Tag Archives: Jamaica

How to manage tough money problems

Money & Your Mind, , ,

“I’m desperate and I don’t know where to turn. I’m over my head in debt and my salary isn’t enough to pay for my basic needs much less pay down my loans. Every day prices increase, but my money only stands still. No matter what I try, I can’t seem to dig out of my financial mess; sometimes I feel like just giving up. Help!”

Everywhere you turn, people are complaining about their money problems. Food prices are skyrocketing, consumer debt is spiraling, utility costs are rising; everything is going up except our incomes! Many people are definitely getting anxious about money or their lack of it.

As a financial advisor, one of my biggest challenges is how to help someone with a tough financial problem that has no obvious solutions. Some money problems can’t be fixed with the regular smart advice of how to earn more and spend less. In reality, some people have money troubles that only get more depressing as you try to find a workable way forward.

So what can you do if you’re in the middle of a really tough financial mess? Give up? Not an option! Continue reading How to manage tough money problems →

Mutual funds have benefits, but be careful of the fees!

Investing, , ,

Jamaicans are becoming more conscious of the need to make their money work for them. Gone are the days when most people were satisfied with the security of a bank account because it was all they knew. Whether they’re rich, of modest means, or barely making ends meet, people are looking for investment opportunities that can bring more profitable returns, and help them fulfill their financial dreams.

While the lure of high-yielding ‘alternative’ options still abounds, investors are warming to the concept of mutual funds as a viable method of investing. Many financial institutions have had to scramble to find products that could compete with the earning potential of the alternatives, and are now offering overseas-based mutual funds. These also offer the opportunity to save in foreign currencies such as Canadian and United States dollars.

A mutual fund is an investment vehicle that pools together the investors’ funds and uses the money to purchase assets such as stocks, bonds and money market instruments. The mutual fund company has specific objectives and restrictions that determine how the funds can be invested. Continue reading Mutual funds have benefits, but be careful of the fees! →

Take Advantage of the Tax Amnesty

Business Success, , , ,

“If you are enjoying Jamaica’s benefits, you must pay your taxes,” – Don Wehby, minister without portfolio in the Ministry of Finance

This impassioned declaration came from Minister Wehby as he spoke recently at a First Global Bank corporate breakfast, where he shared highlights of the 2008/09 Budget Debate.

His comments came against the background that some 40 per cent of Jamaica’s productive activity was taking place in the grey or underground economy. The income of these persons is not reported, so although they are benefiting from the amenities of the country, they contribute little or nothing to the tax coffer.

Wehby’s message was clear: the time had come for Jamaicans to change their attitudes about paying taxes, and the government was prepared to use both persuasive and punitive methods to ensure that delinquent taxpayers toe the line. Continue reading Take Advantage of the Tax Amnesty →

Four things that can destroy your business dream

Business Success, , , ,

“I’m struggling to find the right business venture that can guarantee me success. I tried running my own operation in two different industries, but I had to close down the businesses both times because they weren’t viable and I was losing money. I know it’s possible to make money in business, so what am I doing wrong?”

Many businesses suffer from varied problems that can undermine their viability. Lack of enough low-cost working capital, high production costs, competitive pressures, – the list goes on. When you think of all the challenges, it’s a miracle that so many people desire to be their own bosses!

Sometimes the underlying cause of issues that business owners face has less to do with a difficult economic environment, and more to do with the entrepreneurs’ own attitudes and practices. It’s easy to recognize the external issues contributing to business failure, but it’s harder to identify the negative habits that can destroy a business dream. Continue reading Four things that can destroy your business dream →

Passing on Your Money

Retirement & Estate Planning, , , ,

“Don’t cling to fame. You’re just borrowing it. It’s like money. You’re going to die, and somebody else is going to get it.” – Sonny Bono

Last week we looked at the harsh reality that regardless of our current financial position, one day we will all pass on and leave our earthly possessions behind. Whether the transition of our assets is smooth or chaotic will depend on what plans we have put in place for them while we’re alive.

Although we may not like to think about it, estate planning is an important part of managing our finances. It involves making provisions to administer and transfer our money and property when we have died, so that our wealth is preserved and passed on according to our wishes. Continue reading Passing on Your Money →

Till Death Do Us Part

Retirement & Estate Planning, , , ,

“…to have and to hold from this day forward…to love and to cherish, till death do us part…” – excerpt from the Book of Common Prayer

This quotation is taken from the rites for the celebration and blessing of a marriage ceremony. Although the words herald the official union between a man and woman, in some ways they also speak to the relationship that we may have with our money.

For some people the acquisition of money is a passionate pursuit. Once it has been attained, their wealth is paraded like a beautiful trophy wife. Their possessions are held very close to their hearts, and this love affair lasts throughout their lives. Unfortunately this wedded bliss is only for a time, as in death they must part ways with their money.

The reality is whether we have lots of money or very little, whether we hoard money or pass it on charitably, death will come to take it away from us all. While we may physically leave this earth, our wealth usually remains behind, and it makes sense to make proper arrangements to distribute it when we are gone. Continue reading Till Death Do Us Part →

Buying a home? Don’t buy more than you can afford!

Home Buying, , , ,

Owning a home is one of the biggest dreams for most persons. They envision the time when they can get rid of their landlords, make their own home décor choices, and stop worrying about home security.

However, owning a home can become more like a nightmare if you bite off more home than you can chew. It’s important to match your home ownership plans with what you can truly afford.

The mortgage meltdown in the United States has had far-reaching implications on the global financial marketplace. While Americans face thousands of devastating foreclosures and some stunning bank crashes, the rest of the world is reeling from the effects of the reduction in credit availability and the fall in the American consumers’ spending power. Continue reading Buying a home? Don’t buy more than you can afford! →

Other ‘Alternative’ Investments

Investing, , , ,

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

Retirement & Estate Planning, , ,

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

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 →