I heard some interesting information coming from Fidelity Bank. Money back mortage and assue savings as well as others.
I'm going to sit with them next week with a view of moving my mortage and finding out what other benefits they have to offer.
Interesting topic.
With the price of lots costing almost as much as the house, one has to be creative to save money here. When the house is finally built, home/hurricane insurance is just to high. I was shocked when an appriser(sp) told me my house was valued $300,000, thats up $50,000 from TWO years ago!! TRUST ME, THEY ON DRUGS!!
It sounds good on paper but when I called to get the insurance premium, my premium went up by $2000. The insurance is due in September, last year we paid $4400. So far, we have not received the usual notice of an increase in premium. That will surely come around August. There is NO WAY I am going to pay over $6000 in insure a house I built for $130,000 8 years ago. I know I can't afford NOT to. Sorry I can't afford to do it either.
We have decided to drop our contents insurance as in order to get any benefit from this insurance one has to increase it every year. The deductable is another rip off. We figure if we have a fire or hurricane which we hope is total damage without anyone getting hurt, we can replace our contents one by one, the same way we bought them.
I have no idea why Bahamians like to go to the furniture store and buy a house ful of furnitures. Who's coing to dinner that cannot sit in plastic chairs until you can save up the money for a full set.
Off topic. I friend of mine owns a used furniture store on East street. I have watched people from LYFORD CAY come to her shop to hunt for bargains, especially old copper pots and other curios. She has a heavy turnover in furniture as Hatians and Jamicans buy her out in just 2-3 weeks. So it is back to South Florida for another trailer load. We, Bahamians however, have to buy new!! We want everyone to see the furiture truck pullin up to our house.
Back to insurance. We have a new car and a relatively old one. Both are paid for. We keep them in 3rd party. The price for 3rd party is another rip off.
With the price of home/hurricane,health and car insurances, groceries, gas, utilities and other NECESSITIES how can we be berated for not saving enough?
We make a good living but you should hear us cussing in the food stores as we watch prices go up weekly. By the time you buy the needs, milk, meats and fruits, there is barely enough to buy wants.
Believe it or not, traffic jams causes us to buy even more food. How, you ask. Think about it!! Imagine geting off at a certain time. In the real world as small as Nassau is, you should be home in about 30 minute max. Uh, uh, you get stuck in traffic for hours. You then decide you are to tired or frustrated to get home and cook that meat you took out and seasoned before you went to work. What do you do? You end up spending more on food by stopping to a 'fast food' joint. Thats another bit of your savings GONE. All because of traffic.
I can go on and on. Rant over for now. I stopped judging grown folks for not saving their money when I became one.

Fidelity is only doing what you should be able to do on your own and charging you a fee. They are increasing your mortgage payments by a fixed amount each month and invesing this amount for you in a mutual fund.
You want to fully undersand what you're getting into and shop the market for comparable offers. Remember "nothing in life is free"...

You have adjusted the number which is o.k but you remember that most of you are complaining about the ability to save small amount so I am sure not many of you can find $155,902.00 today to invest.
6% is possible...


I realize that, which is why I also adjusted the annuity payments.

13,600 < 16,600 looks like a savings of 3,000 that could be used elsewhere.

You made a good point...

I like that this discussion is happening. It seems as if the last generation only looked forward to National Insurance and perhaps that a private pension from their jobs would pop up, uncertain that it would comfortably cover daily expenses, and even more so, the confidence of whether either income would continue down the road.

Also for some people it may become a whole life plan.....so many people end up doing things so haphazardly here and elsewhere. Lack of family planing...having children they can't afford, which runs into so many different emergency expenses and other things that you never thought you would see yourself paying so soon. That can divert anyones attention from just regularly saving, and at the end of the day, if you do refocus yourself at all, you have to play catch up, then you find yourself in an age where you are facing retirement policies and severance packages where companies want to clear you out of the way......and you still have debt from all those other thing that you need to work to pay off!

A perfect set up for dying at your desk at 4:30 pm....and not because you love your career.

I like that this discussion is happening. It seems as if the last generation only looked forward to National Insurance and perhaps that a private pension from their jobs would pop up, uncertain that it would comfortably cover daily expenses, and even more so, the confidence of whether either income would continue down the road.
Also for some people it may become a whole life plan.....so many people end up doing things so haphazardly here and elsewhere. Lack of family planing...having children they can't afford, which runs into so many different emergency expenses and other things that you never thought you would see yourself paying so soon. That can divert anyones attention from just regularly saving, and at the end of the day, if you do refocus yourself at all, you have to play catch up, then you find yourself in an age where you are facing retirement policies and severance packages where companies want to clear you out of the way......and you still have debt from all those other thing that you need to work to pay off!
A perfect set up for dying at your desk at 4:30 pm....and not because you love your career.

I am not sure that this generation is doing any better as less than 20% of Bahamians are particpating in any type of retirement plan and even less are thinking about it. Which is why I am happy to see and particpate in this discussion!
Unfortunately, when you talk about retirement planning it takes more than just savings or having a retirement plan at work. These are only a fleeting attempt at what is a very complex issue.
While finance is important, you have to also consider the psychological, social and physical aspects of retirement. Remembering that you really don't want to be Sick, Old and Broke.

Do you feel that you will ever retire?

I'm not going to drop dead at my desk that's for damn sure!

Do you feel that you are taking retirement serious?

I am so pleased that people are taking this thread seriously. I am diligently saving for retirement, but I fear that my contributions aren't enough at the moment. Here's to that promotion *fingers crossed*.

This is a mistake to think that you can live on 60-70% of your pre-retirement income even if you live on a family island (cost of living is higher in most cases).
Planning is the same no matter where you are in the world. You must recognize that you are responsible for what happens to you and discipline yourself accordingly in the management of your time and money. Its your time and use of it that will determine how much money you can earn.
Then managing that money determines how confortable a live you will have.

So if I make 100K a year (just for argument sake) and when I retire I am able to take home 60-70K a year based on my savings or pension - this is not enough? How is this a mistake, when at retirement I plan to have my home paid off and no debts????? Sounds nice to me:confused:

So if I make 100K a year (just for argument sake) and when I retire I am able to take home 60-70K a year based on my savings or pension - this is not enough? How is this a mistake, when at retirement I plan to have my home paid off and no debts????? Sounds nice to me:confused:

Have you sat down and actually determine:
1. what your current lifestyle will cost in 10 years or the impact inflation will have on your money?
2. Or even how your Health will change over time?

If you've been following this thread you would have seen that alot more goes into retirement planning than just having a pension plan or an investment portfolio...

Which is why most persons are going to shocked when they finally get there and find that the mistake they make in not having a comprehensive plan..

Nothing is worst than being old, sick and broke...

Have you sat down and actually determine:
1. what your current lifestyle will cost in 10 years or the impact inflation will have on your money?
2. Or even how your Health will change over time?

If you've been following this thread you would have seen that alot more goes into retirement planning than just having a pension plan or an investment portfolio...

Which is why most persons are going to shocked when they finally get there and find that the mistake they make in not having a comprehensive plan..

Nothing is worst than being old, sick and broke...

The plan I have now takes inflation into account. Obviously common sense and basic financial goals (such as reducing debt load and obligations) needs to be added to a pension or portfolio plan. In your earlier post you said it was a mistake to think you can live off of 60-70% of your annual salary. I would have to disagree with you. Most people,if the are smart, have less expenses at retirement, especially if health care is covered in their plan. Kids are grown up, house paid for, etc. If someone cant live on 60-70 % of their salary with all of that into account then they in serious trouble.

The plan I have now takes inflation into account. Obviously common sense and basic financial goals (such as reducing debt load and obligations) needs to be added to a pension or portfolio plan. In your earlier post you said it was a mistake to think you can live off of 60-70% of your annual salary. I would have to disagree with you. Most people,if the are smart, have less expenses at retirement, especially if health care is covered in their plan. Kids are grown up, house paid for, etc. If someone cant live on 60-70 % of their salary with all of that into account then they in serious trouble.


You are now looking more critical at my suggestion which is what I'd like more persons to do.

You have to be smart and make the necessary adjustments now and not leave anything to chance.

I am a proponent of reducing expenses, in fact my program shows you how to live on 40%-60% of your pre-retirement income but it doesn't just happen, you don't wish it so. You must use the appropriate strategies!

Remember to remove the land cost from the appraisal as you don't need to insure the land...

Also u have no need to insure your foundation as this don't go no where in fire or hurricane. These insurance companies are soooo wicked though cause the price they give u without the foundation is almost the price with it.

You are now looking more critical at my suggestion which is what I'd like more persons to do.
You have to be smart and make the necessary adjustments now and not leave anything to chance.
I am a proponent of reducing expenses, in fact my program shows you how to live on 40%-60% of your pre-retirement income but it doesn't just happen, you don't wish it so. You must use the appropriate strategies!

i reduced my expenses today by not eating breakfast :)