to work through this process. So, how do I proceed to set my financial goals?

Below are important factors to consider in determining your Financial Goals:

I. Your Personal Circumstances: whether you are married or not, how old you are, your income and expenditure levels will all factor in the goals you should set. I was told a story of someone who spent all his money buying a land at Labone and had nothing left to build. By the time he could organize some more funds to build, the land had been resold to someone else who has constructed a house and living in it. His income level should have been factored into deciding whether having that land is practicable to develop within the timeframe.

II. Investment Horizon: How soon will you need the money to meet your goals? Some goals take years to achieve, others take only months or days.

III. Measurability and Control: Pay attention to factors within your control. You can decide how much money you will put aside every month for investment but the interest rate you get is outside your control. You can only get the prevailing interest rates decided by the market forces.

IV. Priorities: You will need to prioritize your goals. Which goals are very urgent or important to your life? One way of thinking about this is to consider the consequences of meeting or failing to meet each goal. If the consequences are dire on your life and lives of those who depend on you, it is advisable to pay attention to those goals first.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

Two life certainties, besides the day you were born, are the day you retire from active work and the day you die. Another certainty is that, the current Coronavirus Pandemic will eventually reach its end.  The Coronavirus Pandemic, regardless of the many associated inconveniences and financial tolls, presents an opportunity to reiterate old savings and money management tips. Hopefully, the challenges brought about by the pandemic will be viewed as opportunities to drive some action. I hear fear is sometimes a good motivator.

In line with this, I want to shed light on two wealth building tips in this blog article that can be practised to overcome the 'pandemics' we encounter in our lives.

1. Increase your Emergency Savings

The first wealth building step is to build your emergency savings. Emergency funds help you ride out temporary life challenges. The hope is that we do not experience another global pandemic in our lifetime. On a micro-level however, we are all confronted with multiple life ‘pandemics’ such as job losses, death, accidents and we should all be adequately prepared. Aim to put away three to six months’ worth of expenses in a savings account. If you do not have three to six months’ worth of expenses saved, then it is time to make some sacrifices to increase your emergency fund. 

One savings suggestion is to make a list of all your monthly discretionary and non-discretionary expenditures. Rank the discretionary expenses in order of importance, then cut out the items ranked near the bottom until you feel you cannot cut any longer. Add what is left to your non-discretionary expenditure. Multiply the total by three or six to determine the required amount to build into your emergency savings. 

2. Invest for your Retirement

In addition to building your emergency savings, it is important to also keep a focus on other long-term saving goals. The most important in my view is retirement savings. The rule of thumb when it comes to retirement savings is to save up to 20% of your income starting with your first paycheck. If you are already on your 50^th, 120^th or 180^th paycheck, the percentage of income you need to save to meet basic retirement goal should be more than 20%.

If you happen to work in the formal sector, your mandatory occupational pension and voluntary occupational provident fund (if you have one) could make up for the 20% of your income needed to be saved for retirement. If you really desire to live your best life in retirement you may consider putting aside in excess of 30% in retirement savings. If you are like most people who constantly withdraw from your provident fund for other very good reasons other than retirement, you should consider making up the shortfall by starting a personal pension investment account such as the Axis Pension Plan.

To conclude, we must recall the old Ghanaian adage made popular by today’s urban youth ‘Time No Dey’ – which simply tells us there is no time to waste. It only seems like yesterday when I sat for my BECE 22 years ago and I know it will only take a blink of an eye for the year 2034 when I retire to dawn on me. It is time we all take action.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

The world is currently battling the COVID-19 pandemic and due to its speed of transmission as well as its overwhelming effect on healthcare systems, many governments have had to take the bold step to lock down their countries partially or completely as well as close borders. Unfortunately, these measures continue to have a negative effect on economies as economic activity and productivity have slowed down. According to the International Labour Organisation, about 25 million workers are expected to be laid off globally. In Ghana, the hospitality industry has already been adversely affected by the pandemic and some hotels have been forced to shut down either partially or completely.

This puts enormous pressure on the finances of people across the globe. Having an emergency fund will greatly determine how individuals and families will stay afloat financially during this period. However, all hope is not lost if you do not have one. Individuals and families should put in place measures to manage their scarce resources during these times. The following tips will help you budget to meet your basic needs. Remember, that we are in unusual times and the primary goal for this period is to SURVIVE:

I. Assess all Sources of Income

Consider all your sources of income and list them. A few examples are your Salary/Remuneration, Returns from investments and Rental income. If there is no source of income or savings at all, it is important to identify other sources of potential cash inflow as well. These may include donations, online businesses and provisions of delivery services. The importance of this step is to determine how much you have available to aid in an effective expenditure planning process. 

II. Prioritize Essential Spending

It is important to plan your spending with the involvement of all household members to ensure effectiveness and to keep your expenses below your income to avoid debt. Categorize your spending and focus on the essential items such as food, utilities, shelter and transportation.

Food is an essential expense item in your budget. It is important to prepare your shopping list and stick to it. Plan how much you wish to spend on each food item and ensure you are not buying more than what you need. If you have the means, opt for bulk purchases as well as staple foods which are relatively cheaper to reduce cost.

Shelter is most likely your biggest expense item if you are renting. Considering the fact that most people settle rent payments in advance for a year or two, this may not be a problem unless your rent is due. If your find yourself in this situation and don’t have enough funds to settle your bills, have a genuine discussion with the property owner to agree on a workable payment plan. The reality of the situation is that, due to restrictions, looking for another place with cheaper rent may be difficult.

Your transportation cost during the lock down may reduce drastically. However, you may need to budget for trips to get your basic needs. If you are an essential worker, you will need to consider the cost of travelling to and back from work.

Finally, your consumption of various utilities such as electricity must reduce as much as possible. Take advantage of the subsidies to make room for extra savings. If you have any debt obligations, talk to your creditors to defer your payments if possible, however, if you can afford it, continue paying. 

III. Start or Build up your Emergency Fund

If your income hasn't been affected yet, this is a good time to quickly build or top up your emergency fund. The purpose of an emergency fund is to cover 3 to 6 months of your living expenses in the event of job loss or illness Assess your exposure to the risk of losing your job. The higher the risk, the more you need to save as quickly as possible to cover basic expenses should you be laid off or have your income reduced. You can do this by reducing your current expenses to make room for additional savings. Keep your funds in easily accessible forms to avoid any liquidity issues. You can either keep funds in a current, savings account or an easily accessible money market mutual fund.

IV. Preserve your Retirement Funds
It is not prudent to withdraw from your retirement savings to settle short-term expenses. It is rather advisable to fall back on your emergency fund, rainy day fund or your short-term investments. If your income has not been affected, it is important to continue contributing towards your retirement goals. However, if your income has been affected, you can either reduce or halt your regular contributions till you can afford to continue. You may contact your financial planner or retirement advisor for any further assistance.

Overall, the impact of this pandemic on your personal finances is dependent on a number of factors such as the industry you work in, number of household income streams and availability of an emergency fund. However, maintaining strict adherence to your reviewed budget and practicing the tips outlined in this article will increase your chances of staying afloat during this pandemic. During these times it is important to remain optimistic about your prospects. This too shall pass.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

The year we have all been waiting for is here. It is 2020 and like many people, you have great expectations for the new decade. To ensure that you realize your goals, it is important that you kick off the new decade in the right way. At the beginning of each year, it is not unusual to find people setting goals to engage in activities to improve their fitness. People make plans to jog each morning, take evening walks, get a gym membership or buy a skipping rope.

Regardless of the activity you elect to achieve your fitness goal, it will have associated financial implications. This highlights the fact that we cannot develop other aspects of our lives without paying attention to our finances. So for this year, as we get fit physically, we will also engage in activities that will also get our finances in shape.

Here are a few tips that will get you ready to get in shape financially:

1. Assess Your Habits

Our financial progress is mostly driven by our spending habits. Sometimes you plan to do so much in a year; grow my savings, buy a house and many other great things. However, you realize in the course of the year that you have falling behind on your goals. It is because you may not have assessed your spending habits before setting your goals and those habits become a stumbling block.

2. Set Financial Goals

Have goals? What financial goals do you want to achieve this year. It is very difficult to manage your resources effectively and efficiently without setting smart goals. Ensure that your financial goals are Specific, Measurable, Achievable, Relevant and Time bound.

3. Have An Action Plan

Do not just end with goals, what is the course of action? What will you do to achieve your goals or what will you do differently this year to achieve those goals. Remember that your resources are scarce and human needs are insatiable. You need to tell your money where it should go by budgeting. Otherwise your money will dictate to you where it wishes to go and you will find yourself behind schedule.

4. Just Do It

The common saying “A journey of a thousand miles begins with a single step” is very relevant to this point. Open that account. Get an automated payment instruction. Talk to a financial advisor. Whatever the first step is, regardless of how insignificant, just do it. You will be surprised at how far you will go from there.

5. Seek Professional Advice

Before making a major financial decision, ensure that you speak to a financial advisor. It may be free or it may cost you a little. However, it can cost you much more if you do not get that professional perspective.

6. Celebrate The Wins

Regardless of how small, ensure that you recognize the progress that you are making. Remember that you are better off than not taking action at all. The wins will keep you motivated to keep running.

7. Use the Buddy System

Find a person in your circle who can hold you accountable for the goals you have set. This could be a trusted friend, mentor, colleague or relative. You can also join a group of likeminded people to keep you motivated.

8. Set Checkpoints

Take time to do regular reviews of your progress. This will give you an idea of how far you have come to achieving your goals. With this information, you will be able to make necessary changes if you are lagging behind or you will be encouraged to keep pushing if you have overachieved.

So there you have it, the 8 keys to ensure that you get in shape financially to realize all the great things this decade has in store for you. Before you set here are a few quick questions to ask yourself:

• Have you set any financial goals?
• Do you have a planned budget for the year?
• What percentage of your income are you able to save?

How much have you invested (financial asset, real asset etc.)?

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.