rationalmind:


You can also make it, will take you 59 years

megafaraday:


Most welcome sir. Not necessarily. Any of them can be better.

zamirikpo:
Ok....guyz I was deep in thoughts today but would like to get ur thoughts on the real effect of inflation on the naira.
In the spirit of locking up funds for 20yrs in TB and hoping to profit from compounding interest what would be the real value of the naira in the same period. 10yrs back I could buy a bag of rice for 8 - 10k so when I see even 1m in my account I know it's a lot of money. Today I need 20k or more to buy the same bag of rice.

So my question is how much value would my compounded interest have after 20yrs......it would be very funny to buy a bag of rice for 150k in 2038.

How does this inflation thing really work over time.

zamirikpo:
Ok....guyz I was deep in thoughts today but would like to get ur thoughts on the real effect of inflation on the naira.
In the spirit of locking up funds for 20yrs in TB and hoping to profit from compounding interest what would be the real value of the naira in the same period. 10yrs back I could buy a bag of rice for 8 - 10k so when I see even 1m in my account I know it's a lot of money. Today I need 20k or more to buy the same bag of rice.

So my question is how much value would my compounded interest have after 20yrs......it would be very funny to buy a bag of rice for 150k in 2038.

How does this inflation thing really work over time.

zamirikpo:
Ok....guyz I was deep in thoughts today but would like to get ur thoughts on the real effect of inflation on the naira.
In the spirit of locking up funds for 20yrs in TB and hoping to profit from compounding interest what would be the real value of the naira in the same period. 10yrs back I could buy a bag of rice for 8 - 10k so when I see even 1m in my account I know it's a lot of money. Today I need 20k or more to buy the same bag of rice.

So my question is how much value would my compounded interest have after 20yrs......it would be very funny to buy a bag of rice for 150k in 2038.

How does this inflation thing really work over time.

zamirikpo:
Ok....guyz I was deep in thoughts today but would like to get ur thoughts on the real effect of inflation on the naira.
In the spirit of locking up funds for 20yrs in TB and hoping to profit from compounding interest what would be the real value of the naira in the same period. 10yrs back I could buy a bag of rice for 8 - 10k so when I see even 1m in my account I know it's a lot of money. Today I need 20k or more to buy the same bag of rice.

So my question is how much value would my compounded interest have after 20yrs......it would be very funny to buy a bag of rice for 150k in 2038.

How does this inflation thing really work over time.

Fxmanager:
If we intended to scam members of this forum, we wouldn't create the thread below, with the topic "Investment Anti-scam/Fraud Guide", and it would have defeated our intention, and you should check the date that the thread was create, also note that it has been updated and pushed from time to time. We even have a page "Anti-scam Guide" on our website, to educate our visitors and potential investors.

https://www.nairaland.com/3925379/investments-anti-scam-fraud-guide

mavinc4u:
what do i loose if i decide to terminate treasury bill before the mature date?

israelboy1:
I am a newbie here, i did like to learn

Ugosample:



In my opinion, Nigeria is not a stable country to invest for that long on compounding your capital

What id advise is 5 years horizon max.

BUT!

If Nigeria gets its acts together in between, it will be a very good idea

So its a risk

A big risk!

I have diaspora friends who have lost BIG MONEY in the three years of Buhari presidency because of the massive inflation plus depreciation/devaluation of the currency


Imagine investing 100000 dollars in Nigerian securities in day 2014 to be compounding

today the value of the thing in dollar terms will not even be up to 50k,, 60k highest

spenca:


The investment of your friends is not a zero risk investment. T bills is a zero risk investment. Your friends assumed a foreign exchange risk.

Ugosample:



In my opinion, Nigeria is not a stable country to invest for that long on compounding your capital

What id advise is 5 years horizon max.

BUT!

If Nigeria gets its acts together in between, it will be a very good idea

So its a risk

A big risk!

I have diaspora friends who have lost BIG MONEY in the three years of Buhari presidency because of the massive inflation plus depreciation/devaluation of the currency


Imagine investing 100000 dollars in Nigerian securities in day 2014 to be compounding

today the value of the thing in dollar terms will not even be up to 50k,, 60k highest

battleaxe:


I am still not clear as to why your friends lost money.

100k$ in 2014 would have been about 20m.

With compounding over the last 4 years, that should have increased to about 34m to 40m using the range of interest rates we have had over the last 4 years.

At a worst case, I would think they would have their 100k back. Yes, still less than what it could have become even at the 2 to 3% rates in your US, but not a loss.

Could you shed some light on how the value dropped to 50k? Unless they just kept it without investing or applying compounded interest?

zamirikpo:
Ok....guyz I was deep in thoughts today but would like to get ur thoughts on the real effect of inflation on the naira.
In the spirit of locking up funds for 20yrs in TB and hoping to profit from compounding interest what would be the real value of the naira in the same period. 10yrs back I could buy a bag of rice for 8 - 10k so when I see even 1m in my account I know it's a lot of money. Today I need 20k or more to buy the same bag of rice.

So my question is how much value would my compounded interest have after 20yrs......it would be very funny to buy a bag of rice for 150k in 2038.

How does this inflation thing really work over time.

Jesusbabygirl:
I doubt I even understand this actually because I know the maximum tenor for t-bills is 365 days. That said, what I learnt in my Finance class last semester is that longer tenor investment have higher risks. And using my common sense, IMO, it is better to invest for a maximum of 1 year after which you weigh your options. For instance, Tbills is the only form of investment I feel comfortable with right now because I am outside Nigeria. I can't imagine investing in real estate when I am not there (lol...at least if omo onile will give me headache, let me be there to see). But in 2 years, if I am in Nigeria, the story might be different....my 1 kobo.

battleaxe:


I am still not clear as to why your friends lost money.

100k$ in 2014 would have been about 20m.

With compounding over the last 4 years, that should have increased to about 34m to 40m using the range of interest rates we have had over the last 4 years.

At a worst case, I would think they would have their 100k back. Yes, still less than what it could have become even at the 2 to 3% rates in your US, but not a loss.

Could you shed some light on how the value dropped to 50k? Unless they just kept it without investing or applying compounded interest?

dipoolowoo:
Treasury Bills Yields Rise to 13% amid Selloff
https://www.businesspost.ng/2018/06/27/treasury-bills-yields-rise-to-13-amid-selloff/

Ugosample:


Well i dont have the details, but im sure it is not only fixed market instruments that they invested their money in, hence the term securities


And besides, the 100k was just a hypothetical example


Monies were lost big time.

20 years horizon is a BIG RISK

Ugosample:


If you are investing dollars into ANY portfolio investment in a country whose currency is not stable, it's a BIG RISK.

Even if it's treasury bills

because when you want to repatriate your funds, you will not get the same dollar value, or something close.

Imagine the currency falling from 150 /160 to 480 then receding to 360 all within 3 years

ahiboilandgas:
oboy it not easy I have been in mode for 3 year and it remaining 3 but a Benz c 380 i tested last week has been tempting me ...it not easy at all ...but notting good come easy...lastly i don't play with food sha, but iPhone etc mamba

spenca:


Like I said it is a foreign exchange risk , even if you take pounds to buy American tbills you are exposed to foreign exchange risk. You have a risk while someone that buys tbills with Naira assumes no risk . Best advice purchase tbills in America .

peacengine:

Bro since you don't have this information, no need to mention it.

Jesusbabygirl:
I doubt I even understand this actually because I know the maximum tenor for t-bills is 365 days. That said, what I learnt in my Finance class last semester is that longer tenor investment have higher risks. And using my common sense, IMO, it is better to invest for a maximum of 1 year after which you weigh your options. For instance, Tbills is the only form of investment I feel comfortable with right now because I am outside Nigeria. I can't imagine investing in real estate when I am not there (lol...at least if omo onile will give me headache, let me be there to see). But in 2 years, if I am in Nigeria, the story might be different....my 1 kobo.