Members of the shipping industry were last Tuesday educated on investment options and ways to properly manage their finances during the current economic climate at the monthly Lunch and Learn Seminar hosted by The Shipping Association of Jamaica (SAJ).

The seminar, which normally focuses on new developments in the shipping industry, diverted from its normal format in an effort to provide useful financial information to its members. The seminar was sponsored by Assessment Recoveries Limited and held at the SAJ's auditorium.

Rezworth Burchenson, managing director of Prime Asset Management Limited, the main presenter for the seminar, outlined several areas in which individuals could "tighten their belts" to save, pointing out that a financial crisis requires mainly a financial strategy.

Unnecessary expenses

Burchenson noted that investment-related debts need to be managed for affordability and that all unnecessary expenses should be delayed. "You need to cut back on your expenses and consumption, prepare a budget and monitor it each month," Burchenson said, adding that the reduction of credit card debt is of importance.

He asserted that simple day-to-day lifestyle changes can significantly reduce expenses. These include cutting back on the amount of electricity used by unplugging all electrical equipment not in use, and saving at the pump by choosing more economical gas stations.

Burchenson pointed out that individuals should seek professional advice in order to make informed financial decisions and emphasised that foreign currency investments yield higher rewards in the current economic climate.

Addressing the issue of retirement, Burchenson encouraged individuals to save the maximum allowed by law in their respective pension plans.

Benefits

"There are many benefits to the pension scheme, the deductions are tax free, the accumulated gains are tax free and there is the possibility for pension increases," Burchenson noted. He encouraged persons present to consider investing in an individual retirement accounts for increased benefits at retirement.

Keith Logan, operations manager of Assessment Recoveries Limited (ARL), noted that in light of the current economic climate, the company has taken steps to improve its service to clients with a view to helping them to save time and money. "We have strengthened our frontline operations by including an additional supervisor in the cashier area who stands ready to address your payment needs and we have also separated the cashiers' area from the general enquires and cheque-collection refund processing area," Logan informed.

He encouraged the industry members to return their containers at the earliest possible time in order to cut back on detention costs.

Lunch and Learn is a monthly seminar of the SAJ which seeks to inform shipping industry members on changes or developments in local, regional and international shipping.