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This article discusses the process of getting one's credit score back to normal after not paying a debt on time. The article explains that a debt can remain on a credit report for up to seven years, negatively affecting one's credit score. However, by paying off the debt and incurring new debts that are serviced satisfactorily, one's creditworthiness can improve over time. The article also mentions that there is a possibility of having a liquidated debt removed from records before the end of seven years, depending on the circumstances and a request made to the credit bureau by the lender. It emphasizes the importance of paying off debts to eventually restore creditworthiness and have better access to credit. [Extracted from the article]

The article discusses the concept of financial independence and its different meanings for individuals. It highlights that financial independence does not necessarily mean being wealthy, but rather having the freedom to take care of oneself without the need for employment income. The article emphasizes the importance of proper planning, discipline, and sensible risk-taking in building a solid nest egg for financial independence. It also mentions various ways in which people can achieve financial independence, such as through business success, high-paying jobs, smart investing, and multiple sources of income. The article concludes by noting that financial independence allows individuals to pursue hobbies, engage in volunteerism, and enjoy quality time with family. [Extracted from the article]

The article discusses the reasons for the variation in performance among money market funds in the Jamaican market. Factors that contribute to this variation include the selection of financial instruments, the level of income generated, the percentage of the fund invested in each type of instrument, the timing of inflows into the fund, corrective actions taken based on past performance, the expertise of the manager, and the inclusion of non-money market instruments in the fund. The article also explains that the performance of money market funds can be affected by the types of securities they invest in, the proportion of short-term instruments, and the amount of cash in the fund. It emphasizes the importance of managers' ability to make informed decisions and the need for funds to align their investment strategies with the risk tolerance of conservative investors. [Extracted from the article]

Non-medical insurance products are offered by life insurance companies to individuals who do not meet the insurability tests for traditional life insurance. These products focus on living benefits and are designed to meet the needs of policyholders during their lifetime, particularly for expenses related to adverse health conditions. While some policies provide funds upon the death of the insured, the main emphasis is on critical illness coverage and in-hospital benefits resulting from accidents. Non-medical insurance policies have limitations and generally offer less coverage for a shorter period compared to traditional insurance. It is important for individuals to carefully consider their needs and explore different options before purchasing non-medical insurance. [Extracted from the article]

The article discusses the announcement by Minister of Finance and the Public Service, Dr Nigel Clarke, that borrowers will no longer need a guarantor to access loans from the Students' Loan Bureau (SLB) in Jamaica. This change aims to address the issue of some students being unable to access loans due to their inability to provide guarantors. Tertiary education is seen as a reliable means of escaping poverty and provides opportunities for employment, financial independence, and personal development. The removal of the guarantor requirement is also beneficial for guarantors who often face financial burdens when borrowers fail to repay their loans. However, borrowers must still consider how to fund any gaps in their education costs and ensure they can repay their loans in a timely manner. [Extracted from the article]

The article discusses the issue of deferred pensioners missing out on their pension benefits. It highlights that many individuals who contribute to pension plans are unaware that they are vested in their employers' contributions after being contributors for 10 years. This means that the money remains in the pension fund, potentially creating large surpluses. The article emphasizes the importance of pension plan members being aware of their rights and taking responsibility for securing their pensions. It also suggests maintaining contact with the pension plan, naming beneficiaries, and keeping key family members informed. The article concludes by mentioning that the law requires pension plan administrators and trustees to make efforts to locate pensioners with unclaimed benefits. [Extracted from the article]

This article discusses the value of regulation to consumers in Jamaica, specifically in the financial services and utilities sectors. The Financial Services Commission (FSC) regulates securities, insurance, and pensions, while the Bank of Jamaica (BOJ) regulates deposit-taking institutions. The Office of Utilities Regulation (OUR) regulates electricity, water and sewerage, and telecommunications. Regulation is important for consumer protection, as it ensures financial stability, promotes transparency, and provides avenues for redress. Regulated entities are required to comply with codes of conduct and disclose information to consumers. Overall, regulation creates a safe and reliable environment for consumers, allowing them to make informed decisions and have access to fair treatment and redress. [Extracted from the article]

This article discusses the importance of monitoring and reviewing personal financial plans. It highlights various factors that can affect the success of a financial plan, such as unrealistic goals, changes in the economy and financial markets, personal and financial situations, and limited knowledge and skill. The article suggests that monitoring the plan through regular reviews and assessments can help make necessary adjustments and align the strategy with the goals of the plan. It emphasizes the need to be aware of external factors beyond our control, such as inflation, interest rates, and changes in personal circumstances, and to seek professional help and education on financial matters. The article draws parallels between sportspeople setting goals and reviewing their performance and individuals creating and monitoring their financial plans. It concludes by emphasizing the importance of realistic goals, adaptability, and awareness of uncertainties in achieving financial success. [Extracted from the article]

This article discusses the importance of financial planning in the face of natural disasters. It emphasizes that while planning cannot prevent these events, it can help mitigate their impact on personal finances. The article suggests that insurance and a reserve of liquid financial resources are crucial for recovery. It also advises readers to maintain up-to-date records, insure property adequately, and create an emergency fund. The article concludes by emphasizing the importance of settling insurance claims promptly and avoiding encroachment on retirement savings or investment portfolios. [Extracted from the article]

The article discusses the high levels of personal and consumer debt in Jamaica and offers strategies to break the burden of debt. It highlights data from the Bank of Jamaica on loans to individuals and households, showing an increase in total loans and credit card balances. The article emphasizes the importance of creating a realistic budget, prioritizing debt repayment, and reducing expenses. It also suggests options such as debt consolidation, listing debts from largest to smallest, and increasing income through selling assets or finding additional sources of income. The author acknowledges that eliminating debt can be challenging but emphasizes the benefits of financial health. [Extracted from the article]

The article provides information about the upcoming 23rd Annual General Meeting (AGM) of TransJamaican Highway Limited, which will be held on July 4, 2024. Shareholders have the option to attend the meeting physically or virtually, but only physical attendees will be able to vote on resolutions. The article also discusses the reasons why people incur personal debt, such as funding education or acquiring assets, and highlights the consequences of not paying debts, including a low credit score and loss of assets. It emphasizes that lenders are serious about collecting debts and do not offer amnesties. The article concludes by mentioning the plans of EduFocal, an edtech company, to raise capital through a renounceable rights issue. [Extracted from the article]

This article discusses the issue of debt and offers advice on how to handle it. The author emphasizes the importance of generating income to pay off the debt and explains that when borrowers are unable to make payments, banks refer the matter to collections agencies. The collections agency may allow payment in installments, and the lending institution may make concessions to the borrower. However, if the debt remains unpaid, the borrower may be taken to court. The article also highlights the long-term consequences of not servicing a debt, such as an adverse credit score. The author advises readers to be cautious when borrowing and to pay off debts in full and on time to maintain a good credit score. [Extracted from the article]

Low interest rates have both positive and negative effects. On one hand, they make borrowing cheaper and more affordable, which can stimulate consumption and allow individuals to acquire assets like property and education. On the other hand, low interest rates result in lower returns on savings and can negatively impact interest-sensitive life insurance policies and people on fixed incomes. However, businesses can benefit from low interest rates by reducing expenses and increasing profits, and stock markets tend to perform well when interest rates are low. Overall, low interest rates can have varying effects on individuals, the economy, and different financial instruments. [Extracted from the article]

Central banks, like the Bank of Jamaica, sometimes implement policies that raise interest rates to stabilize the economy. While high interest rates can benefit investors by increasing returns on interest-earning instruments, they often impose higher borrowing costs, affecting consumers, businesses, and markets. These rates also have broader economic impacts, such as reducing disposable income and influencing market behaviors, with central banks aiming to control inflation and maintain currency value.

Money market funds are typically considered conservative and low-risk investments that aim to preserve capital. However, some Jamaican funds may not be preserving capital as expected. The offering documents of these funds state that they are low-risk and conservative, but the types of instruments they invest in suggest that the managers may be seeking returns that are not in line with the stated objectives of the funds. Additionally, some funds invest in foreign currency-denominated instruments, which exposes investors to the risk of their capital not being preserved if the value of the local currency appreciates. The Financial Services Commission, which regulates collective investment schemes, does not explicitly require funds to disclose the percentage of assets invested in each asset class. Money market funds are generally expected to have stable unit prices, but some funds experience fluctuations in their unit values. It is unclear why this occurs, as the management and investment fees should not erode the income earned by the fund. Some funds also invest in stocks, which raises questions about their ability to preserve the value of the investor's principal. The wide differences in the performance of money market funds in the Jamaican market may be attributed to the emphasis on generating superior returns, even if it means investing in riskier securities. Investors should familiarize themselves with the objectives and strategies of each fund before making an investment decision, but it is the responsibility of the collective investment schemes to ensure that their funds are true to their names. [Extracted from the article]

Collective investment schemes, such as mutual funds and unit trusts, publish reports on their performance regularly. These reports provide information on the prices and performance figures of the funds, which can help investors make decisions on how to invest. It is important for investors to understand the composition of each fund, as it affects the level of risk and expected return. There are three basic types of funds in the market - capital growth, bond, and money market - each with different investment strategies. Investors should consult the offering documents to get a clearer view of the types of instruments in which the funds invest. The net asset value (NAV) is the price of the units or shares in a fund, and the buying and selling prices may differ. The 12-month growth rate and year-to-date return provide information on the performance of the fund over specific periods. The yield is an estimate of the annual income the fund earns relative to its value. It is important to note that comparing funds can be challenging, as they can vary significantly even with similar names. [Extracted from the article]

The article discusses the risks associated with collective investment schemes. It emphasizes that these schemes, such as unit trusts and mutual funds, are not risk-free and are sensitive to economic and market conditions. The performance of these schemes depends on the investment policies, strategies, and competence of the managers. Different types of funds cater to investors with varying risk tolerance and investment objectives. The article advises investors to educate themselves about the specific investment vehicles they are interested in and to read the offering circular or prospectus to understand the fund's philosophy, objectives, and types of instruments it invests in. [Extracted from the article]

This article discusses different types of life insurance policies and their features. It explains that permanent life insurance policies provide coverage for the insured's entire life and may have fixed premiums and guaranteed increases in cash surrender value. Another type of permanent policy allows the policy owner to bear the investment risk. Universal life policies have level premiums but increasing mortality charges as the policyholder gets older. Term insurance is temporary and offers coverage only, with no cash or investment value. Endowment policies are issued for a limited time and have high premiums. The article emphasizes the importance of considering factors such as age, gender, and health when buying insurance and suggests that affordability should not be overlooked. It also highlights the need for individuals to see the need for insurance and make a commitment based on their own interests. The second part of the article discusses the ephemeral nature of strategic plans and the importance of capturing and tracking the underlying assumptions made during planning. It suggests using techniques such as strategy maps and pre-mortems to identify potential points of failure and be prepared to take evasive action. [Extracted from the article]

Life insurance is an important tool for providing financial support to dependents after the death of a family member. The amount of insurance needed varies depending on a person's life cycle, including income, resources, and responsibilities. In the early years, single people without children may not need insurance, but those who are married or have dependents may want to provide additional funds for their spouses. Adding children to the family increases the need for insurance to cover education and living expenses. In the mid-career stage, insurance needs are still high to support the surviving spouse, dependent parents, and children's education. However, as the retirement phase approaches, the need for life insurance decreases, as children become financially independent and investment income increases. It is important to regularly review life insurance needs to ensure adequate coverage. [Extracted from the article]

The article discusses how natural events such as floods, fires, droughts, storms, hurricanes, earthquakes, and heat can disrupt people's financial plans. These events can lead to higher costs, damage to assets, injuries, and the need for significant spending on health-related expenses. The article emphasizes the importance of proper planning and risk management, including the use of insurance, to mitigate the risks posed by nature. It also suggests proactive actions such as maintaining emergency funds, ensuring building integrity, and keeping up-to-date records of assets. The author concludes that while nature can disrupt financial plans, recovery is possible with time, insurance, collective effort, liquid reserves, asset sales, and realistic changes to the plan. [Extracted from the article]

Investing and gambling are often confused, but they have significant differences. Investing involves acquiring an asset with the expectation of a financial benefit, such as current income or a profit from an increase in market price. Investors own the assets they invest in, while gamblers do not. Both investing and gambling involve risk and the possibility of higher or lower returns than expected, but investors have more tools to minimize risk, such as diversification. The market facilitates investing by providing opportunities to establish prices and transfer ownership of assets. Investors can also conduct research using market and analysts' reports. In contrast, gamblers have limited scope for research and past results do not guarantee future outcomes. While some people may approach investing as a means of short-term gain, investing and gambling are fundamentally different from each other. [Extracted from the article]

The Consumer Price Index (CPI) measures the price movements of consumer goods and services purchased by households. The CPI is updated periodically to reflect the current spending habits of the population. The Household Expenditure Survey (HES) determines what is included in the CPI basket and the weight of each item based on its importance to total expenditure. Prices are collected from various outlets across Jamaica, and the CPI is used to calculate inflation. The 2017 HES focused on the expenditure patterns of low- to middle-income households and excluded the patterns of upper-income households. Adjustments to the basket of goods and services used in the CPI are necessary to account for changes in products and services. The weight structure of the CPI has changed since the 2004-2005 HES, with food and non-alcoholic beverages carrying the heaviest weight. Regular HES exercises are important for maintaining a relevant CPI. [Extracted from the article]

This article discusses the concept of a "basket" and its impact on personal finances. In Jamaica, the term "basket" is used to describe the set of goods and services used to measure inflation. Each household has a unique basket based on their spending habits and the items they purchase. The Statistical Institute of Jamaica divides the national basket into 13 compartments, each with a weight that reflects its importance in the overall Consumer Price Index (CPI). The CPI measures changes in the average price of goods and services consumed by households. The article emphasizes that the composition of the basket and its changes are influenced by where people live. The article also includes a public notice from the National Environment and Planning Agency regarding the renewal of environmental licenses for wastewater treatment plants. [Extracted from the article]