emmanuelewumi:



He said bi-annual coupon and not annual coupon.

Meaning he will get the stated coupon twice in a year

emmanuelewumi:



Your annual coupon is N264,000, that is a yield of about 16%..

Did you buy through a Stockbroker or a bank?

You bought at a slight premium?

I need to see the contract note after the transaction in order to answer your question correctly

PresidentBuhari:
It was bought through bank. It's two payments a year i.e roughly N264k a year.
I don't have the contract note but information recorded at the time of purchase was;
YIELD - 10.93
CLEAN PRICE - 1102.6
DIRTY PRICE - 1156.4

skydiver01:
And when does the bond mature?

PresidentBuhari:
It was bought through bank. It's two payments a year i.e roughly N264k a year.
I don't have the contract note but information recorded at the time of purchase was;
YIELD - 10.93
CLEAN PRICE - 1102.6
DIRTY PRICE -

akinola98:


Pls what is the name of the bank you bought from ??

PresidentBuhari:
It was bought through bank. It's two payments a year i.e roughly N264k a year.
I don't have the contract note but information recorded at the time of purchase was;
YIELD - 10.93
CLEAN PRICE - 1102.6
DIRTY PRICE - 1156.4


Guess you bought last year when rates were low

emmanuelewumi:
For those who have less than 10 years to retirement

emmanuelewumi:


Do you agree with this at retirement have a house or Investments to take care of housing costs?

I think having at least a house is better

PresidentBuhari:
It was bought through bank. It's two payments a year i.e roughly N264k a year.
I don't have the contract note but information recorded at the time of purchase was;
YIELD - 10.93
CLEAN PRICE - 1102.6
DIRTY PRICE - 1156.4

Donbrig:
Having your own house before retirement should be everybody's number one goal, very little is needed to live comfortably and happily after retirement if you have your own house.

Paying house rents after retirement is terribly a bad idea, though many people who couldn't afford a house during their working years don't have a choice, but they have to rent a house in a very cheap area like Ikorodu and live below standard and economically, and this often shorten their life span.

Akerewe:
pls i need to learn from this oo. how much would ur gain be at maturity because i can see 1,585,000 at maturity. nd the maturity date is less than a year with what am seeing so far, i need enlightenment pls

emmanuelewumi:



Having an investment that pays for it nko?

Donbrig:
Having an investment that pays for your house is like owning your own house, but it is far better to complete your house payment before retirement and budget the profits or dividends from your investments for other things like health, fun, charity, etc.

The issue with having a business/investments that pays for your house mortgage is that, somethings could go wrong with your business and after retirement, you might not have enough strength and resources to bounce back on time.

In fact, it is often advised to be free of all kinds of debt or mortgage before retirement.

emmanuelewumi:


Do you agree with this at retirement have a house or Investments to take care of housing costs?

I think having at least a house is better

Akerewe:
pls i need to learn from this oo. how much would ur gain be at maturity because i can see 1,585,000 at maturity. nd the maturity date is less than a year with what am seeing so far, i need enlightenment pls

Lazyyouth4u:


Some retirees prefer to have the freedom to move whenever they want to. Imagine retiring at 65 and then owning a house in a place that suddenly starts getting flooded, or the street fit suddenly turn to omila and agbero HQ. Then you are stuck with depression, fear and HBP until one dies

Also, by renting, some can even afford to live in places they cannot afford to buy a house in. A 65 year old retiree with grown up children and who owns financial assets and investments worth around 250m cannot afford to buy a house in Ikoyi but he can afford to rent there to enjoy a peaceful retirement

Lazyyouth4u:


Some retirees prefer to have the freedom to move whenever they want to. Imagine retiring at 65 and then owning a house in a place that suddenly starts getting flooded, or the street fit suddenly turn to omila and agbero HQ. Then you are stuck with depression, fear and HBP until one dies

Also, by renting, some can even afford to live in places they cannot afford to buy a house in. A 65 year old retiree with grown up children and who owns financial assets and investments worth around 250m cannot afford to buy a house in Ikoyi but he can afford to rent there to enjoy a peaceful retirement

Donbrig:

That's a good point though, having your own house does not in any way prevent you from living anywhere of your choice if you have the resources.

PresidentBuhari:

Actual profit is the percentage of the Yield that's 10.9% at the time I bought. The value of the yield in % is actually what determines your profit and not the coupon rate of 16 percent for secondary market bonds.
Overall it a loss as the funds would've performed better under some other investment portfolio.

Akerewe:
Exactly my thought, it would have also perform better if the tenure is longer than that, lets say 5 years or more! i stand to b corrected. somehow close to a #100k.

But gurus in the house, kindly shed more light on how one can send instruction to all these brokers to avert reoccurrence of such because from my observation, once u fund your cscs account these people will just buy the next available bond for u without ur consent unlike TBILLS where u will b notify of the currents stop price in the market before they proceed in buying it on ur behalf.

yazga:
Which broker do you use?

Akerewe:
Exactly my thought, it would have also perform better if the tenure is longer than that, lets say 5 years or more! i stand to b corrected. somehow close to a #100k.

But gurus in the house, kindly shed more light on how one can send instruction to all these brokers to avert reoccurrence of such because from my observation, once u fund your cscs account these people will just buy the next available bond for u without ur consent unlike TBILLS where u will b notify of the currents stop price in the market before they proceed in buying it on ur behalf.

PresidentBuhari:
It's a dog eat dog market. They sell you anything they manipulate from their end, if the rate doesn't match your expectations they take long in reselling and crediting you.

Akerewe:
Exactly my thought, it would have also perform better if the tenure is longer than that, lets say 5 years or more! i stand to b corrected. somehow close to a #100k.

But gurus in the house, kindly shed more light on how one can send instruction to all these brokers to avert reoccurrence of such because from my observation, once u fund your cscs account these people will just buy the next available bond for u without ur consent unlike TBILLS where u will b notify of the currents stop price in the market before they proceed in buying it on ur behalf.

PresidentBuhari:
I.b.t..c

emmanuelewumi:



Stanbic IBTC sends available bonds to me very early in the morning from Monday to Friday. This information will include the price, yield, maturity.

You will send a mail to them concerning what you want, before they debit your account they will give you a breakdown of the transaction, fees, clean price, dirty price, units and total cost, if you are okay with the breakdown you can approve the deal

freeman67:


Even at that, I think investors may still have options of bidding. In their banks available bonds, rates and prices are displayed most times. I believe if you choose a particular bond to buy at a particular rate and amount they would have no option than to either get it for you that way or leave your money for you.

Akerewe:
of course this is their way any time am buying secondary market Tbills from them but to my outmost surprise, this time around, although i sent an instruction on what i want but i was not inform on the t & c of the bonds before dey proceed in buying for me. AM A BIT SURPRISE SHA!

emmanuelewumi:



Buy through the bank, you will then fill a form that CSCS should be the custodian of the investment, it cheaper buying through the bank