The Rotaract Club at HPU brought a celebrity to HPU April 9
for a seminar on how to succeed financially. Jennifer Du-Yung
won the President’s Recognition Award from American Express
Financial Advisors. “It recognizes outstanding performance and
commitment to high-quality financial planning,” said the Honolulu
Du-Yung presented five building blocks for realizing life’s
dreams: create, assess, protect, invest, and enjoy.
“To create refers to establishing what your vision is,” said
Du-Yung. A vision is a statement in which you see yourself in
the future, five, 10, 15 years from now. This vision is created
by personal interests, hopes, and values, and it reflects the
reality of one’s lifestyle. When creating a vision, she explained,
we need to make sure that it represents the things that are
important to us and that it will compel us do all the activities
we will need to do to make it come to life.
“Write your vision down on paper,” she said. “By writing it
down, you have made a statement for yourself that is easier
to follow than if you just tell yourself that you have a vision.”
Next, we must assess our situation to see how close we are
to our goal. It should be realistic and achievable, so we won’t
be discouraged at the outset. The goal should also be appropriate,
consistent with our lifestyle and expectations. We should set
a deadline for its achievement in order to add urgency and motivation
for its progress. By including a target, such as a dollar figure
or timetable, we will measure our progress.
Protecting our vision is equally important. This can be done
through various documents such as insurance policies, employee
benefit data, living wills, trust agreements, and records such
as banking, investment, and income tax.
We should invest in our vision. Three methods suggested by
Du-Yung include, the Rule of 72, dollar-cost averaging, and
diversification. The Rule of 72 calculates how fast an investment
will grow and how long it will take for it to double. For example,
divide the rate of return (say 8 percent) into 72. The answer:
The Rule of 72 assumes our investments are tax deferred and
earning compound interest. Through dollar-cost averaging, a
fixed dollar amount is invested at regular intervals. Although
this strategy does not guarantee a profit or protect against
losses due to declining prices, it can be an effective means
of accumulating shares. Also, by diversifying our portfolio
we will spread our risk and therefore reduce the volatility
of our investments.
Finally, it is time to enjoy our vision by considering what
the smart choices are for spending our money.
“It was an eye-opener to learn what, as students, we can achieve
with strong will and smart investments,” said HPU student Srinath