INVESTMENT FOR NOVICE..

Why should we invest? What is investing? Why should I bother? Investing is simply putting your money else where instead of holding the cash in your pocket. Buying a DSTV is investing, also buying a private placement is investing, buying a car is sometimes considered as an investment.

Now I know you would ask why I put a car there, cos actually a car loses its value over time….well I must let you know that there are good investments and there are bad investments. No kidding.

Now why should anybody invest his/her money? well the number one reason is Inflation, Inflation is public enemy number one to the wealth of everyone living on earth. It was, is and would always be there, so our primary aim of investing is to grow our money faster than inflation. You can achieve this in a number of ways, e.g a number of people invest in real estate, some in stocks, others in Bonds, some in commodities and some in commodities. In summary the more knowledge we have the less risk we incur and larger our percentage returns will be.

Annual Salary

Annual savings

Total funds after 40 years

Enough for Retirement?

N600,000

N120,000

N480,000

NO

This table shows our retirement nest egg after 40 years and sure it doesn’t look good.

So now you can make up your mind on how to start investing….and learn to live below your means….remember not to be tight handed but be reasonable enough to know how to put in money to areas where you can get returns that would see you through without touching your salary. There are certain levels of risks to be considered during investing….low risk,medium and high risk depending on your strength.

The key to an early reasonable retirement plan is to start now no mater how late it seems,you can do it, keep your ears down for private placements as they would give you higher returns especially when its a par value. For example ShapeCD Africa ltd. is selling a private placement for the company’s inception in Africa and you can be rest assured that you are buying into a billion dollar company and you can look forward to good dividends in a space on 10 months.

Make up your mind to invest now and make plans for your future today.

See you on top.

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