By Barbara Ellington, Senior Gleaner ReporterJAMAICA MONEY Market Brokers (JMMB), headed by Donna Duncan is encouraging affluent African American women to take the opportunity to open accounts with their financial institution. Joan Edwards made the overture at last week's Mind Body and Soul retreat held in Ocho Rios, St. Ann. The retreat, organised by Karen Clarke of An Elegant Affair, had over 50 African Americans among the 63 women in attendance.
The JMMB facilitated a Financial Wellness workshop aboard the Dream Chaser Yacht and Ms. Edwards explained that health problems can result from poor financial planning. She laid out a road map for identifying and planning for future goals such as retirement, children's education, owning a car, owning a home, starting a business, estate planning, vacations or investments.
She outlined attractive interest rates on locally held foreign exchange accounts and the importance of having an emergency fund with three to six months living expenses. She also presented each participant with information packages outlining the basket of products and services offered by JMMB. Her presentation laid out the four steps to effective money management as: budgeting, short term goals, medium term goals, long term goals and explained Jamaican investment options such as the money market, the stock market and the bond market. Participants were eager to understand local tax laws, disclosure of assets and how safe their deposits would be in Jamaica. Ms. Edwards said, "Money market instruments were safe, short term, easy access, provided a fixed or guaranteed rate of return and is taxable. With our JMMB Savesmart or Sure Investor accounts return rates of 5 - 8 per cent on the US dollar. And on the Jamaican dollar, there is an 11 - 16 per cent rate of return.
COMMON MISTAKES TO AVOID
Ms. Edwards outlined the following as pitfalls to avoid on the path to financial wellness.
Not setting measurable financial goals
Making a financial decision without understanding its effect on other financial issues
Neglecting to re-evaluate your financial plan periodically
Thinking that financial planning is only for the wealthy
Waiting until a money crisis to begin financial planning
FINANCIAL WELLNESS TIPS
Commit to a monthly saving amount of 10-30 per cent and increase when possible.
Reduce expenses by sticking to your budget.
Make wise buying decisions. Avoid impulsive shopping or spending.
Pay credit card payments in full or before due dates.
Purchase income generating assets such as stocks, bonds versus cars, furniture, appliances, clothing.
Hedge against inflation-investing in stocks.
Pay yourself first - A part of all you earn is yours to keep. Save 5-10 per cent of what you earn (put it as an expense item in your budget.
According to JMMB, there are six steps to creating a healthy financial plan
Set smart goals
Assess current financial situation
Know your risk level
Choose investment level
Develop and document a strategy to meet your goals
Monitor and review plan periodically
