₦airaland Forum

bamidbamid:
U are very correct, Infact CHARTING is one very Important Activity U must do B4 u buy any Land. (I've no intents to digress this thread, Given that this isn't the Property section)..

Juliearth:
You seem not to understand my point. Okay, let's put it this way: some can afford to finance/have these things with a 100k and others more...

Hottdawgg:
50m may look decent, but u might blow this in 5yrs. U will need a new car, buy diesel for the Gen, maintain or possibly replace the Gen. Family and Social obligations. Pray your children are able to support themselves.

Indeed Nigeria is a costly place to live in like some one said. I wonder how far a home with 50m in Ghana will take you.

maasoap:
Many helpful posts here but yours stood out. I've copied it into my online Notepad for future reference

Hottdawgg:
I think I got you alright but I am talking about ideal retirement conditions. You can retire to an apartment where u pay 5k per mth and 20k on feeding to keep costs down. Is it possible? Yes but it is certainly not ideal. Like the other fellow said (and I agree) 100k today could be that 20k a few years down the road on account of inflation.

Kubernetes:
No one has mentioned the pension funds.

sassysure:
I have a retired granny 84yrs who is like a mum to me living her life to the fullest.
The husband is dead. Children are all doing well in their respective homes. Asked her how they did it( in all my life, she is the only elderly woman I now that seem to be more than self sufficient).

She still live in Lagos with her dog and driver. She cooks too.

She told me to start early. As a young couple, don't follow the crowd. E.g., when your mates are busy buying the latest wrapper( I think that was the reigning clothes during her time) save the money and invest in landed property. Save and invest in stock. Save and send your children to the best school. Look for anything that will yield profit for you and invest in it. Do not keep your money in the bank. Monitor and follow them.up diligently. Of course, some will fail, others will succeed but don't be relentless. Once you finish training your children in school and they are now comfortably working, start saving.

All those investments would have started yielding good returns. In abroad,the adults enjoy life more than we younger ones as they don't have as much worries as we do.

This lady travel outside Nigeria like going to the kitchen to cook food and on each trip, her travelling box is always filled with gifts for her grand kids.
U know the naija culture, the kids still give her money but she will use the money to buy gifts for children.
Her asset with the late husbands added should not be less than 8hundred million. That's the one I know of.

She invested on housing in UK too.
My father in law invested mostly in stock market a lot.

The only thing he can comfortably collect from his children as gift are clothes. As for the rest, he will tell you to use your money and invest wisely so u won't suffer during old age. That's abroad mentality. The difference between this two people I mentioned is that they have stayed and worked overseas to know that your retirement plan is never your children.

You don't train your child to depend on him or her for retirement. It's because we have useless govt else all these elders should be on monthly upkeep from the govt and with free healthcare especially for those that didn't save or invest enough for retirement. That's why there is so much burden on kids to make it at all.cost to take care of their elderly parents.

Asquare84:
While you are working start acquiring real estate. That the only thing that will beat inflation. And generate continuous income at the time of retirement I work in the pension industry and my advice to most civil servant is to try and build many houses as possible, train your children in school and not look up to your pension money

Geosystem:
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Thought pension can go a long way in helping retirees

DameB:
Thanks for sharing these life stories with us. It's really true that saving and not going with the crowd & fashion helps.
God will save us ladies from money-wasters in the form of byforce asoebi

sassysure:
U are so funny @by force asoebi.

Let me tell u a little secret.


I have the means and right to host a society wedding but I didn't. No bridal train. A bishop wedded me so u can understand. Some of the guest who attended my wedding are governors, senators, name them but do u know I cancelled the wedding venue and decorated our compound for an outdoor wedding. The caterer was forced to cook in my house and we bought all she needed. I saved money. Big money. That wedding was the talk of the town and more classy than wedding you spent millions on.
When we were in Nigeria, hubby was working and earning very well. His juniors in office drives the best jeep, live where they pay like 650 or more in a yr. But u need to see his car. Not bad at all but around 1m. He later sold that car exactly the amount he bought it .
And he will abandon the car to climb keke. He worked in Lagos for 4 yrs and has 3 landed ppty at strategic places with papers intact.
Already he has 2 in Abuja. Was building on one so we will live there before he went on a transfer immediately after our marriage so he converted it to commercial house.
I went back to abuja( we built a family house there where all of us can come together anytime but he was wise enough to design that house to commercial house cos anything can happen and something did happen)
He left the country and I went to various ministries and local govt to secure all the properties. If it's a new place and the street hasn't been named, I will pay and give the street our name. I have been to nassarawa to check.out our land. And u know what, all these politicians and top govt officials have acres of land in those places as they know the countries map. The first land my husband bought in nassarawa cost him 100k, now it's 15m, still inside bush. One man is just farming on it. It's that costly cos federal govt will relocate one of the security apparatus hq there.

I have joined him and that family house has been rented out.

While his mates where busy( those that are really really below him) were busy enjoying the so called life, he was busy investing.
People see me in my house then in Abuja and mistook me for house keeper. I sold off one car when he travelled,I don't drive( don't need it) and I'm as simple as can be.
There was this incident when landlords were going around for whatever( I don't go for meetings) and they came to my house and asked for the owner. I said it's mine. They didn't believe it. Actually, that house is arguably the biggest in That area( 7 rooms, 3 kitchens, 3 parlour and 8 toilets with one dinning room), I don't dress up like big madam. I don't drive and I mingle with everybody. U know those landlords that use to splash water on me when they pass me, will now slow down and offer to give me a ride but I will politely decline. One lady saw me in my children's school one day she was taken aback. Was surprised I can send my kids to that school

U know why I went into detail to explain this, don't let the society and pressure rule your life for u.

I'm in another man's country and believe u me, u will think we have been here up to ten yrs. I'm just one yr while hubby is 3 yrs and we have children already. Even when I went to apply for visa, I was told that it's very hard to see a spouse apply for the other half this soon considering the money needed for it.
It was possible cos he didn't start doing what our people who just arrived were doing.

U can build your world and at the same time enjoy yourself if u think and plan smart. Don't live to please anybody. Be different. It's hard especially in a country where we love to show we have arrived.
I have lots to say but I will stop it here.

I don't own a car here yet. I will only buy a car when I see the need. And I do love good living.

baratech:
No amount is enough in nigeria

favinvest:
My simple financial retirement plan are:-

(1) try as much as possible to be liquid.. and avoid investments that will give headache & heartache during old age.. so investment like rent is out ( nor fit dey go draw house rent); non dividend paying stocks out. Buying land to sell ( I nor get power for omolile wahala)

(2) I will focus more on T.bills, dividends paying stocks, annuities & profits from my business

(3) I will avoid lagos like mad.. if I want to stay in lagos, then the suburb is where I will live. Where I will get goods and services at a very discounted rate. Imagine having an house help at these area, 15-20k per mth, they will over work for u.

(4) i will have an health insurance

So income wise, 150k- 200k is enough for a couple in the suburbs area. That should b like 24M in t.bills by 65yrs old ( cos I believe 60yrs is too early for retirement age).

While have an annual dividend of min.50k-100k.

Lastly, try to be a people's person at that age and u will never lack & b lonely...

Imagine being a community leader, pastor, deacon etc.. the younger people will b taking care of some of ur basic needs that require money by default

ogawisdom:
Retirement means accumulating enough assets that generate enough cashflow monthly to take care of your monthly expenses without you working.

If u still work to stay afloat financially then u have not retired. Whether u work for yourself or not u have not retired.

There is almost nothing like retirement for most Nigerians, we only move from one hustle to another till death do us part

mgbadike81:
There are some common formulas used by personal finance planners but i wouldn't burden you with such calculations, so I'll use a simple approach for you.if you intend to retire at 65, estimate that you would need a million naira a year in retirement (just a little above 80k a month) and forsee yourself living upto 85 years (20 years in retirement) then you need 20 million naira by the date of your retirement. This approach ignored the influence of double digit inflation prevalent in Nigeria. A bag of local rice that use to cost #5,500 in 2015 is now 20k, which shows you how fast inflation eats up retirement savings in Nigeria, if you do the mathematics above while taking inflation into consideration, you might be needing more than 100 million in present day naira to survive for the next 20years while maintaining the same standard of living. Also consider that you might need significant healthcare costs and paid maid help in your old age. By next twenty years, many elderly Nigerians might resort to suicide due to old age poverty, ill health and lack of care.

DameB:
30-50 million naira will maintain a modest lifestyle

Due to inflation and uncertainty in future policies, it's best to not to just save a particular sum of money and hope to live off of it for the rest of one's life.

1) Invest in rented commercial properties and residential properties , also event halls.
(This is the most expensive on the list)
If by retirement you don't have a house but you have money, buy a plot of land below 1M, build a simple 2-3bd that will cost below 6M (nothing lavish)

2) Drop some money in a money markets account with one of the financial banks so it can yield 12-15% interest p.a

3) Get good health insurance plan cos sickness can empty all you save if you are not insured

4) Adopt a healthy lifestyle- worry less, be positive, eat healthy, sleep well, exercise often. What's the point of early retirement if you don't have the physical body to enjoy it

5) Buy an annuity plan from an insurance company or a programmed withdrawal plan from a pension fund company- let them worry about investing and maintaining the funds you invest with them.

6) Guide your kids to be financially responsible so that they wouldn't depend on you financially and won't be planning your early death