CREDIT union members now have access to a specially designed tax-free investment product being hailed as “habit and lifestyle changing”.
The product, the MoneyBuilder, was rolled out on June 12, when four of the island’s credit unions collaborated with MoneyMasters Limited to introduce the instrument to their membership. This collaboration is a first of its kind for credit unions whose products have over the years been developed internally, by CFMG Life or by the Credit Union League.“The MoneyBuilder is a product that can transform this generation and generations to come,” said Fitzgerald Rowe, who chairs the investment management committee of pioneer credit unions that include St Elizabeth, COK Sodality, St Catherine and St Thomas credit unions.He was speaking at the launch at the Terra Nova Hotel. According to Rowe, the MoneyBuilder puts credit union members, totalling 950,000 persons across the island, on the road to becoming financially independent as it seeks to place Jamaicans in a position where they are not dependent on anyone for their financial existence.The MoneyBuilder enjoys tax- free status as under the approval given by the Ministry of Finance, money invested in the MoneyBuilder, once held for five years, is tax-free from month one to month 60. The product welcomes a lump sum either at start-up or annually on the anniversary date. But a monthly payment, which can be as low as $500, is mandatory.The MoneyBuilder is covered by the insurer of the Credit Union Movement, CMFG Life Insurance Company, and includes coverage for disability. It insures each saver’s goal so that if a member dies before the investment matures, the beneficiary would still achieve the goal.In terms of product management, the MoneyBuilder is offered by partnering credit unions, and MoneyMasters is not a retailer. It would, however, be responsible for the quarterly filing to the Tax Authority of Jamaica.The company has non-discretionary management of the majority of the funds and will be governed by and reports to the investment management committee which is made up of credit unions.Rowe noted that, with the MoneyBuilder, all Jamaicans have the opportunity to be financially secure and can meet their financial obligations “even in death”.He added that the product was structured and approved so that it would create lifestyle changes.The MoneyBuilder presents an ideal opportunity for credit union members to access a long-term, tax-free amortised investment instrument with goal protection, he said.Education Minister Ronald Thwaites (centre) converses with President of MoneyMasters Limited (MML) Claudette Crooks Collie (2nd left), during the launch of the entity’s MoneyBuilder investment product on June 12 at the Terra Nova Hotel, St Andrew. Looking on are General Manager, St Elizabeth Cooperative Credit Union Limited Fitzgerald Rowe (left); MML Director Christopher Robinson; and General Manager, St Catherine Cooperative Credit Union Limited, Sandra Thompson. (PHOTO: JIS)View the original article here
Tax-free investment product targets credit union members
