Why do politicians steal?
Why do we work and work and work and rub ourselves of joy and peace?
How much do we need to have to be happy?
Why do poor people make poor decisions?
One unique theme is common to these 4 sets of questions, poverty (slavery) mentality or lack of economic security.
These 3 buckets of people believe amassing so much money, by all means, will ensure future prosperity for them and their offspring’s. But unfortunately, in the very near future, the concept of inheritance writing in wills will can change from houses and tangible assets to digital assets. These assets such as stock account, bank account, will be inform of credentials.
Software has eaten the world and everything will be possible from a mobile app, who ever has assess to control the mobile app accounts controls the assets. In the future inheritance wont be house but login details, emails, sim cards and password.
Financial educations is the key to these problems.
With a little as 1,000 USD for 20 years, one can have a portfolio of 50,000USD in proper context. 50,000USD is 25Million and in 20years will be about 40 Million based on a simple arima time series forecasting model.
A civil servant worked for 30 years and retired his salary when converted to dollars at the begining of his career and end was the same. He was employed at 30,000 then dollar to naira was 30 so that’s 1,000USD he retired at 360,000 at that point naira was 360 to a dollar.
In 1976 USD1 was about N1, in 2020 USD1 is now NGN470, that 470x in 44 years loosing over a tenth of value yearly on the average. In another 20 years, USD1 would be NGN710 and in 44 years time USD1 would be NGN940 using the same model above.
African economies have a weaker financial system compounded with over importation. When you now live in a country like Nigeria where oil exports account for over 75% of our budgets, obviously the government does not have any other option but to keep devaluing the naira to get more naira in exchange for the few dollars they received because price of crude oil has crashed.
Secondly, inflation the cousin of devaluation renders most investments in Nigetia useless for both local and foreign investors onces it’s a business domiciled on the Nigeria economy. Without exceptions are Tbill, Govt bonds, Fixed deposits etc.
Let me explain with 2 cases.
Because inflation rate is at about 18% per annually all investment into the any of the above actually reduces the value of the investment. If you put 1Million in Tbills at 8% per annum by the time you cash out your investment you have actually lost 18-8=10 due to inflation.
Another double whammy is borrowing money abroad to trade with the likes of Shoprite and even startups funded from overseas. Every devaluation puts more pressure on these businesses to earn more money to cushion the loss as a result of inflation.
On a personal note, I borrowed 20,000USD to buy Thermometers during the COVID-19 pandemic, then dollar was at 360, but the time i started selling the goods, dollar was at 470. I was lucky to have not promised return on USD but a naira commission on every unit sold.
Another typical example is Dangote, he lost his position as the number xyz richest man in the world not because he stopped making money but the currency with which he does business is epileptic and powered by a weak financial system.
What’s the solution.
Earn money in dollars or better still export your products or services and put some portion into foreign stocks. Not only did you buy into peace but also help increases our dollar earnings and means less pressure on our beleaguered economy.
How do I do that?
1. Join Nollywood and start acting films that are export grade. Not easy right?
2. Become a developer and do remote jobs. Ah how?
3. Become a farmer and export your produce oversea, Nigeria came out of recession in 20017 through sesame seed, cocoa and shea-butter. But am not a farmer!
4. Open account on Mywallstreet, Trove and Bamboo, sounds soothing…..
The essence of these exploratory writing is to consider foreign stocks most especially as a tool to collective prosperity and trans generational wealth building, since everyone can invest in stocks, I STONGLY RECOMMEND US Stocks.
Within 20 years, a portfolio can grown 21% on average per year. That may not sound like a lot, but thanks to compounding (which you will learn about shortly), those returns would turn $10,000 into over $450,000. Not everyone can achieve such amazing results.
Little wonder Albert Einstein said compound interest is the 8th wonder of the world, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” However, this is what is possible if you commit to long-term buy-and-hold investing and follow some very simple rules.
1. So what’s the heck about Stocks?
Owning stock means owning a piece of a company.
Invested funds are working for you 24/7.
Invested money can grow much faster than cash in a savings account and in a country like Nigeria where inflation rate is higher than interest rates. Capital depreciation happens daily.
Ever wanted to own part of a great business? That’s exactly what happens when you purchase stock. You’re buying a part of that company and no matter how small, you are a co-investor. As a part owner, you’re entitled to a share of the profits and assets of that business.
You can profit in many way, but 2 are popular.
The company can pay money through dividends shareholders and is paid on a regular basis for being a shareholder. Also when the company grows and the price of share increases, as a shareholder you can decide to sell your shares and pocket the returns.
While money kept in a savings account gets eaten away by inflation, invested money is working for you 24/7. Unlike a bank account with fixed interest rates, you investment can multiply many times over if you invest is made in the right companies.
The stock market has the potential to returned above 10% annually (without factoring in inflation) better than keeping money in a savings account.
2. What are your financial objectives ?
Investing: No better time to start like now!
$2,000 can turn into almost $50,000 after 40 years (at 10% return a year).
Investing in stocks can be a form of retirement plan and meet up with other financial goals.
That 10% average increase may not sound like much, but given time, this interest compounds to produce incredible returns. It sounds unbelievable, but it’s completely possible if you understand compound interest, just play with the numbers over a long period of time.
Don’t invest in get rick quick schemes, the keep to profitable investment just like marriage is long term, the longer you have your money invested, the more powerful compounding becomes. Hence, the earlier you start, coupled with lots of patience and less Esau mentality, the greater returns you will reap in the future.
However, you don’t need $2,000 to get started. You can start small and keep adding to your investment over time. You’ll be amazed how quickly your investment can grow. In fact, if you added $50 – $100 a month, a $2,000 investment can be acheived in less than 3 years … for a future of close to $1 million in 40years or less with no effort.
The only effort is some research to identify great comanies and go long with them. They can deliver a magnificent return in shorter period, lets consider Tesla within the last 365 days, it has returned over USD600 in a $125 investment (23rd Jan, 2021).
3. What is the next line of Action?
a. Make up your mind to save for the future and stay committed to it.
b. Saving 10% of your total income is a good goal
c. Make the contributions promptly just as you would do if you belong into a cooperative or signup for up automatic deductions in platforms like piggyvest or Gtbank and the funds can be transfered into to designated investment portal.
You can’t invest without being a disciplined saver, ensure you stick to your plan, save first before you start spending, also loose cash can can also be transferred because we end up buying shoes/phones and ephemeral items with them. So, as a rule of thumb, dont safe what you didn’t spend … save before spending. It’s called pay yourself first.
with a well planned future, the temptation to steal or abuse our respective positons are limited and based on the introduction video, what is/are the answer(s) to all those questions?
A lack of guaranteed income either through our own personal efforts, or through the government cover or from proceeds of our investment causes financial anxiety. An assurance of guaranteed incomes increases peace and evidently paves a way collective prosperity.
Financial intelligence involves a lot of research and it’s pleasing to note that Cryptocurrencies Wallets and Agricultural investment platforms (Agropartnerships and ComX) are here to stay and worthy of exploration. To fully optimize and hedge resource, these two platforms are fairly viable to explore and take advantage off.
Bitcoin is huge and it’s swings can lead to Blood Pressure, but a patient investor will not be perturbed with the ups and downs and stay focused for the long run. Its a proven strategy to invest in Crypto (personally, I do not encourage Cypto trading, its close to wizardry/witch craft) since it impossible to determine the main cause of price movements.
However, The much awaited Ethereum 2.0 is live and first stage of Eth 2.0 went live in December, attracting validators wanting to participate in staking. Each of these validators needs “to deposit a minimum of 32 ETH to participate,” he explained. “That ETH is then locked until the release of Phase 2,” which will happen in 2022 at the earliest. The lock the tokens in to prevent the price from plunging and et rewarded after the release.
This continued interest from big players have attracted both retail and institutional investors. Square (SQ) bought 4,709 Bitcoins for $50m, while MicroStrategy purchased $1.13bn worth of BTC. In the meantime, the world-renowned digital payment service PayPal (PYPL) launched a new service that allowed users to buy, hold and sell cryptocurrencies within its digital wallet
Currency speculators are predicting the price of Ethereum could be more stable over the next several years. It is predicted that he value of ETH will over above $100,000 in the next 10year and this year prediction of 1,000 have been surpassed.
IF all these happens then investing in crypto wont be a bad idea after all.
On Agricultural Investment Platform:
The mass adoption of internet and smart phones has greatly improved the supply of funds to farmers main through crowdfunding principles. A farmers is funded with a promise to return 30 – 40% in as little as 6 – 9months, it’s being working and most recently, I discovered AFEXNIGERIA and Agropartnerships from Farm Forte. They have warehouse to help farmers store and sell their farm produce, someone like me can buy Maize at harvest time when there is a surplus and prices are down, store in their warehouse for a small fee and sell in the dry season when prices are high, they take a small fees, i collect my money and profit. Win-Win, collective prosperity!!!
Ordinarily, this wont have been possible at scale without internet. On this agtech platforms the economics of scales favors both the farmer/afex/investor. We now live in a sharing economy and aggregation or resources is faster and easier.
In all, I like this idea because from the comfort of my room, I can buy bags of maize in a warehouse in Zaria and sell them 6 months after without having to transfer the maize or even see the color of the sack of the maize.
This is another form of trade wizardry.
Inconclusion here are my investment roadmap.
My investment advice
1. Stocks (US/China)
a. Bamboo app
b. Mywallst app
2. Agro Commondities
a. Agropartnership in raining season
b. ComX in dry season
The possible ROI
1. Cryptocurrencies 1000%/year HYIP (concentrate on first 10 on coin cap)
2. Agro commodities 30%/year (concentrate on Afex)
3. US Stocks 15-25%/year (concentrating on recommendations)
The crypto is a High Yield Investment Program (HYIP) which can go either ways but the volatility means a large amount of money can be made in a short period of time, when this happens, the proceeds are divested into less risky ventures like Agro commondities and US stocks.
I invest in Agropaerrnership sweet potatoes in the raining seaon and move my money to Comx in the dry season
Shoot the proceeds to US stocks like Tesla, Apple and NOI as the final resting place of my cash for my retirement plan. My retirement plan is my main investment objective.
My investment philosophy will be excuted thus:
-50% into US Stocks
-30% into Agro
-20% into Crypto.