After all my expenses, I am able to save US$1,500 monthly. Currently, I have investment policies with Guardian Life, $3,500 monthly, for the past six years, and Sagicor Life, $4,000 monthly, for the past four years, and $2,000 monthly for the past two years. I also have a Sigma Solution account with Pan Caribbean.

My goals are to acquire enough funds to start building on my own land - which I have already acquired - within the next four years. I would also like to save towards the education of my children and my retirement, which would be in 17 years.

Can you please advise me on how best I could invest in order to reach my goals, or where I should invest and reasons why in order to realise them?

- Oral

PFA: You clearly realise that it is not enough to set goals. A comprehensive plan of action must be put in place if they are to be realised. Seeking help is a good first step.

You have outlined three goals. The first, building your home on your own land, is essentially a short-term one and can be realised in the time frame you have set. The second, saving to educate your children, stretches over the medium to long term and can also be realised. I am not certain to what extent you will be able to realise the third, retirement, in the time frame you have set.

By already securing land, you have taken a big step towards realising your goal of home ownership. You have not indicated the level of your accumulated savings or investments, but it seems that you should be able to build your home in four years given your level of savings - roughly J$1.5 million annually.

You do not need to have all the funds required to do so. Although you work abroad, you may be able to borrow from the National Housing Trust. First, become a voluntary contributor.

To register, make a declaration of income by completing the Self-Employed Application (Overseas) form. You can get more information by visiting the National Housing Trust website.

Costly alternatives

Further, you may be able to access more funds if your wife is employed and contributing to the trust. Building societies and credit unions are more costly alternatives. Depending on your current resources and how much you plan to spend, you may be able to build well within that four-year timetable.

If you plan to fund your children's education to the level of a first degree, it is quite likely that your second child could still be at school at the time you plan to start your retirement.

Of course, borrowing to fund their education in part or whole is an option you should not readily dismiss.

Do you have any retirement arrangements in the US? I hardly see you resorting to a rocking chair at the ripe young age of 58 or to life on the beach at Negril!

At that age, I expect you will still have something gainful to do.

Your insurance policies may also be a source of retirement funds. Allow them to build up tax-free income for you over the long term. Your Sigma Solution can do the same for you if you treat it as a long-term savings account.

Here are my investment recommendations. To generate funds to build your house, focus on income and safety of principal, considering that that is a short-term objective. Government securities fit these objectives well. Money-market unit trusts are very suitable, too.

To invest for the education of your children, focus on tax minimisation.

A long-term savings account for your wife would achieve that objective. It will also facilitate the withdrawal of funds as required after the statutory five-year term has passed. The unit-trust/mutual-fund growth option is also worth considering.

Your retirement plan seems to give you much scope for diversifying your investments and for some risk-taking. Here, you may go for tax minimisation, growth, and ease of management offered by the unit-trust/mutual-fund capital growth option.

If you want more risk with potential for higher returns, consider equities.

Discuss these and other options with a reputable and competent funds manager and be clear about what you are doing before you act.

For free financial advice and counselling, email: finviser.jm@gmail.com.