Wow so they are primary and secondary market in TB
But come to think of it which one is more profitable

savewelllivewel:
Please I also need assistance on how to calculate compound interest e.g for N3m @ 13.5 for two years. Please I am a little confused, I dnt want to mislead a client. Thanks everyone for your usual assistance.

someone who could be confused about this kinda calculation. Should you be leading a client as per investment, would it be better to refer them to expert advisers?

@ tony56, I am so grateful for taking your time to simplify the explanation for me. I knew it but wanted to be sure am on the right path, so as not to mislead my client. God bless you really good.

@ tony56, I am so grateful for taking your time to simplify the explanation for me. I knew it but wanted to be sure am on the right path, so as not to mislead my client. God bless you really good. And to all those that took time out to explain one way or the other, am most grateful for all the formula.

edisoncash:
Wow so they are primary and secondary market in TB
But come to think of it which one is more profitable

secondary 4me

TONY56:



With the white lie she told, it means she did it intentionally. You see, the problem is that she is probably under pressure to improve or shoot up her customers' deposit as they are always given monthly targets and she used that trick to delay your use of the money for about 2weeks because that money will leave your account to CBN as soon as your bid is successful. Had she been successful with her tricks, you wouldn't have been able to partake in the Primary market until 28th February which is end of the month

Haha
Na their way.

I need 1 million

Na when you dey purchase tb upwards of 1 million Na when this thing dey make sense jare.

C4Ltd:
secondary 4me

why?

Quick question: If no one is willing to sell their T bills investment after the primary market issue, there will be nothing like a secondary market right? Also assuming for a 91 says TB, only one person is willing to sell after a month (so 2 months remaining), does the bank necessary offer me the exact effective rate for a 2 months period? Or i need to renegotiate?

buffalowings4:
I need 1 million

Na when you dey purchase tb upwards of 1 million Na when this thing dey make sense jare.

even 1 milla just give around 11 k per months..a good barbing shop with investment of 400 k can make 75 k monthly net income

Alikote:
even 1 milla just give around 11 k per months..a good barbing shop with investment of 400 k can make 75 k monthly net income

While i can't guarantee your hypothetical statement of 75k monthly net income coupled with the high cost of fuel to run the shop. Tbills is a passive income that requires you to do nothing while the other is an active income that makes you sweat by taking standing to rake in the money.

Alikote:
even 1 milla just give around 11 k per months..a good barbing shop with investment of 400 k can make 75 k monthly net income

Mind u ,TB is not for beginners. TB is meant to save extra cash productively.

I and most of the guyz in this forum have running businesses or jobs or are retired and need to safely store excess cash.

U can't be starting life with just 1 or 2m and u r talking of TB.....pls look for some profitable business that will keep u busy too.

Alikote:
even 1 milla just give around 11 k per months..a good barbing shop with investment of 400 k can make 75 k monthly net income

Don't get it twisted. TB is just a great of investment from your income. Get a job or start a business and stop depending on TB to accumulate wealth.

Unless you have excess above 20million, that's when you may want to depend solely on TB

The key is to continue adding more funds

zamirikpo:


Mind u ,TB is not for beginners. TB is meant to save extra cash productively.

I and most of the guyz in this forum have running businesses or jobs or are retired and need to safely store excess cash.

U can't be starting life with just 1 or 2m and u r talking of TB.....pls look for some profitable business that will keep u busy too.

it not for saving ..it an investment that why oyibo dey invest billion in
Nigeria tb if rate are poor they move to stock if all are poor they move out of the country

Jejebaba:


While i can't guarantee your hypothetical statement of 75k monthly net income coupled with the high cost of fuel to run the shop. Tbills is a passive income that requires you to do nothing while the other is an active income that makes you sweat by taking standing to rake in the money.

it require u to use u brain alway and well grounded in finance..u know of inflation , devalution , when to buy or sell then which tenor ....u just dont go and sleep

Alikote:
it require u to use u brain alway and well grounded in finance..u know of inflation , devalution , when to buy or sell then which tenor ....u just dont go and sleep

explain more please.

Alikote:
even 1 milla just give around 11 k per months..a good barbing shop with investment of 400 k can make 75 k monthly net income

big lie bro

Who in his right senses would put just a few millions in the money market and expect to live off the meagre proceeds?

For us, it's not a choice between T-bills and business, it's rather a choice over low-return deposit accounts, or over other riskier asset classes.

Meanwhile, FSDH released a report on returns on the 10 most capitalised stocks on the NSE over a 10-year timeframe. Despite the huge returns on those stocks, compound interest at 15% average still beats 3 out of the 10.

Compound interest is a great amplifier over the long term.

zinaunreal:
big lie bro

why na lie how we are talking of lagos we cut hair 500 naira most office people barb weekly my barber make 120 k inside his container salon with a.c

godello:
explain more please.

made over 3 m from dangote flour with just few hunderd of thousand

awesomeJ:
Who in his right senses would put just a few millions in the money market and expect to live off the meagre proceeds?

For us, it's not a choice between T-bills and business, it's rather a choice over low-return deposit accounts, or over other riskier asset classes.
[b][/b]
Meanwhile, FSDH released a report on returns on the 10 most capitalised stocks on the NSE over a 10-year timeframe. Despite the huge returns on those stocks, compound interest at 15% average still beats 3 out of the 10.

Compound interest is a great amplifier over the long term.

Very correct

Alikote:
made over 3 m from dangote flour with just few hunderd of thousand

wow, that's some profit. do you mind stating your entry time and price?

zinaunreal:
big lie bro

At #300 per haircut, 75k is about 250 haircuts in a month, thats about 8 haircuts per day. Its more than possible.

ositadima1:


At #300 per haircut, 75k is about 250 haircuts in a month, thats about 8 haircuts per day. Its more than possible.

He said net not gross, have you prorated the annual cost of rent over the months? How about the cost of fueling, nepa Bill, waste disposal, repairs e.t.c

Alikote:
it not for saving ..it an investment that why oyibo dey invest billion in
Nigeria tb if rate are poor they move to stock if all are poor they move out of the country

That's what they tell you and you believe that u are actually investing. Pls be informed TB only helps u conserve the real value of your money. With every passing day inflation eats into the value of your money.


Stocks is a totally different thing. With stocks I agree u are investing cos u can loose it all but could also make a fortune. Comes with its risk. The real value of TB is to keep your 10m , 10m after a year, inflation inclusive.

rationalmind:


He said net not gross, have you prorated the annual cost of rent over the months? How about the cost of fueling, nepa Bill, waste disposal, repairs e.t.c

I agree, not very profitable, but, you would have netted more return on your investment. 1 mil in Tbill will net you 12.5k per month at 15% interest. While at the barbers shop, minus running costs you did have 20k plus return every month on a 400k investment, thats 60% ROI.

He was trying to say that if you don't have substantial amounts invested in tbills it shouldn't be you primary source of income, and that you can make higher returns applying your self with way much less capital.

haibe:
why?

primary market gave 3.15% for 364 but I got 3.17% for 231 days secondary. like that like that. secondary is just convenient for me.

zamirikpo:


That's what they tell you and you believe that u are actually investing. Pls be informed TB only helps u conserve the real value of your money. With every passing day inflation eats into the value of your money.


Stocks is a totally different thing. With stocks I agree u are investing cos u can loose it all but could also make a fortune. Comes with its risk. The real value of TB is to keep your 10m , 10m after a year, inflation inclusive.

It all depends on the year's inflation rate, for example, at 10% inflation rate a 13.5% Tbills makes 3.5% profit on your money. Inflation rate for 2017 was quite high, 18% for food and non alcoholic beverages. At 15% inflation rate yearly 1,000,000 would be equivalent to 87,000 in 15 years , [1mil x (1-0.15)^15], inflation is a nasty bitch.

What I fear more is currency devaluation. Without it, inflation would be lower and its effects would be mild.

Most of the significant price surges have been caused more by currency devaluation.

At 15% inflation rate yearly 1,000,000 of today would be equivalent to 87,000 in 15 years , [1mil x (1 - 0.15) ^ 15], inflation is a nasty bitch.

ositadima1:


I agree, not very profitable, but, you would have netted more return on your investment. 1 mil in Tbill will net you 12.5k per month at 15% interest. While at the barbers shop, minus running costs you did have 20k plus return every month on a 400k investment, thats 60% ROI.

He was trying to say that if you don't have substantial amounts invested in tbills it shouldn't be you primary source of income, and that you can make higher returns applying your self with way much less capital.

I very much agree with you, my goal is a slightly different version from what pa Emma once said.

The moment the return on your portfolio ( dividends from stocks, interest rates on tbills, bonds, MF) equals or is more than your annual salary, you can consider making them your primary source of income.

zamirikpo:


That's what they tell you and you believe that u are actually investing. Pls be informed TB only helps u conserve the real value of your money. With every passing day inflation eats into the value of your money.


Stocks is a totally different thing. With stocks I agree u are investing cos u can loose it all but could also make a fortune. Comes with its risk. The real value of TB is to keep your 10m , 10m after a year, inflation inclusive.

wrong u can get a negative return on tb if rate are less than inflation like now 13.5 but in act it around 15 while inflation is 0.5 that your lost while when it was 18.5 the real return was 22 while inflation is 18 so we made a positive curve of 3