ahiboilandgas:
Secondly if u build the 8m house u rent the house to your self for like 450 k then your 12m tb investment generates 1.4m per annum so your total income is 450k +1.440 =1.9 m (From your 20m investment ) remember building and land appreciate some hidding 300k will be adding over time not seen immediately at the end of 10 years .cost of building same might be 12 m (So u earned 300k yearly)

thanks so.much for the input , I think I will go for the first advise , get the land and fence , will be left with 18m to invest in the TB , thank God I came here , would have gone to build the house and get a car for myself, establish a small biz before thinking of investing in the TB

Next date for TB pls

cooldudeng:
It’s advisable not to post the amount in question in a faceless forum for security reasons

That said, I will say both are almost the same but it’s dependent on you and some other reasons

1) T-bills gives you your interest upfront. Your 10million would give you about 1.2million upfront (going at 12% for 364 days). That upfront is available immediately to be re-invested in another T-bill there increasing your true yield ( Rate/(1-Rate)). You can also decide to use the interest for other investment purposes or even business.

As for Mutual funds, your interest is not available immediately and it’s only compounded monthly or quarterly ( like Axa mansard). However, withholding tax will be taken from your interest

2) T-bill interest is free of charges like withholding tax ( currently 20%). However, the banks takes some minimal fees (storage fees or something like that)

3) Lastly and I would say this is the most important. T-bill rates are fixed while Mutual is floating. If you are sure the rates will go up in the nearest future, then Mutual is the way to go or a short tenor T-bill. However, if unsure, T-bill is better

Personally, I tend to do T-bills for funds that I don’t need immediately while I keep mutual for funds that I can need anytime. Good thing about Axa, there’s no waiting period for crashing your mutual ( which could be a bad thing if you are not disciplined)

Note: I don’t work for any investment house.

Thanks soo much for this. Brilliantly written.

Thanks for the clarification. I got it now.

Bamz:


At 11%, you're having 0.11 * 2m * 182/365 = 110k

110k+14139 =124139

124139 - 2594 (processing fee) = 121545

So it's close enough.

ahiboilandgas:
But if u choose to do tb and build in 4 years time tb will generate around 10m for u .use 8.5 to finish your house over 4 years and 1.5 to rent over 4 years ...in ten years time u have your house and investment in excess of 33m in tb but warning Nigeria is unstable nation .block was 40 naira in 2004 now 150 ,cement 1200 now 2500 ,worker 1000 per day now 2500, rod 750 per day now 1900 wire 1500 per bundle now 5000 k ....i suggest u build your house IF u DOn't have any personal home but u must stay in the house and stop renting

Is it advisable to borrow money and invest in Tbills?

theoptimist298:


Is it advisable to borrow money and invest in Tbills?

it depend on interest rates ,if u live in america where interest is 0.1 percent on loans and tb in Nigeria is 13 ....why not



But if u collect loan at 23 percent then place in tb 12 percent u have a loss of 11 percent

theoptimist298:


Is it advisable to borrow money and invest in Tbills?

Yes, if you can borrow at say 5% per annum.

Sach:


My bitcoins are stuck with usi-tech, any idea how to get them back ....? Thank you.

Count your loss, crypto is a two-edged sword, it can make or destroy you, but those promoting it ll only tell you the good side. I have been a crypto enthusiast for over 4 years now. With crypto, u can be a rich man in the morning and become a pauper in the evening.

My FGN Bond of 5years matures today.
I have done bond,fixed deposit and tbills.
I can confirm that tbills remain the best!

Indicative Rate as at yesterday 27/06/2019 as stated by Afrinvest Securities Limited ;

theoptimist298:


Is it advisable to borrow money and invest in Tbills?

If borrowing in USD to invest in NTB

Be careful though..folks tried this back in 2016 and got burned when the naira was devalued...all the interest they earned from TB was wiped out..and then some.

Imagine the Naira getting devalued (and e.g. the $10,000 you invested in TB now becomes $5000 when converted back), you still have to pay back the loan in USD.

If the Naira/Dollar exchange rate stays relatively stable all through the tenure of your TB then this is a great strategy..otherwise, you don enter one chance bus.

Bravedude112:
My FGN Bond of 5years matures today.
I have done bond,fixed deposit and tbills.
I can confirm that tbills remain the best!

why tb over bond Bond around 15.54 ,tb now 12

ahiboilandgas:
why tb over bond Bond around 15.54 ,tb now 12

inflation in 5 years can wipe out your profit in bond...unlike tbills which you can considerably control...5million now does not have same purchasing power as 5 years ago..

1. Bond requires a longer tenure (not good for someone who might have another business opportunity calling)/ tbills is 1 year maximum (you can quickly use your money to do some business upon maturity and make some profit before reinvesting in tbills)
2. Bond you receive coupon (interest) every 6months and can only invest the coupon after that/ all tbills interest is instantly and you can reinvest the interest making even more money.
3. Bond interest rate remain the same until maturity (many years)/ in the process of waiting for bond 5years or more there is a big possibility that tbills rate will go higher than the rate which you invested your bond and ofcourse you can compound the interest making even more money.
4. You can decide when to pull out from tbills very easily.

ahiboilandgas:
why tb over bond Bond around 15.54 ,tb now 12

HeliosHay:


I tend to look at the below factors

1. Interest rate - If the interbank lending rate goes up..TB rates might follow suit

2. Inflation - In inflationary environments, investors are forced to reach for greater yield to compensate for diminished purchasing power in the future.

3. Crude Oil price - If price declines, the government has less FX income and so it has to source more money (than usual) for capital expenditure by issuing TB at a higher rate

There could be other factors to be aware of...these are the ones i know. I just keep an eye on them..how they move will help inform the direction of TB rates (up or down)

I had to take a screenshot of this. in other words,forget t for now

Bravedude112:
1. Bond requires a longer tenure (not good for someone who might have another business opportunity calling)/ tbills is 1 year maximum (you can quickly use your money to do some business upon maturity and make some profit before reinvesting in tbills)
2. Bond you receive coupon (interest) every 6months and can only invest the coupon after that/ all tbills interest is instantly and you can reinvest the interest making even more money.
3. Bond interest rate remain the same until maturity (many years)/ in the process of waiting for bond 5years or more there is a big possibility that tbills rate will go higher than the rate which you invested your bond and ofcourse you can compound the interest making even more money.
4. You can decide when to pull out from tbills very easily.

solution buy bond then reinvest the 6 month interest on tb ...

ahiboilandgas:
it depend on interest rates ,if u live in america where interest is 0.1 percent on loans and tb in Nigeria is 13 ....why not



But if u collect loan at 23 percent then place in tb 12 percent u have a loss of 11 percent

Pls sir, where in USA, is interest 0.1% and moreover is it 0.1% per week or p.a. Which of the bank pls?
I am really curious because even treasury bills rate in USA is around 2.30% which means interest rate on bank loans should be above that else every Americans will borrow money from bank at 0.1% to invest at 2.30% in treasury bills, CD, bonds and other money markets instrument.

Jejebabaa:

Pls sir, where in USA, is interest 0.1% and moreover is it 0.1% per week or p.a. Which of the bank pls?

na for new we dey hear ask cnn

cooldudeng:
It’s advisable not to post the amount in question in a faceless forum for security reasons

That said, I will say both are almost the same but it’s dependent on you and some other reasons

1) T-bills gives you your interest upfront. Your 10million would give you about 1.2million upfront (going at 12% for 364 days). That upfront is available immediately to be re-invested in another T-bill there increasing your true yield ( Rate/(1-Rate)). You can also decide to use the interest for other investment purposes or even business.

As for Mutual funds, your interest is not available immediately and it’s only compounded monthly or quarterly ( like Axa mansard). However, withholding tax will be taken from your interest

2) T-bill interest is free of charges like withholding tax ( currently 20%). However, the banks takes some minimal fees (storage fees or something like that)

3) Lastly and I would say this is the most important. T-bill rates are fixed while Mutual is floating. If you are sure the rates will go up in the nearest future, then Mutual is the way to go or a short tenor T-bill. However, if unsure, T-bill is better

Personally, I tend to do T-bills for funds that I don’t need immediately while I keep mutual for funds that I can need anytime. Good thing about Axa, there’s no waiting period for crashing your mutual ( which could be a bad thing if you are not disciplined)

Note: I don’t work for any investment house.

Please, what are your thoughts about Equity Fund (I understand there are different types of mutual funds). Knowing it has the greatest risk, is it something you would recommend in this dispensation?

ahiboilandgas:
na for new we dey hear ask cnn

I am really curious because even treasury bills rate in USA is around 2.30% which means interest rate on bank loans should be above that else every Americans will borrow money from bank at 0.1% to invest at 2.30% in treasury bills, CD, bonds and other money markets instrument.
That news must be misleading though.

Jejebabaa:

I am really curious because even treasury bills rate in USA is around 2.30% which means interest rate on bank loans should be above that else every Americans will borrow money from bank at 0.1% to invest at 2.30% in treasury bills, CD, bonds and other money markets instrument.
That news must be misleading though.

The interest rate may be lower in face value but the aggregate interest especially when calculated on a reducing balance method (compounding interest) could be as high as 20%. Beyond the rate, I think the payment plan is also an issue.

Jejebabaa:

Pls sir, where in USA, is interest 0.1% and moreover is it 0.1% per week or p.a. Which of the bank pls?

No bank in the U.S. will give you 0.1% interest rate on personal loan, student loan, car loan or even mortgage. Getting a lower interest rate loans depends on your credit history/score. If you have an excellent credit score then you can secure a good/lower interest rate for personal loans from 4.99-10% or even higher.

Yes you can get 0.1% interest rate on your savings, cds etc but not on loans. I hope this helps. God bless

Acidosis:


The interest rate may be lower in face value but the aggregate interest especially when calculated on a reducing balance method (compounding interest) could be as high as 20%. Beyond the rate, I think the payment plan is also an issue.

There is no way, the bank loan will go as high as 20% per annum except its credit cards loan. I applied for bank loan already and its less than 4% per annum. I am only curious to know the bank ahiboilandgas is referring to 0.1% to chop for it.

bendo75:


No bank in the U.S. will give you 0.1% interest rate on personal loan, student loan, car loan or even mortgage. Getting a lower interest rate loans depends on your credit history/score. If you have an excellent credit score then you can secure a good/lower interest rate for personal loans from 4.99-10% or even higher.

Yes you can get 0.1% interest rate on your savings, cds etc but not on loans. I hope this helps. God bless

Thanks sir, anyway, the one i got was a bit less than 4%, you are right as it depends on your credit history/score and monthly income. Someone with a higher salary than me got a better interest rate than i got.

Jejebabaa:


Thanks sir, anyway, the one i got was a bit less than 4%.

Good for you brother. If it’s a personal loan for that rate, then you must have an excellent super credit score and you are lucky too.

bendo75:


Good for you brother. If it’s a personal loan for that rate, then you must have an excellent super credit score and you are lucky too.

You can't be on Nairaland investment section and have poor credit score except there is a job loss/paucity in income flow.

SaintUlot:



Count your loss, crypto is a two-edged sword, it can make or destroy you, but those promoting it ll only tell you the good side. I have been a crypto enthusiast for over 4 years now. With crypto, u can be a rich man in the morning and become a pauper in the evening.

So let's correct this notion, there are Ponzi schemes and there are tokens with real life use cases, some of which backed up by institutional investors even in the US.

If you've bought any of the top ten coins say Ripple, Bitcoin, Litecoin etc since 2014, you will come here and be displaying your networth because you will always have a positive return, atleast you check the charts for yourself. Hodlers are the smartest kind of investors cos everyone is looking for instant gratification.

Anyone that has the patience to wait for 5 years should consider getting some cryptos to their portfolio. The aim is to diversify.

If on the other hand, you've dabbled into shady ICOs, Ponzi schemes, HYIPs, since 2014, your case will definitely be different.

lizzypro:
How did you go about this

by saving at least N15k monthly in my mmf acct
and investing tbills every 7 months
Then start another saving cycle with the tbills interest.

bendo75:


No bank in the U.S. will give you 0.1% interest rate on personal loan, student loan, car loan or even mortgage. Getting a lower interest rate loans depends on your credit history/score. If you have an excellent credit score then you can secure a good/lower interest rate for personal loans from 4.99-10% or even higher.

Yes you can get 0.1% interest rate on your savings, cds etc but not on loans. I hope this helps. God bless

U re right sir ..and even if u have a good credit history without a paystub/check its still goin to be lil bit hard get a personal loan from banks
unless apply CC or go to lenders based on car title and rates are v. high

Jejebabaa:


There is no way, the bank loan will go as high as 20% per annum except its credit cards loan. I applied for bank loan already and its less than 4% per annum. I am only curious to know the bank ahiboilandgas is referring to 0.1% to chop for it.

U re lucky jeje ..most credit unions do give such lower rates

lancee:





U re lucky jeje ..most credit unions give such lower rates

I applied via my salary bank account. Its autopay and i went for 36 months, so they deduct it from my salary monthly. I did same thing with them when i took auto loans 5 years ago and finished paying the ballon payment.

Jejebabaa:


I applied via my salary bank account. Its autopay and i went for 36 months, so they deduct it from my salary monthly.

Exactly thats what they want to see ..That was a good deal for Personal loan mostly comes from 6% upwards