Tips to maximise your NHT refunds
IT’S that time of year when the National Housing Trust (NHT) has invited applications for refunds, which represents the unused contributions that were made by its clients eight years ago — with added interest. This lump sum can feel like a small jackpot for many Jamaicans, as it is enough to cover a small shopping spree or a night out with friends.
But while it may be tempting to spend this ‘bonus’ on frivolous expenses, it’s important to remember that if used prudently, these same funds can also be used to kick-start your best financial year yet. Anthony Howard, regional manager – Kingston Metropolitan Area, Sagicor Investments, and Wendy Bernard, branch manager, Sagicor Bank Montego Bay, recommend saving or investing your refunds in one or more of the following options to warm up for a financially fit 2022.
Save it
Bernard recommends that you consider putting the refunds aside in a savings account until you need it for an essential expense.
“Many people’s emergency funds may have been depleted during the holidays, and the refunds can be an excellent way to replenish this, or start one from scratch. What’s great about a regular savings account is that it accumulates interest, and the funds can be easily accessible in the event of an emergency, especially if you opt to keep a debit card.”
Kick-start your child’s savings
An important part of creating generational wealth for your family is passing on good financial practices to your children. Opening a savings account for your child and gifting them with a portion of your refunds to start is a great way to get him or her excited about money management, Bernard suggests.
Invest in a unit trust
Howard adds that your NHT refunds can also be used to start your investment journey. “Unit trust funds are favourites among first time investors, as they are managed by experienced wealth managers, who aim to provide clients with the highest possible returns on carefully selected investment opportunities. That way investors do not have to figure out how to do it all on their own,” he said. “You can get started by investing as little as $500 or US$50 in a fund of your choice and watch it accumulate interest over time.”
Start your own portfolio
If you are open to a bit more adventure on your investments journey, Howard suggests that you consider using your NHT refunds to start your own portfolio, with the guidance of licensed wealth advisor.
“It’s a great feeling knowing that you own stocks in different companies of your choice, and that when they win, you are also winning,” Howard says. “It’s always important to do your research before investing.”
