Bruce Lefavi is a best selling author, nationally syndicated radio talk show host, and President, Lefavi Wealth Management. He is a personal friend of mine and I have invited him to share monthly articles on our website. I know that you will find his information valuable and applicable. I hope you enjoy!
I just came back from a visit to Jamaica, and I’m sure I have your sympathy. Honestly, in my opinion, is not a fun place. Safety is a major concern and crime is an unfortunate result of poor choices made in the past by the government to bail out their financial sectors in the 90′s. These are the kind of bad decisions that inevitably kill economies.
Overall, Jamaica is basically composed of a few very wealthy people, and everyone else. The majority of the population is unhappy and many are out of work; gang violence flourishes, fueled by the drug trade. As an investment, Jamaica has one of the lowest economic growth rates in Latin America. They have a huge trade deficit, high unemployment, and a debt to GDP (Gross Domestic Product) that exceeds even ours at 130%.
Vacationers are limited to a few self-contained resorts because going into the towns is just not safe. There is little to offer in the way of interesting shopping, compared to other Caribbean islands. Despite its location, I was also surprised that there were few opprotunites for recreation on the water, such as sailing. Unless you like to play golf or just want a good deal on accommodations, I recommend that you visit another island, instead.
Compared to what I saw in Brazil, Jamaica has a lot to be desired. As a growing economy and a major producer and exporter of hard assets like oil, soy beans, and iron ore, Brazil is a smart investment. These assets are going to help make you bulletproof.
I hope that as you have had the past month to think about some new goals for the year, that you have also been thinking about your long term goals for the next decade. Retirement can be the most wonderful years if you plan it right. It can also bring in a lot of uncertainty if you are unprepared. 2010 has us shaking our heads with a lot of changes in the economy, as well as the tax laws. mortgage rates are on the rise, changes to Roth IRA contribution limits, and the absence of the estate tax during 2010 are among some of the major events that you should be aware of. 2010 is one of the most important years for individuals to meet with a financial advisor, CPA, tax attorney, and other financial professionals to make sure they are ready. If you are unsure about your financial future, dont’ let the knock of 2010 opportunity go unanswered.
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