Is it Practical to Plan For Retirement?

Is it Practical to Plan For Retirement? – As it becomes increasingly difficult for many companies to finance workplace pension plans, and more persons join the ranks of the self-employed, the number of Jamaicans who are currently investing towards their retirement years is woefully inadequate.

Studies indicate that private pension arrangements are now covering some 60,000 persons of the approximately 1.3 million people in the labour workforce in Jamaica. This means that only about one out of every 22 persons contributes to a savings plan. That will help to replace their income when they can no longer earn a living or choose to stop working. This is a startling statistic, as it indicates that many persons may not have considered the necessity of planning to create an income for their later years.

Calculating The Cost of Retiring

Imagine that you are now 65 years old, and desperately desire to quit the rat race of the working world. In your youth, you had only focused on funding your immediate needs, and had never consciously thought about where money would come from when you were too tired to keep working.
You had hoped that your children would take care of you when the time came, but now they are struggling to make their own ends meet, and can offer you very little assistance. You have no choice but to continue working, despite your aches and pains and nature’s actions in trying to slow you down.

So let’s look at what it would take to create a nest egg. Which would allow you to live comfortably in your retirement years.
Let’s say that you are now 40 years old and wish to stop working at age 60. Assuming an average inflation rate of ten per cent per annum. Which is the percentage by which prices will go up every year. Your income need upon retirement would actually be over $330,000JMD per month. Would continue to increase every year in line with inflation.

How much money would you need to amass in the next 20 years

In order to generate this income stream over 25 years of retirement? To make this plan work, you would need to create a lump sum of over JMD$126 million upon retirement. Which should earn a net return of eight per cent every year. Is it Practical to Plan For Retirement?

So, how much would you need to put aside every month to achieve this goal? If your investment plan gives you an average net return of 10 per cent every year. You would need to save just under $80,000JMD per month and increase your annual contributions by ten per cent to stay ahead of inflation. Now for most people, the possibility of putting aside $80,000JMD per month towards a retirement plan would be next to nil. I tell them it’s better to save what you can than save nothing at all.

Getting Started With A Retirement Plan

Here are some considerations that can help you to get started with a plan for your future needs:
– Do you have any savings that could be used to start a dedicated retirement plan?
– How much money can you comfortably put aside every month without having to withdraw from it?
– At what age is it practical for you to stop working for an income?
– How much money will you need to withdraw monthly once you are retired?
– Will you receive a workplace pension that will contribute to meeting your needs?

Using the previous example

Let’s say that all you can save right now for your retirement is $10,000 JMD per month. You decide that it’s more realistic for you to aim for retiring at age 65. What kind of nest egg could you create with these parameters? If you increase your contributions every year by ten per cent. Then you would create a retirement fund valued at over JMD$32 million.
While this figure may sound impressive, in today’s dollars it would only be worth about JMD$3 million. Would generate the equivalent income of about $11,000 JMD for 20 years. Your retirement nest egg would there fore form only a part of your plan towards replacing your income in your senior years. Other options to generate money could include renting out a part of your home, or starting a business that would help to pay residual income. Is it Practical to Plan For Retirement?

Business Rewards Cards

Business Rewards Cards – Business credit cards can be a great tool for any business. Large or small to assist in the money management process. Some of the first things that most consumers take into consideration when deciding between credit card accounts is APR, credit limit, annual fees, late charges, and other miscellaneous fees. There is nothing wrong with this, as these are all critically important factors when trying to decide which card program is the best one for you. However, once you have narrowed your search down a bit, be sure to take a good look at some of the rewards programs that these cards usually offer. You must always try to find the rewards program that you feel you will reap the most benefit off of. Here are some of the kinds of rewards programs that different accounts will offer.

Cash Back Rewards

One of the most basic rewards programs can also be one of the most lucrative for consumers. Cash back business cards will all generally work the same. For every purchase charged to your card you will earn a certain percentage of each transaction towards your cash back balance. The percentage will obviously vary with each account. Also by your business or personal credit history, although it is typically somewhere between 1-4%.

When you elect to redeem your balance you can elect to have the money credited back to your monthly statement. Request a paper check be sent or an electronic deposit be made. If you have a business with multiple card users and/or accounts then this amount can really add up quickly and save your business a good chunk of money.
Keep in mind that each credit card company is different, thus making the rewards programs for each different as well. Some programs will offer a different percentages of earnings depending on what you are spending.

Airline Rewards

Airline rewards cards are some of the most popular among larger businesses. For those that require their employees to be frequent travelers. These cards basically accumulate “points” for each dollar you spend on your account. You can then redeem these points for airline purchases. These accounts tend to vary a lot depending on your card provider. Some will only allow you to choose a specific airline for your flight and may also have certain black-out dates restricting you on your travel options. As with the cash back cards, these cards can have limits in regards to point accumulation. Also some card providers will charge a fee each time a flight is booked.

Road Rewards

Some of the most popular cards these cards are ones with a gas rewards program. The ever rising fuel prices have left a large hole in the pockets of many small businesses. These cards offer you a certain percentage back every time you make a stop at the pump. If you have a handful of drivers on the road then it is almost silly for you as a business owner to not at least look into what a gas card can do for your company.

Hotel rewards

The points accumulated on these accounts can go towards free nights, as well as upgrades. If you are staying at a high end hotel, and you have enough points accumulated. Then you may be able to mosey on up to a suite or a penthouse room.

Product and Service Discounts

A lot of card issuers have partnered up with different product and service providers to help bring you that will pertain directly to your business. An example can be rewards points that are redeemed at an office supply retailer such as OfficeMax or a UPS store. Shipping expenses can really rack up for a lot of businesses. There are numerous rewards programs that will help save you money in that area. The possibilities here are nearly endless with rewards programs, so always be sure to go through each account accordingly and select the one that will benefit you and your business the most.

The Most Popular Credit Card

The Most Popular Credit Card – Department stores, banks, Travel And Entertainment and hybrids are all offered regularly. In fact many non-financial organization such as the National Football League and and Basketball Association offer credit facilities that can be accessed with the use of plastic Choosing the best credit cards is not a simple process.

They are great if know how to use them to your benefit, and how you may exercise your legal rights, if needed. The best credit cards, can simplify your financial life. If properly used, they can help you keep good records for budgeting and tax purposes. They can also help you cut down on the time spent managing money details. Using credit cards may also afford afford several advantages not associated with other payment methods, such as free extended warranty protection on purchases and free damage insurance on car rentals.

Credit help sales

People tend to spend more at stores with store issued cards: The store owners often extend privileges to it’s holders
Stores generate more revenue by financing the customer purchases at higher interest rates. It is not surprising that many stores report more income from credit card operations, than from sales of merchandise. The stores are mining the data for the very valuable information that is obtained from looking at the record of purchases. The information can lead to discovering trends, for developing marketing campaigns.

Store cards

Store cards are usually at much higher interest rates, but are normally easy to obtain. Holders can often get preferred treatment and early sales notices and easier merchandise return privileges, however, there are some disadvantages, which can be costly

Rather than lower rates, retailers are more likely to raise credit limits and offer such things as 90 days with no interest payments, especially around the holiday season, which induces the temptation to spend more.

Dual Store/Bank Card

Some store credit cards are being replaced by cards that bear the store’s name, but is actually issued by a bank. A dual card is both a store and a bank card. The limit on dual cards are usually much higher than that of the stores, which may adversely affect your ability to get other credit, such as home mortgages. Under federal banking laws,the stores are subject to consumer protection laws that regulate interest rates, and late fees. However, the banks of another state may not be subject to those same laws.

Bank cards

Bank cards are the most common and perhaps the most useful. Visa and Mastercard are the two most common. Your Visa or Mastercard does not actually come from Visa or Mastercard. But is issued by an issuing bank or other organization. Each financial institution sets its own terms features and benefits for the credit it issues.

One big advantage of bank credit cards, is their very wide acceptance. Because the commission charges to the merchant for processing the fees are much lower. This can also be a disadvantage as the ability and the availability to charge things is also present, making it easier to overspend.

Travel and Entertainment Cards

Travel and Entertainment cards include American Express Carte Blanche and Diners Club.
There are two important differences between T&E and other credit cards. T&E cards have a short credit term, usually 30 to 60 days.

Protect Yourself From Collection Agencies

Protect Yourself From Collection Agencies – Illegal and unfair tactics are often employed by collections agencies when seeking payment. Unfortunately, the uninformed are easy prey. To hold collection agencies accountable for blatantly unlawful practices, you first have to know your federally protected rights. Collection agencies who fail to follow the rules can result in court fees, fines and even license suspension. For your part, you could have your entire debt forgiven for fighting back against disallowed tactics.

Individuals facing collection proceeding have federally protected rights under the Fair Debt Collections Practices Act (FDCPA). Some of the specific provisions provided include:

Torment or Abuse

The law bans any form of harassment, violence, or abuse against you, your property, or members of your family. Such restrictions include making repeated calls when you’ve asked them not to, using profanity or vulgar language, or threatening actions they may or may not plan to take.

Communication Channels

When collection agencies contact you they must do so between the hours of 8am-9pm, except if you have told them those are inconvenient times for you.

Third Parties Contacts

The exception is when they are trying to find out where you are. Then they can only ask your whereabouts and give their name.  The third party cannot be contacted again unless they give permission or the agency has reason to believe they were given incomplete or false information.

Collection agencies must direct all contact through your attorney, if you have retained one as long as the attorney responds to their attempts. They can only go around your attorney if you have given permission otherwise. They have the right to contact your spouse and your parents if you are a minor, unless you tell them not to in writing. Collection agencies do not have the right to harass your adult children or your parents to get you to pay, even if this happens frequently.

False or Misleading Representation

Sometimes they draft letters intending them to appear to be from a lawyer. These tactics are not allowed under the law. In addition, the facts in your case, such as how much you owe and it’s legal status, cannot be misrepresented. Unless a collection agency actually plans to follow through with it, they also cannot threaten you with legal action.

Outrageous Tactics

Consumers are protected from crooked, unfair, and unreasonable tactics employed by collection. Some commonly employed include causing you to incur expenses due to their collection efforts, adding interest and fees to what you owe, and depositing post dated check prior to the date without permission.

Secondly, ask if the person you are dealing with is a CPA. A Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional education and experience requirements for certification.

Your Options

You should direct complaints to the Federal Trade Commission, your state Attorney General’s office, and your original creditor if you have been the victim of these types of practices. First contact your original creditor who can be held liable for such violations. They may consider forgiving your entire debt if the actions were especially grievous.

Another potential recourse is to sue the collection agency for these types of violations. You must document your claims and have at least one witness. Particularly bad cases of repeated abuse have resulted in punitive damages as well. You need to know your rights when facing unscrupulous collection agencies. Hold them accountable and report any violations to the proper authorities right away to avoid being their next victim.

Credit Card Usage

Credit Card Usage – Credit cards are a convenient form of credit and often provide an edge over other forms of payment. They save you from carrying around large amounts of cash and allow you to easily purchase products and services online. Over the phone and even on your travels. On the flip side, there are times when cards usage should be avoided to ensure unnecessary interest payments do not get out of control. In this article we will cover when is the right time to use a credit card and also situations where credit card usage should be avoided.

So when is the right time to use plastic?

Paying for goods and services online is certainly much easier with the use of a card but better still; some credit cards will even help protect you. When purchasing online, you can obtain product protection and extended warranties with certain credit cards. This is great peace of mind, especially in a world where many people are still developing trust in regards to making purchases online.
Travel is another great example for the right time to use a credit card.

Imagine you are tired from a long haul journey. You’re carting a heavy suitcase around. Your kids are hungry and the map you were given is about 10 years out of date. You’re lost in a foreign city. The last thing you want to be worrying about is dealing with a foreign currency to book your hotel room. Both MasterCard and Visa are global brands and recognised in most countries and make life a lot easier when travelling abroad.

Emergencies

Let’s face it, we all have them and they always seem to crop up at the most unfortunate of times. Your hot water system blows up, your car tyres need urgently replacing. The garden fence blows down and your insurance policy does not cover it. These things do happen and it’s comforting to know that with a credit card. You won’t be left stranded until your next pay day. When the emergency is over and you’ve found your feet again. Try to pay off your credit card as soon as possible to avoid excessive interest payments. At least switch to a low interest rate card.

When not to use a credit card

I t’s important to use them wisely so they do not become a problem or source of worry. Some situations, as mentioned above, are unavoidable but where poss ible we have listed situations where you should ideally opt for an alternative payment option.
The biggest trap to avoid is withdrawing cash at ATMs. Most cash machines will let you draw out cash using your card but this can lead to disaster. A3dvances are also usually charged at a much higher rate of interest than purchases. If this is your absolute last resort, tread with care. The best possible scenario is always to withdraw cash from a debit or savings account where the money is already yours.

Impulse spending

Most of us are guilty of this and often live to regret it or hasty decision. Often what seemed like a good idea at the time can end up costing you in interest payments so think twice before committing to a purchase. Sleep on it over night or even leave your plastic at home if you are going shopping without a specific purchase in mind.
Paying your bills with a credit card is often easier than physically going to the post office. But it’s only a good idea if you are 100% sure you can pay your bills off in full the following month. If you are using your card to pay bills because you can’t afford to pay by other means. Now is a good time to seriously look at your personal financial situation and seek help.

Finally, don’t pay off other debt using your credit cards. Credit cards are not the cheapest form of borrowing and unless you are looking at consolidating debt by transferring to another credit card provider on a 0% balance offer or low interest card, you will find yourself in trouble. If you need to borrow a substantial sum of money, a loan may be a cheaper option.
Credit card usage really comes down to common sense and your own individual circumstances. Try to keep borrowing to a minimum, keep a level head and remember that when used wisely, credit cards are your friend.

Fast Credit Repair and Rebuild

Fast Credit Repair and Rebuild – It used to be that you could only accept credit card payments if you had a card machine in your store or office; however, technology has evolved, creating many more applications and ways of processing credit cards. If you have a business that is constantly on the move, these systems can help you streamline your operations by allowing you to accept credit card purchases wherever you are and then link them back to your merchant account. This means that sales representatives, street vendors, market stall owners and a wide variety of people can now process credit card transactions. Having this facility makes it more convenient for customers and often results in the merchant enjoying a higher sales volume. When people can pay using credit cards, they are often less conscious of how much they spend.

NURIT 8020

This wireless card processing machine is compact and easy to use. It has a keypad and screen that features a touchscreen display. You can swipe credit cards and get authorization on the transactions wherever you are. The electronic signature capture facility means that you do not need to take an imprint of the card. It also has a store and forward mode that you can use when you are in an area that has a low signal or no signal at all. Perhaps the feature that most users like is that it has a built-in printer.

Once you process the transaction, you can immediately get a signature on the credit card slip. This ensures that you have greater protection against possible fraudulent transactions as you can immediately verify the cardholder’s signature by checking the signature on the back of the card. This is one of the more expensive wireless options but if you are looking for a machine that provides you with absolutely everything you need to process a credit card, this is the best option for you.

WaySystems MTT 1531 with Printer

This system can be held in the palm of your hand and is moderately cheaper that the NURIT 8020. It looks like a cell phone but has a card swipe facility and printer to process card transactions. The machine is simple and easy to use and can be transported in your jacket pocket or briefcase. This makes it ideal as a lightweight card processing option for business people who travel a lot.

WePay SC30

If you want to limit the amount of additional hardware you purchase then the WePay SC30 may be the solution for you. A strong feature of the WePay SC30 is that you can easily download, export and email receipts and transaction data. The system also has some of the best security protocols to ensure top-quality fraud protection. Fast Credit Repair and Rebuild.

Touch Tone Capture

To simplify the procedure even further, you can use your existing cell pone to process credit card transactions. This is the most cost-effective card processing solution because it does not require any additional equipment. You can simply key in the credit card details into your phone and get an immediate authorization. It is the ideal choice for business people who frequently travel. Essentially, you use your existing cell phone as a credit card terminal. The software integrates with most cell phones and wireless networks providing a broad range of coverage.

Laptop Wireless Processing

If you travel with your office on your laptop then this could be the ideal solution for you. Rather than having an additional credit card terminal that you need to transport with you, you can simply get the card processing machine that links to your laptop. The card swipe facility operates wirelessly and transfers data to your laptop as soon as you have processed the transaction. This means that you can review the transaction and related data immediately after completing the transaction.

If you need to export data, or provide customers with receipts, you can do so easily. The receipts can be emailed and any other transaction data can be easily verified. You can manage your transactions and export the information directly into your accounting system. Being able to keep all your client data on one machine ensures a greater level of security. Using this system, you can process credit card transactions anywhere you have a wireless connection.

5 Tips For Credit Repair

5 Tips For Credit Repair – For college students, getting access to a credit card just got a little bit more difficult. The credit overhaul legislation that passed in 2009 and went into effect in early 2010 contains a provision that states that college students must have an adult co-sign their application with them. This means no more running up credit card bills without their parents knowing about it.
And of course, there are other options besides credit cards, such as prepaid debit cards. Here’s how they work: prepaid debit cards carry the symbol of major credit cards like Master Card, American Express, Discover and Visa. In fact, from the outside, they look like a regular credit card. But, they actually work in a very different way.

With prepaid debit cards, the card is purchased with a balance already on it. Instead of taking out a mini-loan every time you make a purchase and paying interest on it (as with a credit card), when you use a prepaid debit card you are basically just burning through the balance already on the card. Once it runs out, you cannot use it anymore until you refill it.

But, which is better? Should you get prepaid debit card or a credit card for a college student? Here are 5 insights:

1. Despite the new law, college students are still obtaining credit cards:

Of course, some college students have found ways around the new law that restricts their ability to get easy access to credit.
Meanwhile, many other college students are still able to convince their parents to co-sign their applications, rendering the law fairly meaningless in terms of their being able to qualify for a card. All of this means that students and their parents still need to face the question: are credit cards good for college students?

2. Credit cards still have their advantages:

A recent Sallie Mae study concluded that the average graduating college student carries $4,100 in high-interest credit debt. And, college students are also known to pay a disproportionate amount of money in fees due to late payments. This means these cards are all-bad, right? Not necessarily.
While many students just are not financially sophisticated enough yet to responsibly use credit cards on an ongoing basis, having a credit card nearby can be smart to be used in emergency situations. After all, with a debit card, once the balance runs out, that’s it. There is no safety net.

3. Prepaid cards may be a better solution for managing day-to-day finances:

However, for managing monthly expenses such as food, books, and clothing while in college, prepaid debit cards can be a more responsible way to go. After all, with these cards, a student can manage exactly how much they are willing to spend each month. They can do this by only loading up the card with the budgeted amount, and no more.

4. Prepaid cards can be refilled through direct deposit:

But, what happens when the prepaid gift card’s balance goes to zero? Simple: the card can be refilled via direct deposit. This means that you will also have real cash backing the balance on your card – unlike with the other types of card. And, with a prepaid gift card, there is no interest to pay, which can save college students thousands of dollars in interest payments versus when using a credit card.

5. The perfect solution is likely a hybrid:

The ideal solution? Maybe having both. One way to go is to apply for a credit card with the parent co-signing. The student and parent can agree to a certain amount that the student is allowed to spend with the card each month, but that amount must be paid down. Doing this can help the student build their credit history (which a prepaid card cannot help with). But, for managing monthly expenses responsibly, the student can use the prepaid debit card.

Consider these 5 insights for answering the question: which type of card is better for college students?