World investor week: Reflecting on financial fitness and future planning

The World Investor Week 2024 is an annual week that allows us to reflect on the past year's investments, assess our progress toward future goals, and fine-tune retirement plans.

The journey to financial security is not easy and often requires lifestyle adjustments, such as swapping luxury for practicality - like choosing a modest car over a premium one.

While we are often caught up in daily life - focused on meeting immediate needs – it is crucial to set aside funds for retirement.

Without adequate financial preparation, retirement can be difficult, pushing aging bodies to work when they should be resting.

This can lead to health complications, which become costly over time. Preparing for retirement now prevents this burden.

World Investor Week 2024 is particularly important this year, as the global economy recovers from Covid-19 - a crisis that taught us invaluable lessons about financial independence, or as I like to call it, financial fitness.

It serves as a reminder that we must be ready for the challenges of retirement so that we can spend more time with our loved ones, doing the things that bring us peace and joy.

To ensure financial peace in retirement, saving and investing must become a lifestyle. Consistently putting away a portion of your earnings, whether from a salary or business, into regulated capital market products is key.

These products offer liquidity and return on investment, meaning you can easily convert them to cash when needed, and they provide periodic earnings - dividends and capital gains from shares, interest from fixed-income investments, or unit trusts. The more you invest, the more you stand to earn.

Investing in the capital markets also offers risk protection and diversification. For example, companies listed on the Uganda Securities Exchange, such as Airtel, MTN, dfcu, Umeme, and Stanbic, remained profitable even during Covid-19, while many smaller businesses struggled.

As the saying goes, it's better to own a share in a large company than a large share in a small one.

Capital market investments are inclusive, allowing Ugandans, East Africans, and even international individuals and businesses to invest.

These markets also provide sustainable finance options for small and medium enterprises (SMEs).

Investors, including pension funds and fund managers (collectively manage assets under Shs27 trillion), are always seeking opportunities, giving SMEs the chance to raise capital through initial public offerings, green bonds, social bonds, and other financial instruments. SMEs should consider tapping into these markets.

I commend the Capital Markets Authority and USE for championing World Investor Week 2024.

This initiative raises awareness about the capital markets and encourages Ugandans to save, invest, and access sustainable finance.

Increased savings benefit the economy by enabling Uganda and its businesses to borrow at lower rates.

This is also in line with Uganda's Vision 2040, which aims to increase savings as a percentage of GDP from 13 percent to 35 percent.

The writer is Mr Joram Ongura, the chief executive officer and founder of Amioo Capital Limited