Getting Real About Retirement Savings

Retirement & Estate Planning, , , ,

Are you currently saving towards your retirement? If your answer is yes, do you know how much money your pension plan will provide when it’s time to retire? If your answer is no, do you have any idea where you’ll get money to meet your expenses when you’re too old to work?

If you’re worried about your responses to the questions above, it’s time to take a serious look at saving for your future: it’s time to get real about planning for your retirement.

Many Jamaicans have a high propensity to spend, living for immediate gratification with little thought for the future. Some of us would not blink an eyelid to spend J$500 on a fast food meal, but would be hard-pressed to put away that same J$500 into a consistent savings programme.

Some of us have a ‘No Problem, Man’ attitude, where we figure everything will work out just fine eventually. We presume that our children will take care of us when we get old; that we will be able to work forever; or that one day the lottery will come to our financial rescue. Continue reading Getting Real About Retirement Savings →

Building a Retirement Nest Egg

Retirement & Estate Planning, , , ,

In last week’s column, we looked at three retirees who had not made adequate financial plans to ensure that they could enjoy their golden years. To achieve a financially stress-free retirement, you have to create a proper strategy to replace your working income while you’re still employed.

One of the ways to generate retirement revenue is to invest over time to build a nest egg that will eventually provide the income you’ll need. Planning for an event that’s far in the future is not a simple process, so you must seek advice from a financial advisor. Here’s a look at what the retirement planning process entails:

Step 1:   Establish the Planning Parameters

The advisor will need to know your current financial situation in order to estimate the cost of your desired retirement lifestyle. Experts usually approximate 70 percent to 80 percent of your present expenses for retirement income needs; as some costs such as children’s bills, mortgages and car loans should hopefully gone at that time. Continue reading Building a Retirement Nest Egg →

Your Retirement Years: will you be stressed out or stress-free?

Retirement & Estate Planning, , ,

“I will be 49 years old this year and I’ve always been self-employed. I currently operate a successful salon, but lately I’ve been getting a little tired of working all the time. The problem is that I’ve never really thought about retirement, so I don’t have much money saved up. Is it too late to start a retirement plan?

Perhaps the most discouraging experience for a financial advisor is to meet someone whose financial situation is so grave that you really can’t offer much assistance to fix it. Fortunately, those cases are rare. Unfortunately, when they do occur, they’re usually associated with persons in their retirement years.

Let’s look at three persons who have had negative retirement experiences; where it was just too late to make positive changes:

Sixty-seven year-old Clarence has been the caretaker for a residential complex for over thirty years. He is appreciated by all the occupants, as he is trustworthy and friendly. However Clarence is realizing that the effects of age have diminished his ability to carry out any of his very physical job functions, and he is worried what will happen in the future. Continue reading Your Retirement Years: will you be stressed out or stress-free? →

It’s Tax Time!

Business Success, , ,

“Time is running out: file outstanding income tax returns by March 15. We would rather see you sooner… than later.” The Tax Administration department has been conducting a very visible media campaign to remind people that it’s time to pay income tax. We can’t say we haven’t been warned!

Who exactly is being targeted in this tax compliance drive? According to the Tax Administration’s website, www.jamaicatax.gov.jm, income tax is to be paid by all individuals and companies, at the specified rates, on all income or profits earned or received. Some persons, such as pensioners, non-residents and the disabled are entitled to specific tax exemptions. Continue reading It’s Tax Time! →

The Love of Money

Money & Your Mind, , ,

For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs. – 1 Timothy 6:10 (NIV)

Money.

What emotions and feelings does the word ‘money’ evoke in your heart and mind? Does it conjure up fear, excitement, despair, pleasure, stress, or desire? Sometimes it seems that we are involved in a desperate, dysfunctional love affair with money. If we don’t have any, we pine for it; if we have a little, we demand more; if we have a lot, we live fearfully thinking that someone is going to take it from us.

“Nobody ever has enough of you….
But one can have too much of everything else
Of love, bread, sweets, honour…
But nobody’s ever got enough of you!
Give 13 talents [coins] to anyone
All the more he’ll want 16
Give him 16 and he’ll want 40
Or he’ll say life isn’t worth living”
‘Wealth’ – Aristophanes (338 BC) Continue reading The Love of Money →

What Do Bankers Want?

Business Success, , , ,

One of the major complaints that I receive from small business clients is that banks are too rigid in their demands whenever they are seeking financing. A common cry is that many financial institutions are happy to collect their money, but never show the same appreciation when a loan request is made.

Anyone who has made pitch for financial assistance and left the bank rejected and dejected has probably wondered, “What exactly does this bank want from me anyway?”

Recently the Small Business Development Agency in association with Scotia Small Business held a workshop on strategic business planning to assist small organizations to grow their operations.

Peter Mohan, manager of Scotiabank Morant Bay, gave an insightful presentation which revealed some key issues that bankers focus on when considering whether your loan application would be successful or not. Continue reading What Do Bankers Want? →

Tips on Affiliate Marketing

Income Creation, , , ,

Last week we introduced the concept of affiliate marketing as a viable option of making money in the age of technology. This internet-driven venture allows website owners to place advertising materials from affiliated online merchants onto their site.

When the affiliate website’s visitors are convinced to visit the merchant’s online store and make a purchase, then the affiliate is paid a commission. Affiliate marketing is simply word-of-mouth marketing gone high-tech.

Some of the largest corporations in the world use affiliate marketing to increase sales. These include Amazon.com, Walmart, Barnes & Noble, Nike, Office Depot, Microsoft, Best Buy, Sony, Dell, and Coca Cola, just to name a few.

Affiliate marketing has also contributed to the development of many small companies by putting them in touch with millions of potential customers that they would otherwise not have been able to reach. Continue reading Tips on Affiliate Marketing →

Making Money with Affiliate Marketing

Income Creation, , ,

“I pooled some money together for a deposit in one of the alternative investment schemes, as I really needed a source of extra money. It seems almost impossible for me to earn what I need to survive from my regular job.

“Now that I’ve stopped receiving monthly payments from the investment scheme, I’m looking for some other options to earn part-time income. Any suggestions?”

With rising prices and stagnant paycheques, anyone trying to get ahead financially has to look for viable options to earn extra income. The phenomenal growth of the ‘alternative investment’ financial market in Jamaica is partly due to people’s natural desire to make lots of money without too much effort.

However, many investors participated out of desperation because their nine-to-five jobs were just not providing enough to pay bills and save for future financial goals. Continue reading Making Money with Affiliate Marketing →

Managing Money When You’re Sick

Risk Protection, , , ,

Illness can wreak havoc on even the best-planned budget and throw your money management into disarray. Most people aren’t concerned about how sickness can affect their financial lives until they are in the middle of an emergency health situation.

Let’s look at some things you should consider when you’re thinking about life’s eventualities. Hopefully this will help to improve your state of financial readiness in the event of illness.

Health Insurance

Without a doubt, health insurance is a god-send when you’re facing a daunting medical bill. It allows you to hang on to your money while the insurance company picks up the tab for some of the cost of medical services and products. Check out these crucial questions relating to insurance: Continue reading Managing Money When You’re Sick →

When Less is More

Goals, , , ,

Last week we looked how we could really create a prosperous New Year by putting some of the universal laws to work in your favour – the Law of Abundance, the Law of Attraction and the Law of Accumulation. According to the experts, diligently applying these success principles can increase wealth and money into your life.

Unfortunately, my New Year brought an unwelcome present in the form of a vicious flu bug which relegated me to bed for several days. With plenty of time on my hands to reflect on what’s truly important, I thought that if I had to choose between wealth and health, my prosperity wishes would be out the door in an instant.

What’s the point of being rich if you don’t feel good? Sure, you could afford to pay for a really nice hospital room, but you’d still be sick and miserable. Continue reading When Less is More →