- My completion of the fundamental modules in the Certificate in Financial Planning Education Programme.
- A short time line in which I was required to assess whether I wanted to further my studies in that field of study or continue working in the industry in which I was currently employed.
- While I was working on a contract for which I was very grateful, I realised that I needed flexibility with regard to my savings. Bearing in mind that in Trinidad, there is a capital gains tax on the disposal of investments which are held for less than a year, the shares which were purchased would have to be held for longer than a year. I could justify the investment in the shares as continuous professional development as:
- I would be learning about the practical side of the acquisition of shares which would have been knowledge gained at another level
- This knowledge would have qualified as new knowledge which was acceptable for the purpose of continuous professional development
Luckily for me the local stock exchange was in a state of transition from a manual approach to an electronic system with online trading. I was happy to have the knowledge that I did, as I had explanations which were provided that allowed me to be satisfied as to the possible fairness of the trades, the holding of stock and to the distribution of dividends.
As to the shares which were acquired? I purchased those so as to:
- Access the financial statements of certain companies as an investor and
- To understand the investment decisions made by companies which operated in sectors different to that which I had limited exposure. For example there were companies which operated under the In Aid of Industry Act, where there were benefits to the company based on either the location of the manufacturing site or the type of equipment which was purchased.
- To keep up to date with the accounting policy and note disclosures of companies which had defined benefit and defined contribution plans. This was an area where there was room for much discussion.
Over time, I was able to sell many of these investments and purchase others based on the timing of the payment of dividends and capital appreciation and to place my funds in other investments. Would I invest in shares again? Yes, I would!!!The other types of investments would come with other posts..