5 Ways to Invest 100k | How To Grow My Money | Personal Finance Tips
5 Ways to Invest 100k | How To Grow My Money | Personal Finance Tips

As a kid, my friends and I would
fantasize about the Richard Pryor movie Brewster’s Millions. In this movie Richard Pryor’s character has to spend 30 million dollars in 30 days without
having anything left at all. My friends and I would argue about what we would do
with that kind of money and think of different ways that we
could squander 30 million bucks then eventually decide it’s easier
to just keep the money and run. So let’s play a similar game but with a slightly
different set of rules. First off instead of squandering our money we’re gonna
find ways to make it grow second instead of 30 days we’ll increase the time frame
to one year finally we’ll change the amount it’s quite easy to invest 30
million dollars but what if you only had 100,000 there if you can successfully
invest a hundred thousand naira 30 million in your account won’t be a
problem wink and at the end of this video
recording I’ll be sharing some details of the executive investments
I make personally and how you can get started today so stay tuned so the first
we invested $100,000 is in mutual funds specifically money market funds a mutual
fund basically it’s a type of investment where an investment company pulls
together money from different people to invest in various things with a money
market fund the company invest this money in money market instruments like
government bonds and Treasury bills to put it in a different way you and a
bunch of other people are basically loaning the government and other big
corporations money at very good rates so white money market funds and not the
other gazillion types of mutual funds for one the investment is relatively
safe because usually your principal that’s the money you’re investing
remains intact even if the interest rates fluctuate look at it this way
you’re basically learning the government money right so so long as the country
remains intact your funds are safe number two the entry
requirements are pretty low you can start with as Louis
Vox mm air if you have to invest directly in government bonds or Treasury
bills you’d need nothing less than a
millionaire number three you can easily access your funds like an actual money
market instruments where you can just liquidate me to a to an investment cycle
you can always top your investments in money markets funds and we throw your
money at any time with no impact on the principle that you’ve invested only the
interest would be affected who all will be so charged number four the returns
are usually good in the past five years on average I’ve made about fourteen
percent return on my investments and money market funds in Nigeria and this
is not accounting for the fact that we had a recession in 2016 when the rates
dropped below seven percent this 14 percent is still higher than the average
inflation at the same time frame definitely better than what you’d get in
all the investment options in a similar category looking at your savings
accounts one of the advantage of this type of investment is that you really
don’t need to learn anything you just deposit your money with the investment
company and wait for your monthly returns what I do personally is acts
like company to roll over my investments each month with interest
this way benefit from compound interest to make it even juicier you could
increase your contribution every month as well and then you co have at the end
of the my friend a niala put out a video a couple of weeks ago where he explained
money market funds in detail and he also gave links to a number of companies that
offer the service in Nigeria I’ll put a link to his video in the description and
you can check it out and I also mentioned the company that I use that
I’ve used since 2014 at the end of this video so the second we invest a hundred
thousand original life insurance voluntary pension contributions I’m
going to group this two together for the same reason they both help to reduce
your tax burden for joining we start with the pension contributions the
Nigerian income tax law was last amended to encourage salary earners to plan for
long term by law your employer must eat up 8% of your basic salary and also
contribute another 10% towards your pensions this 8% is deducted from my
salary goes on taxed and is invested by a pension fund administrator ahead of
you in retirement from paid employment however you have the option of
increasing the amount that you contribute to your pensions and whatever
increments you add to your pensions will also go on tax another part of your
salary that is also exempt from tax is whatever premium you pay on your life
insurance policy unlike the pension contribution however
it’s not deducted from source you need to make the payments first and then
rethink the taxes after so why is this a good investment
consider the fact that the average personal income tax in Nigeria is 24%
you can take it as a 24 percent return or whatever you contribute toward your
pension and this is before the pension fund administrator begins investing the
pensions over your entire working career so in the long run your additional
pension contribution each month turns into a significant amount look at it
this way if instead of making the additional pension contribution you had
the money in the savings account the money in the savings account will have
first been taxed by 24% you don’t experience this with your pension
contribution on taxed it is invested over a long period of time and then the
returns do make a lot of sense if the life insurance came the particular sum
of money is guaranteed to be paid to your beneficiaries if anything were to
happen to you within a specified period of time after that period of time
usually get your contribution back the benefit however is that each he’ll make
the premium payments for life insurance you can reclaim a portion of the tax
that was paid on the insurance premium at current income tax rates that’s
actually been a good return on your investment to increase your pension
contribution you only need to inform your empire and they will increase the
monthly pension contribution deducted from your salary be sure however to
check with your pension fund administrator as you confirm that this
has been implemented to get started with your life insurance policy talk to an
insurance broker I’ll let you know the insurance company I usually turn in the
video however make sure that it is a life insurance policy that you get and
not any other type of savings policing the downsides of this investment options
however is that it’s for the long term and you don’t have access to the
contribution or the 24 percent returns in the short term you can’t access your
pension until you’re 50 years old well you’ve been without a paid job for
at least four months and for life insurance you must have contributed the
premium payments for at least a full year
you can however access up to 50% of your voluntary pension contribution after two
years with the benefit of the twenty four percent tax exemption
now whatever interest might have a crew that period the interest of civic tax
the bill narrow matrix has a very detailed article on how tax exceptions
are calculated in Nigeria and I’ll link to this in the description the article
also provides a sample template they can use to calculate how much tax you the
pain if you decide to increase your pension contribution option 3 is my
favorite investment vehicle and my first love a paper sets are concerned and
that’s interesting the stock markets 20 shares now he gets a bit more
interesting with as low as $50,000 in the brokerage account you can easily
start investing in the stock market if you know what to look out for you can
grow the value of that $50,000 significantly beside the fact that the
value of your investments or appreciated a tiny also receive regular dividend
payments if you buy into the right companies however I must warn you
unlike the first two investment options where you don’t really need to learn
anything new you can’t get your fingers points investing in shares if you don’t
know what you’re doing or if you just speculatin and I knew people that I’ve
lost to write millionaire and shares I know people who have actually gone into
depth they board money and went to debt speculating on on the stock market so
you really need to know what you’re doing where stocks are concerned I’ll
put on a separate video on investing in the stock market how to select the right
companies so look out for that in the coming weeks I’ll also tell you which
stock repair fees for the past ten years at the end of this video
my fourth investment vehicle in Nigeria and is often considered
controversial this is crowdfunding it’s similar to a mutual fund and that you
basically join mean other people to contribute towards an investment the
difference here is that the investment is not money to pay a financial
institution or government body instead you’re investing directly with a company
doing the business obviously this is a more risky approach as the business it’s
usually not an established one that’s why they need the funds and often they
have a higher risk of failure there is also the risk that the company
investment is an outright scum or a Ponzi scheme how put out a separate
video on how to identify his can return on the upside though the returns are
usually much higher than the investment options I mentioned earlier with the
interest rates ranging from 20 to 40 percent per annum with this type of
investment I usually test with a small amount that I can risk losing all
together before I go all in usually those who helps if the investment is
insured or affiliated with a more established organization in some way
remember always do your due diligence and try to understand how the business
makes profit and what will ensure that it’s sustainable in the future our
nation or particular crowdfunding investments that have been active with
this is January 2017 later on on this video so my last thing this medical
channel is going to be wait for a mortgage savings are car loans however I
recently started my journey into property developments in Nigeria and
looking at the cost estimates I’m having everything so if I’m to grow a hundred
thousand there in one year I would start a business full disclosure and yet to
starts this investment option per person but I stumbled on a Twitter post about
this I’ll link below and you’ll be surprised at the number of businesses
that you could start with just a hundred thousand there my favorites include
certain of the quote constant a cleaning service and digital marketing in general
I’ll make a video about this sometime in the future hopefully when I’ve started
one of them when I can share my own personal experiences however always keep
this in mind a business like any investment is only profitable when you
income exceeds your expenses it seems obvious but you need to always do the
math and keep your costs low also remember that cost includes your time
because that’s time that you could easily spend on other things so your
goal should be to structure the business such that you an owner and not an
employee in other words you shouldn’t always have to be there for the business
to earn otherwise you didn’t set up a business you bought yourself a job
finally as promised I’ll be sharing details of the companies that invest
with and how you can get started today before I continue please note that this
is not a sponsored video and I’m not being paid by anyone to talk about these
companies and basically recommending with
over the years in the hope step you will find it just as useful for your own
investments so let’s start up for money market funds have used air and
investment manager since 2014 and I’m quite happy with the service the return
of us incredible as the way in 2017 I mean then the bigger as high as it in
the same time that’s ridiculous but the returns are still imposing inflation
rates this is what I use as my default form of savings every month the funds
remain quite accessible under its supersede any other savings account that
I’m aware of for insurance I use new job benefits life assures and while they had
their challenges it’s easy to keep track of your contribution and I’ve been able
to clean my tax rebates consistently every year since 2014 when I started my
pension fund administrator is stomach a participation managers they’ve have a
pretty decent website that makes it quite easy to keep track of your
employer contributions and your volunteer contribution separately my
stockbroker has lead Securities and Investments while I choose what stocks
that I am investing they are quite responsive and they execute my buying
and selling decisions very promptly they also have an online portal that works
well for most of it I’m unable to even make same date which is an sills from
crowd is an organization that I am that invests in agriculture in Nigeria
through crowdfunding I started investing with them in 2017 and I’ve received my
returns consistently since the best thing about them is that their fans are
insured so if anything goes wrong with the crops your phones remain secure my
first investment with them was actually with two metal firms and they actually
had some challenges with a Tomatoes died here but I still got hit my not just the
amount that I invested but the promised interest as well so that’s it my five
favorite ways to invest and grow your money
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size of the picture it’s how you use it

7 thoughts on “5 Ways to Invest 100k | How To Grow My Money | Personal Finance Tips”

  1. Omolade Oni says:

    Thank you for sharing…

  2. Grizzly Bear Finance says:

    Thanks for sharing, Modupe. In our opinion, as long as the money is being used in a way that it can grow with the highest safety margin, it's all good. Mutual funds, index funds, single stocks, company 401ks, you name it. No financial product is perfect but as an investor, you can work to find instruments that are the best of what's available.

  3. Modupe Sanda says:

    Thanks for watching! What has been your experience with investing? Please leave a comment below. Thank you! 🙂

  4. Awoponle Matthew says:

    Wow! It's a great video boss. I really look forward to seeing more of such videos.

  5. Izuchukwu Osakwe says:

    Wow! This is awesome. I can't wait to see more of your videos

  6. enaworu oghenevwoke says:

    Thanks for the video. Pretty instructive and useful!

  7. Ehimhen Donatus says:

    thanks for the video. Great educational content. pls for Money market mutal fund, is there any tax fee attached to your account

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