₦airaland Forum

Same way you calculate NT-Bills but you will be paid 4 times in a year

isangjohnson:
Please someone should help me with this calculation.
If somebody invest 7.5m for 3yrs fgn savings bond @ 14% for example and hold it to the maturity date, what will be his quarterly and annual interest?

what investment?

freeman67:
Yes I thought as much. Thanks

unite4real:
This scenario played out in 2007/2008 when there was too much money in the hands of citizens not knowing what to do. All of a sudden the entire airwaves every now and then was adverts of Initial Public Offerings of different commodities. While the foolish (including me) were front loading their money into and open ended pipe in the name of buying into an IPO and admiring the certificates, the financial crooks were at the back end of the pipe off loading the money in the name of trading (by hyping and manipulating share prices). Recession was the result. Sometimes i wished all my capital then were even in just a savings account without interest. The loss was too much. AFter then, i discovered Government Securities.

One thing to note is this. Money is like energy. For everyone that lost money, some other person gained it. The sad part is, 100 people can loose money to 1 person. The reverse is never the case. With the latest trend, there is likely going to be another experience of too much money and myriads of scammers. Even when a legit investment come your way, there is likelihood of funds over saturation which makes an investment company become obsessed. Only those with track records will be able to hold investors funds in keeping with promises.

I have series of BONDs and TBs maturing From February 2020 and Bonds coupons going on with the next one in December.

None of those moneys will be used for any other investment other than what i am used to. I will rather keep them trekking (short TBs or MMF) and wait for the prime time or nothing.

True,Nigeria economy grew by 7% in 2007 and again in 2008 the All share index (ASI) fell by 40% between December 2007 to December 2008. However a poorly performing stock market means investors are loosing value, hence the reason govt cannot fold it arms and watch investor move to safer haven. The recent US fed rate cut for the third consecutive time which has open opportunities for foreign interest in high yielding emerging and frontiers market MAY not be beneficial to Nigeria equity market as foreign interest look beyond companies number when making investment decision. Unfortunately the FG is indifferent to how it's policies for private capital affects equity market.

Dr. Tayo Oyedeji
@tayooye
Strategic work vs hard work.

Why strategic work > hard work.

Hard work: PA to the CEO working 70hours a week.

Strategic work: PA to the CEO working 70hours a week (50hours on the job, 20hours observing/learning the job of the CEO.

Meet Barbara Corcoran (@BarbaraCorcoran)- who went from CEO's PA to founder/CEO of the $66m Corcoran Group.

Hard work: Social media manager at @WarbyParker

Strategic work: Social media manager at
@WarbyParker who learned the tool of the trade from Warby and built the $1.4billion @Away luggage using Warby's template.

Meet college dropout, Jen Rubio, @jennifer

Hard work: Working hard to build a gaming ecosystem that failed twice.

Strategic work: Pivoting from the gaming system to a communication tool that became the $17billion @SlackHQ


Meet strategic worker - Daniel Butterfield - billionaire and failed gaming executive.

Hard work: working for your uncle to learn the trade.

Strategic work: Borrowing $3,000 from the same uncle to build a $10bn conglomerate.

Meet Dantata's nephew and Africa's richest man, @AlikoDANG0TE

Hard work is great, but it's never enough.

Successful people work hard while looking beyond their current roles and positioning themselves for bigger things.

Strategic work > hard work.

One final note:

Hard work: COO at a large financial service firm.

Strategic work: Took a pay cut to become the CEO at a smaller marketing service firm knowing that the No 1 guy at a small business > the No 2 guy at a big firm.

Meet @tayooye - retired @ 40.

Run away from anyone who tell you, “you don’t have to work HARD, just work SMART and you’ll be ok.”

3 formulas to keep in mind.

1. Hard work > smart work

2. Hard work + strategy = good life

3. Hard work + strategy + good fortune = billionaire.

Hard work is not negotiable.

niyoni:
Fellow TB brethren, I greet you all. Now that TB interest rates are continuously dipping, please can anyone here kindly suggest a viable and profitable business that one can do? Money must be productive and not be dormant. I don't want to leave money doing nothing in my accounts.

I understand that this thread is mainly for TB but the bottom line is to make more money for ourselves.

Sensible leads and suggestions are highly welcome.

Amazing!!!! I just called Sen. A. Oriolowo and he picked. I explained to him every reason why he shouldn’t be in support of the #SocialMediaBill and he stated his position in which fake news was prominent . After the back and forth , he agreed to look into into the bill again in details as I stated some portions of the bill that should be repealed . He was happy I called and said he would call back to give me updates

Please you first have to create an account with them. But before the account can be opened, you also need a resident permit from with their immigration service.

Akin3891:
Cool, i will put a call through to any Ghana bank to seek for more information. I don't want to put my whole life down here, in this beautiful country with a brighter future!

+233 50 410 0011
25A Castle Road, Ambassadorial Area Ridge
gh.corporateaffairs@gtbank.com
https://www.gtbghana.com

Dr. Tayo Oyedeji
@tayooye

There is a bubble of "investment" instruments offering incredible returns everywhere.

To invest safely, focus on asking the right questions.

"How will I get my principal back?" forces you to think strategically.

"How much will I make?" pushes you towards emotional decisions.

"How will I get my principal back?" + "How does it work?" = due diligence + Logic

"How much will I make?" = emotional reaction. It focuses you on returns rather than investment process.

If you don't understand the process, don't invest.

That's why my answer to "Should I invest in crypto currencies or Forex trading?" is always NO.

Don't do it unless you understand how it works.

careerwoman:
Please I don’t understand First Bank
Applied two weeks ago for primary market Tbill. The bid was unsuccessful and they refunded my money into my account.
I’ve already decided to go into forex with a part of the money and needed the other part for some things since I got cash strapped this week.
Now, I just checked my account balance and they’ve deducted the amount again against auction next week.
This is wrong, I didn’t give any additional directive to them to redo the Tbills request.
Please has anyone experienced this? How can I revert it?
Like, my acct balance is almost zero..

Dr. Tayo Oyedeji
@tayooye

1. Send your grain across the seas, and in time, profits will flow back to you (TAKE SOME RISKS).

2. But divide your investments among many places, for you do not know what risks might lie ahead (DIVERSIFY YOUR PORTFOLIO).

- Ecclesiastes 11: 1 - 2 NLT

Investment advise from Solomon, the Warren Buffett + President Obama of ancient Israel.

1. Take some risk.
2. Diversify your portfolio.

His insight still holds true today

Countries with lesser population and better economies are importing chicken but Nigeria wants to be "self sufficient"

Year 2020 is about 6 weeks from now, by the special grace of God it won't turn 6 feet for you.

Shout out to all men here.

Going through pain
Heartbroken
Depressed
Trying to make ends meet
Got bills to fix & so on,

But can't show it because the society expects them to be a man&be strong❤

Dr. Tayo Oyedeji
@tayooye

The BIG 7 - The most important questions to answer about your finance before 2019.

My father died the year I turned 18. I was an undergrad studying mechanical engineering at the University of Ilorin when he died. My siblings and I would have had to drop out of university if not for my industrious mom who toiled day and night to ensure that we graduated.

The tough times that followed my father's death is the reason I am passionate about financial literacy. I have seen too many kids suffer because their parents never learnt to domesticate money. Financial literacy is not just about you: it also insures your children's future.

My father's generation of Africans did not believe in things like life insurance and education saving funds. Their financial illiteracy has derailed the destiny of kids all over our continent. It would be a shame for us to repeat their errors.

The following questions cover the basic first steps of financial independence. I will appreciate it if you would do the following:

1. Grade yourself.
2. Share your grade.
3. Share your plans for improving those grades in 2019.

1. Emergency Funds: Have you saved the equivalent of 1-month salary in a basic savings account? - 20 Points
2. Six-Month Cover: Do you have the equivalent of 6-months living expenses in a high yield investment instrument? – 20 points
3. Debt elimination: Are you completely debt free with the exception of your house mortgage? – 20 points
4. Multiple streams: Do you have at least two income streams? – 10 points
5. Saving Plan: Do you save at least 20% of your monthly income? – 10 points
6. Will and life insurance: Do you have a will that protects your family? Do you have life insurance? - 10 points.
7. Education fund: Do you have a savings plan to ensure that your kids can have a good education even if something happens to you? - 10-points

Dr. Tayo Oyedeji
@tayooye

How to invest.

I get hundreds of emails daily asking me how to invest XYZ amount of money to "maximize returns while minimizing risk".

I will try to provide a 5-step framework that should help most people evaluate their investment models/strategies.

Step 1: Balance risk and returns.

You can't "maximize returns while minimizing risk". Life doesn't work that way.

It's "high risk, high returns" - stock, seed stage inv, crypto, day trading etc

or

"Low risk, low returns" - bond, money market, CDs, treasury bills etc.

Step 2a. Diversify.

Luckily, you don't have to chose "high risk, high returns" or "low risk, low returns". Instead you can diversify your investment to incorporate elements of both strategies through an investment portfolio.

A portfolio balances your risk and rewards.

Step 2b. Diversify.

Don't ever put all your savings in any investment instrument. Diversification is the only way to play the investment game.

Don't ever buy a single stock; a mutual or index fund diversifies your risk.

Always diversify. Repeat after me...ALWAYS DIVERSIFY.

Step 3a: Create your portfolio.
Split your investment funds into 3 buckets:

1. Long-term aggressive bucket (LAB) - Money you won't need in 5 -10 years (retirement planning)
2. Medium term balanced bucket (MBB) - 1 - 5 years
3. Short-term liquidity bucket (SLB) - within a year

Step 3b: Create your portfolio.

Assign instruments to the 3 buckets:
1. LAB - stock mutual funds, index funds, real estate, crypto-currencies.
2. MBB - treasury bills, money market mutual funds, bonds, CDs
3. SLB - fixed deposits

Step 3c: Create your portfolio

Assign percentages to each bucket. Older investors need to be more conservative than younger ones.

Eg

45yo
LAB - 40%
MBB - 40%
SLB - 15%

25yo
LAB - 65%
MBB - 25%
SLB - 15%

60yo
LAB - 20%
MBB - 50%
SLB - 30%

Take some time to understand this.

Step 3c: Create your portfolio.

My preferred (43 year old married guy with kids) portfolio is:

LAB - 25%
MBB - 60%
SLB - 15%

Yep. I am very financially conservative and I hate losing money.

Step 4: Stick to your principles.

When a sweet investment deal comes along:

1. Place it in one of the buckets.
2. Review your percentages.
3. Decide how much you can put into it without messing with your portfolio percentages.

Don't EVER put all your savings in any investment.

Step 5: Start today.

If you have $500, create a portfolio and invest accordingly. Don't just keep your money in a savings account, always invest a portion of your savings.

You may need to google some of these concepts to fully get it. But don't allow that to stop you.

I will try to answer some of your questions later today, and I hope to start an investment firm next year to help regular people access some of the higher value instruments.

Happy investing.

Global caveat: This is just a teaching session. It is not investment advise. Please speak to a personal finance professional to help you make specific decisions about your investments.

Summary:

1. All investments have some degree of risk.
2. Diversify to balance risk and return.
3. Create a portfolio (multiple investments).
4. Stick to your principles.
5. Start now.

PS: Don't EVER invest more than 50% of your savings in a single instrument

Dr. Tayo Oyedeji
@tayooye
Why home ownership is a bad investments (part 1)

Caveats 1:

1. Home ownership has some inherent values including:
- Psychological comfort.
- Societal validations.
- Aesthetics.
- Feelings of safety.

These things are important but difficult to quantify so this analysis does not discount the important of these factors.

Caveat 2.

Home ownership serves other purposes in society and in individual lives that are, once again, not amenable to investment modelling. This is purely an investment analysis of home ownership versus other possible investment models.


I am NOT saying "don't buy a house" or that it's bad to buy houses.

I am saying.

1. Approach home buying as a rational investment decision.
2. Recognize you psychological needs.
3. Recognize the opportunity cost.
4. Then make the decision that is best for you.

Let's say you buy a house for $100,000 in

Lagos: N36m
Nairobi: Ksh 10m
Johannesburg: R1.5m

If you paid cash, your "opportunity cost" is the value the cash would have accrued to you if you had invested it instead.

Investment opportunity cost (see this spreadsheet https://docs.google.com/spreadsheets/d/1_OfJUOWt7djczxMV5dyhhWsQaleWZP-ZFWJTqvuRnv4/edit#gid=0)

In 15 years, your cash @ 10% PA would be worth:

USD: $100k - 417k
Lagos: N36m - N150m
Nairobi: Ksh 10m - Ksh42m
Johannesburg: R1.5m - R6.2m

You can retire and live life on your own terms.

Business opportunity cost:

If you start a business instead that make nothing in year 1 and 2 and grows 20% (compounded) in subsequent years.

YearGrowth
00%
10%
220%
320%
420%
520%
620%
720%
820%
920%
1020%
1120%
1220%
1320%
1420%
1520%

Business opportunity cost (cont):

In 15 years, your business would produce:

USD: $100k - $1.07m
Lagos: N36m - N385m
Nairobi: Ksh 10m - Ksh107m
Johannesburg: R1.5m - R16m

You can retire, buy the house of your dream and live life on your own terms.

See https://docs.google.com/spreadsheets/d/1lvpQEzLHOfX3lRl8E-qMQUh0RL7tGQ4zjnisimVd-0M/edit#gid=0

There are lots of assumptions in the analysis.

1. Psychological comfort is impt.
2. Property appreciates.
3. Rental cost increases etc

It is NOT a definitive "buy"/"don't buy" guide. It just shows that the opportunity cost of putting a lump sum into home ownership is humongous.

The New York Times has a much better buying vs renting analysis here:
Is It Better to Rent or Buy?
The choice between buying a home and renting one is among the biggest financial decisions that many adults make.
nytimes.com

Finally, buying vs renting is a personal decision.

My view is that the traditional notion that buying is the best model is flawed. Each individual should consider all psychological factor and DO THE NUMBERS for themselves before making a decision.

Investment = Maths + Logic.

I will answer some of your questions later today. I am off to a lecture.

Next week, I will do a similar analysis for mortgages.

My recommendations.

1. If you're young, business minded and active, starts a business.

2. If you're not business minded, build an investment portfolio.

3. If you desire psychological comfort, buy a home. Just understand that most investments will offer you more dividend.

The spreadsheets

Link 1. Business Model

https://docs.google.com/spreadsheets/d/1lvpQEzLHOfX3lRl8E-qMQUh0RL7tGQ4zjnisimVd-0M/edit?usp=sharing

Link 2. Investment Model.
Investment Model
Sheet1 Property cost USD,Lagos (NGN),Johannesburg (Rand),Nairobi (KES) Property price,$100,000,₦36,000,000.00,R1,500,000.00,Ksh10,000,000.00 Opportunity cost Investment Model,10% interest rate,10%...
https://docs.google.com/spreadsheets/d/1_OfJUOWt7djczxMV5dyhhWsQaleWZP-ZFWJTqvuRnv4/edit?usp=sharing

chigo4u:
https://www.thecable.ng/breaking-inflation-hits-11-61-highest-in-18-months

Next Level

Many people are broke not because they are not solving problems but they are solving problems that don’t need solution

Yes, very true. May his gentle soul rest in peace.

creategist:
Just heard that renowned economist Mr. Henry Boyo has passed on. I remember him for his radical views about the economy. I believe he used to write for Monday editions of The Punch newspaper, the back page. May his soul rest in peace. Amen.

He later moved to Vanguard.

Yomit2:
I really don't know why people will come to treasury bill tread and try to discourage people from doing treasury bill. We love what we do here. People wanting to do business should go to business tread. It's so annoying when people come here trying to discourage us from what we love to do. Many of us don't live in Nigeria. Also business is not for everybody. When I was in Nigeria I wasted over 3 million naira on piggery farm. For now I love treasury bills

Please, can u shed more light on it as my uncle is planning going into the business?

Homextras:
You guys should face reality with this T.B matter. For now you can try stanbic or Fbn mutual funds... Its still in double digits..11%+...you can also buy zenith bank share for a guaranteed yield of not less than 14% at current price..or you sell at N23 if you don't want dividend...
CBN will be forced to push up rate once they witness a boycott or an investment house finds a way around Ghana tbills...
Getting offer of 8% is just sheer mockery to me...Shalom..

m They will because they are looking at that options

freeman67:
I have been trying to understand what they intend to do for locally made product to be available to the extend that it will suppress smuggling and I am not seeing any. Whatever privileged information that is hidden but does not translate to welfare of the masses is not worth it.

Boarder closure is one of the best and at the same time hardest decision for any Nigerian leader to take and as such should be applauded. However, with what I am seeing as the after effect; it is may not change anything. Rice smuggling is one of the major reason for the closure.The situation that led people to prefer consumption of foreign rice over local rice is still very much around. It has actually been a while I have bitten stones in my rice until the boarder closure. Also, the rate at which the price of local rice increased immediately the boarder was closed leave little to be desired of it. Same goes for chicken and other consumables that was hitherto imported.

Yes there may be increase in tariff to deter the importers and the consumer but if you calculate the extra cost of visiting a dentist one may still consider the foreign the option.

Except the boarder remain close for about 4 years and we put deliberate efforts to better our produce before reopening the boarder. If the boarder is opened early next year as being rumoured then we have suffered for nothing.

The people are taking advantage of the inefficiency and to think foreign rice are finding their way in Sokoto. The Market is the Laboratory for any economic policies. The border closure should not only be for RICE but everything from health education, electronics etc if we are serious at all. We are a country of self-serving people and built on conspiracy.

isangjohnson:
I can bet you that those investing in agriculture will still be making money in the next two to three years in this country, though the interest rate might be fluctuating.
Borders will be opened once the requirements are made. There are some privilege informations most of us may not get in this faceless platform.
No nation can stop smuggling even in developed countries but the best a country could do to encourage locally made goods is to suppress smuggling. This is the current battle which has been taken to a different stage. It will never be business as usual. No offense please

what requirements?

chigo4u:
https://businessday.ng/exclusives/article/emefiele-buys-time-for-buhari-as-omo-policy-stimulates-economy-for-now/

Well done Emefiele lol, there will be consequences for all these fire brigade economic policies.

Meaning chances of them rescinding their decision.

ahiboilandgas:
Funny enough the broader closure is creating new demands and oppurnties ...i went to get chicken and learnt the price is up 20 percent due to scarcity...the seller told me that he has to hustle hard to get 100 daily cos must farms have ran out of stock cos no importation ...i taught it was a lie since I see roasted chicken ever Where on display....suprisely Funke actresss posted today that she went to chicken republic in sango and their was no chicken.....this a good development for entrepreneur in the poultry business

and agriculture investment

Remove negative people from your life. The people you spend time with influence your attitude, thoughts and success more than you think.

emmanuelewumi:
Thanks for the kind words. The Lord shall grant you all your heart desires, if you are genuine and you don't give up

Amen.