Biafran4life:
Oga i don't get how 10% of 300k at compounded interest will give 17 million in 20 yrs..If I am not wrong the first yr will be just 30k,then 33k,36300,42930k etc.Pls can you show the calculation

Have you forgotten that you add 300k every year, the compound interest will be on the cummulative sum at the end of each year

Thank you. You are right. At 10% per annum it amounts to almost N19m compounded as shown below.

Bbbwings:

He is adding 300k from the annual rent every year to the initial investment.

Yes forgot. Updated above.

emmanuelewumi:



Have you forgotten that you add 300k every year, the compound interest will be on the cummulative sum at the end of each year

LauraClasikVibe:
300k per annum while Investor B is not getting this. Investor B can decide to invest the 300k in stocks and other businesses that will give good returns while Investor A has nothing for those years. When you add what Investor B has made cumulatively he made more money that Investor A.

After waiting for Oga Emma to answer. You come remember the answer. Ba? Na wa for you o

emmanuelewumi:



Have you forgotten that you add 300k every year, the compound interest will be on the cu
mmulative sum at the end of each year

ok,sir I get it.Pls advice.If want to do this for someone presently.Let say 1M every year for the next 10 yrs before I hand it over to the person .How and who do I approach.I don't have strength to be doing the calculation.All I know at the agreed date yearly I just remit 1M.And what best rate can I get presently and guarantee on capital and interest

emmanuelewumi:
Investor A bought an asset for N1 million in the year 2001 and sold it in 2021 for N20 million, but the asset did not generate any cash flow.


Investor B bought an investment for N1 million in the year 2001 and sold the investment for N10 million in 2021, the investment generated a cash flow of N6 million over a period of 20 years at an average of 300k per annum.


Which of them got a good deal on the long run?

Good one!

Can you share your insight on the scenarios below as it affects a Nigerian worker at the point of retirement.

Employee A took the sum of N120 million as gratuity and lump sum payment, along with monthly pension of N1 million.

Employee B opted for N50 million gratuity only, but with monthly pension of N1.5 million

Which one of them made the "better decision"?

Viqtour:

Please do you know the rate for other tenures?

Rate for other tenors remained the same.

91-day : 2%

182 days: 3.5%

emmanuelewumi:



Investor B

The 300k per annum, if it was invested and compounded at a conservative return of 10% for the 20 years will grow to N17 million.

If only 250k was invested per annum for the 20 years at 10% per annum, the Investor will still get over N10 million.

Average return on fixed income in the last 20 years is over 10%

This cam be calculated using FPV

But u didnt mention the option of compounding in your previous post

Biafran4life:
Bros 20M and 16M

.

Ephemmm:


I downloaded I-invest app on the website of Sterling Bank and this was more credible to me. Apart from that, Parthian Partners, the company which Sterling collaborated with are inter-dealer broker on the Securities and Exchange Commission http://sec.gov.ng/cmos/. This was part of my findings before investing.

It might also be imperative to state that yield on Piggyvest platform attracts 12.5% pa while I-invest platform attracts a meagre 3.89% pa. This calls for concern bro, as both companies were operating within the same industry.

So, Can you shed more lights on the outcome of your due diligence findings on Piggyvest? I would be delighted to hear more.

Like I said look somewhere else

Treasure bill rate is now 5.5% per annum..

Check gtbank

igbonla:


Good one!

Can you share your insight on the scenarios below as it affects a Nigerian worker at the point of retirement.

Employee A took the sum of N120 million as gratuity and lump sum payment, along with monthly pension of N1 million.

Employee B opted for N50 million gratuity only, but with monthly pension of N1.5 million

Which one of them made the "better decision"?

Kindly included the duration of the monthly payments.

An employee can only get 25% of his contribution as gratuity, we need to know the value of their retirement savings when both workers retired.

Your contributions in the retirement savings account should be one of the various plans for retirement, unfortunately that the is biggest savings/Investment of majority of the workers. The retirement savings account is even bigger than the value of their real estate Investments

Diyke4rich:


Help your self with this

Pls help with the link to this calculation or web so I can input my amount and 5% rate.Never really knew this compounded interest could perform magic if you don't fail to play your part.It won't be a bad idea to secure your children education for higher learnings

afroxyz:


This cam be calculated using FPV

But u didnt mention the option of compounding in your previous post

When I say we should invest in capital appreciating and cash flow generating investments, it is assumed that the cash flow will be reinvested or used to create further wealth.

Investor A, invested in capital appreciating Investment.

While investor B, invested in both capital appreciating and cash flow generating Investment.


Instead of investing in a fund that gave a conservative return of 10% per annum. Investor B, can also decide to use the annual cash flow of 300k to buy cheap land every year for the next 20 years and then check the value of the plots of land bought after 20 years.

Diyke4rich:


Help your self with this

Thank you jare. I assumed the 300k will be paid by the investment at the end of year 1 and not at the beginning of year 1 of the investment. Reason why I got N17 million and you got N19 million.

The 300k is not an upfront payment like Treasury Bill

Biafran4life:
ok,sir I get it.Pls advice.If want to do this for someone presently.Let say 1M every year for the next 10 yrs before I hand it over to the person .How and who do I approach.I don't have strength to be doing the calculation.All I know at the agreed date yearly I just remit 1M.And what best rate can I get presently and guarantee on capital and interest

What rate are you looking at per month?

Biafran4life:
Pls help with the link to this calculation or web so I can input my amount and 5% rate.Never really knew this compounded interest could perform magic if you don't fail to play your part.It won't be a bad idea to secure your children education for higher learnings

How much is the starting capital, how much do you want to invest every year, what is the duration of the investment?

igbonla:


Good one!

Can you share your insight on the scenarios below as it affects a Nigerian worker at the point of retirement.

Employee A took the sum of N120 million as gratuity and lump sum payment, along with monthly pension of N1 million.

Employee B opted for N50 million gratuity only, but with monthly pension of N1.5 million

Which one of them made the "better decision"?

There is a template on what workers will get at retirement, workers who earned same salaries and worked for the same length of time, retired at the same time can't have this type of huge disparity.

You need to rephrase your question

Anybody got debited for tbills last auction which was yestiday?

cutedharmee:
Anyone got idea of the treasury bill rate today?

na wa o.. Una still wan dey do Tbills?

igbonla:


Good one!

Can you share your insight on the scenarios below as it affects a Nigerian worker at the point of retirement.

Employee A took the sum of N120 million as gratuity and lump sum payment, along with monthly pension of N1 million.

Employee B opted for N50 million gratuity only, but with monthly pension of N1.5 million

Which one of them made the "better decision"?

Employee A will get 120m + 12m (1m* 12months)= 132m

Employee B will get less than what Employee A gets in a year

rexericx:
Treasure bill rate is now 5.5% per annum..

Check gtbank

It should get to 10% in the next 3 months

igbonla:


Good one!

Can you share your insight on the scenarios below as it affects a Nigerian worker at the point of retirement.

Employee A took the sum of N120 million as gratuity and lump sum payment, along with monthly pension of N1 million.

Employee B opted for N50 million gratuity only, but with monthly pension of N1.5 million

Which one of them made the "better decision"?

Only an idiot will take the second option. Infact this looks fictitious. There is no way any company can insult a retiree by asking him to choose between these two options

Lazyyouth4u:


Only an idiot will take the second option. Infact this is looks fictitious. There is no way any company can insult a retiree by asking him to choose between these two options

Very fictious. Lump sum is the same, the question would have been

Retiree A, kept N120 Million cash and decided to buy annuity that will pay him N1 million per month for 20 years.

Retiree B, kept N50 Million cash and decided to buy annuity that will pay him N1.5 million per month for 20 years.

The key is to constantly accumulate assets that pay you consistently. Whether its businesses, dividend stocks, real estate, etc you never have to sell. You and your family will eat forever.

emmanuelewumi:


Very fictious. Lump sum is the same, the question would have been

Retiree A, kept N120 Million cash and decided to buy annuity that will pay him N1 million per month for 20 years.

Retiree B, kept N50 Million cash and decided to buy annuity that will pay him N1.5 million per month for 20 years.

What if the retiree does not live up to 20yrs what happens?

emmanuelewumi:



How much is the starting capital, how much do you want to invest every year, what is the duration of the investment?

I am looking at 1 M every year for 10 yrs at best rate available now per annum.The most important is guaranteed payback of capital and interest when matured.Wish to do it for two people to see if it can take care of education at tertiary and Masters for both.That is 2M for the two persons yearly.Looking at convanant University for both in future

Cutehector:
na wa o.. Una still wan dey do Tbills?

Boss pls tell me any better alternative to go for. Just feel i should do that instead of leaving ma money lying fallow in the bank ni...tell me woh to do sir, I'm loyal

Biafran4life:
ok,sir I get it.Pls advice.If want to do this for someone presently.Let say 1M every year for the next 10 yrs before I hand it over to the person .How and who do I approach.I don't have strength to be doing the calculation.All I know at the agreed date yearly I just remit 1M.And what best rate can I get presently and guarantee on capital and interest

Go to any of the SEC registered investment houses that manage mutual funds. They can offer you a product that allows you to deposit funds that are compounded along with the interest until you decide to withdraw.

Not many of them guarantee capital and interest sha. And they come with risks, especially the equity mutual funds that can wipe out almost all your funds when markets are seeing red.

For preservation of capital, make sure you are not investing in the ones that sell you units of their fund but the ones that keep your money and give you returns on your capital.

In short, go with the ones that specifically state fixed income guaranteed funds and choose reinvestment of your distribution/interest for the power of compound interest. The interest rates fluctuate with the market but on average you can get 5 to 8% guaranteed. As interest rates increase, the returns also increase and vice versa.

Cutehector:
na wa o.. Una still wan dey do Tbills?

What a question, On a treasurybill thread . Majority of people here are only waiting for rates to climb up reasonably then invest.

cutedharmee:

Boss pls tell me any better alternative to go for. Just feel i should do that instead of leaving ma money lying fallow in the bank ni...tell me woh to do sir, I'm loyal

depends on how much ya have