MONEY AND RETIREMENT PLAN (II)
(Over 20 years investing experience in Nigeria’s financial markets)
Apart from investing in the stock market, there are other investment instruments in the money market that are less risky for those who think the stock market is volatile.
Some of the money market instruments we can invest in for our retirement are;
- Federal Government Treasury Bills
- Bankers Acceptances.
- Commercial Papers
- Bank Deposits.
Treasury bills are usually issued for a minimum of 91 days, but are discountable, that is you can recall your money before maturity. Investing in Treasury Bills is through dealers licensed by the Central Bank of Nigeria. Treasury Bills are highly secured and presently offer interest rates which are above bank deposit rates.
Commercial Papers and Bankers Acceptance are private sector instruments, which require fairly large amounts of investments funds and offer interest rates which are above Treasury bill rates. Commercial Papers are short-term unsecured promissory note issued by a company with a very high credit rating; the issuers of Commercial Papers use such funds to finance stock in trade and trade debtors’ account. Bankers Acceptance is a Commercial Paper backed up guarantee from a specific bank. The bank accepts responsibility to redeem the bill if the customer defaults.
We should remember that little drops of water make the big ocean, and a journey of a thousand mile starts with a step. The best time to start planning for our retirement is now, we must not procrastinate because procrastination is the thief of time, and time is a resource that MUST not be wasted.
All that is needed is a plan, a road map, and the courage to press on to our retirement financial goals. We must know that there are times when we cannot meet up with our plans, but we must also know that nothing can stand in the way of well-thought out plans backed by persistence and determination. Be realistic about your financial goals. Whatever our mind can conceive and believe, we can definitely achieve.
It is my sincere prayer that we will all be able to maintain or improve on our standard of living by the time we are retired.
Forbes recently posted that one of the surest ways of investing for your retirement is through MLM. Read some more: https://tochukwuezeukwu.wordpress.com/longrich-nigeria/