TONY56:


It's either they don't consider you and not debit your account for that week or debit you and process your application.

First bank and indeed any other bank have no right to debit your account two or one week before the bid date as that will be fraudulent.
Usually they debit accounts for the next bid on the Monday before the Wednesday bid date so, understand what I am driving at when I said that once you are debited before the bid day, your application will be treated.

joseph1013:
I have a concern, what if the Federal Government is unable to fulfill its TBILLS obligations?

Based on the budget, we should have a full year budget deficit of N2.37 Trillion, but at half year, we already have N2.5.

Based on the budget, we should have a full year debt service of N1.66 Trillion but in half year we already have excess of N1 Trillion.

Revenue is not increasing. Where will they get the money from in the next years when these TB reach maturity?

Just trying to voice out my fears about my investments.

Elders in the house?

condomuser:
Good observation, worse case scenario if the governement fails to meet its debt obligation.

1. It will increase international borrowing rates.
2. It will increase local borrowing rates
3. The value of Naira will crash to the level of Venezuela and Zimbabwe i.e. To buy one loaf of Agege bread with a plate of ewa could be N1500 and exchange rate could fly N750/$ today and N400/$ tomorrow.
4. Crime will rise
5. The poor will suffer most.
6. Oloshos will reduce their price and the cost of vaseline will go up.
7. Inflation will kick most people into Agriculture

My advice to investors, know your onion. Do not invest foolishly, in an unpredictable economy, your N25,000,000 can easily degrade to N15,000,000 even though you have earned huge interests.

As much as the Federal government doesn't show any signs of collapse, the incompetent decisions makers in the government are brain dead economists.

joseph1013:

Scary. These economic indices keep me awake at night.

In your own submission, how does one mitigate the risks of this affecting one severely?

emmanuelewumi:


Spread your Investments, have a business, create multiple streams of income for yourself .

emmanuelewumi:


Spread your Investments, have a business, create multiple streams of income for yourself .

joseph1013:

Scary. These economic indices keep me awake at night.

In your own submission, how does one mitigate the risks of this affecting one severely?

joseph1013:

Scary. These economic indices keep me awake at night.

In your own submission, how does one mitigate the risks of this affecting one severely?

joseph1013:

Some explanation of this will go a long way.

What investments? What are the multiple streams of income you refer to?

TONY56:






Based on the submissions of condomuser, even if you spread your investments to a million different types, the same fate will befall all as whatever gains you make from ALL will also be affected by the devaluation. The only exception will be if any of your Investments is or are in hard currencies like the $, £, €, ¥ etc. So pls just don't bother yourself and continue with whatever type of investment you believe in and continue making or growing your profits at least to be able to cushion the effect of tgeanticipated devaluation which may not even happen.

joseph1013:
I have a concern, what if the Federal Government is unable to fulfill its TBILLS obligations?

Based on the budget, we should have a full year budget deficit of N2.37 Trillion, but at half year, we already have N2.5.

Based on the budget, we should have a full year debt service of N1.66 Trillion but in half year we already have excess of N1 Trillion.

Revenue is not increasing. Where will they get the money from in the next years when these TB reach maturity?

Just trying to voice out my fears about my investments.

Elders in the house?

GODAKPAN:


AND WHAT WILL HAPPEN? DONT SCARED THE YOUNG MAN. WHO KNOWS HIM OR HIS ACCOUNT DETAILS.
I POSTED THE AMOUNT I INVESTED SOME DAYS BACK AND STILL SEE NOTHING WRONG BECAUSE FROM THE INSULTS PEOPLE UNLEASH ON THIS ENTIRE FORUM I KNOW NAIRALAND IS FACELESS, THEY CAN KIDNAP THE MONICKER.

Alikote:
in 2012 i invested around 13 million naira in tb that about 81000 dollars ,dollar was 160 rate drop to 7 percent per anum around 2015 and pick up around 2017 when my investments was 20 m from compounding ....now do the calculation 20,000,000/360=55,000 dollars i have made a lost of 25000 dollar x360= 9 million naira just becos one useless apc and buhari scattered the naira ....i almost had high bp when the naira peak at 520 i almost died from daily devaluation news ...

2 .if i had just bought dollars and kept and sell @520 x81000 my investments capital will be 42 million naira


3 tb is not risk free there is risk of devalution and low rate

4.am not discouraging any one from tb investment but learn to spread your portfolio (dorm,land,blue chip stock,bond,rents,tb,business,salary)
5. we are hoping the naira to recover to 280 when dangote refinery start work then we are mitigate our loss from devaluation

chukzyfcbb:

actually its dangerous, The internet is not as safe as you may believe. Telling us the amount you invested here is not proper especially if you invest big!

You may not understand much about IT or how PCs network amongst each other but I do to a large extent and I tell you the Internet isn't safe. Just tell us your experiences without keeping the amount discreet, 1m. 20m 100m. Just keep it discreet!

chukzyfcbb:

Mr Alikote
You have spoke some sense tho. but I need to set out some few misconceptions in your writeup.

Putting your money in a Tbills vehicle is Investing, whereas exchanging your funds for dollars is Pure Speculation. Its the same speculation that is driving the crypto currency in today's world, And need I remind you that Speculative investment is very risky!

No one is a guru at being speculative, eg you cant even tell when dollar will drop to 280 you are just HOPING on Dangote's refinery to kick off.

Alhaji Dangote who is more versed than you in business had a drop in the valuation of assets when converted to dollars.

Rather than worry over how you are keeping up with Exchange rate. Its more feasible to worry over the effects of the exchange rate on you and I, which is inflation.

In 5yrs, your funds increased from 13m to 20m. What 13m could afford in 2012, I am certain 20m can afford that today and still leave change!.

Nevertheless I don't believe ur 13m should yield 20m in 5yrs because by my count
13m should yield 22m at 12%.
Tbills has averaged atleast 12% annually in the last 5yrs, I stand to be corrected!!!


You claim you are not discouraging anybody from Tbills but you indirectly are. I believe most people here have active business that yields income for them , Tbills is just a way of providing passive income with lil or no risk attached of defaulting.

A true investment is in investment in a cash flowing asset, From rented properties to a leased land to Money market its the best form of investment. Investment strategy where you buy and hold hoping for an Increase in value before selling is not usually advised by Top Investment gurus.
Go find out!

Cash-flow assets has always been key advice! #Cheers

chukzyfcbb:

Mr Alikote
You have spoke some sense tho. but I need to set out some few misconceptions in your writeup.

Putting your money in a Tbills vehicle is Investing, whereas exchanging your funds for dollars is Pure Speculation. Its the same speculation that is driving the crypto currency in today's world, And need I remind you that Speculative investment is very risky!

No one is a guru at being speculative, eg you cant even tell when dollar will drop to 280 you are just HOPING on Dangote's refinery to kick off.

Alhaji Dangote who is more versed than you in business had a drop in the valuation of assets when converted to dollars.

Rather than worry over how you are keeping up with Exchange rate. Its more feasible to worry over the effects of the exchange rate on you and I, which is inflation.

In 5yrs, your funds increased from 13m to 20m. What 13m could afford in 2012, I am certain 20m can afford that today and still leave change!.

Nevertheless I don't believe ur 13m should yield 20m in 5yrs because by my count
13m should yield 22m at 12%.
Tbills has averaged atleast 12% annually in the last 5yrs, I stand to be corrected!!!


You claim you are not discouraging anybody from Tbills but you indirectly are. I believe most people here have active business that yields income for them , Tbills is just a way of providing passive income with lil or no risk attached of defaulting.

A true investment is in investment in a cash flowing asset, From rented properties to a leased land to Money market its the best form of investment. Investment strategy where you buy and hold hoping for an Increase in value before selling is not usually advised by Top Investment gurus.
Go find out!

Cash-flow assets has always been key advice! #Cheers

Alikote:
it droped to 7 percent and missed some days from maturity to reinvestment how do u calculate that.....now let do local investment maths if i bought rice of 13 million at 7500 i will have 1733.3 bags but with my 20 million now after 5 year @16000 per bag 1 will have 1250 bags i have lost 483.3 bags just like that . u can clearly speculate on the Naira against the dollar in 5 year it might hit 400 naira it mitigate the risk spread investment..if could have bought some dollars and kept in the dorm or safe 5 million(32000 dollars), tb (5 million) land (1 million)money market fund(1 million) gold(1 million) am sure my net portfolio will be around 30 million naira as at today

chukzyfcbb:


Well, Everybody has his or her own risk appetite. It seems you can stomach the risk of currency speculating. What I do know is Concentration in an asset builds wealth, diversification preserves it.

I don't know your age but let's say you decided to Stash this 20m UNTOUCHED for 20yrs at 13% annually (although its doing higher than 13% for now). With compound interest at your mercy , after 20yrs your 20m will turn ATLEAST 230million or more. I believe at this age you should be thinking retirement.

How certain are you that if you do business with 20m today it will surpass 230m in 20yrs?

In the end its good to diversify, For me I am a strong disciple of COMPOUND INTEREST.

For now, Tbills is good atleast within 2016 and 2017, rates have averaged 17%. Someone who started with the same 13m as you in January 2016 ,

ihedioramma:
Please teach us more in this compound interest ? . For example, two million in compound interest for ten year's how much will it be ? .

emmanuelewumi:

I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

If I liquidate my loan before the 12 months my financing cost will be lower.

emmanuelewumi:



Money backed collateral are usually 120% of the loan, 100k will get you about 83.33k loan. 120k will get you 100k loan.

A loan of 100k at 25% for a year, you end up paying a total of about 115k it is a term loan will a monthly payment plan. But if it is an overdraft with a bullet payment plan you will make a total loan payment of 125k.

If you further explanation on this, I will do just that.

atilla:


Hello Pa Emma.I've tried looking for this book Pls do u know any library/bookshop I can find it to buy in lagos?

Please what did u mean by your financing cost will be lower? Does it mean ur cost of getting loan is lower and do u advice we should always end the loan before the tenor is over?

What thread can we discuss money market funds e.g Cordros money market fund or fun saving bonds so we won't derail this thread

Thanks for your always priceless information and advice

chukzyfcbb:

This site will help calculate it for you. Open the link and put in the figures
http://www.moneychimp.com/calculator/compound_interest_calculator.htm

ihedioramma:
@18% In ten years what i got is ten million somthing, did i got it ?

chukzyfcbb:

This site will help calculate it for you. Open the link and put in the figures
http://www.moneychimp.com/calculator/compound_interest_calculator.htm

nonnycn12:
Many thanks, great minds!!!. Have been so educated and can't but admit that ur contributions can equally be 'compounded' into a big book for great investment yields... lol

That said, pls this is my conclusion and subsequent actions and wish to be guided;

1) open a savings account with Stanbic for primary NTB in the 13th Sept auction

2) open a savings account with FBN for secondaries at good available rates

3) wait for the maturity of the Mutual fund investment i made with FBN merchant( 2weeks ago bf i stumbled on this thread) and take them to investment with NTB


thank you so much and God bless our hussles

ihedioramma:
Please teach us more in this compound interest ? . For example, two million in compound interest for ten year's how much will it be ? .

dotcomnamename:


Hmmmm