An investment expert with the FirstBanC Financial Services have cautioned the youth to invest wisely, citing that most youth of today stands the chance of never been financially independent because of failure to plan.

Mr. Samuel Aidoo, the Head of Audit at the financial institution has advised the youth at the weekly online discussion of young and potential Entrepreneurs, organized by the Youth Business Network.

In his presentation, he explained Investment as the action or process of putting your money to work for you in many areas, including Stocks, Bonds, Mutual funds, Real Estate, and Starting your own business (entrepreneurship).

He said there are four basic Investment Objectives: Growth of wealth or capital accumulation, Current and future income, Diversification and Financial security; and one of these, at least must be a motive of any investor.

Mr. Aidoo, however, cautioned that any investment comes with some level of risk.

“…Client's investment objectives are closely tied to their risk tolerance. Their appetite for risk is often a factor of the following; Age, Marital status, Family responsibilities and Investment experience”, he said. On tenures of Investment, he explained that one can choose any of the three types readily defined; Short Term Investments (0-1 Years), Medium Term Investments (1-3 Years) and Long Term Investments (3+ Years) He cited Treasury bills, Money market funds, and Certificate of deposits as examples of Short Term investments, whiles Shares/Stock, Bonds, Mutual Funds, and Pensions falls under Long term Investments. Anything in-between is classified as Medium Term Investment, he said.

Mr. Aidoo touched on some Seven Principles of Investment that he explained any investor must adhere to; Developing the Right Attitude - Investment is next after Tithe, Knowing oneself, Avoiding spending the Principal, Starting Investing early, Being consistent and discipline with your investment, Getting Help when Needed and lastly; Diversifying Your Investments.

Finally, he advised the youth never to put all their eggs in one basket, because of the uncertainty of life and the risks associated with any type of Investment.

The Youth Business Network is a network of Youth in Business, Young and Potential Entrepreneurs, with the mission to champion the welfare of, and to imbibe entrepreneurship in the youth through capacity building, showcasing of success stories, and advocating for the development and implementation of youth-related policies in the country, while creating the platform for like-minded youth to Network, Learn and Share experiences and ideas.

The Network hold the weekly topical discussions in their Whatsapp group during the weekends. Interested young entrepreneurs can whatsapp 0243158017 to join.