Friday, May 23, 2014 9:14 PM / Research
Whether you have pension plan or not, it is highly advisable to follow this through and engage the investment plan with every sense of sincerity and discipline. No matter what you do for a living or how little you earn, investing for the future is very critical- and not a joke. Your attitude to your income in terms of spending and savings needs to be completely altered to 'Savings, then spend what is left NOT Spending and save what is left'- this is very fundamental. The beautiful aspect of handling it yourself is making the portfolio very liquid and robust without losing money to fund managers.
It is very difficult to secure a financial future while working for a firm that has no pension plan in place, this shows that your future retirement episode is already in jeopardy in the face of growing financial challenges like mounting up keeping/living expenses, high inflationary tendencies in the economy and unfriendly healthcare expenses etc.
Taking your financial future by your own hands requires some financial intelligence and the technical know-how, which is the focus of this write up. Investing for the future is what this write up will teach you, whether you have pension plan or not, it is highly advisable to follow this through and engage the investment plan with every sense of sincerity and discipline.
No matter what you do for a living or how little money you make, investing for the future is critical- and not a joke. These days, only 'Old-school' workers rely on a traditional pension plan, so it is up to every worker (formal and informal workers) to save for his/her own retirement. Learning to save and invest for the future is very key and that process should start as soon as you start earning your own money.
Your attitude to your income in terms of spending and saving needs to be completely altered to 'Savings first, then Spending NOT Savings after Spending'- this is fundamental, i mean very fundamental to your financial future and i hope you understand this clearly.
In considering investment vehicles suitable for the purpose of investing/saving for the future, we shall advise the following class of assets i.e. a proportion of savings into T-bills (90days, 180days or 360days), convertible Bond, FGN-Bonds, a balanced mutual fund, direct investment in blue chip stocks and Raw cash Savings with cooperative society.
With these set of assets, we have taken inflation into our calculation as these assets have capacity to work against inflationary effect, since the investment objective is long term.
Irrespective of your age, since you are still an employee, we sincerely urge you to adhere to this approach strictly as enumerated in a tabular format below. The standard pension contribution is 15% of your income monthly; we are recommending 35% of your income should go strictly into both savings and investment scheme for the future since you are handling it by yourself.
The beautiful aspect of handling it yourself is making the portfolio very liquid and robust without losing money to fund managers.
1.Long-term Investing: Mistakes to Avoid