Jon Holand spoke at AmCham Future Leaders Committee

Jon Holand spoke at AmCham Future Leaders Committee

Jon Holand spoke at AmCham Future Leaders Committee 400 267 AMA Team

Austen Morris Associates Senior Partner Mr. Jon Holand were invited to speak at the American Chamber of Commerce Future Leaders Committee on May 7th.  Read the full article on the AmCham website here.
In a world full of uncertainty and opportunities, investment strategies almost never stay the same from day to day. This is particularly true in China, where continuous reform of the financial and regulatory regime is underway. Notwithstanding the fact that investors in China are offered a wider range of options for earning a return on their money, saving is still the No.1 thing one should learn to ensure a better future. Jon Holand, Senior Partner of Austen Morris Associates, a private wealth management company, spoke on this topic during the Future Leaders Committee Event on May 7th.
Mr. Holand kicked off the event by stating that most people fail to grasp the importance of saving. By and large, people spend a large portion of their income to live a comfortable life, but when major and unexpected life events come up, they are more likely to struggle.
Some of the more indulgent expenses, which are often merely the result of peer pressure, can be totally avoided with a rational mindset.
When one does start to realize how critical it is to save and invest, it is imperative to start early with specific goals. For example, take two 25-year-old individuals have the same goal of saving $720,000 within 30 years. Person A will start now, saving $2,000 a month between 2015 – 2045. Person B will delay a bit until their salary is higher, saving $4,000 a month from 2030 – 2045. One would think that the end result would be the same, but Person A, who started earlier, ends up with almost twice the amount as Person B.
“People can both save money and enjoy themselves by finding a medium that requires the least sacrifice. Just cut down a little bit and what you can save is amazing,” Holand explained.
“But do save in accordance to a comprehensive financial plan, as it is different to do rudderless saving instead of following an all-round investment schedule”, Holand added.
Every type of investment comes with certain risks. Holand stressed how crucial it is to set aside an emergency fund containing enough money to support yourself for 3-12 months in case you happen to find yourself with no income for a period of time due to some unexpected life event. “Many young professionals in Shanghai use their uncertain future as an excuse to put off saving, when actually it is a reason to start saving as soon as possible.”
Even if you become very wealthy some day, it’s never going to change the fact that you can’t have everything you want. Holand suggested highlighting what’s more important to you at your current life stage and ranking your goals in order of importance.
Holand is a firm believer in saving as early as possible, giving the example of a recent 28-year-old client who came in asking to start retirement savings. He encourages young people to spread their assets into multiple investment programs with different commitment periods. The principle for finding a long-term investment with stable returns is patience and a refusal to be daunted by temporary ups and downs.
“If you look at any 10-year period, stock markets always make money and in the long-term, you will make significantly more than with any other asset, so for the long-term, stock markets are the way to go,” said Holand.
The overall rule of thumb is simple: make more, spend less.
Read the full article here.

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