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Developing a recession proof career
by: Andre’ Burnett
BUSINESS LOUNGE
Richard Byles gives options at R. Danny Williams Career Symposium
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n a time when most seek wise career advice, the Jamaica College Old Boys Association (JCOBA) in association with the National Commercial Bank and Grace Kennedy, hosted the second Annual R Danny Williams Career Symposium on Friday, April 24th, 2009 at the Grand Caribbean Suite at the Knutsford Court Hotel. The eventg, themed “Developing a Recession Proof Career” featured two successful business minds – President and CEO of Sagicor Life Jamaica Richard Byles, and Country Manager of LIME, Geoff Houston. Mr. Byles delivered a presentation to the group of young professionals geared towards “Developing a recession proof career”. This, according to Mr. Byles, is not easy but is by no means impossible. Drawing on his impressive track record as reference, Mr. Byles presented his manuscript for success that will ensure that your career weathers even the most turbulent of times. The Short term Mr. Byles stated that his trek to the top consisted of the achievement of a number of short term goals. He remembers that at one point his immediate goal was to get a good job so he could afford to change his car from an old Volkswagen Beetle to a Volkswagen Golf like the one his friend owned. He stated that it is imperative that you do a good job in the fulfillment of these short term objectives as opportunities will undoubtedly arise.
Richard Byles, President & CEO of Sagicor Life Jamaica speaks to audience at the 2nd Annual R. Danny Williams Career Symposium held at the Knutsford Court Hotel on Friday April 25, 2009
of your enterprise; which is why he stressed the importance of developing the members of your team so that they will be able to achieve goals which will ultimately be attributed to you. The Sagicor boss also stated that success will demand that you work hard at the right things, be persistent and believe in diversity. He stressed that you cannot afford to be satisfied with what you have stating “If it ain’t broke, break it then fix it”. Challenge yourself by trying new things and don’t be afraid to go in new directions if boredom starts to set in. Mr. Richard Byles closed by stating that once you have achieved it you have only completed half of the course, the harder part is maintaining it.
Mr. Byles referred to his decision to take up the job of running Pan Caribbean Merchant Bank as proof of his ability to recognize good opportunities when they arise, a skill that is worth developing in today’s troubling times. Achieving through others Mr. Byles also emphasized the importance of developing good business relationships and making friends throughout the industry. The contributions of your colleagues and those in your charge will be an indicator to others of your ability to work in a team setting and delegate effectively. He stated that as you climb higher on the corporate ladder, it will be harder to personally oversee each and every aspect
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The Honourable R. Danny Williams
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10 Smart Steps to:
Question:
tions are being made on time and accurately.
I’ve never bothered to balance my cheque book. Recently one of my cheques bounced, although I was confident that I had enough money in my account. How can I prevent this from happening again?
Answer:
As you have learnt, it is important to keep tabs on your chequing account transactions regularly. Here are some smart steps to help you control your cheque book:
1. Keep a record of every cheque you
7. Give yourself a little extra. Lodge a small
write. Your chequebook will either have a stub at the left, or a separate book to record transaction details such as the date and to whom the cheque was written.
2. Record your deposits. Write down all addi-
tions made to your chequing account in the appropriate spot on the cheque stub or transaction book, as soon as you’ve made the deposit.
3. Calculate your balance. Each time you write
a cheque or make a deposit, subtract from or add to the previous balance on the account, to arrive at the amount now left in your account.
4.
Review your chequing account statements. Check your statement every month to ensure that your records and the bank’s report correspond. Ensure that all the cheque figures match your records, and that your deposits are all accounted for.
5.
Write down the bank charges. Subtract all the service charges that may have been deducted from your account and record the adjustments on your cheque stub or transaction book.
amount to your chequing account and forget about it – don’t record it. This safety cushion will ensure that your ‘real’ balance is always a little more than you allow yourself to spend.
8. Verify cheque holding times with your bank.
Remember that your deposits may not be immediately available, as cheque lodgements may take two days to clear and more if they are drawn on a foreign bank.
9. Avoid writing postdated cheques. If the mon-
ey that you’re expecting to go into your account in the future doesn’t arrive, then you have a potential bounced cheque to deal with. Also the holder of the post-dated cheque could lodge it early and cause your account to go in overdraft.
10. Get proper overdraft protection. If you use
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your chequing account for business or run into shortfalls from time to time, ask your bank to extend a small overdraft facility. Without an official arrangement, every time the bank pays on a cheque with insufficient funds it could cost you heavily in penalties and interest.
6.
Verify direct payments. If you use your chequing account for pre-authorized payments for insurance or other expenses, check that the deduc-
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Keep Your Cheque Book in Check
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Inflation Management and its Consequences on Nation, Citizens and Businesses “Now abideth these three rates: interest, forex , and inflation; but the greatest of these is inflation.”
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Apostle Common Sense, Acts of the Economy, Knowledge Testament, New International Wisdom Version, Burnsil Doctrine
In true Jamaican style, we have been generating much heat, reactions and focus on the consequences of poor inflation management (interest and forex rates) but with an equally deafening silence on the causes. The focus of the business community, the policymakers, the technocrats, the workers, the citizens and the media should be on INFLATION. All things being equal; bring inflation down to single digits and the other two rates will receded. (And note that recede implies gradualism). Maintain a double digit inflation environment and we will perpetuate a high interest regime and a galloping forex rate. Let us not blame the commercial banks. Lay full blame with the institutions, systems and processes responsible for managing and driving down inflation. They are clearly doing a dismally poor job. Forget the circular argument about which came first (inflation or forex or interest); inflation drives the other rates. Further, forget about the “small, open economy” argument; Jamaica has the worst inflation record of all the “small open economies” in the entire Caribbean. In the small OECS countries, inflation runs between 1 – 3% typically; in Cuba 3 – 6%.; Barbados 0 – 5%; Trinidad 4 – 8%. In Jamaica’s case the out-turn has been, 8.5% in 2006; 9.3% in 2007 and 20.2% in 2008 (data source – IMF 2008 World Economic Outlook). We should ask ourselves why is this so ? What are we doing in Jamaica to make our inflation rate so terribly high ? Even with the same common exogenous variables, Jamaica’s outcome is much worse.
clear and obvious anomalies in that context. By a perverse logic, the BoJ is correct on this one; their rates are in the correct range, given the actual prevailing inflation rates.. You cannot have a low interest rate regime in a high inflation environment. On the matter of forex rates, think about this, if the US annual inflation is 3% and Jamaica’s is 20.2%, what is the minimum that the forex rate will slip in a year… .17.2% at least. It is as simple as gravity. If the dollar started out at 71:1 at the start of 2008 and the USAJA inflation differential is 17.2% what is the expected value at end of 2008 ……83:1. Its not rocket science. That model is generally defined as the purchasing power parity of the currency. Lower adjustments than that serves to overvalue the dollar by dynamically, and artificially, revaluing it upwards. No amount of NIR, or moral suasion, or ministerial imploring can prevent the subsequent, inevitable, corrective devaluation. As an adult country of 47 years, we should all have learned this lesson by now. What can we, therefore, justifiably blame the BoJ for ? We can blame them for trying hard, as mandated by their own Act, to maintain artificially overvalued exchange rates. The Christmas 08 debacle is proof-positive of this. We can also blame them, and the authorities, for the present long list of mis-placed priorities in the BoJ Act’s five stated objectives; none of which includes price stability.
Think about it if, as a lender, we know that inflation is hovering at 20.2%, would any of us lend out money at less than 20.2% ? No we would not. An interest rate of 20.2% is just maintaining the nominal value of your funds. Add operation costs and profit and one is already at 25%; at least. However, consider this, with an inflation environment at 4%, would strident calls for interest rates to be in the 9% range be an issue. Clearly not. Interest rates in double digits would be
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Dying Too Soon
Michael McGibbon ,CLU
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veryone who is born will die. Usually, no one knows when they will die, because people die at any age. The usual expectation is that older persons will die at a higher rate than younger ones. However, younger people die from a number of causes, ranging from accidents to major diseases. For most persons, salaries or wages are the only sources of funds for family expenses. Dying too soon usually results in the loss millions of dollars of future earnings, which could precipitate major financial hardships on the family of the deceased. The most affordable and most convenient way of managing the risk of loss of a breadwinner’s income due to premature and/or untimely death is to put adequate life insurance in place on the life of the breadwinner.
What is Life Insurance?
Life insurance is essentially a cooperative type of enterprise. It is a risk sharing arrangement in which many people contribute a modest amount of money to provide financial security for the beneficiaries of those who suffer an untimely death. The contributions, called premiums, are pooled, managed and invested by the insurance companies. In that sense, everyone shares equally in the risk. Life insurance helps people to put in place the long term financial security products that alleviate the financial consequences of dying too soon, living too long, and becoming disabled along the way. It is used mainly for the replacement of a breadwinner’s income, and to cover the financial needs that arise at death, e.g. funeral expenses, hospital bills, pay off debts, and settle one’s estate.
Michael A. McGibbon CLU
It is not easily understood by the average person.
The negative stories often related by elders.
The need to face one’s mortality.
The requirement to pay now for a future intangible benefit.
Thinking that one is too young to die.
There is a saying that goes “only the good die young”. I do not know that this is true. What I do know is that bad things happen to good people too. Young persons, whether good or not so good, die from time to time. It is good sense therefore, to place adequate life insurance in place to protect a breadwinner’s loved ones, just in case he or she dies too soon.
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Although the need for life insurance is obvious, most people have to be sold on the idea of applying for the financial protection which life insurance provides. As a result, the vast majority of life insurance in force is solicited by sales representatives of life insurance companies.
© 2009 Michael A. McGibbon CLU Mike is a veteran long term financial security planning advisor and entrepreneur. He is passionate about creating wealth via several strong income streams. He is a committed Kiwanian. See more of his work at http://miketheentrepreneur.wordpress.com. E-mail him michaelmcgibbonclu@gmail.com
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MANAGING MONEY RISK
know how to manage the risk
There are a number of reasons for this, of which the following are just a few:-
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