Stanbic secondary is available only on 114days at 8.2perc

chigo4u:
https://www.thecable.ng/breaking-inflation-hits-11-61-highest-in-18-months

Next Level

I just did a 359 days @Zenith a few hours ago. Rate was 8% p.a.

damilola1978:
Mehn can anyone confirm, no secondary market auction at first bank today?

9jatriot:
I just did a 359 days @Zenith a few hours ago. Rate was 8% p.a.

Uncle,. you try! 8% for 359 days!

9jatriot:
I just did a 359 days @Zenith a few hours ago. Rate was 8% p.a.

Wow! This is Treasury Bills meltdown...

9jatriot:
I just did a 359 days @Zenith a few hours ago. Rate was 8% p.a.

This is Crazy! Can anyone suggest a better risk-free investment?

Fidelity secondary @364 is 8perc closes 1pm

FG Savings Bond, mutual funds

richforever123:


This is Crazy! Can anyone suggest a better risk-free investment?

based on what I read here o

Mutual funds is mostly based on TB so I expect it to also start its own decline anytime soon. With increase demand for FG bond, I also reckon that the rates will drop eventually.

Olamsoh:
FG Savings Bond, mutual funds based on what I read here o

Guru's in the house thank you very much last year I mistakenly got into this page, and that mistake have been the greatest achievement, I followed the moving train I invested 5.5m million naira in Tb last year at first bank I got about 13.5% for annual.

last week the investment matured, I now have about 6.3million I have been trying to buy another TB but not available guru's please what can i invest again that guarantee about 12% annual I also intend reinvesting the interest at well.

Is from a stock broker, TRW. Stockbrokers, you canequally get from stanbic, ibtc, or other investment houses, I have used investment one before.

Nakedman:


Which of the banks?

whatalife:
Is from a stock broker, TRW. Stockbrokers, you canequally get from stanbic, ibtc, or other investment houses, I have used investment one before.

I am a customer of Stanbic. So I shall go with their stockbroker. Instead of stressing to another broker.. Is Stanbic advisable?

oliverdon:
Stanbic secondary is available only on 114days at 8.2perc

Gradually dropping close to Stanbic maxyield savings account which is about 6.2% per year if you maintain a balance of 100k and above monthly

Phyde:

Gradually dropping close to Stanbic maxyield savings account which is about 6.2% per year if you maintain a balance of 100k and above monthly

6.2%? Really.
How is cbn gonna fight inflation now with the ban on OMO bills and low tbills rate while at the same time defending naira against dollar?
Economic wonders

9jatriot:
I just did a 359 days @Zenith a few hours ago. Rate was 8% p.a.

Congrats boss, people will later come to congratulate you and see how lucky you have been when 364 days declined to 7% and was still only able to buy just 10% of their entire fund due to the bank porating the tbills.

chigo4u:

6.2%? Really.
How is cbn gonna fight inflation now with the ban on OMO bills and low tbills rate while at the same time defending naira against dollar?
Economic wonders

Emefiele is doing tombo-tombo with our economy.

chigo4u:

6.2%? Really.
How is cbn gonna fight inflation now with the ban on OMO bills and low tbills rate while at the same time defending naira against dollar?
Economic wonders

Don't be too happy boss, this very one will nosedive as well due to excess liquidities in circulation.

TB rates are now fast becoming Fixed deposit rates....

Investors, Which way?

IamR:

Emefiele is doing tombo-tombo with our economy.

Lol.. the whole thing is funny. Emefiele is just trying to please his employers, not worried about the future of Nigeria

Jejebabaa:

Congrats boss, people will later come to congratulate you and see how lucky you have been when 364 days declined to 7% and was still only able to buy just 10% of their entire fund due to the bank porating the tbills.

We are actually now waiting for it to hit 1% lol

jamace:
Wow! This is Treasury Bills meltdown...

Exactly ..imagine 8% for a whole year ..locked funds down ..Na real meltdown

Hope people won't terminate their Tbills later b4 maturity

Hello everyone please i want to raise 5m for a business. Who can help?

If care is not taken, this is the moment people will loose their capitals to fake/unsafe investments while finding alternative to TB.

Advice to investors, please research and ask questions before you invest your funds....

ChiefDaddy1:
Hello everyone please i want to raise 5m for a business. Who can help?

your bank

Many of us who now hide in TB have had our hands burnt in the so called real sector. The problems there are mostly the fact that everyone wants to scam you. Then there is the unfriendly business environment. I think we are not as resilient as the Lebanesse, Indians and Chinese to succeed in hostile business environments.

dake40:
If care is not taken, this is the moment people will loose their capitals to fake/unsafe investments while finding alternative to TB.

Advice to investors, please research and ask questions before you invest your funds....

Dr. Tayo Oyedeji
@tayooye
Why home ownership is a bad investments (part 1)

Caveats 1:

1. Home ownership has some inherent values including:
- Psychological comfort.
- Societal validations.
- Aesthetics.
- Feelings of safety.

These things are important but difficult to quantify so this analysis does not discount the important of these factors.

Caveat 2.

Home ownership serves other purposes in society and in individual lives that are, once again, not amenable to investment modelling. This is purely an investment analysis of home ownership versus other possible investment models.


I am NOT saying "don't buy a house" or that it's bad to buy houses.

I am saying.

1. Approach home buying as a rational investment decision.
2. Recognize you psychological needs.
3. Recognize the opportunity cost.
4. Then make the decision that is best for you.

Let's say you buy a house for $100,000 in

Lagos: N36m
Nairobi: Ksh 10m
Johannesburg: R1.5m

If you paid cash, your "opportunity cost" is the value the cash would have accrued to you if you had invested it instead.

Investment opportunity cost (see this spreadsheet https://docs.google.com/spreadsheets/d/1_OfJUOWt7djczxMV5dyhhWsQaleWZP-ZFWJTqvuRnv4/edit#gid=0)

In 15 years, your cash @ 10% PA would be worth:

USD: $100k - 417k
Lagos: N36m - N150m
Nairobi: Ksh 10m - Ksh42m
Johannesburg: R1.5m - R6.2m

You can retire and live life on your own terms.

Business opportunity cost:

If you start a business instead that make nothing in year 1 and 2 and grows 20% (compounded) in subsequent years.

YearGrowth
00%
10%
220%
320%
420%
520%
620%
720%
820%
920%
1020%
1120%
1220%
1320%
1420%
1520%

Business opportunity cost (cont):

In 15 years, your business would produce:

USD: $100k - $1.07m
Lagos: N36m - N385m
Nairobi: Ksh 10m - Ksh107m
Johannesburg: R1.5m - R16m

You can retire, buy the house of your dream and live life on your own terms.

See https://docs.google.com/spreadsheets/d/1lvpQEzLHOfX3lRl8E-qMQUh0RL7tGQ4zjnisimVd-0M/edit#gid=0

There are lots of assumptions in the analysis.

1. Psychological comfort is impt.
2. Property appreciates.
3. Rental cost increases etc

It is NOT a definitive "buy"/"don't buy" guide. It just shows that the opportunity cost of putting a lump sum into home ownership is humongous.

The New York Times has a much better buying vs renting analysis here:
Is It Better to Rent or Buy?
The choice between buying a home and renting one is among the biggest financial decisions that many adults make.
nytimes.com

Finally, buying vs renting is a personal decision.

My view is that the traditional notion that buying is the best model is flawed. Each individual should consider all psychological factor and DO THE NUMBERS for themselves before making a decision.

Investment = Maths + Logic.

I will answer some of your questions later today. I am off to a lecture.

Next week, I will do a similar analysis for mortgages.

My recommendations.

1. If you're young, business minded and active, starts a business.

2. If you're not business minded, build an investment portfolio.

3. If you desire psychological comfort, buy a home. Just understand that most investments will offer you more dividend.

The spreadsheets

Link 1. Business Model

https://docs.google.com/spreadsheets/d/1lvpQEzLHOfX3lRl8E-qMQUh0RL7tGQ4zjnisimVd-0M/edit?usp=sharing

Link 2. Investment Model.
Investment Model
Sheet1 Property cost USD,Lagos (NGN),Johannesburg (Rand),Nairobi (KES) Property price,$100,000,₦36,000,000.00,R1,500,000.00,Ksh10,000,000.00 Opportunity cost Investment Model,10% interest rate,10%...
https://docs.google.com/spreadsheets/d/1_OfJUOWt7djczxMV5dyhhWsQaleWZP-ZFWJTqvuRnv4/edit?usp=sharing

Dr. Tayo Oyedeji
@tayooye

How to invest.

I get hundreds of emails daily asking me how to invest XYZ amount of money to "maximize returns while minimizing risk".

I will try to provide a 5-step framework that should help most people evaluate their investment models/strategies.

Step 1: Balance risk and returns.

You can't "maximize returns while minimizing risk". Life doesn't work that way.

It's "high risk, high returns" - stock, seed stage inv, crypto, day trading etc

or

"Low risk, low returns" - bond, money market, CDs, treasury bills etc.

Step 2a. Diversify.

Luckily, you don't have to chose "high risk, high returns" or "low risk, low returns". Instead you can diversify your investment to incorporate elements of both strategies through an investment portfolio.

A portfolio balances your risk and rewards.

Step 2b. Diversify.

Don't ever put all your savings in any investment instrument. Diversification is the only way to play the investment game.

Don't ever buy a single stock; a mutual or index fund diversifies your risk.

Always diversify. Repeat after me...ALWAYS DIVERSIFY.

Step 3a: Create your portfolio.
Split your investment funds into 3 buckets:

1. Long-term aggressive bucket (LAB) - Money you won't need in 5 -10 years (retirement planning)
2. Medium term balanced bucket (MBB) - 1 - 5 years
3. Short-term liquidity bucket (SLB) - within a year

Step 3b: Create your portfolio.

Assign instruments to the 3 buckets:
1. LAB - stock mutual funds, index funds, real estate, crypto-currencies.
2. MBB - treasury bills, money market mutual funds, bonds, CDs
3. SLB - fixed deposits

Step 3c: Create your portfolio

Assign percentages to each bucket. Older investors need to be more conservative than younger ones.

Eg

45yo
LAB - 40%
MBB - 40%
SLB - 15%

25yo
LAB - 65%
MBB - 25%
SLB - 15%

60yo
LAB - 20%
MBB - 50%
SLB - 30%

Take some time to understand this.

Step 3c: Create your portfolio.

My preferred (43 year old married guy with kids) portfolio is:

LAB - 25%
MBB - 60%
SLB - 15%

Yep. I am very financially conservative and I hate losing money.

Step 4: Stick to your principles.

When a sweet investment deal comes along:

1. Place it in one of the buckets.
2. Review your percentages.
3. Decide how much you can put into it without messing with your portfolio percentages.

Don't EVER put all your savings in any investment.

Step 5: Start today.

If you have $500, create a portfolio and invest accordingly. Don't just keep your money in a savings account, always invest a portion of your savings.

You may need to google some of these concepts to fully get it. But don't allow that to stop you.

I will try to answer some of your questions later today, and I hope to start an investment firm next year to help regular people access some of the higher value instruments.

Happy investing.

Global caveat: This is just a teaching session. It is not investment advise. Please speak to a personal finance professional to help you make specific decisions about your investments.

Summary:

1. All investments have some degree of risk.
2. Diversify to balance risk and return.
3. Create a portfolio (multiple investments).
4. Stick to your principles.
5. Start now.

PS: Don't EVER invest more than 50% of your savings in a single instrument

Good day everyone..

So today i visited FBN quest asset managers at their IKoyi branch.

And i made enquiries on their FBN Bonds Fixed Income funds investment..

I was informed present interest rate is 16.04% , I was happy and almost signed up until I was informed that the interest rate isnt a constant for the entire bond tenure, rather it flauntuates..

I was also informed there is a possibility of my capital depreciating at the end of the bond tenure.(Rude awakening)

P.s Please Sir Emmanuel Ewelumi kindly help me out with understanding the risk aspect of my capital depreciating at the end of the tenure..Thanks alot sir.

ChiefDaddy1:
Hello everyone please i want to raise 5m for a business. Who can help?

What type of business,?

How long have you been in the business?

What is your track record in the business?

Do you have a good relationship with your banker?

How much have you raised from your personal savings for this business?

dake40:
If care is not taken, this is the moment people will loose their capitals to fake/unsafe investments while finding alternative to TB.

Advice to investors, please research and ask questions before you invest your funds....

Exactly,

Dr. Tayo Oyedeji
@tayooye

The BIG 7 - The most important questions to answer about your finance before 2019.

My father died the year I turned 18. I was an undergrad studying mechanical engineering at the University of Ilorin when he died. My siblings and I would have had to drop out of university if not for my industrious mom who toiled day and night to ensure that we graduated.

The tough times that followed my father's death is the reason I am passionate about financial literacy. I have seen too many kids suffer because their parents never learnt to domesticate money. Financial literacy is not just about you: it also insures your children's future.

My father's generation of Africans did not believe in things like life insurance and education saving funds. Their financial illiteracy has derailed the destiny of kids all over our continent. It would be a shame for us to repeat their errors.

The following questions cover the basic first steps of financial independence. I will appreciate it if you would do the following:

1. Grade yourself.
2. Share your grade.
3. Share your plans for improving those grades in 2019.

1. Emergency Funds: Have you saved the equivalent of 1-month salary in a basic savings account? - 20 Points
2. Six-Month Cover: Do you have the equivalent of 6-months living expenses in a high yield investment instrument? – 20 points
3. Debt elimination: Are you completely debt free with the exception of your house mortgage? – 20 points
4. Multiple streams: Do you have at least two income streams? – 10 points
5. Saving Plan: Do you save at least 20% of your monthly income? – 10 points
6. Will and life insurance: Do you have a will that protects your family? Do you have life insurance? - 10 points.
7. Education fund: Do you have a savings plan to ensure that your kids can have a good education even if something happens to you? - 10-points