Girl With a Purpose (GWAP)

Are Investment Schemes Really Credible Investment Alternatives to Banks?

Friends, let's face it...you work hard and smart for your money...so your money should be working hard and smart, for you :).

The reality is that money in the bank is really just a safety net (for emergencies and other necessities),few banks will give you the returns on your money that will even cover inflation (the percentage increase in prices over a month or a year), much less take care of you, during your retirement.

So you have to find other investment instruments that will give you enough returns on your original investment to protect you against inflation, take care of some of your current needs and take care of you while you're aging.

(If you do enough research and/or speak with your certified financial advisor, you will find instruments and pension funds that will do so, while attracting very little or no taxes, on the increases/gains on your original investment.)

Traditional investment instruments include stocks, bonds, mutual funds, Certificates of Deposit(CDs). (CDs are only issued by banks and savings and loans institutions).

But increasingly, Investment "Schemes" are becoming common in Jamaica. Some claim to invest in the traditional instruments mentioned above, some claim to do foreign exchange (forex) trading.

Those that do forex trading claim to be very good at it...so good that they can give their investors returns of up to 18% per month, if "investors" leave their money with them over a certain time period (usually 3-5 years).

I put "investors" in quotes, as these Investment "Schemes" will tell you that they don't offer financial advice, but the money you invest, is really a loan: if you leave the money with them for a certain time period, you'll get phenomenal returns on your investments (e.g. the 18% monthly return,mentioned above).

(NB: that Investment "Schemes" are slightly different from investment clubs. Investment clubs give financial advice and club members are told how their monies are being invested.)

Of course the banks don't even give you 10% annually, so these "Schemes" have become quite attractive to many Jamaicans, wishing to supplement (increase) their incomes.

Since these Investment "Schemes" are not banks, they can't issue money,so they use Commercial Banks to encash cheques drawn on their accounts.(Their customers have to go to these Commercial Banks to get their monthly cheques.)

In Jamaica, over the past two (2) weeks, established banks like the National Commercial Bank (NCB) have been refusing to negotiate cheques drawn on unregistered Investment Schemes like "Cash Plus" (they are either delaying the encashment of Cash Plus customers' cheques, for up to 30 days, or refusing to encash these cheques, altogether)...citing various reasons: from these "Schemes" not disclosing their sources of income, to them not producing audited financial statements - requirements under the "Securities Act" and "Money Laundering Act" that govern Jamaican financial institutions.

There have even been suggestions that some of these 'Schemes" may be fraudulent.

[The Financial Services Commission(FSC), the body that regulates financial intuitions in Jamaica, held a forum, entitled, "The Role of the Investor in Investment Schemes", on Monday, November 26,2007, at the Terra Nova Hotel, in Kingston. They warned Jamaicans to pressure these "schemes" to open their books and produce audited quarterly financial statements.

They advised ordinary Jamaicans to learn how to read these audited statements (balance sheet, profit and loss account, cash flow statement) and to ask questions re how their monies are being invested.

What became clear during the discussions that ensued from this forum, however, is that the FSC is not sure how forex trading operates - they are just learning...they just want these "Schemes" to be transparent with the FSC and investors.]

What is interesting is that these very banks, who conduct foreign exchange (forex) trading, are telling Jamaicans to be wary of forex traders who are unregistered. (Some of the very people who used to trade forex for these banks, have now gone into business themselves, by starting their own Investment "Schemes".)

Why weren't these banks warning Jamaicans five(5) years ago when these "Schemes" came unto the market?

Well, what is being said by people in the "know", is that some of the banks' largest customers are withdrawing their monies and investing them in these "Schemes"...to get the higher returns that ordinary Jamaicans are now making.

The banks' profits are reportedly suffering as a result .

However, for the life of me, I can't see why, if these traders/"Schemes" are transparent, why they haven't applied for registration with the FSC. The cost is USD $71,131.15/JMD $5 million (US $71,131.15/ Jamaican $5 million)...small change for these guys and gals who claim to be making millions daily.

The banks have been warning Jamaicans that these "schemes" have a lifespan of five (5) years...this means they are just at the age when they will crumble.

Well what ordinary Jamaicans are saying, is that the banks have no say in this matter...they never cared about them before (Jamaicans are charged to deposit and withdraw money), so why all of a sudden do they seem to be concerned about their well-being now?

...These Jamaicans can now send their children to university, feed their families, live a decent life, when they couldn't do it before with the poor returns the banks give them.

Jamaicans who are investing in these "Schemes" are telling the banks to "back-off", to stop pressuring these Investment Schemes.

They are telling the banks that since they are so concerned about them, they should be giving them better returns.

They are also saying that they are astute (smart) enough, not to invest all their monies in these "Schemes", but to only invest money they can afford to lose.

Hmmh...

Well, Cash Plus has sued NCB for closing its accounts, and has been making alternative arrangements with overseas banks, to enable Cash Plus clients to get their monthly cheques. (E.g. issuing their clients with credit cards as of December 1, 2007 and wiring the monies from abroad, into their clients' accounts.)

As we speak, ordinary Jamaicans are pooling their monies, to get the required minimum investment amount, needed to enter these "Schemes".

So...are Investment Schemes really credible investment alternatives to banks?

Well, more and more Jamaicans are beginning to think so.

What do you think?

(Please note that the above advice does not substitute for advice from your certified financial advisor.)

Sources Include:

1)  Article, "Cash Plus squeezed - 'Suspicious' label delays bank payouts", by Shelly-Ann Thompson, staff  Reporter, Jamaica Gleaner, November 23, 2007

2) FSC Forum: "The Role of the Investor in Investment Schemes", November 27, 2007,

3) Article, "Bankers deny 'Cash Plus conspiracy"', Jamaica Gleaner, November 28,2007

4) Nationwide Radio, November 14-28, 2007

5) Power 106 Radio, November 14-28, 2007

6) Laws of Jamaica:The Securities Act, Ministry of Justice, Jamaica, website

7) Laws of Jamaica: The Securities Act (Subsidiary Legislation), Ministry of Justice, Jamaica, website

8) Laws of Jamaica: The Money Laundering Act, Ministry of Justice, Jamaica, website

9) Laws of Jamaica: The Money Laundering Act (Subsidiary Legislation), Ministry of Justice, website

Gillian

Does Your Career, Reflect Your Calling?

If you should ask a typical 10-year old about what he/she wants to be when he/she grows up, he/she will name at least one of the following professions:- doctor, lawyer, scientist, business person, engineer, police, fireman, computer programmer.

As this pre-teen grows however, and depending on his/her:

a) Level of exposure to people in these professions

b) Level of exposure to people in other professions

c) Family's ability to finance a college education,

his/her choice of career, will change.

As students go through high school, many just want to pursue a career where there's a big pay-day at the end of the week, or month.

What they neglect to do, is to ask people in these professions, what a typical day is like, in order to properly assess, whether or not that they'd like that profession.

With the big pay-day in mind, many are unprepared for the rigours and the taxing nature that some of these professions, have, on their emotions and time.

E.g. doctors work for long, hard hours (and have to face the possible death of some of their patients) and a fireman is constantly exposed to danger and the loss of property and life.

Two very taxing professions on both the mind and body, but two professions that are very much glorified.

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I believe that you are called to do certain things in life (in that God has put that urge in your life to do/accomplish certain things during your lifetime).

I also strongly believe, that your career should reflect your calling.

Let me explain:

A career is described in Farlex's Free dictionary as:

a. A chosen pursuit; a profession or occupation.

b. The general course or progression of one's working life or one's professional achievements.

These definitions demonstrate that a career is more than just going to work. It is something you pursue during your working life, that enables you to succeed at work and in your life outside of work.

While a calling, according to Answers.com, is:

a. An inner urge or a strong impulse, especially one believed to be divinely inspired to accept the Gospels as truth and Jesus as one's personal savior.

b. An occupation, profession, or career.

I'd like to expand on the definition in point, a.,above and further define a calling as a strong inner urge, put in you by God, to do something (useful) with your life. The means your broader life, not just your work life.  This definition also means that the useful thing(s) you do with your life, should honour God and help others.

But since your work life takes up 8-10 hours of your 16-hour waking life (most adults are awake for 16 hours, out of a 24-hour day), I strongly feel that it should be aligned to your calling.

Let me explain further by giving two examples:

1. Do you have a special urge (inner drive) to raise funds to help people and have been doing so on a small scale? Then maybe careers that allow you to raise money for worthwhile causes, are the right jobs for you. These can range from non-profit work, to becoming a venture capitalist who raises money for fledgling companies.

2. Do you like solving problems?...then maybe jobs that enable you to make use of these skills, e.g. being a mathematician, auditor, manager, business owner, consultant, researcher, pathologist, are the right jobs for you.

Your personality determines whether or not you'll succeed at your chosen profession, so too, does your educational background, your ability to focus, teamworking skills and willingness to learn.

But you'll succeed even more, if your career is based on what you've been called to do.

Why?

Because your career will be based on things that you like doing, things that give you deep satisfaction and things from which you will feel fulfilled.

Some of you may be wondering, "how do I figure out what I'm called to do?...I have an inner urge/drive to do so many things!!!"

Well, there are assessment tests that you can take, to determine, what best motivates you, and as such, what your ideal profession should be.

A company that really takes the guess-work out of choosing a career, based on your calling, is: AnalyzeMyCareer.com.

I have included their link, below. (Just click on the image.)

AnalyzeMyCareer.com are leaders in aptitude, personality and occupational assessments.

Their tests are constructed by psychologists, who use pyschology, your skills and aptitude, as this basis for making their assessments.

Please sign up to do their tests. (I highly recommend their combo package:"Expert Opinion Gold". It's a more comprehensive package that allows you to get a broader assessment, for less.)

...These tests also save you from months and years of mental wrangling and anguish over whether or not you're in the right career and help you to pinpoint:

a. The careers that you are best-suited for

And/or

b. Whether or not you'd be better at entrepreneurship.

(You can also click on this link to find out more about them: Find your vocation in life at AnalyzeMyCareer.com.)]

NB: These tests will give you a range of professions.

This is good, as they give you great insights into the many careers that you can have, based on your calling...

Please also note that most people will change careers at least five (5) times during their lifetime, so you need to acquire general skills that will allow you to do this seamlessly.

You should also acquire specialist skills, pertinent to your calling-based career, that are in great demand now and will be so, in the next 5-20 years, so that you can stand out from the crowd, when applying for jobs or starting a business, based on these skills.

When you look at your career in this light, you will see the necessity to be constantly upgrading your skills so that you can pursue excellence in your chosen profession and therefore be in demand by corporations and potential customers, globally.

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When you find your calling, it should make you feel like you're fulfilling your God-given purpose, in life.

When your career is aligned to your calling, you should be feeling more fulfilled, each day.

This fulfillment will also come from a career that pays you for your time, expertise and effort. (You must be able to find ways to make money from your career. It may not be millions of dollars, but it should make you comfortable.)

That's why I encourage everyone pursuing degrees, diplomas, and technical certificates, to do a Marketing course as a part of your Programme...you must know how to market yourself, so that your career will be profitable for you.

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So, does your career, reflect your calling?

It should, if you want to be true to the Person who put that inner urge in you in the first-place - God.

It should, if you want to be true to yourself.

What do you think?

(Inset shows picture of a Physical Therapist at work)

Gillian

Should You Have an Office Romance?

While some companies don't mind office/workplace romances, there are others with strict codes of conduct and guidelines which govern workplace/office romances. They even go as far as to explicitly state in your work contract that you will be fired should this occur.

With this is mind, however, there are some realities that do exist at the workplace:

1) Most professionals spend most of their waking hours i.e. at least 8-13 hours each day, at work, leaving less time for dating other people outside of work and increasing the possibility of office/workplace romances.

2) Your peers at work are just as (and may be more :)) intelligent, witty, funny as you are and may share similar backgrounds - e.g. previous places of work, same school/college, same country of origin; similar values and similar interests e.g. sports, movie and music genres.

As a result:-

2a) Some strong friendships are formed at the workplace.

2b) Some strong marriages are formed from workplace romances.

3) Your computer activity and e-mail are constantly monitored by your bosses (and legally so - they want to ensure that you're not goofing off on the job or being the corporate spy or leak :)). [They should, however, advise you of this beforehand].

4) There are some persons (your subordinates) who may wish to sleep with you in order to get promoted.

5) There are representatives from some companies with whom your company does business who may want to sleep with you in order to get that very important contract or be at the front of the line for selection for same.

6) Most relationships will end and if ended badly, and the person is vindictive, he/she could try to "burn you" by exposing the gory details about your relationship to your peers, subordinates and/or bosses. He/she could even sue you for sexual harassment.

7) Being in an office romance could hinder your objectivity towards the co-worker you're involved with, which could negatively affect your job performance.

8) Being in an office romance and engaging in romantic activity at work, could be caught on videotape.

So in response to the question, should you have an office romance? I would say:

If your company explicitly frowns on workplace romances:

1) Don't have them...you will be fired as soon as it's discovered (as was the case of Boeing's CEO Harry C. Stonecipher and one of it's VPs, Debra Peabody).

2) If you're so convinced that your office romance will lead to marriage or is worth giving up your job for, then do just that. One of you should leave the job and find another :).

If your company allows it, go ahead if:

1) You've weighed the pros and cons and have decided that the pros for your relationship outnumber the cons.

2) Both of you are entering the relationship for the right reasons - love, not manipulation.

3) Both of you are in different departments, business units or subsidiaries; can conduct the relationship discreetly, and can be mature about it (no matter the end-result).

4) The person you're involved with is not your boss/subordinate and will never become your boss or subordinate  :).

That's what I think...what do you think?

...Would you have an office romance?

Why/why not?

Resources for more information:

1) Article, Office Romance by F. John Reh, About.com

2) Article, Office Romance: When Does it Make Sense to Mix Business With Pleasure? by Coulson Duerksen, Discovery Health

3) Article, Office Romance by Curt Smith, Relationship Correspondent - AskMen.com

Tags: Office romance, romance, dating, Peabody, Stonecipher, job, boss, subordinate, workplace romance, workplace, love, manipulation