Investment Programs

WHAT IS FINANCIAL PLANNING?
Financial planning is the process of determining how to meet financial goals through proper management of financial resources .

Financial planning provides direction and focus when managing your financial resources. A proper financial plan will increase your chances of achieving your goals and ambitions. So, why plan?

To meet identified financial needs
Every ambition has a financial implication. Your financial plan will ensure that you meet your financial goal.
To meet unforeseen needs
A sound financial plan always makes provision for unforeseen or emergency needs. Financial planning ensures that you will not be left stranded.
To ensure that your money works for you
It doesn't pay to leave your money in a current account. There are ways to ensure that the money you make truly works for you. A financial plan will exploit and maximize opportunities that will grow and enhance your money.

WHY YOU NEED A WEALTH ADVISER
A wealth adviser or financial adviser can be very useful to your planning. Most times, a wealth adviser will make the difference by ensuring that the developed strategies are sound and most importantly that they are implemented.
The question you should ask yourself is this: "Do I have the time and resources to develop, implement, and continuously monitor and revise my financial plan to ensure that I meet my objectives?"
Most times, the answer to this question is NO. Most people have a full-time job that takes up most of their time, and families and kids that need their attention. It is difficult to abandon these responsibilities and dedicate the time and effort it takes to develop and implement a plan. Besides that, as a lay person, you may not have the prerequisite knowledge or access to the resources that a full-time wealth adviser has. Furthermore, can you really apply a holistic approach to your financial plan as is required? Most people focus on a short-term need and neglect other aspects of their financial planning.
A wealth adviser is there to ensure that all your needs are covered and that you have access to the best opportunities available to meet your desired goals.
Your wealth adviser will and should (among other things):
» Take a holistic approach to your entire financial affairs. They'll place priority on immediate goals, but also formulate strategies for the long-term. Most importantly, a wealth adviser will help you formulate a realistic plan.
» Have access to a broad array of investment instruments
» Have access to information and detailed financial analysis
» Have expertise in financial and wealth management analysis


THE ESSENCE OF TIME
Start today! Time can be your best friend or worst adversary when it comes to planning to achieve your goals. Time is the most potent and fundamental dynamic in investing. Why? The miracle of compound interest! Let us illustrate:
Two friends Paul and John left school the same year and were lucky enough to secure jobs at once in the same company. Both of them were 25 years old. Paul, started at once to set aside 10% of her annual pay for investment purposes in her first year at the job.

John, on the other hand, preferred to wait until later as he was reluctant to tie up his funds since he was at the bottom of the salary scale. He reasoned that when he moved up the ladder he would be in a better position to dedicate a greater percentage of his pay to his future. So he waited until he was 35 and started to set set aside 30% of his pay to his retirement.

Now they are both 65 and ready to retire. Assuming the following:
1) They had started earning N1 million/p.a. (at today's prices)
2) They remained on the same salary scale with a 5% annual increase
3) They both received a return on investment of about 20%
At retirement, Paul, who starterd 10 years earlier than John would have saved and accrued about N1 billion (Naira), while John will barely achieve N800 million (Naira). This is despite the fact that Pual had saved a total cash value of about N32.5 million (Naira) over 30 years, almost three times as much as John's N12 million (Naira) over 40 years.

The values Paul and John's investments were calculated without factoring in inflation. In reality, the effects of inflation which we assume to average about 10% will considerably erode the final value of their fantastic nest eggs with Paul's investments worth only N21.6 million (Naira)!

It pays to start investing early.

DIVERSIFICATION
Basically, when developing your strategy, let the phrase -"don't put all your eggs in one basket" be your guide.
Diversification may be seen as a way of positioning your investment to reflect the economy's diversity. Just like the overall market, different sectors within different asset classes are cyclical in their return profile. What's more, the individual cycle is frequently out of step with one another. Therefore your portfolio structure should be designed to limit overall portfolio risk by taking advantage of the cyclical nature of the market. Naturally, it is nearly impossible to tell for sure which sector (much less, which company) will perform well in a particular year. However, spreading your risk across different sectors and companies, will help balance your portfolio.


WHAT IS A MUTUAL FUND?
Simply put, a mutual fund is a unit trust made up of a pool of investors' money, managed by a fund manager who invests that pool of money in various investment instruments. Units are initially allotted and priced to reflect the overall value of the fund. Each investor in the fund holds units which represent a portion of the fund, and subsequent capital gains are reflected in the price of the units. A mutual fund may be open ended --i.e. the fund is open to new investors at any stage of its life cycle; or closed ended; i.e. only the investors who initially pooled the funds can participate.



TYPES OF MUTUAL FUNDS
A variety of mutual funds have evolved to satisfy a wide range of investor needs, each with its peculiar nature and investment strategy. These include:
Money Market Funds
These mutual funds invest only in the money market, ie government bonds, T-bills, CD's etc. A money market fund carries very little risk but the returns are also minimal.

Equity Funds
An equity fund invests solely in equities. They carry a higher amount of risk and have the potential to provide higher returns.

Balanced Funds
This is a mutual fund which is made up of a mix of fixed income securities and equities. This blend ensures that the mutual fund has a balanced portfolio with a lower risk profile than the equity fund and a higher return potential than the money market fund.

Global/International Funds
These funds invest only in offshore markets, and are useful for geographical diversification.

Specialty Funds
A sector fund invests in a particular sector. For example, a sector fund may decide to invest in the pharmaceutical industry and as such would only hold stocks in pharmaceutical companies. Sector funds provide an opportunity for investors and portfolio managers to access a favoured industry or sector in a diversified manner.

A major disadvantage of this type of fund is that if something goes wrong in the sector invested in, the mutual fund would be seriously affected. They should therefore not compose the entirety of an investment portfolio.

Index Funds
An index fund creates a replica of a particular index, and seeks to achieve same individual weighting for each security in the index by mirroring this in the fund. As such the performance of an index fund is usually tied to the performance of the index. Though, more often than not, there is a small discrepancy as a result of minor charges and adjustment time lags. The serve roughly the same purpose as specialty funds.




There are two major ways through which an investor can receive returns and build wealth through such investments:
First, income is earned by the fund managers from dividend payments on stocks, interest on bonds and capital gains on instrument sales. A large portion of this income is usually distributed by the fund managers to the fund holders either in the form of dividends paid out or bonus shares issued.
Second, like stocks traded everyday on the stock exchange, mutual funds are highly liquid and are subject to price fluctuations. But unlike the regular stocks, the price of a mutual fund is usually determined by the Net Asset Value ( NAV ) of that fund. So if the NAV increases, the price of the fund goes up, giving you as an investor an opportunity to sell some or all of your holdings for a profit.
Thus, mutual funds provide a relatively cheap opportunity for investors to build wealth with considerably lower risk than direct stock investments and higher potential returns than fixed income instruments. They offer a number of other advantages including liquidity and professional management although it is important for you as an investor to look carefully through the profile of the fund manager to be sure the investment style and objective suit you.
LIQUIDITY
Open-ended mutual funds are highly liquid, and you can cash in your investments anytime you want (some closed ended funds do have an early withdrawal penalty), unlike time deposits which carry a hefty penalty for premature liquidation.
CAPITAL REQUIREMENT
Unlike other investment instruments which require a substantial amount of capital, investing in mutual funds isn't as demanding. In Nigeria for example, with as little as N10,000 you can invest in the Discovery Fund .
DIVERSIFICATION
The asset allocation of a mutual fund is usually diversified over multiple securities. As a result, an under performance in one stock is unlikely to have a huge impact on the mutual fund. This makes mutual funds more effective, in managing risk compared to equities, and more profitable than time deposits.
ADMINISTRATION
This is an especially poignant benefit in Nigeria where investing in equities directly through the stock market attracts major administrative issues such as signature verification, verification documentation, banker's confirmation, etc. for each individual stock you purchase. With mutual funds, you'll receive one certificate (for every investment you make into the fund). Under the ARM's Personal Portfolio Service, investors receive portfolio valuation reports quarterly.
PROFESSIONAL MANAGEMENT
By buying a mutual fund, you are essentially hiring a professional to manage your money. These managers have investment experience and as such have greater success with managing your investments than you would.


Figuring out your net worth is key to creating a comprehensive financial plan and provides a good measure of whether you're making progress financially. Simply speaking, your net worth is what you are left with after you subtract your total liabilities from your total assets.
The first step to determining your net worth is to make a comprehensive list of your assets and liabilities. Your assets are any resources that you own or control that have economic value and are expected to provide future benefit. Examples include houses, cars, stocks, life Insurance etc.
A liability is a financial obligation, debt, claim, or potential loss. Examples include house loans, Car loans.etc.
The second step is to put a value on your assets and liabilities and then find the difference.
No matter what your "number" is today, the goal is to have it increase over time, at least until you reach retirement.





START UP CAPITAL
Start up capital is compulsory, for you to go into this business you need money which you will use to for the pins from the dealers which you can start with as low as N5,000 or N10,000 or above, remember the higher the money you put the higher the gains you will expect.

This PACKAGE is for serious action takers only. I believe you are a serious and 'ACTION' person. If you won't use this system exactly the way you are advice, please don't get it at all. I want people that will use it and give me testimony within next 30 days ONLY.

THE CHOICE IS LEFT FOR YOU DEPENDING ON HOW MUCH YOU HAVE.
Remember, this is not HYIPS.
For more information visit http://www.makesmoneyclick..com/ or call 08032717113