8 Smart Ways To Invest 100 Thousand Naira in Nigeria 2019. how to make a good investment with one hundred thousand Naira Suppose you’ve just received a bonus at work, or an inheritance, or a winning lottery ticket, or have saved up for a while and have a cool 100 thousand naira. What can you do with it? If you’ve been thinking about investing in the stock market, you can do a lot with a hundred thousand naira.

8 Smart Ways To Invest 100 Thousand Naira in Nigeria 2019
UNDERSTAND YOUR INVESTING GOALS
Before you buy any stocks or bonds or funds, you need a realistic idea of what you hope to accomplish. You may have seen an ad which promises that “penny stocks can triple your investment overnight!” Don’t believe it. The good news is that a careful investment is likely, over time, to pay off a lot more than the 0.35% return you’ll get from a bank money market account right now.

The bad news is that a reasonably safe and stable return rate is, on average, 8-10% over a period of several years. In other words, you can expect your 100,000 naira to turn into 800,000 naira in seven to twelve years. That doesn’t seem like a lot… but it’s a start, and there are ways to do better. Investing with little money can earn you big returns, if you do it with discipline.

PICK INVESTMENTS YOURSELF USING AN ONLINE TRADING PLATFORM
In my Scottrade review, , I found Scottrade to be both user-friendly and to have exceptional tools for portfolio growth (Note: I’ve also opened accounts at E-Trade, TD Ameritrade, TradeKing and Motif, but enjoyed the customer service of Scottrade the most).

There are many more discount brokers out there, so you might want to spend a little time researching them and seeing which discount broker is right for you. You can also use this guide in helping you choose the best online broker.

Tip: If you’re going to be picking investments yourself using your 100,000 naira, you might want to pick out some exchange-traded funds (ETFs). ETFs are known for their lows costs and diversification benefits.

LEND TO THOSE IN NEED AND EARN SOME INTEREST
If you want to invest into the lives of others and earn some interest, there’s a new craze that’s both exciting and reasonable: peer-to-peer lending.

Peer-to-peer lending is the practice of lending to borrowers through an online service whose goal it is to bring borrowers and lenders together.

Lending Club is one such peer-to-peer lending service I tried out, and I found it to be very easy to use and reliable (see my Lending Club review).

As an investor with Lending Club, you can invest automatically using investment criteria. Alternatively, you can manually invest by browsing available loans and picking the ones you like. It’s up to you!

Tip: Like any investment, make sure you choose notes that reflect your tolerance for risk. Some notes are riskier to invest in than others, and thankfully, you can see this information at Lending Club’s website.

HAVE A POPULAR ROBO-ADVISOR MANAGE YOUR MONEY
If you’re not very skilled at investing on your own and you’re hesitant to loan money out to particular people online, you might consider hiring a robo-advisor.

Robo-advisors are investment companies who create automated software designed to manage portfolios based on certain criteria. For example, when signing up for such a service, you might take a questionnaire to determine your risk tolerance level or investment goals.

Robo-advisors make investment management available to the masses, since they typically have very low (or nonexistent) account minimums.

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Additionally, many robo-advisors have slick user interfaces to help you get relevant information about your investment performance, holdings, and more in a snap.

I interviewed Jon Stein, CEO of Betterment, a popular robo-advisor which grew from nothing to a $3 billion dollar investment company in just under four years. Jon believes the markets represent the success of the global economy. Overall, he expects they will improve over an extended period of time. This view is reflected in Betterment’s software. It’s set-it-and-almost-forget-it investing!

Tip: If you’re ready to get a comprehensive, in-depth financial plan in place, you’d probably do better to sit down with a financial planner. If you have your strategy largely in place, try out a robo-advisor. It’s worth a look!

INVEST IN YOUR KIDS’ COLLEGE EDUCATION
Every parent wants their kids to be successful in life. One path to success is college.

But, there’s a problem. Can you guess what it is? College is expensive and is showing no sign of slowing down. Forbes contributor, Mike Patton, points out that college tuition has been increasing by a whopping 5.2% for the last 20 years.

If you want your kids to go to college, and you aren’t rolling in the dough right now, you should probably think about saving for their college education.

A 529 college savings plan is a great choice, as it has tax advantages that encourage individuals to save for college. These plans are sponsored by the states, so be sure to check out your state’s 529 college savings plan and see if it makes sense for you.

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100,000 naira is a great start in one of these plans, and depositing the money in such a plan will help you get the technical details of the account worked out so you can continue to contribute. For example, you might be held back by the fear of the unknown. Making a decision to start saving for college today will make it much easier psychologically to invest tomorrow.

Tip: If you’re going to contribute to your children’s college education, it’s wise to start as early as possible. The time horizon for college is usually short: a maximum of 18 years. If you’re starting when your children are older, you have even less time. I can’t stress enough . . . start as soon as possible. You need all the time in the markets you can get.

PAY DOWN YOUR DEBT
You might find this investment strategy surprising. But think about it for a moment . . . .

Having debt is like the opposite of having an investment. The only difference is that holding onto debt is often more costly than investments are profitable.

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