Tag Archives: finance

Other ‘Alternative’ Investments

Thanks to the upsurge in investment clubs and institutions offering high monthly returns, Jamaicans have developed a seemingly unquenchable appetite for ‘alternative’ investments. Many investors, no longer satisfied with the regular returns paid by established financial entities, are on a constant search for high-yielding options.

Trading in the foreign exchange market (forex) provided the first opportunity for many ordinary investors to participate in the global investment markets. This investing phenomenon, formally unknown to Jamaicans, was termed an ‘alternative’ investment.

However, with forex being the largest financial market in the world with over US$3 trillion traded 24 hours per day, Sunday to Friday, it hardly seems to deserve to be described as an alternative market.

However, looking at the definition of alternative, it might very well be acceptable to give it this description.  Dictionary.com provides one definition of alternative as “employing or following nontraditional or unconventional ideas and methods existing outside the establishment such as an alternative newspaper or alternative lifestyles.” Continue reading Other ‘Alternative’ Investments

Creating Retirement Business Income

Over the past three weeks Your Money has been focusing on retirement planning: helping you to figure out how much money you’ll need to retire comfortably, explaining methods of saving for your nest egg, and hopefully imparting the urgency of starting a retirement plan sooner than later.

Saving a large enough lump sum to meet your retirement income requirement is easier accomplished when you begin saving at an early age. Unfortunately, the reality is that most of us postpone thinking about retirement planning until we’ve bought our own house or sent the children to college. Then, as age 60 looms closer, we start to seriously consider exactly how we’re going to afford to stop working.

Let’s look at a typical scenario of someone who is faced with the harsh reality of retirement costs. Forty-year-old Teresa wants to invest towards a retirement nest egg that will be available when she is 65. Continue reading Creating Retirement Business Income

Getting Real About Retirement Savings

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

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?

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!

“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

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?

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

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

“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