WEBVTT 1 00:00:03.080 --> 00:00:06.639 Hey, folks, I'm good evening to you all, and welcome 2 00:00:06.799 --> 00:00:11.199 to another money space with me carlu Aja. Of course 3 00:00:11.240 --> 00:00:16.559 on the space, we're here every Sunday seven pm, so 4 00:00:16.760 --> 00:00:19.559 seven thirty pm, sorry about that West African time. And 5 00:00:19.600 --> 00:00:23.239 of course we're talking money, the economy and finance, and 6 00:00:23.280 --> 00:00:27.399 the whole idea is to make ourselves better investors. That's 7 00:00:27.399 --> 00:00:30.239 why we're here. So guys, today we've got the topic 8 00:00:30.320 --> 00:00:33.600 of debt and just go to what we've been doing 9 00:00:33.679 --> 00:00:36.719 all to we say, from twenty twenty four December till 10 00:00:36.759 --> 00:00:40.280 this year. We're talking about the major themes in financial planning. Right, 11 00:00:40.640 --> 00:00:43.719 we're set up with the income and expenses. Then we 12 00:00:43.759 --> 00:00:47.560 went into network, which is your assets and your liabilities, 13 00:00:47.920 --> 00:00:50.679 and then of course we talked about also about investing, 14 00:00:50.759 --> 00:00:53.640 you know, how to do asset a location. We talked 15 00:00:53.640 --> 00:00:56.520 about inflation. We brought into folks that talked about how 16 00:00:56.560 --> 00:00:59.520 to even invest in tween twenty five and we felt 17 00:00:59.520 --> 00:01:02.960 it was all so expedient this week. Then talk about debt, 18 00:01:03.280 --> 00:01:06.959 you know, because death gets a bad wrap in investing. You know, 19 00:01:07.040 --> 00:01:08.799 lots of people say, oh I don't want to borrow, 20 00:01:09.359 --> 00:01:11.599 or lots of folks want to borrow, but don't know 21 00:01:11.680 --> 00:01:15.599 how death is not good or bad. Not even finance 22 00:01:15.680 --> 00:01:17.560 is good or bad. It's just how you use it. 23 00:01:18.000 --> 00:01:22.200 So let's do a space ast where on debt, borrowing, 24 00:01:22.280 --> 00:01:24.680 what is good debt, what is bad debt? And all 25 00:01:24.719 --> 00:01:27.120 that kind of stuff, right, so that we can learn 26 00:01:27.200 --> 00:01:30.879 and hopefully we can use that advantage. Of course, death 27 00:01:31.000 --> 00:01:33.760 is going to be from mortgages all the way to 28 00:01:33.879 --> 00:01:36.359 credit cards. Now, guys, it's going to be very interactive space. 29 00:01:36.400 --> 00:01:38.680 You know, I can really talk a lot about debt. 30 00:01:39.159 --> 00:01:41.920 If you guys ask us questions, it'll be fantastic so 31 00:01:41.920 --> 00:01:43.920 that we can all learn together. But let me just 32 00:01:43.920 --> 00:01:46.439 give you a primer. Right, They're just start with good debt, 33 00:01:46.439 --> 00:01:50.120 bad debt. Good debt is good is debt? First of 34 00:01:50.159 --> 00:01:55.280 what is debt? Death is front loaded consumption? Right, front 35 00:01:55.359 --> 00:01:59.519 loaded consumption When you borrow, what you're doing essentially is 36 00:01:59.599 --> 00:02:03.159 that you are borrowing against future income. So you're going 37 00:02:03.239 --> 00:02:06.920 to make money tomorrow, but you want to spend money today, 38 00:02:07.560 --> 00:02:11.159 so you borrow against that future income, and that that 39 00:02:11.280 --> 00:02:15.599 becomes front loaded consumption because you are borrowing to consume 40 00:02:16.199 --> 00:02:20.039 or to invest, so you are front loading that investment 41 00:02:20.199 --> 00:02:23.560 or that consumption. It means that you are created that 42 00:02:23.759 --> 00:02:27.240 whole in the future. Right, there's a hole in future 43 00:02:27.280 --> 00:02:30.039 you have created, so you have to cover that whole up. 44 00:02:30.360 --> 00:02:33.280 So the whole concept of debt is that when you 45 00:02:33.319 --> 00:02:36.599 borrow today, you want to make money to the next 46 00:02:36.759 --> 00:02:39.800 day to pay off in the coming years. That's the 47 00:02:39.879 --> 00:02:43.159 whole issue of death. If you are borrowing because there's 48 00:02:43.199 --> 00:02:48.599 an unexpected expense, the same thing you are front loading 49 00:02:48.639 --> 00:02:51.680 that consumption today, you are going to create a whole 50 00:02:51.719 --> 00:02:56.240 tomorrow which you need to cover up, which means right, 51 00:02:56.639 --> 00:03:00.560 Which means right that death can be good and debt 52 00:03:00.639 --> 00:03:05.319 can be bad if we can generate revenues today to 53 00:03:05.439 --> 00:03:09.560 cover up the expenses whole we have created to the future. 54 00:03:10.039 --> 00:03:12.159 So what's a good debt? A good debt is going 55 00:03:12.199 --> 00:03:14.400 to be like a mortgage. Right. Let's say you have 56 00:03:14.439 --> 00:03:17.199 a thirty year mortgage and then you are borrowing to 57 00:03:17.319 --> 00:03:21.639 buy that house. The issue is when you borrow, the 58 00:03:21.680 --> 00:03:26.479 house or the asset is also appreciating value, but your 59 00:03:26.759 --> 00:03:29.719 debt or the interest rate that you're paying is more 60 00:03:29.759 --> 00:03:32.120 or less fixed. It could be fixed for thirty years, 61 00:03:32.240 --> 00:03:34.520 it could be fixed for even ten years. But when 62 00:03:34.520 --> 00:03:37.639 you compare the debt, the rise and the debt, and 63 00:03:37.680 --> 00:03:39.759 then the rise and the asset value. You see that 64 00:03:39.800 --> 00:03:42.759 the asset value, which is the house in most instances, 65 00:03:43.120 --> 00:03:45.159 would keep paid to the debt or would even grow 66 00:03:45.319 --> 00:03:48.759 faster than the debt. So the revenues that you are 67 00:03:48.800 --> 00:03:51.520 getting or the benefits you are getting tend to be 68 00:03:51.520 --> 00:03:54.319 better or to grow more or to be you know, 69 00:03:55.159 --> 00:03:58.520 give you a better net worth than the cost of 70 00:03:58.759 --> 00:04:02.680 the debt itself. Good debt number one. The cost of 71 00:04:02.680 --> 00:04:06.759 this debt is not larger than the revenues or the 72 00:04:06.840 --> 00:04:09.080 asset growth of what you have bought. So if it's 73 00:04:09.080 --> 00:04:11.240 a good debt, it means that what you are paying 74 00:04:11.719 --> 00:04:14.280 is less than what you are getting with the mortgage. 75 00:04:14.280 --> 00:04:17.839 You're paying a fixed costs, but the asset apprecision is 76 00:04:17.839 --> 00:04:20.759 basically going on and on, and it's also tagging onto inflation. 77 00:04:21.120 --> 00:04:25.800 So take Nigeria for instance. If you bought a house insane, 78 00:04:25.920 --> 00:04:29.399 a bar or lucky or caduna right, the house value 79 00:04:29.439 --> 00:04:33.240 would appreciate with inflation, but the loan that you've taken 80 00:04:33.279 --> 00:04:36.560 to buy that a house is usually fixed usually get 81 00:04:36.560 --> 00:04:39.079 to fix deposit or sorry fix credit from the bank 82 00:04:39.120 --> 00:04:42.000 to buy that loan, so you see that balace that 83 00:04:42.040 --> 00:04:44.920 you get, you are every month that goes front, that 84 00:04:45.000 --> 00:04:49.439 goes forward, your INTERESTRCE is bending down, but your asset 85 00:04:49.519 --> 00:04:52.160 value is going up. That's good debt. So what's bad debt. 86 00:04:52.480 --> 00:04:55.560 Bad debt is of course the debt where the cost 87 00:04:55.639 --> 00:04:59.439 of the interest is higher or is more costly than 88 00:04:59.480 --> 00:05:01.920 the revenue news or the enjoyment you're going to get 89 00:05:01.959 --> 00:05:05.480 from that from that activity. So if you say you 90 00:05:05.560 --> 00:05:08.680 use your credit card and you're going to vacation, you're 91 00:05:08.759 --> 00:05:12.439 right to say, do buy. You're not making any revenue. 92 00:05:12.680 --> 00:05:15.639 It's just vacation holiday. It's good for your soul, but 93 00:05:15.680 --> 00:05:19.720 you're not making any revenues, right, So you're putting points 94 00:05:19.800 --> 00:05:23.000 or should we say cash or balance on that credit card. 95 00:05:23.319 --> 00:05:25.079 So the rate of growth of that credit card is 96 00:05:25.079 --> 00:05:27.800 going to be higher than the rate of growth that 97 00:05:27.839 --> 00:05:31.399 you're going to get from the asset appreciation if there 98 00:05:31.439 --> 00:05:34.399 was no asset boss anyway, So you could argue that 99 00:05:34.399 --> 00:05:37.600 that's bad debt because you have to pay that consumption 100 00:05:38.120 --> 00:05:41.639 over time with interest and there's no revenue that has 101 00:05:41.680 --> 00:05:44.000 come true to help you to pay that. So that's 102 00:05:44.079 --> 00:05:46.959 good debt and bad debt in simple forms. If you 103 00:05:47.160 --> 00:05:50.079 borrow to buy something or to invest in something that 104 00:05:50.120 --> 00:05:52.759 can pay you back, that's good debt. If you are 105 00:05:52.879 --> 00:05:56.480 borrowing to do to buy or invest in something that's 106 00:05:56.480 --> 00:05:58.199 not going to pay you back on the revenues, that's 107 00:05:58.319 --> 00:06:00.480 of course bad debt. And like we said said, it's 108 00:06:00.519 --> 00:06:02.639 a lot we're going to talk about. Really, I don't 109 00:06:02.639 --> 00:06:04.800 want to take your time. So if you folks have 110 00:06:04.879 --> 00:06:09.040 got questions, I see the d MS popularity active, let's 111 00:06:09.120 --> 00:06:12.680 ask right, let's make it a very interactive session's let's 112 00:06:12.480 --> 00:06:14.759 let me let me get those questions and then we 113 00:06:14.800 --> 00:06:17.519 can take them. I have a long list here. Look 114 00:06:17.560 --> 00:06:21.759 at the what we posted up here, fico. How can 115 00:06:21.800 --> 00:06:24.959 you get a good credit score? Right? How can you 116 00:06:25.240 --> 00:06:29.040 don't go that bad debt? Mortgages? Credit cards? How is 117 00:06:29.079 --> 00:06:31.399 the best way to use them? I can go on 118 00:06:31.519 --> 00:06:34.000 and on and on, but I don't want to, so 119 00:06:34.000 --> 00:06:36.360 I prefer to basically take my answers down to what 120 00:06:36.399 --> 00:06:39.040 you guys really really want to know about so that 121 00:06:39.199 --> 00:06:41.720 I can answer and let me just jump real quick 122 00:06:41.839 --> 00:06:44.439 on the d MS. It's our credit is a great 123 00:06:44.519 --> 00:06:49.160 question from Shay from Shay O want Shay? Yeah, she 124 00:06:49.279 --> 00:06:53.120 is asking our credit cards? Should I get the credit cards. 125 00:06:53.279 --> 00:06:56.319 Are they good? What is the pros and cons of 126 00:06:56.360 --> 00:07:01.199 getting credit cards? Great question? Now I call credit cards. 127 00:07:01.879 --> 00:07:05.079 Credit cards can be good and credit cards can be bad. 128 00:07:05.120 --> 00:07:07.319 But you put it very very careful about credit cards. 129 00:07:07.680 --> 00:07:10.519 When you go to the West, it's a credit society, 130 00:07:11.040 --> 00:07:14.120 which means that everything is on credit. You can pay 131 00:07:14.160 --> 00:07:18.199 for really anything on credit, and you are encouraged or 132 00:07:18.279 --> 00:07:21.720 she even say mandated to get credit in the West 133 00:07:21.720 --> 00:07:24.319 because you have a credit score. And if you want 134 00:07:24.360 --> 00:07:26.439 to buy a house, or you want to buy a car, 135 00:07:27.040 --> 00:07:30.360 unless you have the cash in hand, you've got to 136 00:07:30.399 --> 00:07:32.680 go borrow. And then if you want to go borrow, 137 00:07:32.800 --> 00:07:35.399 they look at your credit score. So the point is this, 138 00:07:35.639 --> 00:07:38.079 even if you have your own cash, even if you 139 00:07:38.480 --> 00:07:41.439 never borrow, you are doing all good and all that. 140 00:07:41.800 --> 00:07:44.920 If you don't have a good credit score, it counts 141 00:07:44.959 --> 00:07:48.399 against you. So let's say you don't borrow, You've been 142 00:07:49.160 --> 00:07:51.720 kept good balance sheet, you know, and all that. But 143 00:07:51.759 --> 00:07:54.399 you want to buy a house, right, they're gonna pull 144 00:07:54.480 --> 00:07:56.959 your credit. And when they pull your credit, if you 145 00:07:57.000 --> 00:07:59.759 have no credit score, you're gonna pay higher interest rate 146 00:08:00.279 --> 00:08:03.680 than someone that just has maybe average credit. So it's 147 00:08:03.720 --> 00:08:07.639 always advisable to have credit. The promise you can have 148 00:08:07.800 --> 00:08:11.800 credit without paying anything. You don't have to pay interest 149 00:08:12.319 --> 00:08:15.000 to have credit. So let's come back to credit card 150 00:08:15.079 --> 00:08:17.600 shaw you. If I want to get the credit card 151 00:08:17.680 --> 00:08:19.600 in in the West, I will get a credit card 152 00:08:19.600 --> 00:08:22.639 that has points when I mean pointed. When you use 153 00:08:22.680 --> 00:08:25.560 the card, you get a cash back reward or you 154 00:08:25.639 --> 00:08:27.879 get points or whatever. It is. Going to give me 155 00:08:28.439 --> 00:08:30.759 a card that has got a reward. That's number one. 156 00:08:31.079 --> 00:08:33.440 The number two. How do I want to use my 157 00:08:33.720 --> 00:08:36.840 credit card? I want to use my credit card without 158 00:08:37.000 --> 00:08:40.120 paying interest. The way all credit cards work is this. 159 00:08:40.759 --> 00:08:43.440 If you swipe the card, say on the first, you 160 00:08:43.600 --> 00:08:46.480 have to pay within the cycle date or the calendar 161 00:08:46.519 --> 00:08:48.879 date or whatever the card company tells you, if it's 162 00:08:48.919 --> 00:08:52.519 twenty days or thirty days. If you pay the balance 163 00:08:52.639 --> 00:08:57.840 within that period, you pay absolutely no interest. So what 164 00:08:58.000 --> 00:09:00.440 do I pay with my debit card? I pay my 165 00:09:00.480 --> 00:09:03.320 debit card. Say I pay my groceries or I buy 166 00:09:03.399 --> 00:09:05.679 gas to my credit card, right, my debit card. Right. 167 00:09:06.159 --> 00:09:08.879 Instead of bringing that to my debit card, I use 168 00:09:08.960 --> 00:09:12.120 my credit card. I pay for those same groceries that 169 00:09:12.200 --> 00:09:15.320 I've paid for with my credit card, but now I'm 170 00:09:15.320 --> 00:09:18.639 getting the points. So I pay for gas on the first, 171 00:09:18.960 --> 00:09:21.279 I pay for gas on the seventh, I pay for 172 00:09:21.360 --> 00:09:23.480 gas on the twenty first, So I've paid for gas 173 00:09:23.519 --> 00:09:26.639 three times, Right, But what do I do. I immediately 174 00:09:26.759 --> 00:09:30.159 before the month is over, I clean up my credit 175 00:09:30.159 --> 00:09:33.879 card expenses, so I pay zero percent. It's like having 176 00:09:33.879 --> 00:09:37.639 a thirty day no interest loan. I use the card, 177 00:09:37.919 --> 00:09:40.600 I pay off. The credit card gives me a reward. 178 00:09:41.080 --> 00:09:43.440 It can be cash, it can be pointed, it can 179 00:09:43.480 --> 00:09:46.039 be whatever the card says it is. But I also 180 00:09:46.679 --> 00:09:50.759 increase my credit scoring because every time I swipe my card, 181 00:09:51.639 --> 00:09:54.879 I've taken the loan. When I pay back, I paid 182 00:09:54.919 --> 00:09:58.320 back the loan, So of course my credit score goes 183 00:09:58.480 --> 00:10:02.279 up for doing nothing. I'm doing the exact same thing 184 00:10:02.440 --> 00:10:05.480 that used my debit card I do on my credit card. Right. 185 00:10:05.840 --> 00:10:08.039 So that's the good side of using a credit card. 186 00:10:08.080 --> 00:10:11.200 You can use a credit card to increase your credit scoring. 187 00:10:11.320 --> 00:10:13.559 Number one, And of course you can use credit card 188 00:10:13.639 --> 00:10:16.600 at no cost to you. And of course they get 189 00:10:16.600 --> 00:10:18.759 a credit card card work to give you rewards. If 190 00:10:18.759 --> 00:10:20.919 you get a credit card that pays your airline points, 191 00:10:20.960 --> 00:10:23.799 for instance, and you use that credit card all through 192 00:10:23.840 --> 00:10:26.919 the year to buy just gas, and groceries, you might 193 00:10:26.960 --> 00:10:29.039 be paying for your trip back to Nigeria. Right, you 194 00:10:29.360 --> 00:10:31.639 can use those points and then get a ticket that 195 00:10:31.679 --> 00:10:34.879 will bring it back to Nigeria every year. So you've 196 00:10:34.879 --> 00:10:37.360 got to plan it out and choose the right card. 197 00:10:37.480 --> 00:10:39.879 Credit Cards are not good or bad, it's how you 198 00:10:40.000 --> 00:10:42.919 use it. What you don't want to do. She is 199 00:10:42.960 --> 00:10:45.919 to use a credit card to go shopping. Right, if 200 00:10:45.960 --> 00:10:48.360 you go shopping and you load up the credit card, 201 00:10:48.639 --> 00:10:51.919 once you use your card more than thirty percent, it 202 00:10:52.080 --> 00:10:54.600 counts against you. So let's say your card is a 203 00:10:54.679 --> 00:10:58.840 thousand dollars. Once you carry a balance, not when you spend. 204 00:10:59.120 --> 00:11:02.840 You can spend one thousand dollars and pay back a 205 00:11:02.919 --> 00:11:07.320 thousand dollars, no problem. But once you carry over more 206 00:11:07.360 --> 00:11:12.159 than three hundred dollars or thirty percent into the next month, 207 00:11:12.480 --> 00:11:15.320 it starts to count against you. Credit cards have a 208 00:11:15.399 --> 00:11:18.200 limit of thirty percent before it counts against you. So 209 00:11:18.279 --> 00:11:21.919 what I mean to carry it over into the next month. 210 00:11:22.200 --> 00:11:25.159 That's going to cost you about thirty points on your 211 00:11:25.559 --> 00:11:27.799 if you use that as a percentage out of how 212 00:11:27.840 --> 00:11:29.759 you get your score. If you want to have a 213 00:11:29.799 --> 00:11:32.799 good score, Number one you pay on time. Number two 214 00:11:32.799 --> 00:11:35.159 you don't carry over more than tty percent. If you 215 00:11:35.240 --> 00:11:38.159 just do this too alone, you've got sixty five percent 216 00:11:38.279 --> 00:11:41.000 of the points that count towards your credit card and 217 00:11:41.039 --> 00:11:43.720 your fiical score. So she hope that helps you, right? 218 00:11:43.840 --> 00:11:47.759 I would say number one, Yes, take the advantage. It 219 00:11:47.759 --> 00:11:50.759 doesn't matter what credit card you get. Get one. The 220 00:11:50.840 --> 00:11:52.600 bank won't give you a credit card because you don't 221 00:11:52.639 --> 00:11:54.639 have a credit call. Go try and see what's called 222 00:11:54.679 --> 00:11:59.360 called a secured credit card. Secured credit card. What that 223 00:11:59.480 --> 00:12:01.000 means is that you you're gonna go to the bank 224 00:12:01.120 --> 00:12:04.360 or the credit union. You're gonna give them your mostly 225 00:12:04.399 --> 00:12:07.720 called your You give them cash, and the bank will 226 00:12:07.720 --> 00:12:11.200 then give you that credit card. You give them cash, 227 00:12:11.279 --> 00:12:13.440 they give you a credit card. Then use that credit 228 00:12:13.519 --> 00:12:17.960 card responsibly. Like I said, get one that has points, right, 229 00:12:18.519 --> 00:12:21.360 or get one that pays your cash back. Put the 230 00:12:21.440 --> 00:12:24.639 balance on it, pay the balance of don't carry the 231 00:12:24.720 --> 00:12:27.960 balance into the next month. That way, your card is 232 00:12:28.279 --> 00:12:32.519 zero percent, but you are getting the cash for free. 233 00:12:32.960 --> 00:12:36.000 Yeah hope, I held there. Thank you? Say second point, 234 00:12:36.279 --> 00:12:40.200 whats fyco? Your FYCO is just your credit scoring. FICO 235 00:12:40.279 --> 00:12:43.720 is the name of a company fair Isaacs Corporation. FYCO 236 00:12:43.799 --> 00:12:46.519 simply is the issue. We say, the company or the 237 00:12:46.559 --> 00:12:50.159 prenet company that tracks your credit scoring in America, about 238 00:12:50.279 --> 00:12:52.919 four of them. I just know three off hand. I 239 00:12:52.919 --> 00:12:56.879 know I know TransUnion, I know Experience, I know Experient. 240 00:12:57.159 --> 00:12:59.720 So those three guys track your credit scoring. What that 241 00:12:59.759 --> 00:13:03.440 means every time you spend money or you take a loan, 242 00:13:03.919 --> 00:13:06.080 if you take a loan from a bank, which your 243 00:13:06.159 --> 00:13:09.679 social security, anytime you take a loan, those guys basically 244 00:13:09.679 --> 00:13:12.080 will send the report. The bank send the report to 245 00:13:12.120 --> 00:13:15.000 the credit bureau. So once you go to a bank 246 00:13:15.200 --> 00:13:17.879 or credit union, or to anyone that uses your social 247 00:13:17.919 --> 00:13:21.120 Security to give you a loan, you are creating a 248 00:13:21.200 --> 00:13:24.840 copy or a record that the bank or lending the 249 00:13:24.960 --> 00:13:29.159 lending institution will send to the credit scoring bureau. So 250 00:13:29.240 --> 00:13:31.279 what you see is that over time they build up 251 00:13:31.320 --> 00:13:35.360 your credit history, who you are borrowing from and who 252 00:13:35.399 --> 00:13:38.480 you are paying back to. So ather lenders use that 253 00:13:38.639 --> 00:13:40.840 credit score in your FI cod as it were, but 254 00:13:40.960 --> 00:13:43.200 that's a name for it to determine if you're a 255 00:13:43.279 --> 00:13:46.679 good lender or if you're a bad lender. In simple terms, 256 00:13:47.080 --> 00:13:50.440 if you borrow and you pay back on time, then 257 00:13:50.480 --> 00:13:54.480 you're a good lender. Was the implication. Your credit cost 258 00:13:54.600 --> 00:13:58.240 goes down because your credit scoring goes up, so they 259 00:13:58.399 --> 00:14:02.679 hire your credit scoring to lower your cost of boring. Guys, 260 00:14:02.679 --> 00:14:05.639 don't sleep on this. If you want to buy a 261 00:14:05.679 --> 00:14:09.360 house in the West and you have a high credit score, 262 00:14:10.519 --> 00:14:14.320 that extra one percent that your house gives you, that 263 00:14:14.399 --> 00:14:17.759 extra one percent that you get right because you have 264 00:14:17.799 --> 00:14:20.879 a good credit score, can transit anywhere from ten thaland 265 00:14:20.919 --> 00:14:24.799 dollars to thirty thaland dollars over those thirty years. So 266 00:14:24.840 --> 00:14:28.080 it's very very important that you have a good credit score. 267 00:14:28.159 --> 00:14:29.799 And you don't wait. Don't wait and sit till I 268 00:14:29.799 --> 00:14:31.600 get a job. Once you get to it to the country. 269 00:14:31.639 --> 00:14:33.799 Like I said, if you don't have a job and 270 00:14:33.840 --> 00:14:36.600 all that, get a secure credit card. It's good to 271 00:14:36.639 --> 00:14:38.919 get it on your social I don't advise you getting 272 00:14:38.919 --> 00:14:42.320 it without a social so that it tracks no over time. 273 00:14:42.639 --> 00:14:44.600 And another thing you can do is if you're married, 274 00:14:45.200 --> 00:14:47.559 or you can put yourself on your wife's card, on 275 00:14:47.679 --> 00:14:50.080 your husband's card, on your partner's card, so that you'll 276 00:14:50.159 --> 00:14:52.639 ask the bank, if I put myself on this card, 277 00:14:53.000 --> 00:14:56.799 will I also get the point or the credit scoring? 278 00:14:56.879 --> 00:14:59.720 Will it also show up on my score? Some banks 279 00:14:59.720 --> 00:15:01.960 don't do that, just give you a card that you 280 00:15:01.960 --> 00:15:04.440 can use. Some banks will do that. They'll give you 281 00:15:04.440 --> 00:15:07.120 a card that you can use and the points come 282 00:15:07.159 --> 00:15:09.519 to you. So be very clear. Ask them. If they 283 00:15:09.559 --> 00:15:11.840 say no, there's no point getting it, they say yes, 284 00:15:12.360 --> 00:15:15.519 do get it. So fyco is very important. Is one 285 00:15:15.519 --> 00:15:19.000 of the most important things on non in America after 286 00:15:19.039 --> 00:15:20.960 your social agree. So you want to make sure you're 287 00:15:20.960 --> 00:15:23.879 getting a good fycle there, all right, great, So lots 288 00:15:23.919 --> 00:15:26.039 of great questions here, guy, I'm just trying to read 289 00:15:26.080 --> 00:15:28.360 through and just pick the ones that are beat unique. 290 00:15:29.039 --> 00:15:32.679 Abdurahim is asking what sort of investments should we avoid 291 00:15:32.759 --> 00:15:36.720 making with the debt or broad funds? Great question, Abdurahim. 292 00:15:36.960 --> 00:15:41.440 So avoid spending or using your credit card to invest 293 00:15:41.559 --> 00:15:44.399 in to invest in a new project that has a 294 00:15:44.480 --> 00:15:49.759 lower return of investment than the ap R of the card. 295 00:15:50.320 --> 00:15:53.399 So let me explain it this way. The ap armies 296 00:15:53.480 --> 00:15:56.639 the interest rate the card will charge you. Right, if 297 00:15:56.679 --> 00:16:00.639 the card is charging you twenty percent interest rate, that 298 00:16:00.759 --> 00:16:02.559 of course you should not use your card to do 299 00:16:02.720 --> 00:16:06.879 anything that will charge you less than twenty percent. That's 300 00:16:06.960 --> 00:16:08.679 number one. On second place, I'm going to meet you 301 00:16:08.679 --> 00:16:12.799 in you speak, that's number one, Number two, a credit 302 00:16:12.840 --> 00:16:16.720 card should not be used for investing. So after the man, 303 00:16:16.799 --> 00:16:19.159 you don't want to use your credit card to invest. 304 00:16:19.240 --> 00:16:20.720 You don't want to use your credit card to go 305 00:16:20.799 --> 00:16:24.480 buy stocks and shares. Why because, like I said, your 306 00:16:24.480 --> 00:16:28.159 credit card is thirty days or based on what the 307 00:16:27.759 --> 00:16:32.039 card complete tells it is thirty days interest free. So 308 00:16:32.200 --> 00:16:34.240 if you have any transaction it's going to make you 309 00:16:34.279 --> 00:16:37.639 a profit. That's good, but that profit must be closed 310 00:16:37.639 --> 00:16:41.159 out within those thirty days or whatever days your credit 311 00:16:41.200 --> 00:16:43.639 card company gives you. So a credit card company says 312 00:16:43.720 --> 00:16:46.159 you're going to pay back in thirty days, no interest free. 313 00:16:46.320 --> 00:16:48.519 Of course, when you don't borrow to invest, it should 314 00:16:48.519 --> 00:16:51.480 be able to clean up that transaction within thirty days, 315 00:16:51.519 --> 00:16:54.320 So you make a higher return on investment if you 316 00:16:54.399 --> 00:16:57.679 borrow and you do a good transaction that is going 317 00:16:57.759 --> 00:17:00.320 to pay you in sixty days. Of course, going to 318 00:17:00.320 --> 00:17:03.120 pay a credit card company back with interest for two months, 319 00:17:03.120 --> 00:17:05.480 so it doesn't make any sense. So Number one, the 320 00:17:06.160 --> 00:17:08.920 tenure of the man is very very important. The tenure 321 00:17:09.319 --> 00:17:12.119 of the of the investment. It should be lower than 322 00:17:12.240 --> 00:17:14.359 thirty day's number one. Number two, I don't advise to 323 00:17:14.359 --> 00:17:17.480 do any investment because you're not sure of that tenure. 324 00:17:17.640 --> 00:17:20.079 And like I said, you use the credit card to 325 00:17:20.279 --> 00:17:23.160 build your credit score up and to get points. Credit 326 00:17:23.240 --> 00:17:26.960 cards are very dangerous. They have the highest interest rateing 327 00:17:27.079 --> 00:17:31.240 and highest aprs that you pay twenty percent is average 328 00:17:31.519 --> 00:17:35.160 you pay twenty five twenty nine, So they are very expensive. 329 00:17:35.200 --> 00:17:37.720 But you can't use them to your advantage. So try 330 00:17:37.720 --> 00:17:40.160 not to use your credit cards to do investing. Use 331 00:17:40.200 --> 00:17:42.319 your credit cards to get the points and to increase 332 00:17:42.359 --> 00:17:44.640 your score. And second, how are you doing. You've got 333 00:17:44.640 --> 00:17:51.680 the flownouts, so go ahead on second? All right? So 334 00:17:51.799 --> 00:17:55.079 before gets ready? Yeah, So, just wanting to clarify on 335 00:17:55.319 --> 00:17:59.240 the mortgage example you gave. This is from Lorry Lourie 336 00:17:59.279 --> 00:18:02.880 wants me to clar five on the mortgage example I 337 00:18:02.920 --> 00:18:08.079 gave earlier. Yes, so if you take a loan to 338 00:18:08.200 --> 00:18:10.839 buy a more to buy a house, right, that's usually 339 00:18:10.880 --> 00:18:15.440 looked that looked at as a good investment, good debt. Okay, 340 00:18:15.519 --> 00:18:18.799 see a question, So let me clarify, right, So you're 341 00:18:18.839 --> 00:18:22.640 asking if all mortgages are good investment. Of course not 342 00:18:23.640 --> 00:18:28.720 number one. The rule of mortgage is say location, location, location, 343 00:18:29.240 --> 00:18:31.000 which means that when you want to buy a house, 344 00:18:31.079 --> 00:18:33.759 you want to look at the location you're buying that house. Correct, 345 00:18:34.079 --> 00:18:36.480 So let's say all things being equal, you are paying 346 00:18:36.519 --> 00:18:39.559 rent today. You are paying rent today, which means that 347 00:18:39.640 --> 00:18:42.480 you want to whatever happens, you're going to pay rent. 348 00:18:42.759 --> 00:18:45.720 So it's it that you pay rent or you pay mortgage, 349 00:18:46.000 --> 00:18:48.079 but you are still going to pay something from your 350 00:18:48.119 --> 00:18:51.480 account to live somewhere. Now, which would you prefer to 351 00:18:51.519 --> 00:18:54.680 pay rent or to pay mortgage? Mortgage is always better? 352 00:18:54.799 --> 00:18:58.519 Why because to the mortgage you are getting equity. What 353 00:18:58.720 --> 00:19:01.599 is equity in the West. The way the structure there 354 00:19:01.480 --> 00:19:04.160 are loans is that when you pay five percent for 355 00:19:04.200 --> 00:19:06.920 a house, you own the house. So if a house 356 00:19:07.039 --> 00:19:10.799 is worth one hundred thousandner or dollars, and I pay 357 00:19:11.279 --> 00:19:14.240 ten thousand dollars of the bank, I own the house. 358 00:19:14.599 --> 00:19:17.480 I am paying my mortgage. That's a separate matter. But 359 00:19:17.640 --> 00:19:22.240 if the house appreciates from one hundred thousand to two 360 00:19:22.359 --> 00:19:26.119 hundred thousand, that one hundred thousand is my own. It's 361 00:19:26.160 --> 00:19:28.240 not owned by the bank. It's owned by me. I 362 00:19:28.279 --> 00:19:30.960 can use that appreciation and take a loan and use 363 00:19:31.000 --> 00:19:33.400 the money to do what I like. I still pay 364 00:19:33.440 --> 00:19:37.400 my mortgage, but it's owned by me. But that's equity. 365 00:19:37.920 --> 00:19:41.200 So when you buy a home, you are giving yourself 366 00:19:41.279 --> 00:19:45.359 access to equity. So in terms of that a loan, 367 00:19:45.839 --> 00:19:47.839 even if you're going to pay the same cost as 368 00:19:47.839 --> 00:19:51.839 for your rent and for your mortgage, it's always should 369 00:19:51.839 --> 00:19:55.440 we say better to own a mortgage because it still 370 00:19:55.480 --> 00:19:57.880 going to pay something, but at least the mortgage gives 371 00:19:57.920 --> 00:20:01.160 you equity. So if you are to do that, you 372 00:20:01.279 --> 00:20:04.319 want to have a great credit scoring to buy a 373 00:20:04.359 --> 00:20:07.599 home in America. What you need two years tax return 374 00:20:08.440 --> 00:20:12.799 credit score more than seven hundred. Now the higher credit 375 00:20:12.839 --> 00:20:17.559 score and looking at your debt income determines the interest 376 00:20:17.680 --> 00:20:19.720 rate you will pay to the bank for that mortgage. 377 00:20:19.920 --> 00:20:23.799 The difference between pain four percent and five percent that 378 00:20:23.839 --> 00:20:28.119 one percent is almost ten thousand dollars over thirty years. 379 00:20:28.319 --> 00:20:30.319 So you want to make sure you have planning to say, 380 00:20:30.400 --> 00:20:33.279 I want to get the highest credit care with the 381 00:20:33.359 --> 00:20:37.279 lowest loan to value so that I can get a 382 00:20:37.519 --> 00:20:40.960 very very very very good interest rate on my loan. 383 00:20:41.000 --> 00:20:44.119 That's your target. So the mortgage is not all mortgages 384 00:20:44.160 --> 00:20:46.319 that you should take a loan for. If I wouldn't 385 00:20:46.359 --> 00:20:49.119 take a loan to build a home where I'm not 386 00:20:49.160 --> 00:20:51.079 going to live in, if I'm if the home it's 387 00:20:51.119 --> 00:20:53.279 going to be in my village. So if I am 388 00:20:53.279 --> 00:20:55.680 from a small village right in the southeast, I willn't 389 00:20:55.680 --> 00:20:58.039 take a loan to build that house because I don't 390 00:20:58.079 --> 00:21:00.400 live in that house, so that it's not advantage for 391 00:21:00.480 --> 00:21:03.039 me in terms of the equity. Right. But if I'm 392 00:21:03.119 --> 00:21:06.880 living in, say in a bar, I can take a 393 00:21:06.880 --> 00:21:08.799 loan to build a house, but because I still have 394 00:21:08.839 --> 00:21:10.839 to pay rent in a bar. But if I leave 395 00:21:10.839 --> 00:21:13.680 in mount House, Namba, at least I get the equity. 396 00:21:13.920 --> 00:21:15.920 You see the point I'm making so that equity, don't 397 00:21:16.079 --> 00:21:18.759 don't step on equity. Great and second, I ready to 398 00:21:18.759 --> 00:21:22.960 speak a second, move on a second? You were first year? Okay, 399 00:21:23.200 --> 00:21:27.279 let's get this. I got real on the score, deem 400 00:21:27.359 --> 00:21:29.119 the real on the score? Dem how are you doing 401 00:21:29.160 --> 00:21:33.759 so the real? Yeah? Yeah, very good going from here? 402 00:21:34.279 --> 00:21:35.440 How you do? Go ahead? 403 00:21:36.559 --> 00:21:39.960 I'm okay, I'm very good. Different everyone, Thank you very much. 404 00:21:40.960 --> 00:21:44.079 Following you, you have im panted the lotch to me 405 00:21:44.279 --> 00:21:45.839 basically when it comes to finance. 406 00:21:46.400 --> 00:21:48.319 I'm so happy, God bless you. Man. 407 00:21:49.119 --> 00:21:52.119 I wanted to ask you a question because I have 408 00:21:52.200 --> 00:21:56.640 an opportunity. I have an opportunity is to a place 409 00:21:56.680 --> 00:21:58.400 to borrow money with an interest or. 410 00:21:58.559 --> 00:22:03.319 What personal I didn't hear that what percent? Please, I 411 00:22:03.319 --> 00:22:04.400 didn't hear that one percent? 412 00:22:05.400 --> 00:22:06.559 One point five? 413 00:22:06.680 --> 00:22:10.559 Okay point five? But wow, wow. 414 00:22:10.160 --> 00:22:13.359 Zero point five percent interest? And currently the money is 415 00:22:13.359 --> 00:22:18.039 not Innyra is an African country, but is more higher 416 00:22:18.039 --> 00:22:21.599 than Ira. Then I wanted to know if it's advisable 417 00:22:21.640 --> 00:22:24.519 to invest in Naira that I'm be able to give 418 00:22:24.559 --> 00:22:30.079 me a yearly of twenty one point five percent interest 419 00:22:30.480 --> 00:22:34.119 with money I don't know a little bit countries, and. 420 00:22:34.279 --> 00:22:34.839 So that is. 421 00:22:36.400 --> 00:22:39.599 That's an interesting question because at one percent, that's a 422 00:22:39.720 --> 00:22:42.440 very very good loan because I'm not sure their interests, 423 00:22:42.519 --> 00:22:44.960 their inflation reason that country will be very very low. 424 00:22:45.200 --> 00:22:48.079 So if somebody is giving me a loan at one percent, wow, 425 00:22:48.119 --> 00:22:50.640 that looks good on paper. So your question is, now, 426 00:22:50.680 --> 00:22:53.240 can you borrow at that one percent and invest in 427 00:22:53.359 --> 00:22:57.119 Naira at twenty percent? Is that what you're asking exactly? 428 00:22:57.160 --> 00:22:57.559 Exactly? 429 00:22:57.799 --> 00:22:59.839 Okay, let's assume that was possible. Let's assume you take 430 00:22:59.839 --> 00:23:01.680 that on a one percent. Let's assume it's in dollar. 431 00:23:01.759 --> 00:23:04.680 Let's just for arguments in dollar. You take that dollar 432 00:23:04.759 --> 00:23:07.880 loan at one percent, you've come to Nigeria. You invest 433 00:23:07.920 --> 00:23:10.720 in it and I give you in five percent in investments. 434 00:23:10.720 --> 00:23:13.759 You do that, Now you have in five percent, how 435 00:23:13.799 --> 00:23:15.440 do you take it back to dollar? Do you are 436 00:23:15.480 --> 00:23:17.079 you going to buy dollar and go back to the 437 00:23:17.119 --> 00:23:22.079 paid because you have to pay them back in dollar? Right? Yes, yes, yes, 438 00:23:22.160 --> 00:23:22.920 that is it. 439 00:23:23.440 --> 00:23:25.200 Yeah, but I can I can move in. 440 00:23:25.160 --> 00:23:29.920 With which buying goes to transfer true coudse yes and solid. 441 00:23:29.960 --> 00:23:33.119 Then I can convert its truths. 442 00:23:33.240 --> 00:23:35.559 Yeah. So you see the problem is not the interest rate. 443 00:23:35.680 --> 00:23:39.200 Is that convertion from Nyra back to their currency. You 444 00:23:39.200 --> 00:23:40.839 are saying you're going to buy good What if the 445 00:23:40.880 --> 00:23:43.319 ports are bad? What if you buy these goods the 446 00:23:43.400 --> 00:23:45.319 guest stock in the port or guests doing so? That's 447 00:23:45.319 --> 00:23:47.839 the risk. The risk to me is not the interestship 448 00:23:47.920 --> 00:23:50.240 based on what you've told me. I like the interest 449 00:23:50.319 --> 00:23:53.079 rate way you're going to borrow, but is to go 450 00:23:53.160 --> 00:23:56.920 from naira back to dollar. It's my problem. So are 451 00:23:57.000 --> 00:24:00.480 there twenty one percent investments in Nigeria? Yes they are 452 00:24:00.720 --> 00:24:04.440 and they're very very safe. Is the federal government treasury 453 00:24:04.480 --> 00:24:08.240 bills are paying anywhere from eighteen to about twenty twelve percent, 454 00:24:08.279 --> 00:24:11.000 But you have to have this fifty million naira to 455 00:24:11.119 --> 00:24:14.480 qualify for that at least fifty million Ira. The savings 456 00:24:14.480 --> 00:24:17.359 bonds are paying anywhere from eleven percent to about ten 457 00:24:17.400 --> 00:24:20.680 ten percent you need or just five thousand. So yes, 458 00:24:20.759 --> 00:24:23.000 if I borrow at one percent, I don't know what 459 00:24:23.039 --> 00:24:26.440 country it is at one percent and I bring that money. 460 00:24:26.680 --> 00:24:28.880 What you're doing is called it's called the carry trade. 461 00:24:29.200 --> 00:24:31.519 So you're ask him about the carry trade. If I 462 00:24:31.640 --> 00:24:34.680 carry that money from that country to Nigeria, yes, I 463 00:24:34.720 --> 00:24:37.559 get the high investment. My problem is I have to 464 00:24:37.640 --> 00:24:41.799 find a way to go from naira back to that currency. 465 00:24:41.839 --> 00:24:44.359 If you can find that answer, I would say do it. 466 00:24:44.799 --> 00:24:47.960 If you can't find that answer, I'll be careful. You know, 467 00:24:48.039 --> 00:24:52.319 look at Nigeria. A Julos Burger. It's now exporting cashw notes. 468 00:24:52.599 --> 00:24:56.160 This is Julos Burger. So they do contracts in naira, 469 00:24:56.559 --> 00:24:59.839 but they're a German company. Nigeria has no Nira dollars. 470 00:25:00.119 --> 00:25:01.960 They do their exporting cash. 471 00:25:01.960 --> 00:25:02.160 You not. 472 00:25:02.240 --> 00:25:04.400 This is lots bigger. Can you do the same thing. 473 00:25:04.759 --> 00:25:07.000 It's up to you. But that's my only thing. I'll say, 474 00:25:07.039 --> 00:25:09.079 should watch out for right, If you can find a 475 00:25:09.079 --> 00:25:12.359 way to go back from naira to that country, maybe 476 00:25:12.400 --> 00:25:16.000 you can say you can find people. It just depends 477 00:25:16.039 --> 00:25:19.519 on the exchange, the differential. That's really the answer. In 478 00:25:19.680 --> 00:25:22.039 the past, in Nigeria, we used to have what we 479 00:25:22.160 --> 00:25:26.160 call a foreign exchange forward market, which means you could 480 00:25:26.160 --> 00:25:29.000 go to that market and buy your dollars for five 481 00:25:29.160 --> 00:25:32.160 or four three years. We don't have it anymore. So 482 00:25:32.240 --> 00:25:35.279 I would say the one leg is good. The only 483 00:25:35.359 --> 00:25:37.359 part I don't have I have issues with is the 484 00:25:37.400 --> 00:25:39.799 one that is going to go back. That's what I'll say. 485 00:25:40.000 --> 00:25:43.160 So does I answer the question? Yeah, thank you very much. 486 00:25:43.279 --> 00:25:46.319 I have gotten what I heard. Perfect. Perfect, Let's get 487 00:25:46.440 --> 00:25:48.240 sick and second, go ahead. You've got the floor. 488 00:25:48.759 --> 00:25:52.640 All right, sir, thank you so much for this session. 489 00:25:53.119 --> 00:25:55.000 I'm actually listening in from the UK. 490 00:25:55.599 --> 00:25:58.240 I beuti. If you can't hear me, I can very well. Right. 491 00:25:58.279 --> 00:26:02.720 So i'm internationals today into here doing my mESC. 492 00:26:03.559 --> 00:26:04.559 I would like to. 493 00:26:04.680 --> 00:26:09.400 Know if you would, you know, encourage any international students 494 00:26:09.400 --> 00:26:10.920 in the U gate to take a credit card. 495 00:26:11.839 --> 00:26:14.920 Yeah, that's what I just said. So let's let's step 496 00:26:14.920 --> 00:26:18.079 back a bit right. The West is the credit society, 497 00:26:18.759 --> 00:26:22.000 so I always advise that when you are in Rome, 498 00:26:22.200 --> 00:26:25.640 you do as the romance. Do you get a credit card? 499 00:26:25.839 --> 00:26:29.440 But let me have yet, as a students, you don't 500 00:26:29.440 --> 00:26:32.160 have that much income. So what I want you to 501 00:26:32.160 --> 00:26:34.799 get to get a credit card that helps your credit score, 502 00:26:35.480 --> 00:26:37.799 not a car that you're going to spend it. So 503 00:26:37.880 --> 00:26:39.559 I would go to a bank and say, I want 504 00:26:39.559 --> 00:26:41.839 to get a credit card, but I want to have points. 505 00:26:42.079 --> 00:26:44.640 You know it has cash back points, or it has 506 00:26:44.759 --> 00:26:48.079 travel points, or whatever reward it is. I want to 507 00:26:48.119 --> 00:26:50.640 get the reward a car that has a reward. If 508 00:26:50.680 --> 00:26:53.319 I get that, how do I use that card? I 509 00:26:53.480 --> 00:26:56.039 buy groceries, the same thing you would buy with your 510 00:26:56.119 --> 00:26:59.200 debit card, not shopping. Not know what I mean shopping, 511 00:26:59.279 --> 00:27:02.240 not going on a shopping spree, but the same items 512 00:27:02.279 --> 00:27:06.920 you pay for your utilities, your gas, your books, the 513 00:27:06.960 --> 00:27:09.480 same thing you pay with your debit card. Use your 514 00:27:09.480 --> 00:27:13.640 credit card, get the points, then make sure you clean up. 515 00:27:14.039 --> 00:27:17.440 You pay up before the month is over. As long 516 00:27:17.480 --> 00:27:19.720 as your balance at the end of the month is zero, 517 00:27:20.240 --> 00:27:22.960 the credit card company will not charge you any interest 518 00:27:23.079 --> 00:27:25.359 irrespective of what the interest is charged on the card. 519 00:27:25.920 --> 00:27:28.839 So if you do it this way, I've explained it, Yes, 520 00:27:29.039 --> 00:27:31.799 get a credit card. In that line, that's the only 521 00:27:32.000 --> 00:27:34.519 time I recommend you get a credit card as a student, 522 00:27:34.680 --> 00:27:36.160 if you want to get a credit card to spend. 523 00:27:36.240 --> 00:27:40.559 The answer is no, they're very very dangerous. They charge 524 00:27:40.599 --> 00:27:43.200 you are very very high and all percentage your rate. 525 00:27:43.640 --> 00:27:46.400 So unless you are getting a credit card to get 526 00:27:46.440 --> 00:27:49.440 the point and going to clean up every month, do 527 00:27:49.519 --> 00:27:54.400 not get the credit card. Does that answer the question? Yes? Perfect. 528 00:27:54.640 --> 00:27:56.720 I have a question here from Joseph on the DM 529 00:27:56.720 --> 00:27:59.119 but let me get a duke to answer, because Joseph's 530 00:27:59.160 --> 00:28:04.279 question is very exploit Duke of you've got the floor. 531 00:28:06.440 --> 00:28:08.720 Yeah, thank you very much. 532 00:28:09.680 --> 00:28:14.119 I appreciate what you do here. So my question is 533 00:28:14.160 --> 00:28:19.640 all the credit card. I understand that what the credit 534 00:28:19.640 --> 00:28:22.039 card does because I've been doing a little bit of 535 00:28:22.039 --> 00:28:25.119 a sarch on that. But I'm looking at the outside 536 00:28:25.240 --> 00:28:29.640 of credit card now I get to understand that there 537 00:28:29.640 --> 00:28:33.680 may be a cap on spending. Like if you get 538 00:28:33.720 --> 00:28:38.480 a credit card, the credit card company may be expecting 539 00:28:38.519 --> 00:28:42.240 you to spend a particular amount in a month. My 540 00:28:42.319 --> 00:28:45.599 question is how if you are not able to spend 541 00:28:45.599 --> 00:28:49.960 that particular amount, the credit card company expect you to 542 00:28:50.480 --> 00:28:52.079 spend in a particular amount. 543 00:28:52.559 --> 00:28:53.759 What happened is. 544 00:28:53.720 --> 00:28:59.079 It that your your credits call will go negative or 545 00:28:59.720 --> 00:29:00.599 what that? 546 00:29:01.079 --> 00:29:04.000 Yeah, a great question, great question. I don't think credit cards. 547 00:29:04.599 --> 00:29:07.119 Most credit cards I know do not require you to 548 00:29:07.240 --> 00:29:10.920 spend that you're not mandated to spend. What most credit 549 00:29:10.920 --> 00:29:12.920 cards do that is that is bad is that they 550 00:29:12.920 --> 00:29:16.119 give you an annual cost. So they'll say you have 551 00:29:16.200 --> 00:29:18.799 to pay an annual cost for this card. What is 552 00:29:18.799 --> 00:29:20.559 why I'm saying you want to shop around, You don't 553 00:29:20.559 --> 00:29:22.359 want to get a credit card that has an annual 554 00:29:22.440 --> 00:29:25.720 cost because an annual cost means whether you shop you 555 00:29:25.759 --> 00:29:28.000 don't show up, you're going to pay. So let's assume 556 00:29:28.039 --> 00:29:31.119 you get a car that has a zero percent annual cost. 557 00:29:31.200 --> 00:29:33.640 You don't have to spend. The point is, if you 558 00:29:33.720 --> 00:29:37.440 don't spend, your credit card does not go up. You see, 559 00:29:37.480 --> 00:29:39.680 they are forcing you to spend because that's how their 560 00:29:39.720 --> 00:29:42.480 culture is. So you don't argue. You basically go to 561 00:29:42.599 --> 00:29:44.799 Rome and do what the Romans do. So if they're 562 00:29:44.880 --> 00:29:46.920 saying you want you need to have a good credit 563 00:29:47.000 --> 00:29:50.039 card to buy a house at the lower point, you 564 00:29:50.079 --> 00:29:52.000 do you follow them. But what you do is that 565 00:29:52.039 --> 00:29:54.079 you follow them with with sens right, So what you 566 00:29:54.160 --> 00:29:56.720 say is, Okay, I'm going to get a credit card 567 00:29:57.119 --> 00:29:59.200 for a thousand dollars, It doesn't matter how much the 568 00:29:59.279 --> 00:30:02.720 card is. A card of five hundred and a cad 569 00:30:02.759 --> 00:30:05.599 of ten thousand is the same principle. If you get 570 00:30:05.599 --> 00:30:08.759 that card, as long as you use the card and 571 00:30:08.880 --> 00:30:11.680 pay back on the card, you've got thirty five points. 572 00:30:12.200 --> 00:30:14.319 So as long as I use the card and I 573 00:30:14.400 --> 00:30:18.079 pay back on time, thirty five points. As long as 574 00:30:18.119 --> 00:30:21.759 I keep less than thirty percent on that card, meaning 575 00:30:21.799 --> 00:30:24.759 that I don't carry more than thirty percent from the 576 00:30:24.799 --> 00:30:28.680 one month to the next month, I get thirty percent. 577 00:30:28.759 --> 00:30:32.759 So thirty five plus thirty I already have sixty five 578 00:30:32.839 --> 00:30:36.880 points from just doing these two activities. So pay your 579 00:30:36.920 --> 00:30:40.279 card on time, don't carry more than thirty percent over 580 00:30:40.359 --> 00:30:42.960 from one month to the next month, you are already 581 00:30:43.039 --> 00:30:46.640 as sixty five percent. Then what another point, how long 582 00:30:46.680 --> 00:30:49.799 I've got my credit card is ten points, which is 583 00:30:49.839 --> 00:30:51.839 why we like you take an axe. You want to 584 00:30:51.839 --> 00:30:54.559 get your credit card as early as possib because you're 585 00:30:54.559 --> 00:30:56.759 going to lose ten points if you don't get it. 586 00:30:57.319 --> 00:31:00.440 What is the other point the type of credit that 587 00:31:00.480 --> 00:31:02.920 you have. So if you just have only credit cards, 588 00:31:02.960 --> 00:31:04.680 maybe you don't get enough point. But if you have 589 00:31:04.720 --> 00:31:08.240 a credit card and a personal loan. Ooh, now you 590 00:31:08.319 --> 00:31:11.359 get extra point for the type the spread of credit 591 00:31:11.359 --> 00:31:15.240 that you have. Right then, The most dangerous one delay 592 00:31:15.279 --> 00:31:18.200 is this when you have a credit card, please don't 593 00:31:18.240 --> 00:31:20.440 apply for a second one, especially if you're like a 594 00:31:20.440 --> 00:31:23.720 student or a loan income in. Every time you apply 595 00:31:23.839 --> 00:31:27.359 for credit and the credit card company pulls your credit card, 596 00:31:27.400 --> 00:31:31.079 we just called an inquiry. It deeps your score. So 597 00:31:31.279 --> 00:31:33.640 unless you really want to get the loan, you go 598 00:31:33.680 --> 00:31:35.880 to the store. Most stores will tell you, hey, welcome 599 00:31:35.920 --> 00:31:38.400 to TM TG max. Right, do you want to get 600 00:31:38.440 --> 00:31:41.240 a TG max card? I should name do you want 601 00:31:41.240 --> 00:31:42.839 to get a card so that you can get a 602 00:31:42.880 --> 00:31:45.960 discount today? If you say yes, you are applying for 603 00:31:46.039 --> 00:31:48.039 a credit card. They don't say that way, but you're 604 00:31:48.039 --> 00:31:50.880 applying for a credit card. Every time you apply for 605 00:31:50.920 --> 00:31:54.799 a credit card, it does an inquiry. It reaches your score, 606 00:31:55.519 --> 00:31:57.519 So you want to be very careful. Once you have one, 607 00:31:57.880 --> 00:31:59.759 leave it that one because you want to build up 608 00:31:59.799 --> 00:32:03.160 your score. So get a card with no annual points. 609 00:32:03.359 --> 00:32:06.400 You get a card with reward. Just buy your grocery 610 00:32:06.519 --> 00:32:09.680 or your gas. Buy fifty dollars or fifty pounds every week, 611 00:32:10.240 --> 00:32:13.839 pay it off fifty pounds every week, pay it off. 612 00:32:13.960 --> 00:32:16.519 If you just do this for one year, you're gonna 613 00:32:16.519 --> 00:32:20.359 have the highest credit scoring. It's not hard. You don't 614 00:32:20.400 --> 00:32:22.880 have to do anything complicated. Get a cap of five 615 00:32:22.920 --> 00:32:26.440 hundred pounds of five pound dollars, use fifty dollars, use 616 00:32:26.480 --> 00:32:31.680 fifty pounds, pay it off, repeat, do it every week 617 00:32:31.960 --> 00:32:34.400 for at least eight months. You're gonna have the highest 618 00:32:34.440 --> 00:32:36.480 credit score. You might not have the highest because you 619 00:32:36.519 --> 00:32:38.640 don't have a personal loans, but you get what I mean. 620 00:32:38.880 --> 00:32:43.279 You'll be at very, very high our number. Does that 621 00:32:43.319 --> 00:32:44.000 work for you, sir? 622 00:32:45.000 --> 00:32:48.519 Yes, thank you? Sorry, sorry just one moment. 623 00:32:48.640 --> 00:32:52.599 So in the case of muggage, Hello, yeah, the case 624 00:32:52.640 --> 00:32:58.559 of muggage you talked about for this time. Okay, looking 625 00:32:58.599 --> 00:33:02.720 at the hya, now, say maybe I'm then I moved 626 00:33:02.759 --> 00:33:04.759 to the west and I want to buy a house, 627 00:33:04.960 --> 00:33:07.920 and I put in maybe a house of hundreds hundred 628 00:33:08.000 --> 00:33:09.440 thousand pounds. 629 00:33:09.279 --> 00:33:11.400 And maybe one hundred thousand dollars night, and. 630 00:33:11.400 --> 00:33:14.599 I put in maybe the period is thirty years, and 631 00:33:15.079 --> 00:33:18.759 I am like, let me say, like forty and I 632 00:33:18.920 --> 00:33:21.319 probably I said I was stop working maybe at the 633 00:33:21.359 --> 00:33:23.519 dige of fifty five or at the age of fifty. 634 00:33:23.960 --> 00:33:28.079 So is it advisable that you put down a ten 635 00:33:28.119 --> 00:33:31.759 percent or five percent and say you want to get 636 00:33:31.799 --> 00:33:32.880 a mortgage for the house. 637 00:33:33.640 --> 00:33:36.799 So the reason why you put a down payment has 638 00:33:36.799 --> 00:33:38.759 nothing to do with how long you want to stay 639 00:33:39.000 --> 00:33:40.559 or how long you want to stay. It has to 640 00:33:40.599 --> 00:33:44.440 do with your how much interest you want to pay 641 00:33:44.759 --> 00:33:47.680 every month from your pocket. So there are two types 642 00:33:47.680 --> 00:33:50.200 of mortgage in the West. Two types. One is the 643 00:33:50.400 --> 00:33:54.559 adjustable rate mortgage. The world we call the ar adjustable 644 00:33:54.640 --> 00:33:58.759 rate mortgage. That one means that when you buy that house, right, 645 00:33:58.880 --> 00:34:02.119 your mortgage can go or down based on what the 646 00:34:02.200 --> 00:34:05.519 Central banks rate goes up and down with. Right. The 647 00:34:05.680 --> 00:34:09.480 other one is called a fixed rate of fixed rate mortgage. Right, 648 00:34:09.599 --> 00:34:11.920 that's a normal one where once you buy the house, 649 00:34:12.199 --> 00:34:14.599 it's going to be a fixed rate going forward. It 650 00:34:14.639 --> 00:34:18.000 doesn't go up or down. Now, your question is this, 651 00:34:18.400 --> 00:34:21.519 if you are going to stay for four years, three years, 652 00:34:21.559 --> 00:34:24.639 if you're going to stay less than five years, then 653 00:34:25.000 --> 00:34:28.119 it may make sense to buy an adjustable rate mortgage 654 00:34:28.159 --> 00:34:31.440 if the rates are lower, because you are trying to 655 00:34:31.519 --> 00:34:34.400 get that house at the lower cost and you are 656 00:34:34.480 --> 00:34:36.880 hoping that the house value goes up so you can 657 00:34:36.960 --> 00:34:39.800 get out of the transaction. So you can sell. So 658 00:34:39.840 --> 00:34:41.960 you want to keep your interest rates very very low. 659 00:34:42.840 --> 00:34:45.199 Get the house. Then you're hoping that you want you 660 00:34:45.239 --> 00:34:47.480 have to flip this house in two three years, then 661 00:34:47.480 --> 00:34:50.360 you can flip the house without paying that high interest cost. 662 00:34:50.360 --> 00:34:52.320 You see the point I'm making, It's not really has 663 00:34:52.360 --> 00:34:56.639 to do with your arm with what it has to 664 00:34:56.679 --> 00:35:00.400 do with your objective. If you want to buy that 665 00:35:00.519 --> 00:35:04.599 house to live in that house, right, and rates are low, 666 00:35:05.000 --> 00:35:07.519 always go for the fixed because you are locking the 667 00:35:07.559 --> 00:35:12.039 low rate going forward. Right, Let's look at today in America, 668 00:35:12.239 --> 00:35:15.159 rates for mortgage are higher than usual. They're about six 669 00:35:15.280 --> 00:35:17.960 seven eight percent. They are higher than usual. So if 670 00:35:17.960 --> 00:35:20.440 I want to buy a mortgage now in America, with 671 00:35:20.519 --> 00:35:23.320 all the uncertainty, would I buy an adjustable rate mortgage? 672 00:35:23.719 --> 00:35:26.440 Maybe not, because no show will happen in the future, 673 00:35:26.440 --> 00:35:30.400 and I want to buy something that I think is low. Right, 674 00:35:30.920 --> 00:35:33.800 But even if I buy today at eight percent and 675 00:35:33.840 --> 00:35:36.239 I lock it in, if rates fall down, I can 676 00:35:36.280 --> 00:35:39.000 refinance at a lower rate. So I can go from 677 00:35:39.000 --> 00:35:43.239 eight percent to six percent by refinancing my mortgage. But 678 00:35:43.320 --> 00:35:45.440 if I buy an adjustable rate mortgage, I'm saying that 679 00:35:45.480 --> 00:35:48.000 the rates can go up. Rates can come down. So 680 00:35:48.039 --> 00:35:52.400 it's not really to your question. It doesn't matter. Your 681 00:35:52.480 --> 00:35:54.599 down payment has got to do with what you want 682 00:35:54.639 --> 00:35:58.239 to achieve with that home. The more you pay down payment, 683 00:35:58.760 --> 00:36:02.559 the less your more interested. In America, we have what 684 00:36:02.599 --> 00:36:07.960 we call the the insurance this insurance PMI. PMI is 685 00:36:08.039 --> 00:36:11.360 insurance you pay to the lender, not yourself. To the lender, 686 00:36:11.840 --> 00:36:15.920 if you pay less than twenty percent to buy a house, 687 00:36:16.280 --> 00:36:18.239 they will charge you PMI. You don't want to pay 688 00:36:18.239 --> 00:36:21.000 PMI because not your insurance. It's like you're buying insurance 689 00:36:21.199 --> 00:36:24.400 for the bank. So if you pay more than twenty percent, 690 00:36:24.480 --> 00:36:26.480 you don't pay PMI. But the question that you want 691 00:36:26.480 --> 00:36:29.760 to ask yourself is, Okay, if rates are so low, 692 00:36:30.400 --> 00:36:33.400 I just maybe just pay it together. Why you have 693 00:36:33.480 --> 00:36:36.079 to pay twenty percent of my money on the house. 694 00:36:36.239 --> 00:36:38.960 I have that cash, I can go somewhere else. So 695 00:36:39.039 --> 00:36:41.280 one I'm trying to answer is this duke, is it 696 00:36:41.440 --> 00:36:44.880 has to do with the objective why you are buying 697 00:36:44.880 --> 00:36:47.840 that house. Will determine if you should pay a high 698 00:36:47.920 --> 00:36:50.719 down payment or a low down payment. If you're going 699 00:36:50.760 --> 00:36:53.199 to flip that house, you are looking at keeping as 700 00:36:53.320 --> 00:36:56.039 much cash as you have with yourself. But if the 701 00:36:56.079 --> 00:36:58.039 house you're going to live in for ten years, oh 702 00:36:58.320 --> 00:37:01.800 bye bye, pay the PM paid twenty percent and reduce 703 00:37:01.920 --> 00:37:06.679 your future interest payments on the house. Does that make sense, Duke, 704 00:37:08.000 --> 00:37:11.719 Oh yeah, yeah, So look at it that way. Adjustable 705 00:37:11.800 --> 00:37:16.440 rate is fluctuating, but it's cheaper initially. So you're looking 706 00:37:16.480 --> 00:37:19.039 at send the house quickly, that's your objective a RM. 707 00:37:19.360 --> 00:37:21.280 But if you're looking at living that house with your 708 00:37:21.360 --> 00:37:25.760 kids in school, good school district, pay the thing, reduce 709 00:37:25.760 --> 00:37:28.280 your monthly interest rate and enjoy it. You can always 710 00:37:28.320 --> 00:37:31.159 refinance downwards, doesn't matter, right, So that's how I want 711 00:37:31.159 --> 00:37:35.519 to look at it. Yep. Okay, Joseph, I'm reading your 712 00:37:35.599 --> 00:37:37.840 DM very interesting DM. So j Justef said, let me 713 00:37:37.920 --> 00:37:40.039 try to explain to you. Joseph says he has an 714 00:37:40.199 --> 00:37:43.559 opportunity for a loan of twenty percent. So, Joseph, our 715 00:37:43.599 --> 00:37:47.199 loan is twenty percent rebate of six percent, so mean 716 00:37:47.239 --> 00:37:52.159 you're gonna pay about fourteen percent. So it's fourteen percent loan, right, 717 00:37:52.280 --> 00:37:55.440 and it's for one to three years. So we have 718 00:37:55.519 --> 00:37:59.000 a fourteen percent loan for one to three years. The 719 00:37:59.119 --> 00:38:02.840 repayment is is three years and it's going to cost 720 00:38:02.920 --> 00:38:06.639 you tenenty five percent of your salary. You didn't tell me, Okay, 721 00:38:06.639 --> 00:38:08.920 tirty five on your salary. Okay. Now I think you 722 00:38:08.960 --> 00:38:12.679 are asking me if you should buy a government bond 723 00:38:12.960 --> 00:38:16.159 for twenty three percent or a mutual fund at twenty 724 00:38:16.239 --> 00:38:19.760 one percent. It's a simple answer, Joseph. And it's a 725 00:38:19.800 --> 00:38:24.840 simple answer. The loan is for fourteen percent. You can't 726 00:38:24.880 --> 00:38:28.920 buy anything that you are not sure of getting more 727 00:38:28.920 --> 00:38:32.079 than fourteen percent. You can't buy anything. So when you 728 00:38:32.119 --> 00:38:35.800 say mutual fund, is that mutual fund guaranteeing you twenty 729 00:38:35.800 --> 00:38:38.559 tw one percent? If if it's an equity mutual fund, 730 00:38:38.599 --> 00:38:42.320 it's not guaranteed. Even if it's a money market mutual phone, 731 00:38:42.360 --> 00:38:45.800 I'm not sure it's guaranteed. The government bond is twenty 732 00:38:45.840 --> 00:38:48.840 three percent. I like that one more because you are 733 00:38:48.880 --> 00:38:53.199 taken at fourteen percent to make twenty three percent, So 734 00:38:53.280 --> 00:38:56.039 you've already locked in your profit. There's no risk there 735 00:38:56.079 --> 00:38:58.960 because it's the government. So you are borrowing from your 736 00:38:59.000 --> 00:39:02.679 company at fourteen you are given to the government at 737 00:39:02.679 --> 00:39:06.840 twenty three. You've locked the money in, no no, no risk. 738 00:39:07.320 --> 00:39:10.159 You're going to make how more twenty three let minus fourteen? 739 00:39:10.199 --> 00:39:12.960 How much is that about nine percent or so risk free. 740 00:39:13.599 --> 00:39:15.679 The only question is that if you want to quote 741 00:39:15.760 --> 00:39:19.199 unquote do more, then you are going to have to 742 00:39:19.239 --> 00:39:23.119 take more risk. And this mutual fund you're talking about 743 00:39:23.360 --> 00:39:28.159 is more is riskier than the government bond. If it's 744 00:39:28.199 --> 00:39:31.039 an equity mutual fund. I would not do it with 745 00:39:31.119 --> 00:39:33.639 the loan because it can go up to one hundred percent, 746 00:39:34.000 --> 00:39:36.559 it can go down to two percent. So be careful 747 00:39:36.599 --> 00:39:40.480 about borrowing to invest in something that the value is 748 00:39:40.519 --> 00:39:42.840 not locked in now, there's no way you can hedge that. 749 00:39:43.519 --> 00:39:46.320 So I would prefer the government bond. It's going to 750 00:39:46.360 --> 00:39:51.119 be a simple tidy exchange. You maximize that borrowing. It 751 00:39:51.239 --> 00:39:53.840 can give you borrow your hundred million eire, borrow one 752 00:39:53.920 --> 00:39:56.320 hundred million Eira, take it and go and buy the 753 00:39:56.320 --> 00:40:00.559 government bond at twenty percent and make nine percent risk free. 754 00:40:00.719 --> 00:40:04.159 They might have some tax advantages there if you do 755 00:40:04.199 --> 00:40:07.639 the government bond. So based on your on your d M. Joseph, 756 00:40:07.719 --> 00:40:11.320 that's it's a simple thing to analyze. Remember, if you 757 00:40:11.440 --> 00:40:15.519 take a fixed cost loan, you don't want to invest 758 00:40:15.519 --> 00:40:19.639 in a variable return investment. I say it again, if 759 00:40:19.679 --> 00:40:22.960 you take a fixed cost loan, you don't want to 760 00:40:23.039 --> 00:40:27.000 invest in a variable return instrument, because then you are 761 00:40:27.079 --> 00:40:30.719 chasing what you don't know. Just how that makes sense 762 00:40:30.800 --> 00:40:34.159 for you? Great question. I love those kind of questions. 763 00:40:34.719 --> 00:40:38.400 Thank you, doctor Smart, you've got the floor. Go ahead, sir, 764 00:40:41.039 --> 00:40:41.360 Thank you. 765 00:40:41.320 --> 00:40:43.519 A very much. Sir, So, I don't want to find 766 00:40:43.519 --> 00:40:51.840 out on this your phone and you insight on money 767 00:40:51.920 --> 00:40:53.320 market I could say. 768 00:40:55.559 --> 00:40:59.719 More specifically because I use this Tanard. 769 00:41:00.360 --> 00:41:02.880 Money and money markets. 770 00:41:03.400 --> 00:41:08.760 Standing contract funds really give us more insight. 771 00:41:08.880 --> 00:41:14.280 And so can you be more specific? What where do 772 00:41:14.280 --> 00:41:15.960 you want to focus on? If I may ask? 773 00:41:18.880 --> 00:41:21.599 Yeah, regarding the interests. 774 00:41:21.760 --> 00:41:25.480 Oh, I see, okay, so I see, and I've seen 775 00:41:25.519 --> 00:41:28.559 the dms as well. So whenever you hear a finance 776 00:41:28.599 --> 00:41:34.400 person say say interest rates, it's he's always quoting a paranom. 777 00:41:34.440 --> 00:41:37.920 Interest rates by say five percent, I'm always meaning five 778 00:41:37.960 --> 00:41:41.840 percent parandom. If a bank tells you four percent, they 779 00:41:41.920 --> 00:41:46.079 always mean four percent paranum. It's always going to be 780 00:41:46.119 --> 00:41:50.079 a parandom. So just to answer those DMS always present panum. 781 00:41:50.280 --> 00:41:53.760 So Smart, look at it this way, right, and I'll 782 00:41:53.760 --> 00:41:58.039 try to share something if I can. When you invest, 783 00:41:58.119 --> 00:42:01.119 there are only two forms of investment. There are only 784 00:42:01.199 --> 00:42:04.280 two forms of investment. Number one, that's what we call 785 00:42:04.519 --> 00:42:09.960 fixed return. Fixed return means as you are investing, you 786 00:42:10.039 --> 00:42:13.880 know exactly what you are getting back. So fixed return. 787 00:42:14.320 --> 00:42:17.079 If I invest tenera today, the banks isn't going to 788 00:42:17.199 --> 00:42:19.599 end ten percent. I'm not going to end ten percent 789 00:42:19.679 --> 00:42:23.679 on my tenera. No argument is fixed return. I'm ending 790 00:42:23.760 --> 00:42:28.920 interest on my principle, fixed guaranteed, no debate. The other 791 00:42:29.000 --> 00:42:32.920 investment is called a variable return. So when I buy 792 00:42:33.360 --> 00:42:37.079 a stock, if I buy Dango to cement, my profit 793 00:42:37.599 --> 00:42:41.800 is based on how much profit dank the cement makes. 794 00:42:42.119 --> 00:42:44.679 I want to pay me. They can make one hundred 795 00:42:44.719 --> 00:42:47.400 percent and pay me one hundred percent. They can make 796 00:42:47.480 --> 00:42:50.360 one percent and pay me one percent. So you see 797 00:42:50.400 --> 00:42:54.280 that's fixed and there's variable. Let's now go to mutual funds. 798 00:42:54.480 --> 00:42:58.320 Mutual funds are just a basket. They will take that 799 00:42:58.480 --> 00:43:01.760 basket and then they put things in a basket. So 800 00:43:01.840 --> 00:43:04.000 they're now sell it to you, and you will say, listen, 801 00:43:04.079 --> 00:43:08.800 instead of you buying a Mercedes car, a BMW, a Toyota, 802 00:43:09.000 --> 00:43:13.119 a Lexus, a Tesla, just buy this basket. Once you 803 00:43:13.159 --> 00:43:17.199 buy this basket, you have bought all those car companies immediately. 804 00:43:17.719 --> 00:43:20.199 So when you buy a mutual fund, Americans call it 805 00:43:20.360 --> 00:43:24.760 mutual funds. Nigerians we call it unit trust. So Americans 806 00:43:24.760 --> 00:43:28.400 don't have trust or they don't have a what trust 807 00:43:28.480 --> 00:43:33.280 deed in Nigerian read real palace is unit trust in English? 808 00:43:33.960 --> 00:43:36.960 Mutual funds in America, But it's the same thing. Even 809 00:43:36.960 --> 00:43:42.119 when you hear ETFs exchange traded funds, it's the same thing. 810 00:43:42.440 --> 00:43:46.920 They are all a pool of funds managed by an 811 00:43:46.920 --> 00:43:50.360 investor on your behalf. So when you want to buy 812 00:43:50.360 --> 00:43:52.239 a mutual fund or in a trust, you want to 813 00:43:52.280 --> 00:43:54.800 ask yourself. Are you buying a trust that is doing 814 00:43:55.039 --> 00:44:00.800 fixed return or is doing variable return? How do you 815 00:44:00.840 --> 00:44:04.760 know your actual manager? What is this you need trust for? 816 00:44:05.440 --> 00:44:09.639 If they are only buying bank loans, certificate of deposits, 817 00:44:09.800 --> 00:44:14.360 fixed deposits, treasury bills, anything that they know the interest 818 00:44:14.440 --> 00:44:18.079 rates in advance, that's the fix return and they usually 819 00:44:18.079 --> 00:44:21.960 will tell you on the you'll see IBTC equity or 820 00:44:22.000 --> 00:44:24.760 IBTC fix return. You'll see it on the name. If 821 00:44:24.760 --> 00:44:27.760 you're not sure, ask them. So, if it's a fixed 822 00:44:27.760 --> 00:44:29.920 return mutual fund, you are only going to get a 823 00:44:30.119 --> 00:44:34.599 return based on the fixed fixed returning instrument that they 824 00:44:34.599 --> 00:44:38.559 have bought. If it's a variable return, right, then you 825 00:44:38.639 --> 00:44:43.199 are getting mutual funds equities, you are binding to the 826 00:44:43.320 --> 00:44:47.239 profit and loss of a company. So most once you 827 00:44:47.280 --> 00:44:50.920 see are sometimes equity. You can also have what we 828 00:44:51.039 --> 00:44:54.760 call a balanced where you are buying half equities or 829 00:44:54.800 --> 00:44:57.840 half mutuals, but they will give you the percentage. That's 830 00:44:57.840 --> 00:45:01.159 basically it's when you hear me say VT in America, 831 00:45:01.320 --> 00:45:04.519 that's a mutual fund or an ETF. That's an ETF 832 00:45:04.960 --> 00:45:09.440 that is investing in variable income, which are equities. When 833 00:45:09.480 --> 00:45:13.800 you hear me say b ND, that's an ETF that 834 00:45:13.920 --> 00:45:17.719 is investing in a fixed return, which are like bonds 835 00:45:18.480 --> 00:45:22.000 and money market instruments. So smart, what you want to 836 00:45:22.000 --> 00:45:23.639 do is that when you want to buy anything, you 837 00:45:23.679 --> 00:45:25.679 tell the banker or you tell on your app. Use 838 00:45:25.719 --> 00:45:29.199 your app. You say fixed income mutual fund, neutral, it will, 839 00:45:29.360 --> 00:45:31.639 it will, it will screen for you and give you 840 00:45:31.800 --> 00:45:35.559 only fixed income. Fixed income means that your principle will 841 00:45:35.599 --> 00:45:38.639 not increase. What you are going to get is that 842 00:45:38.800 --> 00:45:42.800 you are making a return on your principle. So it's 843 00:45:42.840 --> 00:45:47.199 what were called capital preservation. Principal preservation. If you give 844 00:45:47.239 --> 00:45:51.280 a bank a billion, your one billion will not increase. 845 00:45:51.360 --> 00:45:52.960 What you are doing is that you are going to 846 00:45:53.000 --> 00:45:55.800 get to return on your one billion. You see what 847 00:45:55.840 --> 00:45:58.280 point I'm making. Even if they give you one hundred 848 00:45:58.320 --> 00:46:01.800 percent return, you are getting one hundred percent return on 849 00:46:01.880 --> 00:46:06.239 your principle. But when you invest in variable income, you 850 00:46:06.400 --> 00:46:09.800 invested in the profit and loss of that investment. So 851 00:46:09.880 --> 00:46:12.119 it's your princes park can actually go up if the 852 00:46:12.159 --> 00:46:15.760 share price goes from one dollar to two dollars, and 853 00:46:16.280 --> 00:46:18.280 your princepe can actually go to zero if it goes 854 00:46:18.280 --> 00:46:21.880 from one dollar to zero. Did I answer that question 855 00:46:21.960 --> 00:46:22.599 right with towards. 856 00:46:22.400 --> 00:46:26.519 The smith, Yeah, yes, yes, yes, that's my. 857 00:46:29.880 --> 00:46:32.320 So you want to find out ask them, make sure 858 00:46:32.360 --> 00:46:35.519 you look at it the summary prospect us. Ask them 859 00:46:35.559 --> 00:46:37.960 for the summary prospects and ask them right, and then 860 00:46:37.960 --> 00:46:41.679 they will let you know what it is. Yeah, yeah, yeah, 861 00:46:41.960 --> 00:46:44.559 thank you. All right, perfect, someone is asking them. Let 862 00:46:44.559 --> 00:46:50.440 me let me get poor Harry. Is poor Harry? Zaiah? Hi, sir, Hello, 863 00:46:50.599 --> 00:46:54.360 call good evening. He hi, my brother, thanks. 864 00:46:54.079 --> 00:46:56.719 So much as usual for the education session. 865 00:46:56.960 --> 00:47:00.599 Yes, so two teams. The first. 866 00:47:01.679 --> 00:47:07.880 For example, as a civil servant, just to speak, who 867 00:47:07.880 --> 00:47:12.679 earns a salary and wants to diversify in terms of 868 00:47:12.719 --> 00:47:16.679 getting income, Is it a good idea to get a 869 00:47:16.840 --> 00:47:23.000 loan from a bank? With salary dominciliation as the comfort 870 00:47:23.679 --> 00:47:28.119 to start a business specifically see trading, buying and selling. 871 00:47:28.760 --> 00:47:29.199 Is it? 872 00:47:29.239 --> 00:47:32.800 Is it a wise choice? That's one. 873 00:47:32.239 --> 00:47:39.119 Secondly, on the issue of bad debt, do we do 874 00:47:39.159 --> 00:47:44.840 we do we look at someone financing his luxury life 875 00:47:45.400 --> 00:47:49.239 getting a loan from a bank, ankle, or any other 876 00:47:49.400 --> 00:47:51.920 institution that would be able to grant a loan to 877 00:47:52.039 --> 00:47:56.000 him to finance lock like say, okay, he needs a car, 878 00:47:56.119 --> 00:47:58.000 and maybe he gets a car. 879 00:47:58.239 --> 00:48:00.800 Should that one't be classified as a as well? 880 00:48:02.039 --> 00:48:04.920 To Clain, explain that second one to me. You say 881 00:48:05.039 --> 00:48:07.679 bad debt, but say it again so I can understand. 882 00:48:08.719 --> 00:48:14.000 Okay, so someone getting a loan to finance a luxury 883 00:48:15.119 --> 00:48:17.280 is that a bad debt? 884 00:48:17.400 --> 00:48:19.679 I hear if already answered the question. That's why I'm laughing. 885 00:48:21.079 --> 00:48:22.679 You already answered the question. So I mean, look at 886 00:48:22.760 --> 00:48:26.599 like I said, right, there's good debts. Let's do your 887 00:48:26.639 --> 00:48:29.480 second question first, there's good debt. That's bad debt. What 888 00:48:29.559 --> 00:48:33.159 is good debt? Good debt is deb that the returns 889 00:48:33.320 --> 00:48:35.840 are more than the cost of the loan. What is 890 00:48:35.960 --> 00:48:39.360 bad debt The cost is more than the returns on 891 00:48:39.400 --> 00:48:41.679 the loan. That's basically what we're saying, so if I 892 00:48:41.760 --> 00:48:45.320 go borrow money, right, and what have I done? Like 893 00:48:45.360 --> 00:48:48.800 I said, I've I've front loaded my consumption. If I 894 00:48:49.000 --> 00:48:52.280 borrow or one hundred million narror and I buy a 895 00:48:52.360 --> 00:48:55.519 brand new Lectus cheap, what have I done? I have 896 00:48:55.639 --> 00:48:59.079 gone to the future taking one hundred million of my 897 00:48:59.199 --> 00:49:03.039 earnings brought you till today, and I'm consuming with buyinger 898 00:49:03.159 --> 00:49:06.599 a Lexus chip. It would make perfect sense if that 899 00:49:06.719 --> 00:49:08.920 Lexus jip, I'm going to use a Legus jip as 900 00:49:09.000 --> 00:49:12.599 car higher or movie you higher and people pay me 901 00:49:12.639 --> 00:49:15.559 back money and over the years I make money to 902 00:49:15.800 --> 00:49:20.159 service that loan that when that hole, that one hundred 903 00:49:20.239 --> 00:49:23.000 no A hole comes, I have made so much money 904 00:49:23.039 --> 00:49:25.960 from renting that car out that I can cover that loan. 905 00:49:26.360 --> 00:49:30.280 So it makes sense. But if there is no income 906 00:49:30.599 --> 00:49:34.880 to cover that one hundred million IRA hole, how do 907 00:49:34.880 --> 00:49:36.599 you cover it up? It's going to be covered up 908 00:49:36.639 --> 00:49:40.360 one way or the other by you reducing your livelihood 909 00:49:40.440 --> 00:49:42.840 and your expenses. So even if you're going on holidays 910 00:49:43.320 --> 00:49:47.119 with your family when you're older, you'll find yourself paying 911 00:49:47.360 --> 00:49:51.039 a loan to a car company. That's a problem. So 912 00:49:51.079 --> 00:49:56.400 you want to be very very careful about borrowing to invest, 913 00:49:56.639 --> 00:50:00.119 not just in luxuries, but any venture that does not 914 00:50:00.239 --> 00:50:03.199 give you a rate a return back. You know, when 915 00:50:03.199 --> 00:50:05.800 you look at when you look at how accountants do 916 00:50:05.960 --> 00:50:09.440 balance shift, they will do assets and liabilities. But when 917 00:50:09.519 --> 00:50:12.239 financial planners do a balanceship, we look at we will 918 00:50:12.239 --> 00:50:15.239 classify your asset in terms of is the asset any 919 00:50:15.360 --> 00:50:18.840 money for you? That's what we look at the assets. 920 00:50:19.199 --> 00:50:21.000 If you have a phone, let me give a better 921 00:50:21.039 --> 00:50:25.400 example of hurry. A brand new Apple phone, latest model 922 00:50:25.400 --> 00:50:28.960 will cost you maybe one thousand dollars. It's that phone 923 00:50:29.000 --> 00:50:31.719 in your hands. It is an asset or a liability. 924 00:50:32.039 --> 00:50:34.400 And I count tell you that that phone is an 925 00:50:34.440 --> 00:50:38.280 asset full stop. But the financial advisor will tell you 926 00:50:38.320 --> 00:50:41.159 it depends on what you are doing with that phone. 927 00:50:41.840 --> 00:50:44.960 If I use that phone to make calls, to receive text, 928 00:50:45.039 --> 00:50:49.559 to take selfies, it's a liability. It's not an asset. 929 00:50:50.199 --> 00:50:54.559 It's a liability because why it's taking money away from 930 00:50:54.559 --> 00:51:00.599 me and paying alone to buy that one thousand dollars iPhone. 931 00:51:01.039 --> 00:51:03.679 But what if I use that iPhone because the memory, 932 00:51:04.079 --> 00:51:08.199 because the graphics on the phone to run my podcast, 933 00:51:08.960 --> 00:51:12.000 and from that podcast, I get folks that advertise on 934 00:51:12.039 --> 00:51:15.599 my podcast and I make returns for me. Of course, 935 00:51:15.639 --> 00:51:19.920 that phone becomes an asset because it's generating income for me. 936 00:51:20.719 --> 00:51:23.760 So the phone itself can be an asset. It can 937 00:51:23.840 --> 00:51:26.960 be a liability. Your car can be an asset, it 938 00:51:27.000 --> 00:51:30.519 can be a liability. That accountancy is different from how 939 00:51:30.679 --> 00:51:33.480 financial planning because if it's not bringing you money. You 940 00:51:33.519 --> 00:51:38.119 can have a house in Lacky that is worth a 941 00:51:38.119 --> 00:51:42.400 lot of money, but that house is flooded so you 942 00:51:42.440 --> 00:51:47.079 can't rent it out. That house is a liability to you, 943 00:51:47.159 --> 00:51:50.639 not an asset, because you are it's costing you more 944 00:51:50.800 --> 00:51:55.079 money to maintain that house than you are making from rents. 945 00:51:55.760 --> 00:51:58.880 So it's not asset liability in the accounting sense. But 946 00:51:59.039 --> 00:52:01.840 is it giving you money or is taking money away 947 00:52:01.840 --> 00:52:06.760 from you? That's how in planning I define assets and liabilities. 948 00:52:06.880 --> 00:52:09.280 I'm not saying I can. That's the wrong, but when 949 00:52:09.320 --> 00:52:12.280 you look at it that way, it clarifies many things 950 00:52:12.320 --> 00:52:16.000 for you. Right. That's to answer your question. So that 951 00:52:16.159 --> 00:52:19.360 answers your question without me answering it tells you it 952 00:52:19.440 --> 00:52:22.559 might not be a good idea to fund any lifestyle 953 00:52:22.559 --> 00:52:24.480 that you're not making money back from. Let me give 954 00:52:24.480 --> 00:52:26.960 you an example again. Just make it close to you. I 955 00:52:27.000 --> 00:52:31.880 saw Bonnarp Boy his his parking lot. He had lots 956 00:52:31.920 --> 00:52:35.840 of Ferraris there. I saw what's his name that video 957 00:52:36.159 --> 00:52:40.639 he's driving the latest rolls roys Is? Are those rolls 958 00:52:40.760 --> 00:52:44.800 roys and Ferraris? Is it a bad investment or a 959 00:52:44.960 --> 00:52:48.280 good invent for those guys to buy Ferraris and rolls stroys? 960 00:52:48.639 --> 00:52:51.800 It's not a bad investment for them. They are in 961 00:52:51.840 --> 00:52:56.719 the business of entertainment, so they need to entertain and 962 00:52:56.880 --> 00:53:00.360 show you off. So if bona boy was make a 963 00:53:00.360 --> 00:53:02.840 Camaro and nobody will follow him, he has got to 964 00:53:02.920 --> 00:53:07.199 drive a Rose Royce to show he's an entertainer. It's 965 00:53:07.239 --> 00:53:10.239 like him buying a brand new iPhone. That's the same 966 00:53:10.280 --> 00:53:12.760 way he's buying a brand new Rose Royce. So he 967 00:53:12.880 --> 00:53:15.599 can do that because it's his job to buy to 968 00:53:16.079 --> 00:53:19.760 wear diamonds. That's his job. But if you work in 969 00:53:19.960 --> 00:53:22.840 a farm, your job is not to show off or 970 00:53:22.880 --> 00:53:26.679 to entertain, even if you have the money, So it's 971 00:53:26.679 --> 00:53:28.559 not the again, go back to the example. It's not 972 00:53:28.679 --> 00:53:32.079 the income or the expenses, it's is this thing bringing 973 00:53:32.159 --> 00:53:35.400 money for you? That's the question. Bonnap boy is gonna 974 00:53:35.480 --> 00:53:40.360 use that rolls Royce to get more gigs. So that's 975 00:53:40.400 --> 00:53:42.920 why it's an asset for him. But if you go 976 00:53:43.000 --> 00:53:46.360 borrow buy a ferrari to drive the ferrari, it's not 977 00:53:46.400 --> 00:53:48.159 an asset for it because you don't make any money 978 00:53:48.159 --> 00:53:51.079 from that ferrari because you work in the library. How 979 00:53:51.119 --> 00:53:53.599 do that makes sense on the question? But let's go 980 00:53:53.679 --> 00:53:57.039 to your first question, Barr is a very ver supple answer. 981 00:53:57.320 --> 00:54:00.760 You should, in no circumstance go to a bank to 982 00:54:00.880 --> 00:54:04.199 borrow money to start a business. Where in America, where 983 00:54:04.280 --> 00:54:07.719 in the UK, where in Nigeria? Banks are not set 984 00:54:07.800 --> 00:54:11.079 up to lend you money to start a business. No, 985 00:54:11.679 --> 00:54:14.840 you start a business with your family and friends and 986 00:54:14.880 --> 00:54:20.239 your own savings and equity what we call patient capital. 987 00:54:20.679 --> 00:54:24.039 You don't want to borrow from a bank because when 988 00:54:24.039 --> 00:54:28.639 you're a startup, what defines a startup, Harry, there's no cash. 989 00:54:29.320 --> 00:54:32.239 It startup basically means you don't have any cash. So 990 00:54:32.320 --> 00:54:34.320 if you don't have any cash, why are you taking 991 00:54:34.320 --> 00:54:37.760 the limited cash you're even making from operations to pay 992 00:54:37.960 --> 00:54:40.280 the banks? What more, you see anything that are going 993 00:54:40.360 --> 00:54:43.519 to be taking your principle to pay back that bank loan. 994 00:54:43.920 --> 00:54:47.960 That's why there's this question always ask people. There's a 995 00:54:47.960 --> 00:54:52.440 stratestic that shows that most businesses in Abuja closed after 996 00:54:52.519 --> 00:54:54.239 two years. And I asked, why do you think it's 997 00:54:54.239 --> 00:54:57.960 two years? Because two years when your rent expires, so 998 00:54:58.039 --> 00:55:01.559 the business really died, but since two years twenty then 999 00:55:01.599 --> 00:55:04.639 they formally closed. You should not to answer is simple, buyer. 1000 00:55:04.719 --> 00:55:07.239 You should not go to the bank to borrow money 1001 00:55:07.280 --> 00:55:09.639 to start the business when you have started the business 1002 00:55:10.119 --> 00:55:13.079 and then you need working capital. Let's say you have 1003 00:55:13.159 --> 00:55:16.360 a contract to supply. The guy says, if you supply 1004 00:55:16.440 --> 00:55:18.039 me this, i'll pay you one week. 1005 00:55:18.199 --> 00:55:18.519 Good. 1006 00:55:18.599 --> 00:55:21.440 You go to the bank, you borrow money from the bank, 1007 00:55:21.800 --> 00:55:24.920 You supply, the guy pays it back in one week. 1008 00:55:25.199 --> 00:55:27.400 You go back to the bank, you clean up. That's 1009 00:55:27.400 --> 00:55:30.239 called you know, you close that cycle. That's working capital. 1010 00:55:30.559 --> 00:55:33.199 You don't borrow from the bank to who buy computers, 1011 00:55:33.719 --> 00:55:37.480 buy the car, buy the head office? Because I answer a. 1012 00:55:37.519 --> 00:55:41.000 Question, Oh yes it does. 1013 00:55:41.079 --> 00:55:41.840 Thank you so much. 1014 00:55:42.039 --> 00:55:44.599 I was reading a finance book and it was saying 1015 00:55:45.400 --> 00:55:49.159 like leaky businesses should see borrowing money to start up 1016 00:55:49.199 --> 00:55:50.639 a business as a myth. 1017 00:55:50.960 --> 00:55:53.239 And you've clarified that. Thank you so much. 1018 00:55:53.480 --> 00:55:53.840 Thank you. 1019 00:55:53.840 --> 00:55:58.480 You should never do that, all right, perfect you clarifieder. So, 1020 00:55:58.519 --> 00:56:00.360 I have a question DM from al. I love this 1021 00:56:00.440 --> 00:56:04.840 question again. Technocrat is asking should I do what is 1022 00:56:04.880 --> 00:56:09.079 the advantage of getting the students loan with twenty years 1023 00:56:09.119 --> 00:56:12.880 payment plan? Of course it's four hundred dollars spread over 1024 00:56:13.000 --> 00:56:15.920 ten years. Techno. I see all these numbers you have 1025 00:56:16.000 --> 00:56:19.320 given to me, right, they make sense. But look at 1026 00:56:19.320 --> 00:56:20.840 it this way. Let me give you a breakdown of 1027 00:56:20.840 --> 00:56:26.400 student loans. A student loan is an investment. Someone is 1028 00:56:26.440 --> 00:56:29.280 telling you that we're going to give you. I want 1029 00:56:29.280 --> 00:56:34.440 you to pay me twenty three thousand dollars, and I'm 1030 00:56:34.480 --> 00:56:37.480 going to give you a piece of paper. That piece 1031 00:56:37.480 --> 00:56:40.159 of paper can change your life, or it can be 1032 00:56:40.239 --> 00:56:42.840 a cost, it can be an asset, it can be 1033 00:56:42.920 --> 00:56:45.960 a liability. There After, the student on is this, will 1034 00:56:46.000 --> 00:56:50.239 you get a job that can pay back twenty three thousand? 1035 00:56:50.320 --> 00:56:54.400 That's the only answer. It's not a numbers question, per se, Techno. 1036 00:56:54.800 --> 00:56:58.079 It has to do if you spend, if you invest 1037 00:56:58.400 --> 00:57:01.599 twenty three thousand and so something, no matter the interest rate, 1038 00:57:02.239 --> 00:57:07.320 will you get a return that would pay back twenty thousand? 1039 00:57:07.400 --> 00:57:10.320 That's your question if you are doing it. Of course, 1040 00:57:10.360 --> 00:57:13.800 in anxieties usually yes, because the it folks are not 1041 00:57:13.920 --> 00:57:16.199 show how they may do it, but they're able to 1042 00:57:16.320 --> 00:57:20.760 make a lot of revenues from their certification. Maybe they 1043 00:57:20.760 --> 00:57:23.320 go and do Python or whatever they I don't name, 1044 00:57:23.800 --> 00:57:27.119 but they get a lot of revenues. Is salary revenues 1045 00:57:27.519 --> 00:57:30.719 that can pay back their loone right, same thing we'd 1046 00:57:30.719 --> 00:57:36.920 say a certify financial analysts is that certificate is in demand. 1047 00:57:37.480 --> 00:57:40.760 Is an international certification. If you get it, you're able 1048 00:57:40.800 --> 00:57:43.239 to get a good job to pay back your loan. 1049 00:57:43.679 --> 00:57:47.599 So it's a question really of what are you getting 1050 00:57:47.880 --> 00:57:51.159 when you say NBA internationally this program. I would say, 1051 00:57:51.199 --> 00:57:55.079 don't do it, not with the loan, because NBA is 1052 00:57:55.119 --> 00:57:57.480 and I'm not. I have an MBA, so let me 1053 00:57:57.559 --> 00:58:00.519 just make sure. Don't get me right. NBA is like water. 1054 00:58:01.559 --> 00:58:03.039 If you want to do an NBA, I want to 1055 00:58:03.079 --> 00:58:05.800 borrow do an NBA. Borrow money and go to Harvard. 1056 00:58:06.360 --> 00:58:09.079 At least you get the network and then you can 1057 00:58:09.159 --> 00:58:12.960 say I'm investing in the network. There is nothing Harvard 1058 00:58:13.000 --> 00:58:16.360 to teach you that the business could No nature will 1059 00:58:16.440 --> 00:58:20.840 not teach you, trust me. The difference is this in 1060 00:58:21.079 --> 00:58:23.519 Harvard they're going to meet the folks that will be 1061 00:58:23.559 --> 00:58:27.480 ceeos in ten years in a Nature Business school. They 1062 00:58:27.559 --> 00:58:30.119 might be seals in ten years, but they're in Nigeria. 1063 00:58:30.719 --> 00:58:34.199 Which one has more currency for you, Harvard or Nature 1064 00:58:34.280 --> 00:58:39.119 Business School? So it's not really technolog You get my 1065 00:58:39.199 --> 00:58:41.920 point right. It's not what you're paying for. It's not 1066 00:58:41.960 --> 00:58:44.920 what it costs. It's what you're going to get from that. 1067 00:58:45.599 --> 00:58:48.159 If somebody tells you to forget the education part. Let's 1068 00:58:48.199 --> 00:58:52.519 say someone tells you buy a ticket. This is gonna 1069 00:58:52.559 --> 00:58:55.760 cost you twenty three thousand dollars, and this ticket you're 1070 00:58:55.760 --> 00:58:58.719 gonna have just two outcomes. You're gonna have up or down. 1071 00:58:58.920 --> 00:59:02.280 Up means if you buy this ticket you get double, 1072 00:59:02.480 --> 00:59:04.840 So you spend twenty five thousand, you get fifty thousand, 1073 00:59:05.119 --> 00:59:06.639 or if you buy this ticket, your ticket are going 1074 00:59:06.719 --> 00:59:09.559 to get zero. So it's a binary choice. You give 1075 00:59:09.599 --> 00:59:12.639 up twenty five thousand dollars you buy a ticket that's 1076 00:59:12.679 --> 00:59:16.440 going to go up fifty thousand or down zero. Would 1077 00:59:16.440 --> 00:59:19.119 you do it? Would you? Would you take that risk 1078 00:59:19.239 --> 00:59:21.079 and say if I spend twenty five thousand, I'm going 1079 00:59:21.119 --> 00:59:25.199 to get fifty thousand, nine or zero. That's number one. 1080 00:59:25.440 --> 00:59:28.320 Number two the NBA you want to go for NBA 1081 00:59:28.440 --> 00:59:31.679 is you are buying the school name, not the education. 1082 00:59:32.159 --> 00:59:34.800 Forget that. Can I tell you are buying the name 1083 00:59:34.840 --> 00:59:39.280 of the school. If somebody applies to your company from Harvard, 1084 00:59:39.400 --> 00:59:42.119 you will take him and you'll put on your on 1085 00:59:42.159 --> 00:59:45.000 your another point and say we have this guy, he's 1086 00:59:45.119 --> 00:59:47.320 trained in Harvard. That's why you're saying. Anyone that goes 1087 00:59:47.360 --> 00:59:50.840 to Harvard, they always put it there had along Night 1088 00:59:51.320 --> 00:59:54.679 Mit along Night Sloan School along Night Year alumni. Why 1089 00:59:54.679 --> 00:59:57.679 they are telling you they went to this unique, very 1090 00:59:57.840 --> 01:00:02.400 very exclusive place. And that's current se That exclusivity is 1091 01:00:02.400 --> 01:00:04.920 the crazy. That's what you're paying for. It's not what 1092 01:00:05.000 --> 01:00:07.480 they leent in that school. It's who they can call 1093 01:00:08.320 --> 01:00:10.320 and say, Okay, I wasn't habut with this guy. You 1094 01:00:10.360 --> 01:00:12.519 can't have it a long nine. So if it's just 1095 01:00:12.559 --> 01:00:15.920 gonna be an NBA program, I wouldn't do it. If 1096 01:00:15.920 --> 01:00:17.800 I have the money, I would do it. If you 1097 01:00:17.800 --> 01:00:19.920 have the money in your bank account, sure do it. 1098 01:00:19.960 --> 01:00:22.360 Add to your CV. So if you want to go 1099 01:00:22.519 --> 01:00:25.679 for I don't call any name schools school and the 1100 01:00:26.039 --> 01:00:30.039 school's name, and you have the money, do it add 1101 01:00:30.079 --> 01:00:33.639 to your your program. It favors you. Your CV is 1102 01:00:33.760 --> 01:00:36.639 you know it's health your CV, but don't borrow to 1103 01:00:36.719 --> 01:00:41.039 do it unless it's those Marquee unique schools that you 1104 01:00:41.039 --> 01:00:44.800 can then relocate even because you did that. If it's 1105 01:00:44.800 --> 01:00:48.400 just gonna you're gonna spend that all that dollars to 1106 01:00:48.480 --> 01:00:51.760 get around the Male Business Program, I wouldn't do it. 1107 01:00:52.599 --> 01:00:54.599 I wouldn't. If you're gonna go to China and lend 1108 01:00:54.679 --> 01:00:59.079 Chinese to do one international program, that're gonna live in China, fantastic. 1109 01:00:59.079 --> 01:01:01.920 But if it's gonna be an NBA program, what's it 1110 01:01:01.960 --> 01:01:06.119 gonna give you NBA? Unless you're gonna use that NBA 1111 01:01:06.199 --> 01:01:09.920 program in Nigeria and become CEO based on your MBA, 1112 01:01:10.159 --> 01:01:13.519 then it makes sense. We don't roll like that in Nigeria. 1113 01:01:13.639 --> 01:01:16.320 Right in the UK, US they rod with where you 1114 01:01:16.440 --> 01:01:20.480 attended Yale? How many presents have yield brought out? Obama 1115 01:01:20.679 --> 01:01:23.840 was Harvard, the VP we have today in America, Yale, 1116 01:01:24.760 --> 01:01:28.719 even Trump, Prince was it was it, Pennsylvania school went 1117 01:01:28.760 --> 01:01:31.000 to Psvan went to So they all rolled like that. 1118 01:01:31.480 --> 01:01:33.800 But if it's not that, be careful. If you have 1119 01:01:33.880 --> 01:01:37.119 the money, do it. But if it's something going to borrow, 1120 01:01:37.239 --> 01:01:39.719 be careful. If you're going to borrow, then invest in 1121 01:01:39.840 --> 01:01:43.719 a school that has name, So you're buying in quote 1122 01:01:44.360 --> 01:01:46.679 the name of that school to help your CV because 1123 01:01:46.679 --> 01:01:48.760 it's a business man. Yeah, it's a business in the end. 1124 01:01:49.280 --> 01:01:53.159 All right, thanks, Thanks, that's just my opinion right again, 1125 01:01:53.360 --> 01:01:58.039 So let's get the fair. I am oddo the fermi? 1126 01:01:58.519 --> 01:02:02.719 I am Hey, what's hi? 1127 01:02:04.199 --> 01:02:09.039 I'm speaking from Nigeria, from Legos, Nigeria's yes, I can 1128 01:02:09.079 --> 01:02:14.000 hear you perfectly, Okay, I'm speaking from Legos, Nigeria. I 1129 01:02:14.039 --> 01:02:20.119 wanted to know your opinion regarding regarding taking a lease 1130 01:02:21.320 --> 01:02:25.239 and then renting out. So there's a property on my street. 1131 01:02:25.760 --> 01:02:31.360 I can take a lisse for seven million right to 1132 01:02:31.400 --> 01:02:35.519 own that property for fifteen years. I do not have 1133 01:02:35.559 --> 01:02:40.039 the seven million, However, I am eligible for a loan 1134 01:02:40.639 --> 01:02:42.639 that can give me that seven million. The loan is 1135 01:02:42.679 --> 01:02:48.199 going to be twenty three percent perannum for two years. 1136 01:02:49.719 --> 01:02:52.000 Do you think it is wise for me to take 1137 01:02:52.039 --> 01:02:55.559 that property? So be on your mind that if I'm 1138 01:02:55.559 --> 01:02:57.960 going to lease the property, I'm not going to stay 1139 01:02:58.000 --> 01:03:01.079 there because I already went the place on that same street. 1140 01:03:01.360 --> 01:03:02.360 I'm going to rent it. 1141 01:03:02.280 --> 01:03:05.039 Out for say one point to one. 1142 01:03:04.960 --> 01:03:07.199 Point five million per year rent. 1143 01:03:08.079 --> 01:03:13.519 So what I'm what I'm considering, or the factors. 1144 01:03:13.039 --> 01:03:14.960 That are making the decision. It need to be hard. 1145 01:03:15.039 --> 01:03:16.880 I'm sure if we had to figures, it sounds like 1146 01:03:16.920 --> 01:03:21.880 a great thing. But I'm also considering time value of money. 1147 01:03:22.039 --> 01:03:24.800 So if I take that seven million, for instance, and 1148 01:03:24.840 --> 01:03:28.639 I put it in motor funds, I can probably get 1149 01:03:28.639 --> 01:03:34.039 twenty to twenty one percent parl, which would almost amount 1150 01:03:34.119 --> 01:03:37.280 to the same figure I would have gotten if I 1151 01:03:37.440 --> 01:03:43.159 was renting the apartments out right. Then again also oning 1152 01:03:43.199 --> 01:03:45.840 that property for fifteen years, I could decide to maybe 1153 01:03:45.880 --> 01:03:48.719 do short let if I want to be able to 1154 01:03:48.719 --> 01:03:51.880 be risky or something. So those are the factors I'm 1155 01:03:52.079 --> 01:03:55.039 that weigh on my mind. I don't know what you 1156 01:03:55.079 --> 01:03:55.719 think about it. 1157 01:03:55.840 --> 01:03:58.800 I mean your question, your question looks like a realistic question, 1158 01:03:58.920 --> 01:04:02.119 but it's actually a question about should you invest in 1159 01:04:02.239 --> 01:04:05.159 Nigeria looking at the interest rates and the inflationary Actually 1160 01:04:05.239 --> 01:04:08.320 what your question is. I have friends that do exactly 1161 01:04:08.400 --> 01:04:11.639 this business you're talking about. So they get leases and 1162 01:04:11.639 --> 01:04:13.239 then and they've come to the space I think two 1163 01:04:13.320 --> 01:04:16.719 or three times they do leases in legers. They get 1164 01:04:16.719 --> 01:04:20.119 a building and they convert their build to shot them leases. 1165 01:04:20.159 --> 01:04:22.880 Then you can invest with them and own the short 1166 01:04:22.960 --> 01:04:25.559 let apartment and then they manage it for you. They've 1167 01:04:25.559 --> 01:04:29.039 now even gone to owning the building at themselves being 1168 01:04:29.159 --> 01:04:32.320 very successful. They've come here three times. If you fill 1169 01:04:32.360 --> 01:04:34.280 the space, you will know about them, right, and they've 1170 01:04:34.280 --> 01:04:37.599 done pretty well. So but look at your question, Like 1171 01:04:37.639 --> 01:04:39.440 I said, it's not a relative question. Is a question 1172 01:04:39.480 --> 01:04:42.960 about if the risk free rates in Nigeria at risk 1173 01:04:43.000 --> 01:04:46.360 free without doing anything is twenty one percent. Let's say 1174 01:04:46.360 --> 01:04:50.880 it's twenty percent, why would someone take the risk and 1175 01:04:51.000 --> 01:04:55.119 invest in something that's going to pay him t percent 1176 01:04:55.159 --> 01:04:57.880 twenty five percent. That's really your question and that's the 1177 01:04:58.000 --> 01:05:01.320 problem with Nigeria and high interest street. If I have 1178 01:05:01.400 --> 01:05:05.079 a billion era, I can make two hundred million Eira 1179 01:05:05.199 --> 01:05:08.599 without lifting a finger. If I have a million error, 1180 01:05:08.800 --> 01:05:11.440 I can make two hundred No not if I have 1181 01:05:11.519 --> 01:05:14.519 fifty million or one hundred million, I can make twenty 1182 01:05:14.559 --> 01:05:17.800 million every year without lifting a finger. With twenty million, 1183 01:05:17.840 --> 01:05:20.400 I can pay my driver, pay my cook, go from 1184 01:05:20.440 --> 01:05:23.159 somewhere in Malta and come back. I don't have to 1185 01:05:23.199 --> 01:05:25.519 do anything. I do have to chase workers, I have 1186 01:05:25.599 --> 01:05:28.159 to chase tied to or nothing because I am and 1187 01:05:28.239 --> 01:05:32.920 in twenty percent risk free So that's what question you're asking. 1188 01:05:33.280 --> 01:05:36.159 You don't have You don't have one hundred million of 1189 01:05:36.239 --> 01:05:40.239 your own. You want to go borrow at money in 1190 01:05:40.400 --> 01:05:42.800 cure the risk that if that loan fails, you're on 1191 01:05:42.840 --> 01:05:45.639 the hook. Because Nijera does not have non recost loans, 1192 01:05:45.639 --> 01:05:48.320 they're gonna come after you if you if that project fails, 1193 01:05:48.440 --> 01:05:50.599 you have to pay. You want to take the risk 1194 01:05:51.079 --> 01:05:54.000 to invest in that project, and you want to make 1195 01:05:54.039 --> 01:05:55.800 a return that will first of all pay back the 1196 01:05:55.840 --> 01:05:58.119 bank or whoever I lend the money from, and number 1197 01:05:58.159 --> 01:06:01.599 to make it worth your while. In finance, something we'll 1198 01:06:01.639 --> 01:06:05.360 call capital asset present model. That's answer your question by 1199 01:06:05.400 --> 01:06:08.599 doing the official numbers and all that to say, hey, 1200 01:06:08.719 --> 01:06:10.679 is it worth it? But let me ask you a question. 1201 01:06:10.880 --> 01:06:14.800 Come come back to yourself. The return you think you're 1202 01:06:14.840 --> 01:06:17.440 going to make, You've done your modeling. What's the return 1203 01:06:17.519 --> 01:06:20.039 number you think you're going to make if everything goes 1204 01:06:20.079 --> 01:06:23.760 as you have planned? There's no ware you invest this money, 1205 01:06:23.840 --> 01:06:27.159 you buy this building, what's the return you believe you're 1206 01:06:27.199 --> 01:06:29.880 going to make? All in no issues or return you make? 1207 01:06:32.880 --> 01:06:35.880 So I have a high risk appetite than most, So 1208 01:06:36.000 --> 01:06:39.400 I was thinking of shortlets. If I was to do shortlets, 1209 01:06:39.440 --> 01:06:42.440 I would make stay three to four million. 1210 01:06:44.320 --> 01:06:48.800 In percentage terms. Could you do what's the percentage percentage terms? 1211 01:06:50.440 --> 01:06:56.079 Let's say about. 1212 01:06:54.079 --> 01:06:57.280 Okay, So the risk free watt in Nigeria, right is 1213 01:06:57.320 --> 01:07:00.400 the rate that we we look at the treasure bill 1214 01:07:00.440 --> 01:07:04.000 in Nigeria. Whatever that rate is is, we can use 1215 01:07:04.039 --> 01:07:06.760 that as our risk free rate. So treasury building, the 1216 01:07:06.840 --> 01:07:09.440 last time I saw it from fifty millionaire, I was 1217 01:07:09.519 --> 01:07:12.800 nearly about nineteen to the say twenty one percent for 1218 01:07:12.840 --> 01:07:15.800 one year. So what you're saying is that if you 1219 01:07:15.880 --> 01:07:19.280 get an extra twenty percent, that would compensate you for 1220 01:07:19.400 --> 01:07:22.199 the risks that you are taking. That's basically what I 1221 01:07:22.239 --> 01:07:25.400 hear you saying. Because the risk filated. If I have 1222 01:07:25.480 --> 01:07:28.559 one hundred millionaire today, I can go to my bank, 1223 01:07:28.920 --> 01:07:31.559 give them that one hundred millionaire, tend to buy me 1224 01:07:31.719 --> 01:07:35.360 treasury bills. My bank will give me twenty million guaranteed, 1225 01:07:35.960 --> 01:07:39.679 no wahala. If I give it to you, you are 1226 01:07:39.719 --> 01:07:42.360 going to give me forty percent. So the question is 1227 01:07:42.760 --> 01:07:46.440 that extra twenty percent is it compensate me enough to 1228 01:07:46.679 --> 01:07:49.159 invest in you. That's the point I'm asking you. I 1229 01:07:49.199 --> 01:07:51.960 think it's okay. So you also have to ask yourself 1230 01:07:52.000 --> 01:07:55.239 that question. If everything goes well and you can make 1231 01:07:55.280 --> 01:07:58.719 forty percent, you are just barely bit in inflation. Number 1232 01:07:58.760 --> 01:08:02.880 one and number two are just covering your your bank 1233 01:08:03.800 --> 01:08:07.480 your bank side. But there is no rich person that 1234 01:08:07.519 --> 01:08:11.800 didn't take risk today. None. If you do this project 1235 01:08:11.880 --> 01:08:13.800 and it works out, it's on your CV, you can 1236 01:08:13.840 --> 01:08:16.079 go back and say I did this and to do more. 1237 01:08:16.600 --> 01:08:18.479 So he said, you're asking me a question. Should I 1238 01:08:18.479 --> 01:08:22.239 take risk? It depends? Can you take it? How do 1239 01:08:22.279 --> 01:08:25.079 you are you feeling lucky? Do you get the point 1240 01:08:25.079 --> 01:08:27.079 I'm making. No one's going to answer that question for you. 1241 01:08:27.079 --> 01:08:29.960 No one's going to tell you take risk. But you've 1242 01:08:30.000 --> 01:08:32.520 got to do your modeling correct. You've got to do 1243 01:08:32.600 --> 01:08:34.960 a lot of sensitivity in Nigeria. You've got to say, 1244 01:08:34.960 --> 01:08:38.359 what will happen if exchange rate goes to one eight, 1245 01:08:39.000 --> 01:08:41.800 what happens if it's faced to one one, what happens 1246 01:08:41.840 --> 01:08:44.479 if inflation goes up. You've got to do that modeling. 1247 01:08:44.920 --> 01:08:46.960 But I also think it's a good business, it's a 1248 01:08:47.000 --> 01:08:49.359 good sector. If we do the rebasing, you're going to 1249 01:08:49.359 --> 01:08:52.159 say that real estate is going to really blow up 1250 01:08:52.159 --> 01:08:57.000 in Nigeria. It's all about location, location, location if we 1251 01:08:57.319 --> 01:09:00.359 were is that building. Remember you are targeting for short, 1252 01:09:00.600 --> 01:09:04.239 two shorts and illegals. The guys are coming the jackbad 1253 01:09:04.560 --> 01:09:07.520 the guys that have money, the upper ended people. So 1254 01:09:07.680 --> 01:09:10.000 they want to go to where it is considered safe. 1255 01:09:10.399 --> 01:09:12.359 If you're going to put a shotlet in some locations, 1256 01:09:12.399 --> 01:09:14.119 they won't go there. If they be short, in some 1257 01:09:14.199 --> 01:09:17.640 good locations, they will go there. So I will say, really, really, 1258 01:09:17.680 --> 01:09:21.000 get your modeling numbers correct. If you get your modern 1259 01:09:21.079 --> 01:09:23.960 numbers correct, try and get a very very low cost 1260 01:09:24.000 --> 01:09:26.880 of doing the low cost of equity if you can. 1261 01:09:27.239 --> 01:09:29.119 My friend, I've told you that I come to the space. 1262 01:09:29.159 --> 01:09:31.199 If you notice they don't go to the banks. They 1263 01:09:31.359 --> 01:09:35.319 raise money from the owners that want to own that 1264 01:09:35.479 --> 01:09:37.520 short letter apartments. The reason why they're not going to 1265 01:09:37.560 --> 01:09:39.720 the bank. The guys that have done it that I 1266 01:09:39.800 --> 01:09:42.479 know that I've come here more than three times making love. 1267 01:09:42.560 --> 01:09:45.079 When they don't go to the bank to borrow. So 1268 01:09:45.159 --> 01:09:48.560 that's for you to consider. If you can do what 1269 01:09:48.600 --> 01:09:51.760 we call other people's money. So if somebody wants to 1270 01:09:51.840 --> 01:09:57.279 invest with you, perfect that's patient capital, right, you can 1271 01:09:57.359 --> 01:09:59.840 do more with that sort of capital. If you go 1272 01:09:59.840 --> 01:10:02.600 to the bank. The bank is gonna charge you every 1273 01:10:02.640 --> 01:10:06.880 month without feel. Every month. This is going You're gonna 1274 01:10:06.880 --> 01:10:12.479 pay for diesel without feeling, So be do your modeling correct. 1275 01:10:12.479 --> 01:10:15.479 It's a good sector, but it needs cash flow. In 1276 01:10:15.520 --> 01:10:19.560 this business, they're gonna invest upfront and then recover. You 1277 01:10:19.600 --> 01:10:22.720 see what, I'm gonna invest a lot of your money upfront. 1278 01:10:23.039 --> 01:10:25.960 Then you want to do recoveries or like a trading business. 1279 01:10:26.000 --> 01:10:28.560 We but you have good you buy, you sell, you 1280 01:10:28.560 --> 01:10:30.960 know your binance. This is you're gonna invest the bulk 1281 01:10:31.000 --> 01:10:33.760 of the money upfront. It's gonna go cash will go out. 1282 01:10:34.279 --> 01:10:41.000 Then you start recovering cash cash cash cash very risky. 1283 01:10:42.239 --> 01:10:43.439 Okay, thank you very much. 1284 01:10:43.600 --> 01:10:46.159 I try to talk to people. Try to talk to 1285 01:10:46.199 --> 01:10:49.560 people that have done this before. You know the guy 1286 01:10:49.560 --> 01:10:51.159 I'm talking about that have come to my space for 1287 01:10:51.159 --> 01:10:52.439 a short let apartments. 1288 01:10:52.840 --> 01:10:55.960 You know them, and this is the first time I'm 1289 01:10:56.039 --> 01:10:56.760 joining your space. 1290 01:10:56.920 --> 01:10:59.079 Okay, if you send me a DM, I'll try to 1291 01:10:59.079 --> 01:11:01.000 connect you with them. Go and talk to them. Just 1292 01:11:01.039 --> 01:11:03.680 say Calos said she want to do this business. Just 1293 01:11:04.239 --> 01:11:06.720 they're very nice. I'm sure they will just talk to 1294 01:11:06.720 --> 01:11:09.479 you for tetim. Just speak to them. Make sure you 1295 01:11:09.479 --> 01:11:12.560 know what you're doing, like the modeling numbers have to 1296 01:11:12.600 --> 01:11:16.560 look right to make sense, because anything to do with Nigeria, 1297 01:11:16.720 --> 01:11:19.119 you have to do your modeling properly, otherwise you've be 1298 01:11:19.119 --> 01:11:21.159 in love of trouble, especially if you want to borrow. 1299 01:11:21.760 --> 01:11:25.359 I prefer equity than debt in Nigeria, just because it's 1300 01:11:25.439 --> 01:11:29.319 cheaper in Nigeria or not anywhere else. Makes sense. I 1301 01:11:29.720 --> 01:11:34.760 like that question though, thanks so much, thank you, perfect, Hey, 1302 01:11:34.840 --> 01:11:37.319 perfect I've got let me see he dropped off, So 1303 01:11:37.680 --> 01:11:39.840 let's go back to d MDMs asking Calu, can you 1304 01:11:39.880 --> 01:11:43.680 talk about crypto? We always get crypto questions? Can you 1305 01:11:43.680 --> 01:11:46.079 talk about crypto? Is it a good investment? It's something 1306 01:11:46.079 --> 01:11:49.239 that I should do. I've been trading crypto, the normal questions. 1307 01:11:49.640 --> 01:11:51.680 So you see the thing with this crypto thing? Is 1308 01:11:51.680 --> 01:11:59.960 this right now? Now? Now? Because of the new administration 1309 01:12:00.239 --> 01:12:04.079 in America, they seem to be crypto friendly. Every day 1310 01:12:04.119 --> 01:12:06.640 I wake up, I read about a new state in 1311 01:12:06.680 --> 01:12:11.000 America that is going to do strategic crypto reserve. I 1312 01:12:11.000 --> 01:12:16.119 think it was Ohio that did one, then Wyoming, then Miami. 1313 01:12:16.600 --> 01:12:18.800 So you read about all these things happening, even as 1314 01:12:19.520 --> 01:12:22.199 in Canada are better always wants to do crypto reserve 1315 01:12:22.760 --> 01:12:26.640 so there's a lot of noise around crypto, especially bitcoin. 1316 01:12:26.720 --> 01:12:29.840 If you in America, now you have ats that invest 1317 01:12:29.920 --> 01:12:32.520 in bitcoin. That's a big deal. That means that the 1318 01:12:32.720 --> 01:12:38.159 largest institutions in the world have adopted bitcoin. They said, okay, 1319 01:12:38.199 --> 01:12:41.840 this particular one is okay, and we can invest in it. 1320 01:12:41.920 --> 01:12:45.520 So I buy bitcoin through my bank. I don't buy 1321 01:12:45.520 --> 01:12:47.960 it to the exchange, I buye I go to the 1322 01:12:48.039 --> 01:12:51.680 bank site, I buy it. It's that mainstream. Now there 1323 01:12:51.720 --> 01:12:53.960 was an investment that a few years ago was considered 1324 01:12:54.119 --> 01:12:58.039 as very, very risky and not even worthy of being 1325 01:12:58.039 --> 01:13:00.840 invested in. Today, if you go to your bank in America, 1326 01:13:00.920 --> 01:13:03.920 they are ETFs, black Rock and the rest, they are 1327 01:13:03.920 --> 01:13:08.439 ETFs that allow you to invest in bitcoin. Bitcoin alone. 1328 01:13:09.239 --> 01:13:11.960 Right now, you've seen AI, You've seen a lot of 1329 01:13:12.000 --> 01:13:15.239 noise around it. So it looks like there's going to 1330 01:13:15.279 --> 01:13:17.560 be a market for this thing, and that it's going 1331 01:13:17.600 --> 01:13:21.720 to be not just holding it because it's scarce, but 1332 01:13:21.840 --> 01:13:24.279 they might be utility for it going down the road, 1333 01:13:24.520 --> 01:13:28.239 it looks like. But still we don't know what these 1334 01:13:28.279 --> 01:13:30.239 things do. What I mean, we don't know what these 1335 01:13:30.239 --> 01:13:34.840 things do. Everybody says bitcoin, bitcoin, bitcoin, but how many 1336 01:13:36.479 --> 01:13:40.720 transactions can you do in legals with bitcoin. I liked 1337 01:13:40.840 --> 01:13:43.359 there's a guys on team in America talking about that. 1338 01:13:43.840 --> 01:13:46.560 He was a realistic guy and he was saying that 1339 01:13:46.600 --> 01:13:49.079 the way they finance real ested now or how his 1340 01:13:49.239 --> 01:13:51.039 fam fantasis real est is that when you come to 1341 01:13:51.079 --> 01:13:53.720 them to borrow money, Let's say, want to borrow ten 1342 01:13:53.760 --> 01:13:57.960 million dollars, they would they will borrow you twelve million dollars. 1343 01:13:58.359 --> 01:14:00.800 Then they will tell you to use the extra two 1344 01:14:00.840 --> 01:14:04.960 million dollars to go buy bitcoin. So what they're doing 1345 01:14:05.000 --> 01:14:09.960 is that they're buying bitcoin to give the project liquidity 1346 01:14:10.000 --> 01:14:13.600 and safety. So when you're building the house, you have 1347 01:14:13.720 --> 01:14:16.920 these two million bitcoin that you bought when you took 1348 01:14:16.920 --> 01:14:19.720 the loan, and it just sits there. So if something 1349 01:14:19.800 --> 01:14:23.279 happens to the house, maybe there was a fire or 1350 01:14:23.439 --> 01:14:27.199 folks not buy the house, in their mind they can 1351 01:14:27.319 --> 01:14:32.119 sell that two million bitcoin and do recoveries. So you know, 1352 01:14:32.199 --> 01:14:35.039 you borrowed twelve million, but you only want to ten. 1353 01:14:35.319 --> 01:14:38.279 They gave you two million to buy bitcoin, so in 1354 01:14:38.319 --> 01:14:41.199 their mind, the bitcoin price is going to be stay 1355 01:14:41.319 --> 01:14:44.439 more stable than when you're home at your building, so 1356 01:14:44.439 --> 01:14:47.359 they're able to use that bitcoin as collateral or to 1357 01:14:47.479 --> 01:14:52.399 guarantee the cash flows of that realistic investments. If we 1358 01:14:52.439 --> 01:14:54.479 start to see more of these things that will happen 1359 01:14:54.520 --> 01:14:58.840 where people are finding innovative ways to use crypto, bitcoin 1360 01:14:58.920 --> 01:15:02.800 and the rest to do normal transactions, then this thing 1361 01:15:02.880 --> 01:15:04.800 can really really take off. Well, I mean this thing 1362 01:15:04.880 --> 01:15:09.000 crypto currencies or crypto as a utility can really take 1363 01:15:09.039 --> 01:15:11.239 off because then people will see, oh, I can use 1364 01:15:11.279 --> 01:15:13.960 it for this. There's a blockchain. You can use blockchain 1365 01:15:14.039 --> 01:15:18.720 for elections for currency, which is what bitcoin is. But 1366 01:15:18.880 --> 01:15:21.319 if this thing really takes off where Walls is able 1367 01:15:21.359 --> 01:15:25.600 to make it mainstream, then of course it's a good investment, right. 1368 01:15:26.079 --> 01:15:29.279 But I wouldn't say be very careful by putting on 1369 01:15:29.319 --> 01:15:31.760 putting more than ten percent of your portfolio in this. 1370 01:15:32.479 --> 01:15:36.199 If you want to invest in this, yeah, there's one percent, 1371 01:15:36.319 --> 01:15:39.359 two percents of a portfolio. I wouldn't say that's the 1372 01:15:39.439 --> 01:15:43.119 wrong thing to do. But putting ten percent is taking 1373 01:15:43.119 --> 01:15:44.960 it a bit. You are making the larger part of 1374 01:15:44.960 --> 01:15:47.760 a portfolio for now, unless, of course you can accommodate 1375 01:15:47.760 --> 01:15:50.520 that risk and you think you're a younger person you 1376 01:15:50.560 --> 01:15:53.600 can catch up. But be very very careful about buying 1377 01:15:53.720 --> 01:15:56.399 to something we don't yet have regulations on yet. No 1378 01:15:56.479 --> 01:15:59.359 matter what the guys today are saying, there is still 1379 01:15:59.399 --> 01:16:04.800 no definite regulation on crypto, blockchain and all that. They 1380 01:16:04.800 --> 01:16:08.479 are talking about it, but not in final act wear 1381 01:16:08.560 --> 01:16:11.960 so until because something final and definitive, just be careful 1382 01:16:12.039 --> 01:16:14.119 a bit, right and how you want to invest in 1383 01:16:14.159 --> 01:16:17.720 that space. Nigerians buy it because nayra is a bit 1384 01:16:18.000 --> 01:16:20.359 you know, which will say a weak. So Nigeans like 1385 01:16:20.399 --> 01:16:23.439 to buy crypto because it's sort of it's a hedge 1386 01:16:23.439 --> 01:16:26.560 against investments and all that. I get it and also 1387 01:16:26.880 --> 01:16:28.840 just make a lot of money from it. Also get it, 1388 01:16:28.880 --> 01:16:31.359 but just be careful. Still today you can go to 1389 01:16:31.399 --> 01:16:33.479 a bank and open an account and say it's a 1390 01:16:33.479 --> 01:16:35.960 bitcoin account or it's a crypto account. They won't let 1391 01:16:35.960 --> 01:16:38.119 you do it, but Najians are doing it because they 1392 01:16:38.199 --> 01:16:40.560 have to. It's also the way we transform on with 1393 01:16:40.600 --> 01:16:43.880 from America Nigeria true pip. I get that part. So 1394 01:16:44.119 --> 01:16:46.479 in Nigeria, in India and all those brass in all 1395 01:16:46.479 --> 01:16:50.880 those countries is a big thing. But for now, until America, 1396 01:16:51.039 --> 01:16:54.359 the UK, the West adopt it really and it goes mainstream. 1397 01:16:54.800 --> 01:16:56.720 It's not something you can put on a temperature. It's 1398 01:16:56.720 --> 01:16:58.680 not like an equity you can buy more than ten 1399 01:16:58.680 --> 01:17:01.680 percent in, but it does make money for you. That's 1400 01:17:01.760 --> 01:17:04.399 I won't lie about that one. So keep that in mind, 1401 01:17:04.560 --> 01:17:08.479 all right, Guess next year I like this one calor 1402 01:17:08.600 --> 01:17:11.439 just to be clear about the credit cards again, just 1403 01:17:11.600 --> 01:17:15.239 to be sure. I already have credit card and I'm 1404 01:17:15.279 --> 01:17:18.439 owing a lot of I'm owing a lot. I have 1405 01:17:18.640 --> 01:17:22.039 to credit cards and I've marked them out, and I'd 1406 01:17:22.039 --> 01:17:25.119 like to take a TED credit card because this TED 1407 01:17:25.159 --> 01:17:28.640 credit card allows me to do a balanced transfer. Am 1408 01:17:28.640 --> 01:17:32.359 I doing the right thing? Okay? So there's a great 1409 01:17:32.439 --> 01:17:36.000 question on you are already in debt, how can you 1410 01:17:36.079 --> 01:17:38.119 come out of debts? And credit card, like I said, 1411 01:17:38.119 --> 01:17:40.920 are very very easy for you to going into debt 1412 01:17:40.960 --> 01:17:43.000 because they're very easy to use. A credit card has 1413 01:17:43.000 --> 01:17:45.319 a trick. I have to remember this trick that banks 1414 01:17:45.399 --> 01:17:48.119 used to get you. When you are giving a credit 1415 01:17:48.119 --> 01:17:52.119 card of one thousand dollars, if you spend that one 1416 01:17:52.159 --> 01:17:56.720 thousand dollars, all the bank wants from you to say 1417 01:17:56.760 --> 01:18:00.680 you have paid is two point five percent. So if 1418 01:18:00.720 --> 01:18:03.600 you spend the one hundred dollars and you pay two 1419 01:18:03.640 --> 01:18:06.079 dollars or let's say five dollars to the bank. You 1420 01:18:06.119 --> 01:18:09.479 have paid. That's it. You've paid for the month, so 1421 01:18:09.520 --> 01:18:12.600 you can carry over ninety five dollars. Why does the 1422 01:18:12.640 --> 01:18:15.000 bank do this, because when you carry over ninety five dollars, 1423 01:18:15.039 --> 01:18:17.920 they charge you twenty seven percent or whatever the ap 1424 01:18:18.640 --> 01:18:21.159 ar is. That's the trick about credit cards. They do 1425 01:18:21.159 --> 01:18:23.920 not want you to pay everything in full in the 1426 01:18:24.000 --> 01:18:26.920 month of usage, so it becomes very very easy to use. 1427 01:18:27.199 --> 01:18:29.039 So if you have a loan or if you have 1428 01:18:29.119 --> 01:18:31.760 a bill to pay, you put it on your credit card. 1429 01:18:32.199 --> 01:18:33.640 But if you put a one hundred dollars in a 1430 01:18:33.640 --> 01:18:36.399 credit card, you only pay five dollars. You see, so 1431 01:18:36.479 --> 01:18:41.039 it's easy. If you go to the store, you buy 1432 01:18:41.119 --> 01:18:44.479 two hundred dollars worth of goods, you only pay ten dollars. 1433 01:18:44.720 --> 01:18:47.199 You're fine. The bank lets you carry over that tony 1434 01:18:47.279 --> 01:18:49.680 that's one eighty the next month. So you keep on 1435 01:18:49.840 --> 01:18:52.640 carrying over, keep on caring over, keep on carrying over 1436 01:18:53.000 --> 01:18:57.239 until you've maxed out the card. And when you max 1437 01:18:57.319 --> 01:18:59.199 out your card, it's the same as if you are 1438 01:18:59.199 --> 01:19:05.159 not paying use that percent, your creditscore will also come down. 1439 01:19:05.760 --> 01:19:07.720 So now you're in the big problem because now you 1440 01:19:07.760 --> 01:19:10.960 have been living your life on credit. You don't have 1441 01:19:11.000 --> 01:19:13.680 the money to shop in the grocery store. You're not 1442 01:19:13.760 --> 01:19:16.119 going to even pay your rent, but you've been paying 1443 01:19:16.119 --> 01:19:19.039 it on your credit card. Now your credit cards are 1444 01:19:19.079 --> 01:19:21.520 maxed out. You can no longer live that life anymore. 1445 01:19:21.560 --> 01:19:23.439 So what you should you do? You want to come 1446 01:19:23.439 --> 01:19:25.760 out of debt. So how do you come out of debt? 1447 01:19:25.920 --> 01:19:29.840 We have two ways. We have the avalanche and we'll 1448 01:19:29.880 --> 01:19:34.520 have the snowball. I always get confused about which is which, 1449 01:19:34.600 --> 01:19:36.960 But there are two ways to do this. The first 1450 01:19:37.000 --> 01:19:39.840 way to say, you write down everything you are owing. 1451 01:19:39.960 --> 01:19:42.199 So you write down all your debts. You do, your 1452 01:19:42.199 --> 01:19:45.319 credit cards, your personal loans, your everything you are owing. 1453 01:19:45.319 --> 01:19:48.000 You write it down. Then you write the cost of 1454 01:19:48.039 --> 01:19:50.359 the loan, so that's the interest rates, what we call 1455 01:19:50.439 --> 01:19:52.560 the API. Write down the cost of the loans interest 1456 01:19:52.640 --> 01:19:55.199 rates to the APR. Then of course you write the amount. 1457 01:19:55.800 --> 01:19:59.439 So you have all your debts, the cost of the debts, 1458 01:20:00.039 --> 01:20:02.039 and of course the amounts. So there are two ways 1459 01:20:02.079 --> 01:20:04.399 to pay your debt. The first one is to pay 1460 01:20:04.520 --> 01:20:07.960 the debt with the lowest amount. So if you're right, 1461 01:20:08.000 --> 01:20:09.720 if you have if you owe, like this guy owns 1462 01:20:09.720 --> 01:20:11.880 two credit cards, maybe he owns the personal and let's 1463 01:20:11.880 --> 01:20:15.600 say he owns five thousand, four thousand, one thousand. The 1464 01:20:15.640 --> 01:20:17.960 first method is to pay down the debt that is 1465 01:20:18.039 --> 01:20:21.119 charging you one thousand. Why because it gives you an 1466 01:20:21.119 --> 01:20:24.960 early win, so psychologically it helps you. So you own 1467 01:20:25.039 --> 01:20:29.319 five thousand paying ten percent, you own four thousand paying 1468 01:20:29.359 --> 01:20:32.840 five percent, then you own one thousand paying twelve percent. 1469 01:20:33.359 --> 01:20:36.119 So you are paying down that first one thousand dollars, 1470 01:20:36.159 --> 01:20:39.119 so your initial quick win. And once you pay that 1471 01:20:39.199 --> 01:20:41.880 loan off, you take that money you used to pay off. 1472 01:20:41.920 --> 01:20:44.840 You now start to pay off the other loans. So 1473 01:20:44.880 --> 01:20:47.880 you write your loans down, you pay off the lowest amounts. 1474 01:20:48.239 --> 01:20:51.239 Then you take that same money and you're attack the 1475 01:20:51.279 --> 01:20:54.399 next loan to pay it off as well. What advantage 1476 01:20:54.520 --> 01:20:58.880 you get an initial early quick win. The other method 1477 01:20:58.960 --> 01:21:01.399 is that it's still a you pay the lowest amount, 1478 01:21:01.960 --> 01:21:05.920 you pay the highest interest costs. So if you have 1479 01:21:06.000 --> 01:21:09.680 three loans, you pay the one with the highest interest 1480 01:21:09.760 --> 01:21:12.960 cost first, not the one with the lowest amount. So 1481 01:21:13.000 --> 01:21:15.359 if you look at the loans, you have five thousand 1482 01:21:15.680 --> 01:21:19.680 at three percent, you have four thousand at ten percent, 1483 01:21:19.920 --> 01:21:23.479 you have one thousand at five percent. You pay the 1484 01:21:23.560 --> 01:21:27.159 four k own that has a higher interest rate first, 1485 01:21:27.199 --> 01:21:30.479 because that's what's taking money away from you. So if 1486 01:21:30.520 --> 01:21:33.760 you pay that one first, you are reducing the cost 1487 01:21:33.840 --> 01:21:36.199 of the loan, even though it might take you longer, 1488 01:21:36.319 --> 01:21:39.720 but the cost is reducing because you are paying it first. 1489 01:21:40.119 --> 01:21:42.159 If you look at all your loans, your credit card 1490 01:21:42.239 --> 01:21:44.760 loans are always going to be the highest APR always, 1491 01:21:44.800 --> 01:21:46.920 so you want to pay those ones down first. So 1492 01:21:46.960 --> 01:21:48.479 what he is trying to do is to take a 1493 01:21:48.520 --> 01:21:52.399 new credit card and do what's called the balance transfer, 1494 01:21:52.600 --> 01:21:54.720 where you can take the balance from your old card 1495 01:21:55.079 --> 01:21:57.399 to this new card. Usually when you do this, the 1496 01:21:57.399 --> 01:21:59.920 credit card company will give you a time before you 1497 01:22:00.159 --> 01:22:04.840 start to make your payments with interest. So you're doing 1498 01:22:04.840 --> 01:22:08.479 a good job on doing the balance transfer, but make 1499 01:22:08.520 --> 01:22:11.720 sure you get one with a longer and you didn't. 1500 01:22:11.800 --> 01:22:14.840 You didn't mention how long your balanced transfer your zero 1501 01:22:14.880 --> 01:22:18.880 percent APR on the balance transfer is. If you want 1502 01:22:18.920 --> 01:22:20.279 to do that, make sure you get a credit card 1503 01:22:20.319 --> 01:22:23.319 with it with a very very long period before you 1504 01:22:23.359 --> 01:22:26.199 start to pay interest, so that gives you more time 1505 01:22:27.159 --> 01:22:30.279 to pay off your credit card that has those high balances. 1506 01:22:30.840 --> 01:22:35.319 Transfer the credit card with the highest APR first, not 1507 01:22:35.399 --> 01:22:37.520 the credit card with the highest amount, So you don't 1508 01:22:37.560 --> 01:22:39.560 know how you just said. You have two credit cards. 1509 01:22:39.760 --> 01:22:42.560 So after the two credit cards, which one has a 1510 01:22:42.760 --> 01:22:48.039 higher ap are higher annual percentage rate, transfer that first 1511 01:22:48.279 --> 01:22:50.840 to the new card and then try to then pay 1512 01:22:50.880 --> 01:22:53.640 it off. You now have more time to pay it off. 1513 01:22:53.680 --> 01:22:56.720 You take it away from your old card. You don't 1514 01:22:56.720 --> 01:22:58.640 have you say yeah, they give you try to pay 1515 01:22:58.720 --> 01:23:01.399 off within a year. So bounce transfer is a great 1516 01:23:01.439 --> 01:23:03.560 way to do it. And once you do this, you 1517 01:23:03.600 --> 01:23:05.760 want to now look at your butt and try to 1518 01:23:05.920 --> 01:23:09.039 establish the order so going forward, you don't fall into 1519 01:23:09.039 --> 01:23:11.279 a debt trap. You're in a debt trap, bro. If 1520 01:23:11.319 --> 01:23:13.119 you don't come out of it and you get stuck 1521 01:23:13.159 --> 01:23:15.439 into it, you're gonna be in serious trouble. Right. You 1522 01:23:15.479 --> 01:23:17.840 don't want to cancel a card or you don't want 1523 01:23:17.880 --> 01:23:20.039 the card to cancel. You don't want to put your 1524 01:23:20.119 --> 01:23:23.359 name down with the credit bureaus that you don't pay 1525 01:23:23.600 --> 01:23:25.720 your debts on time, because that would really bring down 1526 01:23:25.760 --> 01:23:29.000 your score, get a negative mark on your credit. So 1527 01:23:29.039 --> 01:23:31.760 you want to avoid that. Whatever you do, you want 1528 01:23:31.800 --> 01:23:35.600 to avoid not paying your credit card or any loans 1529 01:23:35.880 --> 01:23:39.039 because they get reported and to affect your credit card. 1530 01:23:39.119 --> 01:23:42.479 So please, please please pa piece. Do this credit transfer. 1531 01:23:42.520 --> 01:23:46.239 You're doing transfer, do the highest APR. Get that going. 1532 01:23:46.640 --> 01:23:49.359 Then you need to really cut down your expenses and 1533 01:23:49.399 --> 01:23:51.560 start to pay down a credit card. You need to 1534 01:23:51.560 --> 01:23:55.560 really cut down, cut down your cable, cut down everything 1535 01:23:55.560 --> 01:23:58.479 else you're doing, and just focus on debt repayment. Right, 1536 01:23:59.199 --> 01:24:02.760 great job. Oh I just lost I just lost dark board. 1537 01:24:03.159 --> 01:24:04.840 Was gonta invite you to speak, but you just dropped 1538 01:24:04.880 --> 01:24:07.560 off now, so I want to add you back. If 1539 01:24:07.560 --> 01:24:08.840 you come back on time, I can take a question 1540 01:24:08.920 --> 01:24:10.800 or I'm going to go back to DM again. Yeah, 1541 01:24:10.800 --> 01:24:14.319 I just want to talk about our mortgages. Yeah, so 1542 01:24:14.399 --> 01:24:16.600 this is a great question. But I think I wrote 1543 01:24:16.600 --> 01:24:20.880 an article guys about mortgages and the article was titled 1544 01:24:21.560 --> 01:24:25.600 how an immigrants can buy a house into the six months. 1545 01:24:26.039 --> 01:24:28.520 So I gave you step by step, not not to 1546 01:24:28.960 --> 01:24:32.479 step by step, how you can go from you leave Nigeria, 1547 01:24:33.000 --> 01:24:35.479 you go to Europe. Anyway, in Europe you can buy 1548 01:24:35.479 --> 01:24:39.239 a house into the six months, and I poot qualifications 1549 01:24:39.319 --> 01:24:41.560 there as well. Number one, you have to have a job. 1550 01:24:42.239 --> 01:24:43.960 Once you have a job, I can get you a 1551 01:24:44.039 --> 01:24:46.920 house into the six months. You have to have that plan. 1552 01:24:47.000 --> 01:24:48.840 And if you want to google it just go online. 1553 01:24:48.960 --> 01:24:51.520 I read it for Nura Metrics. So just say how 1554 01:24:51.600 --> 01:24:55.359 immigrants can buy a house into the six months caln metrics. 1555 01:24:55.600 --> 01:24:58.079 That's article should pop up and I'll give you because 1556 01:24:58.199 --> 01:25:01.279 that's what you're asking cyber, that's what you're asking you 1557 01:25:01.439 --> 01:25:04.079 on your DM. Let me explain to you. To buy 1558 01:25:04.119 --> 01:25:07.479 a house, you need three things. Number one, credit score, 1559 01:25:07.800 --> 01:25:11.840 what number I will say minimum seven hundred, minimum seven hundred. 1560 01:25:13.079 --> 01:25:15.680 Number two, you need to have your down payment. So 1561 01:25:15.720 --> 01:25:17.960 you want to save some money down because I'm going 1562 01:25:18.000 --> 01:25:19.920 to ask you to do a down payment. So number 1563 01:25:19.960 --> 01:25:24.680 two down payment right. Number three it's up your credit 1564 01:25:24.720 --> 01:25:28.479 call down payment. Tax returns. You need at least two 1565 01:25:28.560 --> 01:25:31.720 years tax returns. Right. So let's say you leave Nigeria. 1566 01:25:31.800 --> 01:25:33.000 There are few things you want to do. Well I 1567 01:25:33.039 --> 01:25:36.760 leave in Nigeria. If you have money in Nigeria, I 1568 01:25:36.840 --> 01:25:39.199 want to jack bar. Make sure you have a pay 1569 01:25:39.239 --> 01:25:43.159 per trail. So if you sell your car, collect the check, 1570 01:25:43.720 --> 01:25:47.359 pay it to the bank account. Pay everything to the 1571 01:25:47.359 --> 01:25:49.800 bank account. Don't collect cash even if it's your friend. 1572 01:25:49.880 --> 01:25:52.760 Just just leind me cat, just let me check, collect check, 1573 01:25:53.439 --> 01:25:56.640 pay to your bank account. Right, it shows off my 1574 01:25:56.760 --> 01:26:02.000 bank account. Cut yourself a check, print your bank account, 1575 01:26:02.279 --> 01:26:06.640 take it with you. Number one. So you want to 1576 01:26:06.800 --> 01:26:10.720 establish a paper trail of how you got money. And 1577 01:26:10.800 --> 01:26:13.800 you are taking to the United States, especially I don't 1578 01:26:13.800 --> 01:26:16.000 know if UK, I know America, right, So you have 1579 01:26:16.039 --> 01:26:19.439 the perpetuate where you sold your asset, you sold your house, 1580 01:26:19.680 --> 01:26:22.279 you sold your car, you paid your bank account. It's 1581 01:26:22.399 --> 01:26:25.600 in your bank account. You have pick your account statement, 1582 01:26:26.119 --> 01:26:28.840 print your account statement, get the bank to stamp it. 1583 01:26:29.479 --> 01:26:33.000 Put in your pocket your travel when you get to America. 1584 01:26:33.119 --> 01:26:34.640 What's the first thing you want to do. You want 1585 01:26:34.680 --> 01:26:37.600 to get a job. You want to get a job 1586 01:26:38.439 --> 01:26:40.119 when you get it. While you're getting a job, because 1587 01:26:40.159 --> 01:26:42.399 you like to want to show income. You want to 1588 01:26:42.439 --> 01:26:47.640 show end income so you can pay taxes. You don't 1589 01:26:47.680 --> 01:26:51.479 need a job to pay taxes. You can pay taxes 1590 01:26:51.479 --> 01:26:55.640 in America without a job. But get a job if 1591 01:26:55.640 --> 01:26:58.359 you don't have papers. As a different matter, if you 1592 01:26:58.359 --> 01:27:00.880 don't have papers, you can still pay pay taxes. So 1593 01:27:00.960 --> 01:27:04.840 let's say you don't have papers, still pay taxes. How 1594 01:27:05.119 --> 01:27:08.119 you apply for a tax and especial number ten. You 1595 01:27:08.159 --> 01:27:11.760 can still pay taxes without having social or being a citizen. 1596 01:27:12.039 --> 01:27:14.359 But let's assume you emigrate the right way, and you 1597 01:27:14.399 --> 01:27:17.840 are there. You are now getting a job. So you 1598 01:27:17.920 --> 01:27:21.920 get a job so you can show end income right 1599 01:27:22.760 --> 01:27:25.439 when you get a job. Next thing you want to 1600 01:27:25.479 --> 01:27:30.079 do you get a credit card or a personal loan. 1601 01:27:30.239 --> 01:27:33.319 Don't wait if you don't have credit cad go to 1602 01:27:33.359 --> 01:27:36.039 a credit union or to any back. I said I 1603 01:27:36.079 --> 01:27:39.319 want a secured credit card, I would say, do two 1604 01:27:39.359 --> 01:27:42.640 of them, get a secret credit card, get a secured 1605 01:27:42.680 --> 01:27:44.560 personal loan, two of them. It's the reason why I'm 1606 01:27:44.560 --> 01:27:46.399 watching to get two of them. You don't have to 1607 01:27:46.399 --> 01:27:49.359 put big money. You put five hundred dollars. You put 1608 01:27:49.560 --> 01:27:52.199 it's your money, So you put five hundred dollars, five 1609 01:27:52.239 --> 01:27:54.760 hundred dollars. It's not going to cost you a lot. 1610 01:27:54.960 --> 01:27:56.960 It's your money. You put the money on the credit card, 1611 01:27:57.479 --> 01:27:59.560 use the same credit card and buy your groceries and 1612 01:27:59.600 --> 01:28:04.039 you pay. So you have established credit number one number two, 1613 01:28:04.039 --> 01:28:07.920 you have established end income number two. You do this 1614 01:28:08.079 --> 01:28:09.680 for at least twenty four months, or when you go 1615 01:28:09.760 --> 01:28:11.840 to the America to the abbey, you do this for 1616 01:28:11.920 --> 01:28:14.039 twenty four months. So you for the twenty four months 1617 01:28:14.039 --> 01:28:17.239 you have your credit card running, you have your personal 1618 01:28:17.279 --> 01:28:20.600 loan running, secured personal it means you don't need the money. 1619 01:28:21.079 --> 01:28:23.399 It means you give them your money. They give you 1620 01:28:23.479 --> 01:28:27.159 a personal loan and you'll also payments back. It sounds confusing, 1621 01:28:27.199 --> 01:28:31.079 but Google it's secured personal loan, secure credit card. So 1622 01:28:31.239 --> 01:28:34.520 you have a job end income. You've paid taxes in 1623 01:28:34.600 --> 01:28:37.800 year one, you pay taxes in year two. You have 1624 01:28:37.840 --> 01:28:41.239 a credit card and a personal loan that you have 1625 01:28:41.279 --> 01:28:45.720 been paid without fail for another twenty four months. You 1626 01:28:45.840 --> 01:28:49.399 have your bank statement showed that in Nigeria you paid 1627 01:28:49.439 --> 01:28:52.560 all your assets. You have that that ten thousand dollars 1628 01:28:52.640 --> 01:28:55.119 cash that you brought with you from Nigeria to America, 1629 01:28:55.279 --> 01:28:57.920 you have it with you. You have to prove where 1630 01:28:57.960 --> 01:29:01.920 it came from if you have people giving your money 1631 01:29:01.960 --> 01:29:04.720 in Nigeria that Let's say your mom has money and 1632 01:29:04.720 --> 01:29:06.399 your mom's going to give you money to buy your house. 1633 01:29:06.560 --> 01:29:09.199 Your mom will write a letter saying it is a 1634 01:29:09.319 --> 01:29:11.600 gift to you. She does not want to pay the 1635 01:29:11.640 --> 01:29:15.279 money back. She's giving you a gift. She'll write a letter. 1636 01:29:15.479 --> 01:29:17.920 You take that letter, you keep it with you. You 1637 01:29:18.039 --> 01:29:20.600 now go to your bank. This is after twenty four months, Abe, 1638 01:29:20.600 --> 01:29:23.119 We're now in the third year. You go to your bank. 1639 01:29:23.159 --> 01:29:26.279 What would they ask you for tax return. You have 1640 01:29:26.439 --> 01:29:29.560 it two years, you've been paying taxes. Credit score. They're 1641 01:29:29.600 --> 01:29:32.079 going to pull it because you've been paying your credit 1642 01:29:32.119 --> 01:29:36.479 card and your personal loan without fail for twenty four months. 1643 01:29:36.560 --> 01:29:38.319 You're going to have a very very high score. It's 1644 01:29:38.319 --> 01:29:40.960 going to be more than seven hundred without fail. You 1645 01:29:41.000 --> 01:29:44.000 will also have two years of returns, so you get 1646 01:29:44.000 --> 01:29:47.840 that extra ten points. You also have no inquiries. Don't 1647 01:29:47.920 --> 01:29:50.359 try to apply for another card. You don't need another card. 1648 01:29:50.479 --> 01:29:52.800 Just need that one credit card and one personal and 1649 01:29:52.840 --> 01:29:54.880 doesn't even like that hires too, But don't try to 1650 01:29:54.880 --> 01:29:57.960 apply for more. You have their inquiries. You've done good. 1651 01:29:58.479 --> 01:30:01.039 They will pull your credit number one to put your 1652 01:30:01.039 --> 01:30:05.159 attack to chump, but to based on your income. Based 1653 01:30:05.199 --> 01:30:07.159 on your income, they are going to use what's called 1654 01:30:07.199 --> 01:30:09.960 a debt to income to tell you the kind of 1655 01:30:10.119 --> 01:30:14.000 house you qualify for. The only thing you can change 1656 01:30:14.039 --> 01:30:16.800 is the kind of income you make. Don't wait and 1657 01:30:16.880 --> 01:30:19.000 say till like make big income, I will go and 1658 01:30:19.000 --> 01:30:21.359 buy the house. Even if you work in Amazon and 1659 01:30:21.399 --> 01:30:24.359 you're parking or walk in Walmart, you still have income. 1660 01:30:24.760 --> 01:30:26.960 The bank will tell you, based on your income, you 1661 01:30:27.000 --> 01:30:29.600 can afford this kind of house. So now you've qualified 1662 01:30:29.840 --> 01:30:31.800 to get the loan. You go to the bank. Bank stage. 1663 01:30:31.840 --> 01:30:33.600 We're going to give you a pre qualification of even 1664 01:30:33.600 --> 01:30:36.680 if it's forty thousand or a few thousand dollars. You 1665 01:30:36.720 --> 01:30:39.079 have that one from the bank. You have your down 1666 01:30:39.159 --> 01:30:41.920 payment from the you sold your money in your assets 1667 01:30:42.039 --> 01:30:44.119 niger You have the money in cash in the bank. 1668 01:30:44.359 --> 01:30:47.079 You have a letter from your parents or whatever's giving 1669 01:30:47.079 --> 01:30:48.920 me your money in Nigeria. You have your bank statement. 1670 01:30:49.000 --> 01:30:51.039 You have all that. The bank will take all that 1671 01:30:51.079 --> 01:30:53.920 from you. What house should you buy the first time 1672 01:30:53.960 --> 01:30:56.520 in America. You don't go and buy the house you like. 1673 01:30:57.560 --> 01:31:01.560 You buy the house that you can rent out. So 1674 01:31:01.640 --> 01:31:03.920 when you go to the city, you want to buy 1675 01:31:03.920 --> 01:31:06.079 a house in a place where you can rent out. 1676 01:31:06.079 --> 01:31:09.279 There's a reason for these guys. Let's assume you are 1677 01:31:09.319 --> 01:31:13.800 not married. Perfect. If you are married, don't have kids, 1678 01:31:13.960 --> 01:31:16.680 this is perfect for you. You buy the house where 1679 01:31:16.720 --> 01:31:19.000 you can rent out. So you go them because you 1680 01:31:19.039 --> 01:31:21.720 might not have enough income to get your house in 1681 01:31:21.760 --> 01:31:24.399 the suburb. So you go and get a house you 1682 01:31:24.439 --> 01:31:27.039 can rent out, even if it's one bedroom, you buy 1683 01:31:27.079 --> 01:31:30.600 that one, you stay there. You have entered now the 1684 01:31:30.680 --> 01:31:34.079 mortgage business in America. Once you are in that house, 1685 01:31:34.159 --> 01:31:37.880 you can stay one year. You build up your equity there. 1686 01:31:38.760 --> 01:31:43.000 You can, when you now have kids, move to the 1687 01:31:43.119 --> 01:31:46.039 house that you want in your own school district. Because 1688 01:31:46.079 --> 01:31:49.439 now you have a house, you can rent that house out. 1689 01:31:49.560 --> 01:31:52.359 It's our income. When you go back to the bank 1690 01:31:52.399 --> 01:31:55.199 to get your second house where you really like, where 1691 01:31:55.199 --> 01:31:57.840 you have the school district, that house is going to 1692 01:31:57.840 --> 01:31:59.960 be listed as income because I'm going to leave that 1693 01:32:00.079 --> 01:32:03.720 house rented out, So it's income and your balance shape. 1694 01:32:03.760 --> 01:32:06.880 The bank will consider that you have income from your job, 1695 01:32:07.199 --> 01:32:09.680 you have income from your house. You can then get 1696 01:32:09.720 --> 01:32:13.800 the house that you like. That's how you do it. 1697 01:32:14.359 --> 01:32:17.279 You get in at the lower end. You move on. 1698 01:32:17.399 --> 01:32:19.560 Let's say you are married. You already have kids, so 1699 01:32:19.600 --> 01:32:21.239 you can't do this, go and get the house in 1700 01:32:21.239 --> 01:32:24.520 the rental area. That's fine. You man need to do more. 1701 01:32:24.680 --> 01:32:27.159 You maney to buy a smaller house today before you 1702 01:32:27.199 --> 01:32:29.880 get to the bigger house. In America, people buy homes 1703 01:32:29.880 --> 01:32:32.880 based on school district. Not that the road is fine, 1704 01:32:33.319 --> 01:32:35.439 is it because it's your kids. So if you don't, 1705 01:32:35.439 --> 01:32:37.239 if you have kids, the need to go to a 1706 01:32:37.239 --> 01:32:39.920 particular school, that's why you spend more. Unless you do 1707 01:32:39.960 --> 01:32:42.439 the commute, but that's how you want to do it. 1708 01:32:43.119 --> 01:32:47.359 But the elements are the same tax return which you 1709 01:32:47.399 --> 01:32:51.119 get from two years credit. You do that, you don't 1710 01:32:51.159 --> 01:32:53.319 waste time. You do it in Miliatoy. It accounts for 1711 01:32:53.399 --> 01:32:56.239 you to inform on start account for you secured with 1712 01:32:56.399 --> 01:32:58.800 means to doing the credit card, to get a credit card, 1713 01:32:59.239 --> 01:33:03.600 secure credit, seecret personal loan, tax returm, savings for your 1714 01:33:03.680 --> 01:33:06.239 down payment. That's your money brought from Nigeria or if 1715 01:33:06.239 --> 01:33:08.000 someone's going to give your money from Nigeria, you want 1716 01:33:08.000 --> 01:33:09.960 to make sure you have it. Your letter saying this 1717 01:33:10.119 --> 01:33:12.840 is not a gift. This is a gift. It is 1718 01:33:12.840 --> 01:33:14.800 not a loan. I'm giving it to him. It's not 1719 01:33:14.800 --> 01:33:17.359 going to pay back. All right, guys, So pull off 1720 01:33:17.399 --> 01:33:21.800 the articles detailed is listed. I listed the steps for 1721 01:33:21.920 --> 01:33:24.800 you one buy one by one by one, so it's 1722 01:33:24.840 --> 01:33:28.159 not theory. That's what I do, right all right, folks, excellent, 1723 01:33:28.399 --> 01:33:32.399 all right. So I've got b wires. You guys should speak. 1724 01:33:32.439 --> 01:33:33.960 I have a lot of DMS. I didn't want to 1725 01:33:34.000 --> 01:33:38.159 speak and have an intact session. I by saying my 1726 01:33:38.319 --> 01:33:40.319 question about the government bond, how can I buy it? 1727 01:33:40.359 --> 01:33:42.079 If you want to buy a government bond, just speak 1728 01:33:42.119 --> 01:33:45.439 to your broker or your banker. We have treasury bills, 1729 01:33:45.560 --> 01:33:48.960 We have treasury bonds, but those ones are from fifty million, 1730 01:33:49.479 --> 01:33:52.800 so you can buy that one directly, or you can 1731 01:33:52.920 --> 01:33:56.640 buy a mutual fund issouled, buy a broker or a banker. 1732 01:33:56.760 --> 01:33:59.239 So buy talk to your broker or your banker. If 1733 01:33:59.279 --> 01:34:02.399 you're not buying two bond number two, can I opt 1734 01:34:02.479 --> 01:34:05.119 out and get my principal? Sure, you can sell at 1735 01:34:05.119 --> 01:34:08.359 any time, just ask them that if you sell before 1736 01:34:08.479 --> 01:34:10.920 it's matured, what do you get. Remember, if you buy 1737 01:34:10.920 --> 01:34:14.199 a mutual phone, there's no maturity. Yout us buyd into 1738 01:34:14.199 --> 01:34:16.720 a phone. You can sell your phone and move away 1739 01:34:16.760 --> 01:34:20.640 immediately anytime. But when you buy the treasury bill from 1740 01:34:20.680 --> 01:34:25.560 the market primary market, you have to hold for telling matures. 1741 01:34:25.720 --> 01:34:28.960 Or you can sell during and just get your just 1742 01:34:29.079 --> 01:34:30.920 kind of money and grave with There's no penalty if 1743 01:34:30.960 --> 01:34:32.800 people will buy it from you, you can just get 1744 01:34:32.840 --> 01:34:34.520 your money and working with you. So, yes, you can 1745 01:34:34.560 --> 01:34:37.680 get your principal and opt out. That's no problem. Is 1746 01:34:37.680 --> 01:34:40.439 the any background check to buy? There's no background check 1747 01:34:40.479 --> 01:34:42.760 per se. Just pick to your banker. I think Niga 1748 01:34:42.800 --> 01:34:44.960 likes to do the money has to be in Nigeria 1749 01:34:45.079 --> 01:34:47.319 and all that kind of stuff. KYC. So I'm not 1750 01:34:47.359 --> 01:34:50.560 gonna have a bank account in Nigeria. Tell your banker, 1751 01:34:50.800 --> 01:34:52.520 tell your broker, they will buy it for you. It's 1752 01:34:52.520 --> 01:34:54.680 a normal key YC that they do. They will do 1753 01:34:54.760 --> 01:34:57.479 that for you and you to get that loan. Like 1754 01:34:57.640 --> 01:35:00.319 got phoos, I got foods? Folls on the score, king, 1755 01:35:00.520 --> 01:35:04.199 guys are having a great session, right, foth on the score? King? 1756 01:35:04.279 --> 01:35:05.399 What's your mind? Talk to me? 1757 01:35:07.079 --> 01:35:10.920 Yeah, thank you so much. I'm calu really, thank you. 1758 01:35:10.960 --> 01:35:11.479 I'm coming. 1759 01:35:11.479 --> 01:35:12.680 If you can't hear me, can you hear me? 1760 01:35:12.840 --> 01:35:12.960 Yes? 1761 01:35:14.479 --> 01:35:15.279 Okay, awesome. 1762 01:35:15.600 --> 01:35:17.399 So you know I've been following from by the web 1763 01:35:18.119 --> 01:35:20.199 with you think I'm on your space. I want to 1764 01:35:20.199 --> 01:35:23.079 ask question because you know most folks have been asking 1765 01:35:23.199 --> 01:35:26.680 questions as a reality with personal income. Right, if I'm 1766 01:35:26.680 --> 01:35:29.239 going to put you on the spot, right, if you 1767 01:35:29.359 --> 01:35:33.600 have an opportunity to listen to to to to get 1768 01:35:33.640 --> 01:35:38.039 a loan, right, would you prefer to get it on 1769 01:35:38.039 --> 01:35:41.760 on your personal accounts or probably on your business account? 1770 01:35:41.880 --> 01:35:45.479 That is, if you want to use that debt to 1771 01:35:45.720 --> 01:35:47.159 increase your assets. 1772 01:35:47.119 --> 01:35:49.399 Would you prefer its being on. 1773 01:35:49.600 --> 01:35:52.399 Your business account or on your personal account just. 1774 01:35:52.399 --> 01:35:55.119 On my business because I can do more what's it 1775 01:35:55.199 --> 01:35:59.119 called deductions tax deductions from the business side. So if 1776 01:35:59.119 --> 01:36:02.119 I have a business count, there are more expenses I 1777 01:36:02.119 --> 01:36:04.119 can write of them on the personal side. That's that's 1778 01:36:04.159 --> 01:36:05.960 the reason why I like on my business side. 1779 01:36:07.760 --> 01:36:08.560 Okay, awesome. 1780 01:36:08.600 --> 01:36:13.680 Now, second question is this, So I am currently in 1781 01:36:13.760 --> 01:36:19.159 kik Ali, right, relocated sometime last year February to expand 1782 01:36:19.159 --> 01:36:24.439 my business operations here. Would you would you advise someone 1783 01:36:24.560 --> 01:36:28.199 who got into the country right, I'm wanting to own, 1784 01:36:28.600 --> 01:36:33.960 reinstrate property for the aim of, of course, advancing his 1785 01:36:34.079 --> 01:36:37.640 ambition of getting citizenship with that. Would that be a 1786 01:36:37.680 --> 01:36:39.760 wise investment from your end? 1787 01:36:39.800 --> 01:36:40.079 Bason? 1788 01:36:40.399 --> 01:36:42.760 You know experiences that you've had on conversations that you've 1789 01:36:42.760 --> 01:36:43.319 had as well. 1790 01:36:43.520 --> 01:36:46.279 I think it depends on what the conscious laws are, 1791 01:36:46.319 --> 01:36:49.159 so they're all conscious specific. In America, they have laws 1792 01:36:49.159 --> 01:36:51.720 about how you can buy property to get citizenship or 1793 01:36:51.840 --> 01:36:53.960 green cards. So you have to find out the laws there. 1794 01:36:54.239 --> 01:36:57.279 If the laws essay it's possible, yeah, sure, if you 1795 01:36:57.319 --> 01:37:00.720 have the money. It's an expensive way to get citizenship. 1796 01:37:01.119 --> 01:37:03.199 It's more like property should be more of I want 1797 01:37:03.239 --> 01:37:06.560 to invest. Andrew Rwanda is a very very liberal in 1798 01:37:06.600 --> 01:37:08.680 terms of immigration and business. So I don't think you 1799 01:37:08.720 --> 01:37:11.479 need to worry about if you are there, you're not 1800 01:37:11.479 --> 01:37:13.439 going to come kick you out. So if you only 1801 01:37:13.520 --> 01:37:17.279 invest in properties because of the returns, not because you 1802 01:37:17.359 --> 01:37:19.920 want to stay or for immigration, if you get what 1803 01:37:19.960 --> 01:37:22.520 I'm saying, so you're your your criterias should be is 1804 01:37:22.560 --> 01:37:25.319 it a good investment rather should I want to buy 1805 01:37:25.319 --> 01:37:27.880 this passport from kig as something like that? 1806 01:37:29.800 --> 01:37:33.199 Okay, all right, so listen, Thank you so much because 1807 01:37:33.359 --> 01:37:35.439 I am had a couple of my friends over we're 1808 01:37:35.439 --> 01:37:38.600 having this conversation. I think on Friday, I have them 1809 01:37:38.600 --> 01:37:40.760 over here, so you know, I don't say to bring 1810 01:37:40.800 --> 01:37:43.000 that up, so you know they could learn from your 1811 01:37:43.039 --> 01:37:43.880 experience as well. 1812 01:37:44.239 --> 01:37:45.479 Nice, Thank you so much. 1813 01:37:45.720 --> 01:37:48.640 Welcome, have a good one, yea, I appreciate you. Let's 1814 01:37:48.640 --> 01:37:51.920 get ny ware room ignacious choose or bam m P. 1815 01:37:52.119 --> 01:37:57.800 How are you doing when I can hear me? So 1816 01:37:57.880 --> 01:37:59.760 let me get to go to is it? Let me 1817 01:38:00.039 --> 01:38:02.399 as if you could back in there and whenever I 1818 01:38:02.479 --> 01:38:07.600 added you and you're not speaking, you know, yeah, please 1819 01:38:07.640 --> 01:38:08.960 go ahead. 1820 01:38:10.760 --> 01:38:16.079 Thank you mister Carlo for this exciting episode. I call 1821 01:38:16.279 --> 01:38:20.399 I speak from a cadacnastic Nigeria. And my question is this, 1822 01:38:21.119 --> 01:38:22.159 asce civil. 1823 01:38:21.920 --> 01:38:28.479 Servants, it's wise for me to borrow from a staff 1824 01:38:28.520 --> 01:38:35.279 corporative outfits at the rate of ten thousand, I mean 1825 01:38:35.359 --> 01:38:40.000 ten percent to invest in Nigerian shears and. 1826 01:38:40.039 --> 01:38:43.560 This lord payable in two years. I need to be 1827 01:38:43.680 --> 01:38:46.199 the doctor from my salary. So will it be a 1828 01:38:46.319 --> 01:38:49.239 nice financial investment to do? 1829 01:38:50.119 --> 01:38:50.439 Thank you? 1830 01:38:50.479 --> 01:38:52.840 So, so let me make sure I quote my I 1831 01:38:52.920 --> 01:38:56.600 use my words very carefully. So there are two questions there. 1832 01:38:56.800 --> 01:38:59.520 You're ask Norber One, should you borrow from a cooperative? 1833 01:39:00.039 --> 01:39:02.800 The answer is at what interest rate you give us? 1834 01:39:02.840 --> 01:39:06.479 That interest rate at ten percent, So ten percent is 1835 01:39:06.640 --> 01:39:10.520 lower than the cost of inflation. So on the surface, 1836 01:39:10.640 --> 01:39:12.560 it looks like a very very good load because if 1837 01:39:12.560 --> 01:39:16.279 I borrow, I'm borrowing lower than inflation, with means that 1838 01:39:16.520 --> 01:39:19.960 I have one leg good. I simply have to look 1839 01:39:20.039 --> 01:39:23.439 for something that can pay me ten plus and I'm okay. 1840 01:39:23.880 --> 01:39:27.199 So once I get ten plus, I'm okay. So the 1841 01:39:27.279 --> 01:39:30.640 first part of your question we've passed that, we've answered it. 1842 01:39:30.760 --> 01:39:33.840 If I can get any investment that can pay me 1843 01:39:33.960 --> 01:39:37.479 ten plus, I'm okay. Let's not go to your second part. 1844 01:39:37.520 --> 01:39:40.279 You say you want to invest in shares in equities 1845 01:39:40.279 --> 01:39:43.319 in niger stock market. Now that's the problem. Why is 1846 01:39:43.359 --> 01:39:47.359 it a problem? Because shares are what we call variable return. 1847 01:39:48.079 --> 01:39:51.119 The returns can be one hundred percent, the returns can 1848 01:39:51.199 --> 01:39:55.720 be one percent. So if I borrow at ten and 1849 01:39:55.760 --> 01:39:58.000 I invested in the stock market last year, last day, 1850 01:39:58.079 --> 01:40:01.479 market did about ten six percent at our made money 1851 01:40:01.720 --> 01:40:06.479 last upper other So it's really down to do why 1852 01:40:06.479 --> 01:40:09.439 I think the market to make ten plus in twenty 1853 01:40:09.520 --> 01:40:12.680 twenty five, And no one can answer that question for you. 1854 01:40:13.159 --> 01:40:15.920 It is a risk that if it pays off, you 1855 01:40:16.000 --> 01:40:18.920 make money. If it doesn't payoff, you're going to lose money. 1856 01:40:19.520 --> 01:40:23.279 But they always say the past is prologue, But in investments, 1857 01:40:23.319 --> 01:40:27.399 we always say past performance is not a should not 1858 01:40:27.479 --> 01:40:30.159 be used to judge the future. If you look at 1859 01:40:30.399 --> 01:40:35.319 stock market returns across Nigeria for even the last twenty years, 1860 01:40:36.199 --> 01:40:39.600 many times the only investments has put in inflation. Nigeria 1861 01:40:39.600 --> 01:40:42.199 has been a stock market last year. The stock market 1862 01:40:42.199 --> 01:40:45.920 bet inflation last year. So it's a question really for you, 1863 01:40:46.119 --> 01:40:49.720 are you comfortable taking that risk to invest in ten 1864 01:40:49.760 --> 01:40:53.960 percent in a market where it has a propensity to 1865 01:40:53.960 --> 01:40:56.880 beat inflation, But the risk of even one percent would 1866 01:40:56.880 --> 01:41:00.319 make you not made that's return. The question is this, 1867 01:41:00.520 --> 01:41:04.000 how are you hedged? If you take that ten percent 1868 01:41:04.439 --> 01:41:07.399 and invest in stock market and market returns five percent, 1869 01:41:08.119 --> 01:41:11.560 can you still pay back that loan in two years 1870 01:41:11.680 --> 01:41:16.159 without anything happening to your network oricuusly harming you? If 1871 01:41:16.199 --> 01:41:22.239 you can, it increases the option of variable markets. If 1872 01:41:22.279 --> 01:41:24.560 you cannot, I will not advise you do that. I 1873 01:41:24.600 --> 01:41:26.600 would advise you go like I told you a gentleman, 1874 01:41:27.000 --> 01:41:31.720 you're having ten plus. We have the Sameston Nigeria is 1875 01:41:31.800 --> 01:41:34.560 savings bonds by the federal government that they're paying twelve percent. 1876 01:41:34.960 --> 01:41:37.239 That's only two percent for you. If you want to 1877 01:41:37.279 --> 01:41:40.239 take the risk to go and do money markets, mutual 1878 01:41:40.319 --> 01:41:42.920 funds or unit trust, they pay you more. Is still 1879 01:41:42.960 --> 01:41:47.399 more secured. So the answer is if in two years 1880 01:41:47.439 --> 01:41:50.960 the market is zero, stock market is zero, will you survive. 1881 01:41:51.760 --> 01:41:54.119 If you can survive, it means that you have a 1882 01:41:54.239 --> 01:41:58.520 greater propensity to invest in stock market. But if the 1883 01:41:58.520 --> 01:42:01.000 market is zero and you can survive, I would say, 1884 01:42:01.079 --> 01:42:05.840 don't even think about it. That's all right. 1885 01:42:05.920 --> 01:42:08.119 Thank you, Thanks to. 1886 01:42:08.760 --> 01:42:11.520 You are very welcome. It's a check quilo. How are 1887 01:42:11.520 --> 01:42:11.960 you doing so? 1888 01:42:13.720 --> 01:42:14.359 Thank you God? 1889 01:42:14.840 --> 01:42:20.439 What's happening. I can't hear you. If you can't hear 1890 01:42:20.520 --> 01:42:26.960 I can't hear you. Oh I think he's speaking, but 1891 01:42:27.039 --> 01:42:33.000 I can't hear him. Yeah, so he dropped off. Let 1892 01:42:33.000 --> 01:42:35.920 me get tall nero, tall nero, what's up? Man? Thank 1893 01:42:35.960 --> 01:42:44.199 you for for for a compliment, sir, Thank you. 1894 01:42:44.800 --> 01:42:49.000 It's a lovely thing what you're doing every weekend. And 1895 01:42:49.000 --> 01:42:50.319 and I learned you. 1896 01:42:50.359 --> 01:42:51.479 Thank you. 1897 01:42:51.720 --> 01:42:55.159 I'm learning the things about trying anything, and I'm very I. 1898 01:42:55.119 --> 01:43:00.840 Wish to talks more about Yeah, I do under find stay. 1899 01:43:05.159 --> 01:43:07.960 I stay in both I stay in both places. And 1900 01:43:08.079 --> 01:43:10.119 if you ask me a drunk question, I answer, I 1901 01:43:10.520 --> 01:43:12.640 stayed both. Nobody else asked me a drunk They've as 1902 01:43:12.720 --> 01:43:15.359 been a drug question. I've answered. So the problem in 1903 01:43:15.520 --> 01:43:19.279 job we don't have a very very developed credit market. 1904 01:43:19.399 --> 01:43:22.119 We have credit scoring Niger right now. We used to 1905 01:43:22.199 --> 01:43:24.359 have credit card nager right now, we have a lot 1906 01:43:24.399 --> 01:43:26.720 of we don't have mortgages in real estense nager. That's 1907 01:43:26.760 --> 01:43:30.159 also problem. So it's difficult to talk because the bread 1908 01:43:30.279 --> 01:43:32.199 is not there. But if you ask me a question, jobs, 1909 01:43:33.600 --> 01:43:33.960 go ahead. 1910 01:43:36.600 --> 01:43:40.159 Yes, Like I said, I was listening to but when 1911 01:43:40.199 --> 01:43:43.159 you mentioned what captured my attention when you mentioned that 1912 01:43:44.159 --> 01:43:46.680 you can in a way you use your credits car 1913 01:43:46.880 --> 01:43:49.239 have the tds before you start. 1914 01:43:49.039 --> 01:43:52.279 Approving interest and that's like very nice. 1915 01:43:52.359 --> 01:43:54.399 I was something that is something like that in this 1916 01:43:54.560 --> 01:43:56.560 country to because. 1917 01:43:57.800 --> 01:43:59.279 I have a friend that did that. 1918 01:43:59.359 --> 01:44:02.319 For me last Yes, the regionally giving interests, I pay 1919 01:44:02.319 --> 01:44:03.359 back at the end of the month. 1920 01:44:03.359 --> 01:44:06.119 That is support my business and lot and it really 1921 01:44:06.159 --> 01:44:08.079 have doing loads in will do that this year. 1922 01:44:08.079 --> 01:44:10.079 I don't think it's the game that's acts a lot 1923 01:44:10.159 --> 01:44:11.079 of things that he's doing. 1924 01:44:11.960 --> 01:44:14.680 But if like in this country now banks or. 1925 01:44:14.560 --> 01:44:18.079 Whether the entire credit of fars was final fool, I 1926 01:44:18.159 --> 01:44:19.239 haven't heard of it before. 1927 01:44:19.680 --> 01:44:22.960 Actually the best because every time you. 1928 01:44:23.039 --> 01:44:26.079 Talk about borrowing, there's always interests and it doesn't take 1929 01:44:26.159 --> 01:44:28.479 up to tech fugi interests feeling. 1930 01:44:29.359 --> 01:44:32.119 That's one. So it's about one in there. 1931 01:44:32.720 --> 01:44:34.439 What are you I don't know if I'm taking it 1932 01:44:34.520 --> 01:44:38.680 outside the studies about what are your lumbers that you 1933 01:44:38.760 --> 01:44:43.039 look outful before you go to any stuff like from 1934 01:44:43.119 --> 01:44:46.479 the company's financial probably you look out for before you buy, 1935 01:44:46.520 --> 01:44:48.720 before or when you want to tell you. 1936 01:44:51.159 --> 01:44:53.840 Good, great, great question. Let me talk about the credit 1937 01:44:53.840 --> 01:44:56.159 card so it's not thirty days is what we call 1938 01:44:56.279 --> 01:44:59.079 the cycle date. It's most of the thirty days you 1939 01:44:59.159 --> 01:45:01.439 come to in two days, but the credit card company 1940 01:45:01.439 --> 01:45:04.680 will tell you so it's not a fixed thirty. Make 1941 01:45:04.680 --> 01:45:07.600 sure you find out what the cycle date is. That's 1942 01:45:07.680 --> 01:45:10.000 how long you go from when you use the card 1943 01:45:10.359 --> 01:45:12.239 to when you are to pay right, So make sure 1944 01:45:12.239 --> 01:45:14.560 you find out that number. And it's all credit cards, 1945 01:45:14.560 --> 01:45:16.960 even credit cards in Nigeria if they have them, they 1946 01:45:17.000 --> 01:45:19.640 all have a cycle date. You swipe on the first 1947 01:45:19.960 --> 01:45:21.920 you'll have the time that you have to pay back 1948 01:45:21.960 --> 01:45:24.359 that card. If you don't pay back that card, then 1949 01:45:24.399 --> 01:45:27.039 you don't pay interest. You don't pay interest when you swipe, 1950 01:45:27.319 --> 01:45:29.960 you pay interest of what you carry over to the 1951 01:45:30.039 --> 01:45:32.479 next cycle data. That makes any sense, So make sure 1952 01:45:32.479 --> 01:45:34.680 you find out and then the company lets you know. 1953 01:45:34.720 --> 01:45:37.840 That's on your first question. So your second question about 1954 01:45:37.840 --> 01:45:40.399 what you look out for in the top before you invest. 1955 01:45:40.479 --> 01:45:43.319 So you have to let's ask yourselves what is a 1956 01:45:43.439 --> 01:45:46.680 stock or a share? I think the word described that 1957 01:45:46.800 --> 01:45:50.560 I'm buying a share of a company. So let's use 1958 01:45:51.239 --> 01:45:54.239 let's use footballer analogy because people tend to understand when 1959 01:45:54.239 --> 01:45:57.439 you use footb analogy. If I want to buy messy, 1960 01:45:58.880 --> 01:46:02.760 it's messy A good bye. Today everybody will say, of 1961 01:46:02.800 --> 01:46:05.920 course Messy is a goodbye. Of course miss a goodbye. 1962 01:46:06.560 --> 01:46:09.119 So let's say a in Ba Eyingba football Club and 1963 01:46:09.159 --> 01:46:14.680 Namba wanted to buy Messy. They can't afford him because 1964 01:46:14.960 --> 01:46:18.680 right now he's worth millions, you can't sign him. But 1965 01:46:18.960 --> 01:46:22.840 ay Inba could have bought Messy thirty years ago because 1966 01:46:22.880 --> 01:46:26.520 back then Messy was what maybe how much? Maybe ten 1967 01:46:26.560 --> 01:46:30.680 thousand dollars And that's just some examples, right, So what 1968 01:46:30.840 --> 01:46:34.439 should a Inba have looked at if they saw Messy 1969 01:46:34.479 --> 01:46:37.600 training in a bar and wanted to buy him. Number one, 1970 01:46:37.600 --> 01:46:40.520 they have to ask themselves is this person? Is this 1971 01:46:40.640 --> 01:46:43.399 footballer going to make money? They're going to be a 1972 01:46:43.399 --> 01:46:46.840 good footballer in thirty years time. That's what they want 1973 01:46:46.880 --> 01:46:49.199 to look at. They want to look at what called 1974 01:46:49.199 --> 01:46:53.600 the intrinsic value of Messy. Ah, he can trap balls. 1975 01:46:54.159 --> 01:46:56.119 Look at how he is They can run and dribble 1976 01:46:56.239 --> 01:47:01.479 at at age five. So because he's sure knows these flashes, 1977 01:47:02.119 --> 01:47:05.479 we believe that in thirty years time he will, he 1978 01:47:05.520 --> 01:47:09.640 will get better, he will win market share and he 1979 01:47:09.640 --> 01:47:12.359 will even be the best in this field that he's doing. 1980 01:47:13.319 --> 01:47:16.000 So when you look at MESSI at five years old. 1981 01:47:16.479 --> 01:47:19.279 You want to value him then with the mind to 1982 01:47:19.319 --> 01:47:22.600 the future. The same as a stock. So I asked myself, 1983 01:47:22.640 --> 01:47:24.600 will MESSI make more problem? How do I know he'll 1984 01:47:24.600 --> 01:47:28.359 make more profit? Okay? Can he trackball? Can he run tankmentters? 1985 01:47:28.439 --> 01:47:31.439 Can he dribble? Can he head can he do free kicks? 1986 01:47:31.479 --> 01:47:34.760 Are all things I'm looking out for. Same with stocks. 1987 01:47:35.279 --> 01:47:39.720 What is the market share of this company? What is 1988 01:47:39.720 --> 01:47:43.640 the company selling? And what the company is selling? Can 1989 01:47:43.680 --> 01:47:47.399 it grow market share to beat competition in the future. 1990 01:47:48.600 --> 01:47:54.920 A stock price is simply the present value of future innings. 1991 01:47:55.720 --> 01:47:56.960 With means that if I want to know if his 1992 01:47:57.000 --> 01:47:59.119 stock is going to go up, I want to look 1993 01:47:59.119 --> 01:48:03.720 at if that stock can make revenues tomorrow. So let's 1994 01:48:03.720 --> 01:48:08.039 come to Nigera. Let's look at Dango Teste Cement. In 1995 01:48:08.159 --> 01:48:10.199 forget that the name is called Dango Cement. If a 1996 01:48:10.279 --> 01:48:13.720 company came and said, we want to build factories in 1997 01:48:13.880 --> 01:48:17.199 Nigeria that will make cement, Wow, that makes a lot 1998 01:48:17.239 --> 01:48:21.319 of sense because Nigeria's import a lot of cement. So 1999 01:48:21.479 --> 01:48:24.399 if I have a company in Nigeria that is making 2000 01:48:24.439 --> 01:48:27.399 cement in Nigeria, will they make sales? Of course, they'll 2001 01:48:27.399 --> 01:48:30.319 mix sills because Naja is always important cements. Okay. Will 2002 01:48:30.319 --> 01:48:33.720 they make sales into the future. Of course, they'll mix 2003 01:48:33.800 --> 01:48:37.640 it because Najas will keep on buying homes into the future. Okay. 2004 01:48:37.960 --> 01:48:42.000 Will they grow market share and beat the foreign guys? 2005 01:48:42.039 --> 01:48:45.520 Of course, because Nigeria laws are saying that if your 2006 01:48:45.680 --> 01:48:49.199 local manufacturer of cement will give you a better tax 2007 01:48:49.239 --> 01:48:53.840 treatment and better import treatment than the foreigners. So if 2008 01:48:53.840 --> 01:48:56.880 I have these three things, I'm looking at the intrinsic 2009 01:48:57.039 --> 01:49:01.800 value of dango teste cement ty years ago. It's going 2010 01:49:01.880 --> 01:49:06.119 to be higher twenty years in the future. So I invest. 2011 01:49:06.640 --> 01:49:09.960 You say, I'm not giving your numbers. Don't do ten percent. No, 2012 01:49:10.039 --> 01:49:14.479 that's that you've been to twenty Be too clever. Ask 2013 01:49:14.560 --> 01:49:17.760 yourself this company you're looking at in Nigeria today, will 2014 01:49:17.840 --> 01:49:21.319 it you around in ten years? Will it gain market 2015 01:49:21.439 --> 01:49:25.359 share in ten years? Will the laws in Nigeria support 2016 01:49:25.439 --> 01:49:28.800 this company to gain market share in ten years? If 2017 01:49:28.840 --> 01:49:31.319 those as are all yes, yes, yes, that's when you 2018 01:49:31.399 --> 01:49:34.359 now start look at the numbers. Okay, what their profits? 2019 01:49:34.680 --> 01:49:38.239 They must make a profit, right, they must sell, So 2020 01:49:38.319 --> 01:49:40.359 won't look at your the sales return, so look at 2021 01:49:40.520 --> 01:49:43.359 the income. Tame look at the sALS. Are the sales 2022 01:49:43.560 --> 01:49:46.640 increasing in five years over a five year period, at 2023 01:49:46.640 --> 01:49:49.520 their sales increasing. If that company is going to make 2024 01:49:49.600 --> 01:49:52.600 profits in twenty years time, then there are five year 2025 01:49:52.720 --> 01:49:55.319 sales should mirror the twenty years period, right, so you 2026 01:49:55.359 --> 01:49:58.279 don't look at their five year sALS. Is it going up? 2027 01:49:58.800 --> 01:50:01.760 Then from sales, you look at their cost of doing business? 2028 01:50:02.279 --> 01:50:05.079 Is their cost of doing business going up or down? 2029 01:50:05.560 --> 01:50:07.840 If a company starts is going to have very very 2030 01:50:07.880 --> 01:50:10.960 high costs, But as a company now gets better in 2031 01:50:11.119 --> 01:50:14.279 what is doing, the cost should be going lower. With 2032 01:50:14.479 --> 01:50:15.840 means that you know, you want to look at their 2033 01:50:17.079 --> 01:50:20.159 cost of operations. Is he going lower? Is he going higher? 2034 01:50:20.319 --> 01:50:23.560 They look at the cross profit the company making it 2035 01:50:24.079 --> 01:50:27.960 operationally operationally, I didn't make any profit before they pay 2036 01:50:28.000 --> 01:50:30.800 bank loans. I didn't making a profit. They should at 2037 01:50:30.880 --> 01:50:35.199 least be making operational profits either making losses operationally, but 2038 01:50:35.199 --> 01:50:39.479 they are making their returns from loans or extraordinary items. 2039 01:50:40.520 --> 01:50:43.000 That means in five years time, he might not be 2040 01:50:43.039 --> 01:50:45.479 a good thing. Just like in if Messi was a 2041 01:50:45.479 --> 01:50:49.359 footballer and all his goals were from penalties, would you 2042 01:50:49.399 --> 01:50:52.720 buy him all his goals were penalties, He's not a 2043 01:50:52.720 --> 01:50:55.560 good striker. That means he needs penalties to score. It's 2044 01:50:55.640 --> 01:50:58.600 civil with the business. If the basin is making money 2045 01:50:58.760 --> 01:51:02.279 from borrowing money to pay salaries, hmm, we're only like 2046 01:51:02.319 --> 01:51:06.279 that company one that come to make will call organic growth. 2047 01:51:06.640 --> 01:51:10.000 So the products are selling, people are buying in domed 2048 01:51:10.119 --> 01:51:13.439 in theme is selling, They're making revenues, they are growing 2049 01:51:13.479 --> 01:51:17.319 their their capacity. You want to look at the story 2050 01:51:17.439 --> 01:51:20.600 of the company, not just the numbers. This story is 2051 01:51:20.600 --> 01:51:23.079 a company going to make money in five years. So 2052 01:51:23.119 --> 01:51:25.960 you ask yourself ten years ago was their Indom in 2053 01:51:26.039 --> 01:51:29.119 Nigeria as it is today? Which have been invested in 2054 01:51:29.239 --> 01:51:32.319 Endome ten years ago? That's the question you want to 2055 01:51:32.359 --> 01:51:35.359 ask yourself. So if you can answer those three questions, 2056 01:51:35.720 --> 01:51:38.000 that's when you can look at the numbers. Number one, 2057 01:51:38.079 --> 01:51:40.279 do you think this is going to make profit tomorrow? 2058 01:51:40.640 --> 01:51:43.319 Number two? Will we make profits with the market share 2059 01:51:43.600 --> 01:51:47.760 go up tomorrow? Number three? Will the government policies help 2060 01:51:48.000 --> 01:51:52.039 this company? If you get too out of three, it's 2061 01:51:52.079 --> 01:51:54.479 not enough. It has to be three across the board. 2062 01:51:54.640 --> 01:51:56.800 When you get this three, you can then come back 2063 01:51:56.840 --> 01:51:59.479 and say, okay, let's look at the balance sheet, look 2064 01:51:59.479 --> 01:52:02.720 at the things like that. So this is this top 2065 01:52:02.800 --> 01:52:06.079 question asked. It's a huge topic. Right, we can talk 2066 01:52:06.159 --> 01:52:09.079 one hour, but at least there's three questions. As a 2067 01:52:09.119 --> 01:52:12.000 non finance person, you can figure it out yourself and 2068 01:52:12.159 --> 01:52:14.600 know if it's going to go up. Does that make sense, sir? 2069 01:52:17.880 --> 01:52:20.640 I appreciate you are welcome. Let me try to get 2070 01:52:20.680 --> 01:52:24.520 it's articularly impacting here, but let's get it a yeah, 2071 01:52:24.840 --> 01:52:26.560 you can speak nor ahead. Let me go back to 2072 01:52:26.640 --> 01:52:27.119 d M d M. 2073 01:52:27.239 --> 01:52:31.279 Folks, I love you, hear me. I can't hear yeah, okay, 2074 01:52:31.439 --> 01:52:35.720 I think the connection is quite bad. Thanks really quickly, alicle. 2075 01:52:38.439 --> 01:52:38.479 M. 2076 01:52:38.520 --> 01:52:42.279 I think it's gone off again. So a good investment 2077 01:52:42.279 --> 01:52:44.199 that is going to be Any investment that gives you 2078 01:52:45.239 --> 01:52:49.319 what's it called good internet, that's gonna be a good 2079 01:52:49.319 --> 01:52:52.039 investment because every every every week we get this. I 2080 01:52:52.079 --> 01:52:55.079 can't hear you dropped off again. Let me get the chief. 2081 01:52:55.159 --> 01:52:58.119 The chief is trying to hook on the chief, let 2082 01:52:58.159 --> 01:53:01.600 me add him. Someone is asking on to that space. Guys. 2083 01:53:01.680 --> 01:53:03.640 I cannot tell you what to invest in. So if 2084 01:53:03.680 --> 01:53:06.199 you ask me should I buy this? Should I buy that? 2085 01:53:06.279 --> 01:53:08.760 I can answer that question. Right. I can't give you advice. 2086 01:53:08.840 --> 01:53:11.039 All we're doing here is educational. I can't tell you 2087 01:53:11.079 --> 01:53:14.000 buy this or buy that. I can tell you about it. 2088 01:53:14.600 --> 01:53:16.199 I can tell you all that, but I can't tell 2089 01:53:16.199 --> 01:53:18.800 you to go buy this or buy that. I just can't. 2090 01:53:19.039 --> 01:53:22.279 I'm a licensed guy, so I can't tell you without 2091 01:53:22.359 --> 01:53:24.159 doing analysis of you. So if you're asking me, I 2092 01:53:24.640 --> 01:53:27.439 lot your question to buy this, I can answer that question. 2093 01:53:27.800 --> 01:53:29.920 So this guys saying I have time learn in savings 2094 01:53:30.840 --> 01:53:34.359 invested the money to purchase land or savings bond. These 2095 01:53:34.359 --> 01:53:37.479 are two very very So he's asking I have a MILLIONAIERR, 2096 01:53:37.800 --> 01:53:40.920 I want to buy a bond or I can or 2097 01:53:41.239 --> 01:53:44.960 buy land. These are two different investment as a classes, 2098 01:53:45.000 --> 01:53:48.479 and they offer two different things. When you buy a bond, 2099 01:53:48.520 --> 01:53:51.079 you are getting income. When you buy land, you are 2100 01:53:51.079 --> 01:53:54.279 getting capital appreciation with no income. So the question is 2101 01:53:54.319 --> 01:53:56.760 do you want income or not? You know there is 2102 01:53:56.800 --> 01:54:00.199 no good or bad investment. The investment simply have to 2103 01:54:00.319 --> 01:54:03.399 match your objective. So you don't go and buy a car. 2104 01:54:03.520 --> 01:54:05.560 You say why you want to buy a card, and 2105 01:54:05.600 --> 01:54:08.199 you buy the car to suit your objective. So back 2106 01:54:08.239 --> 01:54:10.720 to you, mister j. The question is this, do you 2107 01:54:10.840 --> 01:54:14.439 want income? If you want income, you buy the savings bond. 2108 01:54:14.680 --> 01:54:17.960 If you want capital appreciation, you buy the land. There 2109 01:54:17.960 --> 01:54:21.880 are two different things here. You can compare land and 2110 01:54:22.000 --> 01:54:26.079 savings bond. You compare your objectives. If you want to 2111 01:54:26.119 --> 01:54:28.960 earn income, buy the savings bond. If you want to 2112 01:54:28.960 --> 01:54:33.039 do capital appreciation, you buy the land. Right, go ahead, 2113 01:54:37.399 --> 01:54:38.359 go ahead. 2114 01:54:38.680 --> 01:54:42.479 Okay, okay, thanks, good, great conversation. I had a question. 2115 01:54:42.520 --> 01:54:44.439 But before I answer that question, let me just quickly 2116 01:54:44.520 --> 01:54:47.640 hear what has worked for me with credit card put 2117 01:54:47.640 --> 01:54:51.039 in Europe and in America. If you do this, your 2118 01:54:51.079 --> 01:54:54.920 credits called go of one hundred percent guarantee. Right, So 2119 01:54:54.920 --> 01:54:58.359 when you get your credit card, just like Carlos said, 2120 01:54:59.199 --> 01:55:02.119 it goes on side calls. So look at the date 2121 01:55:02.640 --> 01:55:05.920 when your statement will be generated. So look at the 2122 01:55:05.960 --> 01:55:08.119 date they will generate your statements. 2123 01:55:08.760 --> 01:55:09.600 It's always there. 2124 01:55:09.640 --> 01:55:11.800 If you log in, you go on the app, you 2125 01:55:11.800 --> 01:55:13.920 will see it, right or if you don't know, ask 2126 01:55:14.000 --> 01:55:15.840 them pay back. 2127 01:55:15.760 --> 01:55:20.359 Your credit card three days to that date. It will normally. 2128 01:55:20.079 --> 01:55:23.239 Show you your credit to be your your statement to 2129 01:55:23.239 --> 01:55:30.079 be generated next month of February lesson. For instance, whatever 2130 01:55:30.159 --> 01:55:34.880 you've spent a back on the seventh, I guarantee you 2131 01:55:34.960 --> 01:55:37.560 the next month your credit score will shoot up. 2132 01:55:38.720 --> 01:55:40.920 This works for me in Europe. It works for me 2133 01:55:40.960 --> 01:55:42.640 in the US, just. 2134 01:55:42.560 --> 01:55:46.479 To put it out there for your children. You can 2135 01:55:46.560 --> 01:55:49.119 add your child, even if it's one year old, to 2136 01:55:49.239 --> 01:55:53.800 your credit card. Make the personal authorities user build your 2137 01:55:53.840 --> 01:55:57.079 credit score. By the time they are eighteen, there will 2138 01:55:57.119 --> 01:55:59.520 be well positioned to go into the market. 2139 01:56:00.800 --> 01:56:02.600 Can let me just go and go ahead? 2140 01:56:02.680 --> 01:56:04.439 Absolute and I have a whole lot of things that 2141 01:56:04.880 --> 01:56:07.239 answer just to people hash back. 2142 01:56:08.920 --> 01:56:10.800 Let me let me clarify. Bit, Let me clify a 2143 01:56:10.800 --> 01:56:13.760 bit is it so? Number one? If if you add 2144 01:56:13.760 --> 01:56:16.319 your child, if the child is not so? The credit 2145 01:56:16.359 --> 01:56:19.800 cards have a call authorized user you. Let's say your 2146 01:56:19.880 --> 01:56:22.960 child was to travel to Europe. Americans will take their 2147 01:56:23.000 --> 01:56:25.359 child to the bank and say, give him a credit card, 2148 01:56:25.479 --> 01:56:28.079 my own credit card. Give the child and then added child. 2149 01:56:28.960 --> 01:56:32.680 Ask the bank. Some authorizesers do not reflect your credit 2150 01:56:32.840 --> 01:56:36.159 just to give the child emergency card because leaving you 2151 01:56:36.159 --> 01:56:38.359 you go to school, so you might not reflect. To 2152 01:56:38.439 --> 01:56:40.680 make sure you ask the bank will he get the 2153 01:56:40.680 --> 01:56:43.239 credit It's just an additional card. To make sure you ask. 2154 01:56:43.319 --> 01:56:45.960 It's not automatic that if you add the child, he 2155 01:56:46.039 --> 01:56:48.520 gets the credit. Care Some will say yes, if you 2156 01:56:48.600 --> 01:56:50.960 add this child to the credit care to your credit card. 2157 01:56:51.000 --> 01:56:53.680 I mean if you use a card, the child gets credit. 2158 01:56:53.840 --> 01:56:55.960 Some will, some will not. Make sure you find out 2159 01:56:56.000 --> 01:56:56.800 it's not automatic. 2160 01:56:56.880 --> 01:56:59.920 Yeah, but go ahead your yes, yeah yeah, yeah, the clarification, 2161 01:57:00.399 --> 01:57:03.359 but building the credits for with that paying three days 2162 01:57:03.359 --> 01:57:07.079 to your statement. It works, Ondred present anybody that tries 2163 01:57:07.119 --> 01:57:10.439 it does Worcalo. A question to you is I want 2164 01:57:10.479 --> 01:57:14.479 you to talk about the risk associated with eye in 2165 01:57:14.600 --> 01:57:20.159 commercial papers in Nigeria. And if you think it's on 2166 01:57:20.239 --> 01:57:23.239 the high side, where else will you will? Will you 2167 01:57:23.279 --> 01:57:25.520 put your money apart from stock markets? 2168 01:57:26.520 --> 01:57:27.159 Well, I want to. 2169 01:57:27.479 --> 01:57:29.880 I want to hear your view the risks associated with 2170 01:57:30.000 --> 01:57:31.399 commercial papers with nager. 2171 01:57:31.720 --> 01:57:34.239 So let's define what the commercial of your parents. Right. 2172 01:57:34.600 --> 01:57:36.520 So if I go to the bank and I want 2173 01:57:36.560 --> 01:57:39.399 to invest with the bank, I give the bank my money. 2174 01:57:39.600 --> 01:57:43.039 The bank will give me what we allus fixed deposit. Right, 2175 01:57:43.119 --> 01:57:46.680 So I'm lending money to the bank. I give one 2176 01:57:46.760 --> 01:57:49.439 to the bank. The bank gives me a guarantee that 2177 01:57:49.439 --> 01:57:51.560 they will give me back. And in Nigeria didn't guarantee. 2178 01:57:51.560 --> 01:57:53.760 It's five million, right, five million, So the bank gives 2179 01:57:53.800 --> 01:57:56.119 me a guarantee that they will pay me back. What 2180 01:57:56.159 --> 01:57:58.279 does the bank do with my five million? They give 2181 01:57:58.279 --> 01:58:00.920 you to thegether I wanted want to the money from. 2182 01:58:01.000 --> 01:58:06.319 So there's a borrower, there's there's me, there's the bank. 2183 01:58:06.640 --> 01:58:08.520 When I go to the bank, I give the bank 2184 01:58:08.640 --> 01:58:12.000 my money. The bank guarantees me. But the bank gives 2185 01:58:12.000 --> 01:58:16.680 my money to the to the ultimate borrowers. So I'm 2186 01:58:16.960 --> 01:58:20.239 sleeping happy because the bank is guarantee me nds against 2187 01:58:20.359 --> 01:58:24.640 the bank. I'm okay with a commercial paper. The borrower 2188 01:58:24.800 --> 01:58:28.279 is coming directly to me. So you see, I see, 2189 01:58:28.319 --> 01:58:31.479 I've seen Dangot paper. I've seen empty and control. They 2190 01:58:31.520 --> 01:58:34.680 are saying, calu borrowers the money directly. Don't go to 2191 01:58:34.720 --> 01:58:37.359 the bank. Want to borrow the money directly from you. 2192 01:58:37.439 --> 01:58:41.079 So I'm giving my money to Dangote or empty. And 2193 01:58:41.640 --> 01:58:45.840 also what's the return for me? They pay me higher 2194 01:58:45.840 --> 01:58:48.920 than the bank. So commercial paper is just like a 2195 01:58:49.079 --> 01:58:54.000 higher ending fixed deposit instrument, but it carries a higher 2196 01:58:54.079 --> 01:58:57.039 risk because there's no guarantee on that right, there's no 2197 01:58:57.159 --> 01:59:00.920 bank guarantee, there's no n D I C. It's now 2198 01:59:01.039 --> 01:59:05.399 an issue guarantee. Wait, miss if Dangote says hey, Carlus 2199 01:59:05.399 --> 01:59:09.760 borrow went to Dangote. If empty and says hey KLi 2200 01:59:09.800 --> 01:59:12.279 Breman and borm went too empty, and but maybe other 2201 01:59:12.359 --> 01:59:15.760 guys I don't that're not as popular as Dangote or empty, 2202 01:59:15.840 --> 01:59:17.560 and that if you borrow the money, you are boring 2203 01:59:17.560 --> 01:59:21.640 them based on the issuer name, they might pay you more, 2204 01:59:21.920 --> 01:59:23.880 but they have no guarantee. So it's just the way 2205 01:59:24.000 --> 01:59:29.520 of you raising your return on a fixed income instrument. 2206 01:59:29.960 --> 01:59:32.399 That's basically what the CP is. So if you can 2207 01:59:32.920 --> 01:59:36.720 bear that higher issuer risk, it gives you a way 2208 01:59:36.760 --> 01:59:39.640 to end more money on a fixed deposit. 2209 01:59:39.720 --> 01:59:46.079 Yeah, okay, thank you, Yeah, yeah, makes sense, thank you, 2210 01:59:46.239 --> 01:59:48.760 because because what I was asking is if you do 2211 01:59:48.880 --> 01:59:50.760 if you look at most of the cps coming out, 2212 01:59:51.359 --> 01:59:54.880 it goes from you know, eighteen percent of to thirty 2213 01:59:54.960 --> 01:59:58.399 one percent, right, so thirty one become can be a 2214 01:59:58.399 --> 01:59:58.960 bit tempting. 2215 01:59:59.039 --> 02:00:01.760 But have if I've sat down with a few of 2216 02:00:01.800 --> 02:00:02.279 my friends that. 2217 02:00:02.359 --> 02:00:07.640 We've we've been pondering by like, what's the risk these 2218 02:00:07.640 --> 02:00:10.079 guys are not well known in those the man just 2219 02:00:10.159 --> 02:00:12.399 starting I don't want the name names, but it's been 2220 02:00:12.439 --> 02:00:15.359 on the street, imper I've seen it. 2221 02:00:15.479 --> 02:00:19.039 Or what was the risk associated with going in there? 2222 02:00:19.279 --> 02:00:22.359 You know, if it's the faults, what what would be 2223 02:00:22.359 --> 02:00:23.439 your next line of action? 2224 02:00:23.880 --> 02:00:26.720 Basically there's no line of action. That's the whole idea 2225 02:00:26.760 --> 02:00:30.000 of the CP. If you if you learn money to 2226 02:00:30.000 --> 02:00:32.920 to add to someone and the guy does not pay 2227 02:00:32.920 --> 02:00:35.000 you back, that's to a corporate we have all called 2228 02:00:35.039 --> 02:00:40.000 the corporate ladder for repayments. Usually the creditors are lined 2229 02:00:40.079 --> 02:00:46.319 up right, so they will tell you are subordinated subordinated debts, 2230 02:00:46.319 --> 02:00:49.279 which means that who do they pay first? They pay 2231 02:00:49.399 --> 02:00:52.760 bond holders first, they pay CP's first. Things like that. 2232 02:00:52.880 --> 02:00:56.119 If you read the actual prospectus of the CIP, they 2233 02:00:56.119 --> 02:00:58.399 will tell you where you stand. So if you want 2234 02:00:58.439 --> 02:01:00.720 to really get if you really want to get into 2235 02:01:00.800 --> 02:01:03.319 the weeds of it, right, you have to go in 2236 02:01:03.479 --> 02:01:06.520 and say where do we where are we on that ladder? 2237 02:01:06.960 --> 02:01:09.800 When do we get paid? If the bank fails. This 2238 02:01:09.880 --> 02:01:11.680 is not a bank anymore, it's not with a CPR, 2239 02:01:11.720 --> 02:01:15.079 it's not a company. If a company fails, the losses 2240 02:01:15.119 --> 02:01:17.960 that they pay creditors first. But according to a ship 2241 02:01:18.039 --> 02:01:22.560 to a ladder, bond holders get paid first. Bond means 2242 02:01:22.600 --> 02:01:25.560 that they issue the bond. I believe cps are after 2243 02:01:25.720 --> 02:01:29.479 bonds before they go to equity holders. So the answer 2244 02:01:29.479 --> 02:01:31.960 is that's your only that's your only way you can 2245 02:01:32.039 --> 02:01:32.479 go to them. 2246 02:01:32.720 --> 02:01:33.279 You have to go. 2247 02:01:33.880 --> 02:01:37.600 Usually in America, when the bank or a company fails, 2248 02:01:37.680 --> 02:01:40.399 there's a bankruptcy. You go to the bankruptcy court and 2249 02:01:40.479 --> 02:01:43.039 you file that you have a claim on the assets. 2250 02:01:43.319 --> 02:01:45.159 Then the bankruptcy court is say, okay, when we pay, 2251 02:01:45.199 --> 02:01:46.960 these guys will go to that ladder and pay you. 2252 02:01:47.319 --> 02:01:49.159 In Nigia, I'm not sure how it's done. You can 2253 02:01:49.319 --> 02:01:53.119 also in Ningeria assue and say you have a claim 2254 02:01:53.279 --> 02:01:56.880 on these assets. So like if it's a debenture, you 2255 02:01:57.000 --> 02:01:59.800 have a claim on the generator or the building that 2256 02:02:00.119 --> 02:02:02.760 used to issue that loan. If you don't have any claim, 2257 02:02:03.119 --> 02:02:05.359 you might too. You might hire a lawyer to go 2258 02:02:05.479 --> 02:02:08.760 and grab something legally from the company because you blend 2259 02:02:08.800 --> 02:02:11.279 them money. You want to establish the only you and 2260 02:02:11.319 --> 02:02:12.720 then you go after them. That's are going to be 2261 02:02:12.760 --> 02:02:15.880 your options. Really, But if you read the CP you 2262 02:02:15.960 --> 02:02:18.840 would see where it's stated where you stand. You know, 2263 02:02:18.920 --> 02:02:22.800 that's why you always see sub is what has happened 2264 02:02:22.880 --> 02:02:26.479 for now sub or de neated debt. You know where 2265 02:02:26.520 --> 02:02:29.279 you stand in the in the graveyard or or sh 2266 02:02:29.399 --> 02:02:31.520 say of that company. So if you have a lot 2267 02:02:31.560 --> 02:02:35.119 of money, then you really want to be really a pandemic. Yes, 2268 02:02:35.199 --> 02:02:37.000 you can actually actually like to tell you where we 2269 02:02:37.399 --> 02:02:40.039 if this company goes down, where do we stand intern 2270 02:02:40.079 --> 02:02:41.520 of the payments? Yeah? 2271 02:02:43.840 --> 02:02:45.079 Just concludfully. Thank you. 2272 02:02:45.199 --> 02:02:48.520 Actually you something something new have learned from you today 2273 02:02:48.640 --> 02:02:52.640 is that pecond order? You know who goes first after 2274 02:02:52.760 --> 02:02:55.439 the bond? Do we have CP coming forward or any 2275 02:02:55.479 --> 02:02:59.199 other person? Yeah, that's a good insight. Now do you 2276 02:02:59.359 --> 02:03:04.720 think the guys that that act as vehicles when it 2277 02:03:04.800 --> 02:03:06.239 comes to marketing the CP? 2278 02:03:06.479 --> 02:03:09.359 Do they have any rule or responsibility? 2279 02:03:09.439 --> 02:03:12.279 For instance, Danglata is not going to commut and sell 2280 02:03:12.399 --> 02:03:15.439 his CP to people by himself. Danglade is gonna go 2281 02:03:15.600 --> 02:03:21.920 to the IBTC and other houses those houses. Do they 2282 02:03:22.000 --> 02:03:26.000 have any responsibility in this or are they just simply vehicle? 2283 02:03:26.479 --> 02:03:28.640 They're marketting on our platform, you're on your own. 2284 02:03:29.239 --> 02:03:32.800 Remember, if you invest in an entity, you are buying 2285 02:03:32.920 --> 02:03:36.279 the stock of that entity or the paper of that entity. 2286 02:03:36.359 --> 02:03:40.800 It's called issue a risk, not market risk, issuer risk. 2287 02:03:41.199 --> 02:03:44.680 So your risk is with the issuer. Of course, for marketing, 2288 02:03:44.880 --> 02:03:47.880 for management, you can get angry with your broker, but 2289 02:03:48.600 --> 02:03:50.920 you carry lead to your broker. If the guy came 2290 02:03:50.960 --> 02:03:54.680 to the market and sold you something he believed at 2291 02:03:54.720 --> 02:03:58.000 that time was real, and he had no no, he 2292 02:03:58.119 --> 02:04:00.600 had no way to determine what the company was saying 2293 02:04:00.880 --> 02:04:05.800 was not real. So you are the word is issue risk. 2294 02:04:06.079 --> 02:04:10.000 The issuer of the instruments is who you hold the 2295 02:04:10.199 --> 02:04:13.920 risk with. It's who you are basically beholding to, right, 2296 02:04:14.119 --> 02:04:17.479 not the guy that sold it to you. Of course, 2297 02:04:17.520 --> 02:04:19.840 you see in when you have all this companies film 2298 02:04:19.840 --> 02:04:22.359 in America, they go after the issuer. They go after 2299 02:04:22.439 --> 02:04:25.239 the bankers as well. They will say, hey, what did 2300 02:04:25.359 --> 02:04:27.760 what did you do? You you sold the bond that 2301 02:04:28.039 --> 02:04:30.319 was trash. You called it the f world, but you 2302 02:04:30.439 --> 02:04:33.640 still sold it. That is the criminal part of the company. 2303 02:04:33.880 --> 02:04:37.760 Knew that the company that the product they were selling 2304 02:04:37.960 --> 02:04:41.039 was bad, but they sold it to you. That's the 2305 02:04:41.119 --> 02:04:45.199 criminal element. But usually if it's not just if it's 2306 02:04:45.319 --> 02:04:47.479 just a normal bond that was sold to you and 2307 02:04:47.600 --> 02:04:49.840 I sold you a bond and a company field, you 2308 02:04:49.840 --> 02:04:51.560 really can come to me and say, hey, you sold 2309 02:04:51.600 --> 02:04:52.920 me that bond. I mean, you can come to me 2310 02:04:52.960 --> 02:04:55.680 and get angry with me. But I basically sold you 2311 02:04:55.760 --> 02:04:57.800 that bond based on the information that I got, which 2312 02:04:57.840 --> 02:05:00.920 I believed was true from the issue the bond. So 2313 02:05:01.479 --> 02:05:04.199 That's how I put it. Ultimately, is the issue that 2314 02:05:04.279 --> 02:05:06.279 you have been hold yet that you are own two? 2315 02:05:06.319 --> 02:05:11.720 Yeah, okay, sweet, thank you, Thanks appreciate that. 2316 02:05:11.960 --> 02:05:14.760 You appreciate that. Let's see, we've got a mannel here, 2317 02:05:15.079 --> 02:05:17.680 talk log. Let me go back to DMS. The DM 2318 02:05:17.800 --> 02:05:21.239 is asking carlu I think we've talked about this a lot. 2319 02:05:21.479 --> 02:05:25.119 Let me asking how can I borrow? If I'm a 2320 02:05:25.239 --> 02:05:28.560 business guy, a SME guy, what kind of bank clauan 2321 02:05:28.560 --> 02:05:31.319 should I get? Again, I'm not just re emphasized, guys, 2322 02:05:32.079 --> 02:05:35.479 you don't want to borrow money. Hold up, just hold up. 2323 02:05:35.560 --> 02:05:38.119 You don't want to borrow money to start a business 2324 02:05:38.439 --> 02:05:42.520 from a bank. You don't. You do equity. You do 2325 02:05:42.680 --> 02:05:46.079 your own savings number one. Number two, you do family 2326 02:05:46.159 --> 02:05:49.279 and friends number two. Number three, you do equity. There 2327 02:05:49.319 --> 02:05:52.119 are many ways you can get financing without borrowing, right. 2328 02:05:52.239 --> 02:05:55.199 You can do owner you can do supplier finance, you 2329 02:05:55.279 --> 02:05:58.079 can do that of finance. You can do factoring. But 2330 02:05:58.279 --> 02:06:01.720 you don't go to the bank to borrow money to 2331 02:06:01.920 --> 02:06:04.319 start a business. That's going to be a guaranteed way 2332 02:06:04.439 --> 02:06:07.279 to roll down your cash and then get the trouble 2333 02:06:09.279 --> 02:06:09.520 a man. 2334 02:06:09.760 --> 02:06:15.000 Go ahead, all right, sir, I'm bounding my hear about something. 2335 02:06:15.119 --> 02:06:18.279 I work for the federal government and I just like 2336 02:06:18.479 --> 02:06:20.479 wanted to do for a way to get like a side. 2337 02:06:21.439 --> 02:06:24.680 So I wanted to use my salary account to get 2338 02:06:24.760 --> 02:06:26.800 the loan from the bank, then play back for my 2339 02:06:26.880 --> 02:06:30.319 salary account that's in the same Uber business whenever I 2340 02:06:30.359 --> 02:06:33.159 don't even that's a good idea. And also I want 2341 02:06:33.279 --> 02:06:35.720 to know what time used this program so that I 2342 02:06:35.800 --> 02:06:39.199 can maticate this with its terms about the connel. 2343 02:06:39.880 --> 02:06:43.479 Yeah, so last question. First, we always here seven thirty 2344 02:06:44.279 --> 02:06:50.039 on Sundays. We used to be here by it, but 2345 02:06:50.199 --> 02:06:53.640 there's daylight seven time, so for now we're doing seven 2346 02:06:53.760 --> 02:06:56.119 thirty two. We organized daylight saving time, so it's seven 2347 02:06:56.239 --> 02:07:00.319 thirty every Sunday. I just answered you for your your 2348 02:07:00.399 --> 02:07:03.680 first question. I would not borrow money from a bank 2349 02:07:04.439 --> 02:07:08.239 to start any business. And I explain why. When you 2350 02:07:08.359 --> 02:07:11.079 borrow money from a bank, you are paying a fixed cost. 2351 02:07:11.239 --> 02:07:15.439 Irrespective of what happens, there are ways you have to 2352 02:07:15.560 --> 02:07:18.159 look for a way to get that asset without paying 2353 02:07:18.199 --> 02:07:21.359 the fixed costs. Initially, it's not going to be it's 2354 02:07:21.399 --> 02:07:24.039 too much for you. You are paying salary, you are 2355 02:07:24.119 --> 02:07:26.119 paying diesel. They're also going to pay a bank, So 2356 02:07:26.439 --> 02:07:28.720 banks don't play. If you borrow money, you have to 2357 02:07:28.800 --> 02:07:31.760 pay with a bank. So again I would suggest you 2358 02:07:32.000 --> 02:07:34.439 always look for a way that you can start that 2359 02:07:34.640 --> 02:07:39.760 business with doubt borrowing from the bank. Banks are working capital. 2360 02:07:40.159 --> 02:07:42.159 Let's say you need you have a credit card now 2361 02:07:42.239 --> 02:07:44.399 that from issue by the bank. You want to buy 2362 02:07:44.720 --> 02:07:48.199 gas fuel for your car to run for that day. Perfect, 2363 02:07:48.359 --> 02:07:51.119 you can borrow from the bank, swipe your card, buy 2364 02:07:51.159 --> 02:07:53.159 a field because you're going to get money back from 2365 02:07:53.239 --> 02:07:56.000 your commuters and pay back the bank. So walking after 2366 02:07:56.039 --> 02:07:58.279 a very very short But if you borrow money to 2367 02:07:58.319 --> 02:08:01.880 buy that that, that car or whatever, then you are 2368 02:08:01.960 --> 02:08:04.479 paying back all alone and all that and it's very 2369 02:08:04.720 --> 02:08:08.600 high in Nigeria. Again I'm being specific to Nigeria. Maybe 2370 02:08:08.600 --> 02:08:12.920 I actually clarify that if rates were four percent five percent, 2371 02:08:13.079 --> 02:08:15.279 of course you can. You can go to a bank 2372 02:08:15.359 --> 02:08:18.680 and borrow at four five percent for five years, buy 2373 02:08:18.720 --> 02:08:20.840 an asset and go on. But they're not four five 2374 02:08:20.880 --> 02:08:22.800 percent in Nigeria. If you go to a bank, you 2375 02:08:22.880 --> 02:08:25.039 work in the bank, and if the banker told you 2376 02:08:25.239 --> 02:08:28.319 it's anywhere from twenty percent. So if you borrow twenty 2377 02:08:28.399 --> 02:08:31.319 five percent in four years, you've paid back the principle 2378 02:08:31.680 --> 02:08:35.079 your depreciation is four years or five years on that car. 2379 02:08:35.399 --> 02:08:36.920 So I said, you want to look at what I'm saying. 2380 02:08:37.359 --> 02:08:40.640 If you buy a car with twenty five percent, in 2381 02:08:40.960 --> 02:08:44.520 four years, the car is worth zero dollars. And in 2382 02:08:44.720 --> 02:08:47.279 four years if you've paid the bank back, the exact 2383 02:08:47.439 --> 02:08:50.800 principle used to buy the car makes no sense, bro. 2384 02:08:52.159 --> 02:08:54.520 So if you look for on that way, that's what 2385 02:08:54.600 --> 02:08:57.760 I'll say, look for on that way to fund the 2386 02:08:57.880 --> 02:09:01.560 car in Nigeria especially, and the same for all SMEs 2387 02:09:01.600 --> 02:09:04.840 you you you simply can't have a business where every 2388 02:09:05.000 --> 02:09:09.439 month you have the fixed twenty five percent cash that 2389 02:09:09.600 --> 02:09:13.920 must leave your business. It's not gonna be as a startup. 2390 02:09:14.279 --> 02:09:17.920 You are paying twenty five percent fixed. That's bank loan 2391 02:09:18.119 --> 02:09:21.199 leaving your business bank loan and it's just the interest. 2392 02:09:21.680 --> 02:09:24.960 So be careful of one, just one show way of 2393 02:09:25.600 --> 02:09:30.239 crashing your business right once showing perfect guys. Yeah, a 2394 02:09:30.279 --> 02:09:33.239 lot of questions, guys, will spend two hours here, we'll 2395 02:09:33.239 --> 02:09:36.600 start to wind down. Appreciate you guys. I'm just gonna 2396 02:09:36.640 --> 02:09:38.479 read the truth d and just make sure I've not 2397 02:09:38.680 --> 02:09:41.920 missed anyone. I think I've answered all the main themes 2398 02:09:41.960 --> 02:09:45.439 that we came up with. We've talked about debts, how 2399 02:09:45.479 --> 02:09:49.119 to get out of debts, We've talked about starting your business, 2400 02:09:49.560 --> 02:09:51.880 and we even died the mortgages. I've given you guys 2401 02:09:51.920 --> 02:09:54.479 that link. If you go on Google, just google my name, 2402 02:09:54.560 --> 02:09:57.279 Carlo Ajia and Nira Metrics how to buy a house 2403 02:09:57.319 --> 02:09:59.880 in Tilly six months. I gave you the step by step. 2404 02:10:00.000 --> 02:10:02.439 You know, lots of things that go into this buying 2405 02:10:02.479 --> 02:10:04.600 a house matter. So one is asking me a very 2406 02:10:04.600 --> 02:10:07.359 great question. I thought everybody will asked, carlu why should 2407 02:10:07.359 --> 02:10:10.279 I buy a house? Why can't I sen be a rent? 2408 02:10:11.319 --> 02:10:16.479 Great question, Pracilia, great question. So I asaid from saying 2409 02:10:16.520 --> 02:10:20.399 that you have to live somewhere. If you're living in 2410 02:10:20.439 --> 02:10:23.279 a rental apartment, you're gonna pay rent. If you live 2411 02:10:23.279 --> 02:10:25.640 in a home that you own, you're gonna pay mortgage. 2412 02:10:25.720 --> 02:10:27.960 You have to live somewhere, and where you live has 2413 02:10:28.039 --> 02:10:30.279 a cost. You are never going to be without a cost. 2414 02:10:30.720 --> 02:10:33.680 So it's gonna be wherever you live. Do your calculation 2415 02:10:33.800 --> 02:10:37.840 and say, because they have all these calculators abroad enough Nigeria, 2416 02:10:37.880 --> 02:10:40.319 where you can't put in should I rent or should 2417 02:10:40.359 --> 02:10:42.800 I buy? If you put that in, it will tell you. Yes, 2418 02:10:42.960 --> 02:10:45.119 if you rent and if you buy, this is a 2419 02:10:45.239 --> 02:10:47.760 number you will give you. But remember the point I'm 2420 02:10:47.800 --> 02:10:50.520 making it because you are still going to pay. If 2421 02:10:50.600 --> 02:10:54.399 you pay rent, there's no equity build up. If you 2422 02:10:54.640 --> 02:10:58.039 have a mortgage, there's equity build up. Even if you 2423 02:10:58.239 --> 02:11:01.239 leave the home tomorrow and you sell, at least you 2424 02:11:01.319 --> 02:11:03.640 can keep some part of the equity because you're going 2425 02:11:03.720 --> 02:11:06.439 to sell at the current price, but the equity is yours. 2426 02:11:06.720 --> 02:11:09.439 You pay back the bank, you go with the market pricing. 2427 02:11:10.039 --> 02:11:15.359 So it does prove that that's the first that's the 2428 02:11:15.399 --> 02:11:18.520 first advantage you do get from that. I'm just having 2429 02:11:18.600 --> 02:11:23.600 that retin rent and equity. Number two. Remember that the 2430 02:11:24.880 --> 02:11:28.399 if you look at wealth in America, and I'm sure 2431 02:11:28.479 --> 02:11:32.560 wealth and nature the same thing, the wealthier folks are 2432 02:11:32.720 --> 02:11:36.199 always have at the folks that always have home ownership. 2433 02:11:38.119 --> 02:11:43.560 Caucasians have the what's the word now, white folks, Caucasians 2434 02:11:43.600 --> 02:11:48.800 and all that they have higher homeownership than say the 2435 02:11:48.960 --> 02:11:52.039 minority folks. There's the reason for that because when you 2436 02:11:52.159 --> 02:11:55.199 have home home ownership, that's an asset, especially the worst 2437 02:11:55.239 --> 02:11:59.199 that you can monetize. In Nigeria, we do not have 2438 02:12:00.119 --> 02:12:03.680 those frameworks whereby if I have a house in Suliary, 2439 02:12:04.439 --> 02:12:07.680 I can get cash from that house. Now just will 2440 02:12:07.720 --> 02:12:10.800 give you a loan, which is not good because if 2441 02:12:10.840 --> 02:12:13.479 you have a loan then you are paid back interest. 2442 02:12:14.119 --> 02:12:16.960 But in America, I know if you have a house 2443 02:12:17.119 --> 02:12:21.319 in su Leary, you can go to a bank's assuming 2444 02:12:21.359 --> 02:12:24.079 American America house Nigeria, if I have a house in 2445 02:12:24.199 --> 02:12:29.039 suh Lary or in Omarha or in Slager, I can 2446 02:12:29.119 --> 02:12:31.680 go to the bank and take a line of credit 2447 02:12:32.359 --> 02:12:35.479 on the value of the house, not a loan. A 2448 02:12:35.680 --> 02:12:38.800 line of credit Wich means that the loan is available 2449 02:12:38.920 --> 02:12:42.039 for me, but I don't pay interesting. I use it. 2450 02:12:42.600 --> 02:12:44.640 So imagine what that does for me. If I have 2451 02:12:44.760 --> 02:12:47.239 a house in omar here, I bought the house for 2452 02:12:47.359 --> 02:12:50.199 one million, the house is now worth fifteen million. That 2453 02:12:50.359 --> 02:12:52.800 means I have equity of a buvery forty nine million. 2454 02:12:52.880 --> 02:12:54.800 I can go to the bank. The bank will give 2455 02:12:54.880 --> 02:12:57.920 me a line of creditive twenty million. I'm not paying 2456 02:12:58.000 --> 02:13:01.520 interest too, It's just a line is there should I 2457 02:13:01.680 --> 02:13:05.359 need it? That loan usually is about from ten years 2458 02:13:05.479 --> 02:13:09.000 to twenty years, right, ten to twenty years. So as 2459 02:13:09.079 --> 02:13:10.800 you mean I want to do business, I'll start an 2460 02:13:10.920 --> 02:13:13.159 esmate business I can take from my land of credit 2461 02:13:13.479 --> 02:13:15.600 aside the business. As when my kids want to go 2462 02:13:15.640 --> 02:13:17.720 to school abroad, I can borrow from my land of 2463 02:13:17.800 --> 02:13:19.720 credit and same to school abroad. You see what point 2464 02:13:19.760 --> 02:13:22.680 I'm making. You have that access to a long term 2465 02:13:23.319 --> 02:13:27.119 funding that others don't have if they don't have a home. Clearly, 2466 02:13:27.239 --> 02:13:30.000 of course, the home is based on a loan to value, 2467 02:13:30.039 --> 02:13:31.800 but it's still the same thing. You're going to have 2468 02:13:31.880 --> 02:13:35.880 an asset that you can monetize. And America, the pathway 2469 02:13:36.000 --> 02:13:39.520 to be in middle class is true home ownership. So 2470 02:13:39.600 --> 02:13:42.239 there are many things that are for plus buying a 2471 02:13:42.319 --> 02:13:44.560 home and maintain that are just for you paying rent. 2472 02:13:44.600 --> 02:13:46.680 If you're gonna say, in America for two years, yeah rent, 2473 02:13:47.039 --> 02:13:49.439 that's fine, You've got there for two years. But if 2474 02:13:49.479 --> 02:13:51.159 you want to stay there in the West for a 2475 02:13:51.239 --> 02:13:53.000 long period of time, why don't you buy a home. 2476 02:13:53.119 --> 02:13:54.960 At least buy the home. You're still going to pay 2477 02:13:55.399 --> 02:13:58.520 that rental mortgage. Start to pay that, you know, build 2478 02:13:58.600 --> 02:14:00.800 up equity and see what happens if you have to 2479 02:14:00.920 --> 02:14:03.479 go sell the house. But they're gonna say for two years, 2480 02:14:03.520 --> 02:14:05.239 three years you want to go to school, sure, rent, 2481 02:14:05.680 --> 02:14:08.279 So that's the reason why I was emsizes are buying 2482 02:14:08.319 --> 02:14:10.880 a home. I wrote an article a long time ago. 2483 02:14:10.920 --> 02:14:14.119 I tried to shade out where I dimensioned the home 2484 02:14:14.159 --> 02:14:20.560 ownership in America. Two demographics. You know already doing the 2485 02:14:20.680 --> 02:14:23.640 June teens. I think where we're talking about. If you 2486 02:14:23.720 --> 02:14:27.800 really want to make minorities in America have economic power, 2487 02:14:27.840 --> 02:14:31.039 you've got to go back and change the how they 2488 02:14:31.119 --> 02:14:33.960 can buy homes. I tell you what, if you google 2489 02:14:34.199 --> 02:14:36.199 red lining, most of you know what red line. Red 2490 02:14:36.279 --> 02:14:40.880 lining is. The back then when we had when blacks 2491 02:14:40.920 --> 02:14:44.880 were not like economically active, and when we had the racism, 2492 02:14:45.279 --> 02:14:48.239 before we had civil rights, you could not buy a home. 2493 02:14:48.319 --> 02:14:51.439 Let's say you were in Legos. They will say if 2494 02:14:51.479 --> 02:14:54.520 you are if you are black, you could not buy 2495 02:14:54.560 --> 02:14:57.439 a home in certain years of Legos. You couldn't buy 2496 02:14:57.439 --> 02:15:01.239 a home in a Catcher in Lucky in VII if 2497 02:15:01.279 --> 02:15:04.840 they would redline you red lining so you could not 2498 02:15:05.399 --> 02:15:09.159 buy a home if you are black in certain neighborhoods 2499 02:15:09.159 --> 02:15:11.880 in America. Why didn't they did that? Because if they 2500 02:15:12.000 --> 02:15:15.520 keep you all in one area and it's a black area, 2501 02:15:15.600 --> 02:15:18.840 there have no appreciating value. Even if it does, it's 2502 02:15:19.159 --> 02:15:22.079 just there. Right. But if you can come to quote 2503 02:15:22.159 --> 02:15:26.039 unquote as Sokor and buy a house as a black person, 2504 02:15:26.640 --> 02:15:30.720 then you have entered the economic Latin America. It's automatic 2505 02:15:30.880 --> 02:15:35.000 for you. So even the white racist folks back then, 2506 02:15:35.199 --> 02:15:39.920 not everyone. The racist folks back then understood the power 2507 02:15:40.000 --> 02:15:43.359 of mortgages that if you want to keep a minority 2508 02:15:43.439 --> 02:15:47.800 class down, you prevent them from buying a mortgage. It's 2509 02:15:47.840 --> 02:15:50.720 called redlining. So look at this, sways one is saying 2510 02:15:50.760 --> 02:15:53.439 that I will not give you this thing because I 2511 02:15:53.479 --> 02:15:55.319 give If I give it to you, you it'd be 2512 02:15:55.399 --> 02:15:58.319 good for you. Now you can get that thing I 2513 02:15:58.439 --> 02:16:01.479 don't want to get. It doesn't make any sense, does it, right? 2514 02:16:01.760 --> 02:16:05.359 It does. Know, if they didn't believe that blacks owning 2515 02:16:05.520 --> 02:16:09.359 homes would be good, there will be no redlining right America. 2516 02:16:09.439 --> 02:16:13.680 It's illegal. It's illegal to even think about doing that. 2517 02:16:13.800 --> 02:16:15.560 Say someone is black, you say I'm not going to 2518 02:16:15.600 --> 02:16:17.319 give you a loan, or you can't buy a loan here. 2519 02:16:17.520 --> 02:16:19.439 You're gonna get into a lot of trouble if you 2520 02:16:19.520 --> 02:16:22.159 do that. Because when you buy a home, especially in 2521 02:16:22.199 --> 02:16:26.079 the worst it's your part way to be in middle class. Right, 2522 02:16:26.159 --> 02:16:28.760 That's basically it. And it's the same in America and Canada. 2523 02:16:29.159 --> 02:16:32.479 In Europe, it's your pathway to middle classes. It's the safer, 2524 02:16:32.799 --> 02:16:36.120 slowest way to get to the middle class because you 2525 02:16:36.239 --> 02:16:40.600 buy a home, just buy inflation. The home value is 2526 02:16:40.639 --> 02:16:43.920 going to keep on going up just by inflation. But 2527 02:16:44.159 --> 02:16:47.959 your costs are fixed, right, So that's the hack. You 2528 02:16:48.079 --> 02:16:50.879 have a thirty year mortgage that is fixed, but the 2529 02:16:50.959 --> 02:16:52.840 home value is going up. So that's just the hack 2530 02:16:52.920 --> 02:16:55.959 for you. So don't sleep on that, all right. So 2531 02:16:56.040 --> 02:16:57.840 we're talking about credit cards. Not a lot of credit 2532 02:16:57.879 --> 02:16:59.680 cards in Nigeria, but I know there are one or 2533 02:16:59.719 --> 02:17:02.799 two if you're able to get them. To get them, 2534 02:17:02.799 --> 02:17:04.600 I don't know. The credit cad nager are mostly for 2535 02:17:04.879 --> 02:17:07.879 the upper income folks in Nigeria. I wish we would 2536 02:17:07.879 --> 02:17:09.639 have credit cards that are going to be more for 2537 02:17:09.760 --> 02:17:13.920 the lower income folks in Nigeria. So the students can 2538 02:17:14.040 --> 02:17:16.360 get a credit card and they can at least use it, 2539 02:17:16.479 --> 02:17:21.319 you know, I mean put five five and living on 2540 02:17:21.360 --> 02:17:22.920 a credit card for a student, they will pay it 2541 02:17:23.000 --> 02:17:26.280 back because they will. Now they do jobs, most of 2542 02:17:26.280 --> 02:17:28.319 them have a job, but they really get into a 2543 02:17:28.360 --> 02:17:30.760 lot of trouble. Sometimes they have no to eat. So 2544 02:17:31.680 --> 02:17:35.639 responsible credit usage teaching that to us students when they're 2545 02:17:35.719 --> 02:17:38.879 very very young. Give them access to capital. True, that 2546 02:17:39.399 --> 02:17:41.040 might be a good way to start off. I mean 2547 02:17:41.120 --> 02:17:44.360 not twenty percent interest rate, but very very low. So 2548 02:17:44.559 --> 02:17:47.959 we learn how to use credits. You know, it's credit 2549 02:17:47.959 --> 02:17:51.639 is the force multiplier. It's not bad, it's just a 2550 02:17:51.760 --> 02:17:56.920 force multiplier. The chief have I the chief the chef 2551 02:17:57.040 --> 02:17:59.680 in a budget. Sorry about that? Just on your hands, 2552 02:18:02.200 --> 02:18:03.200 sure if you've got the floor. 2553 02:18:03.440 --> 02:18:08.879 All right, Okay, good evening, Good evening. Thank you so 2554 02:18:09.040 --> 02:18:13.479 much for everything you've said this evening. So I just 2555 02:18:13.600 --> 02:18:18.120 want to say something so I'm new to when it 2556 02:18:18.239 --> 02:18:23.200 comes to investing, and like I've been following your your 2557 02:18:23.360 --> 02:18:29.760 podcast recently, like for the past two weeks now, So 2558 02:18:30.760 --> 02:18:35.680 about the debt, you know, credit card stuff in Nigeria. Yeah, 2559 02:18:35.959 --> 02:18:38.440 you know, I think most of these things you've said 2560 02:18:39.879 --> 02:18:42.959 there's not really applicable to us here in Nigeria. So 2561 02:18:45.040 --> 02:18:48.959 as a young guy who is just starting life and all, 2562 02:18:49.399 --> 02:18:50.440 you know, there's a lot of. 2563 02:18:52.399 --> 02:18:54.719 There's a lot of investments, there's a. 2564 02:18:54.719 --> 02:18:57.600 Lot of stocks, shares, moretial phone and a lot of 2565 02:18:57.639 --> 02:18:59.239 things happening right now in Nigeria. 2566 02:18:59.799 --> 02:19:04.399 And so I I there was one of your podcasts, 2567 02:19:04.440 --> 02:19:09.920 we said something about mutual phone and one of these 2568 02:19:10.000 --> 02:19:14.200 speakers said something that when you're trying to when you're 2569 02:19:14.239 --> 02:19:16.920 not sure of what you want to go into for 2570 02:19:17.040 --> 02:19:20.079 the meantime, you can just put your money in a 2571 02:19:20.200 --> 02:19:25.639 mutual fund while waiting to explore the stock and the shares. 2572 02:19:26.000 --> 02:19:28.959 So sorry, I just want to say something briefly. I 2573 02:19:29.079 --> 02:19:32.840 saw something on one of these fintech app I don't 2574 02:19:32.840 --> 02:19:37.520 want to mention the brand, so they were advertising stock 2575 02:19:37.600 --> 02:19:40.319 and bond and I saw, you know, a lot of 2576 02:19:40.360 --> 02:19:46.079 people recently are hyping some of the Nigerian stock on 2577 02:19:46.239 --> 02:19:49.000 this fintech app, like some oil company. 2578 02:19:49.680 --> 02:19:50.719 And I saw some. 2579 02:19:53.000 --> 02:19:55.879 Some company performing better than even. 2580 02:19:57.200 --> 02:20:01.520 Some of these popular brand popular oil company, you know, 2581 02:20:01.879 --> 02:20:04.959 like a palm oil company is doing better. 2582 02:20:05.120 --> 02:20:10.399 And I'm like, okay, So so I was actually. 2583 02:20:11.559 --> 02:20:15.719 Thinking, you know, buying nine Gian stock outside this popular. 2584 02:20:17.200 --> 02:20:19.520 Popular stock, you. 2585 02:20:19.559 --> 02:20:23.280 Know, buying those other brands that are not popular, like 2586 02:20:23.600 --> 02:20:27.079 you know these companies that produce palm oil that your 2587 02:20:27.159 --> 02:20:32.440 stocks are doing very well. Is it advisable to buy 2588 02:20:32.600 --> 02:20:35.360 such or to put one money into search? 2589 02:20:36.520 --> 02:20:37.879 I can answer that question, like I said, I can. 2590 02:20:38.159 --> 02:20:39.719 I can't tell you what to do, right I can't 2591 02:20:39.760 --> 02:20:42.200 tell you to go buy this or by that, or 2592 02:20:42.280 --> 02:20:47.200 we're doing this educational. So but see, I've always given 2593 02:20:47.239 --> 02:20:49.639 you there's a step by step process you have to 2594 02:20:49.719 --> 02:20:52.280 take before you invest. Step by step process you can 2595 02:20:52.479 --> 02:20:57.159 just you You just can't start to invest. You have 2596 02:20:57.280 --> 02:20:58.799 to have a plan, Like if you're going to if 2597 02:20:58.799 --> 02:21:01.959 you're driving from here to you have to check your tires, 2598 02:21:02.319 --> 02:21:05.000 you have to build gas in the car. Then you drive. 2599 02:21:05.280 --> 02:21:07.799 You just can't wake up, get into your car and drive. 2600 02:21:08.920 --> 02:21:10.520 So the very very first thing you have to do, 2601 02:21:11.040 --> 02:21:13.440 the very first thing you have to do, is you 2602 02:21:13.479 --> 02:21:15.840 want to ask yourself why are you invest in? That's 2603 02:21:15.920 --> 02:21:19.239 easy for you. Am I investing for long term? Am 2604 02:21:19.280 --> 02:21:21.840 I investing to save my rent money so I can 2605 02:21:21.920 --> 02:21:24.840 have more money to pay next year? Those questions determine 2606 02:21:24.920 --> 02:21:26.680 how you should invest. So you have to know why 2607 02:21:26.799 --> 02:21:29.520 you are investing. Are you in long term? Short term risky? 2608 02:21:29.959 --> 02:21:33.559 What's your risk profile? Get that one. Understand why you 2609 02:21:33.639 --> 02:21:36.399 are an investor and the type of investor you are. 2610 02:21:36.479 --> 02:21:38.440 That's the first thing you want to do. Then, like 2611 02:21:38.520 --> 02:21:41.840 I've said, before you even invest in coble, want cobble, 2612 02:21:42.319 --> 02:21:45.920 you want to build an emergency fund what's an emergency 2613 02:21:45.959 --> 02:21:49.360 fund is going to be three to six months of 2614 02:21:49.600 --> 02:21:54.680 your necessary expenditures what be called your non discretionary expenditures, 2615 02:21:54.680 --> 02:21:58.000 which means that what are your non discretionaries things that 2616 02:21:58.120 --> 02:22:00.920 you must do or spend more on even if you 2617 02:22:01.000 --> 02:22:05.440 have no money, like what number one, food, number two, 2618 02:22:05.719 --> 02:22:09.280 medical number three, rent. You have to pay these things 2619 02:22:09.399 --> 02:22:11.920 even if you don't have any money. So if your 2620 02:22:12.079 --> 02:22:17.360 total non discretionary expenses comes about five thousand, at least 2621 02:22:17.440 --> 02:22:20.600 have five thousand in an account near cash or near 2622 02:22:20.760 --> 02:22:27.399 cash before you invest. I would say, have fifteen thousand. 2623 02:22:27.520 --> 02:22:30.159 But if you want to have five tons to start with, okay, 2624 02:22:30.360 --> 02:22:34.600 but you must have a magicy fund before you invest 2625 02:22:34.719 --> 02:22:37.000 in cobble. You must have that before invest the coble. 2626 02:22:37.600 --> 02:22:41.799 What's the next thing? Insurance, especially if you are married 2627 02:22:42.159 --> 02:22:45.559 or you have a dependent. You can't invest until you 2628 02:22:45.719 --> 02:22:51.040 have insurance. What insurance There's not like life insurance. There's 2629 02:22:51.159 --> 02:22:55.440 insurance from loss of income. So if you have a 2630 02:22:55.559 --> 02:22:58.079 wife or you have kids, you want to go buy 2631 02:22:58.520 --> 02:23:04.000 life insurance for you start to invest very important because 2632 02:23:04.040 --> 02:23:06.719 when it happens to you, then of course those guys 2633 02:23:07.000 --> 02:23:09.479 or the insurance commits will pay and that can take 2634 02:23:09.479 --> 02:23:12.040 care of your your dependence you've left behind. So let's 2635 02:23:12.040 --> 02:23:15.479 say you've got your Majesty fund and you have dependence. 2636 02:23:15.520 --> 02:23:17.760 If you don't have dependence, you don't need life insurance. 2637 02:23:18.360 --> 02:23:20.840 Who's gonna what are you gonna pay to? So just 2638 02:23:20.920 --> 02:23:24.360 have your medicy fund life insurance. Then you can then 2639 02:23:24.440 --> 02:23:26.959 say you want to invest Now, if you want to invest, 2640 02:23:27.479 --> 02:23:30.799 I like top down investing. What means I go top 2641 02:23:30.879 --> 02:23:33.799 and I say what's top? The earth is top? What's next? 2642 02:23:33.879 --> 02:23:38.079 The continents there are North America, South America, Asia, Africa. 2643 02:23:38.600 --> 02:23:40.680 Do you want to invest in Africa? If you want 2644 02:23:40.680 --> 02:23:43.159 to invest in Africa? Okay, what continent in Africa? Let's 2645 02:23:43.159 --> 02:23:46.959 say Nigeria. Okay, Nigeria. What sector in Nigeria? You start 2646 02:23:46.959 --> 02:23:48.600 from this sector? Why am I going to because I 2647 02:23:48.600 --> 02:23:52.639 don't have the money to buy the individual company's talks. 2648 02:23:53.120 --> 02:23:57.399 Nigeria has about rough figure and there are three hundred 2649 02:23:57.440 --> 02:24:01.360 listed securities. America has more than five thousand, So how 2650 02:24:01.399 --> 02:24:03.639 can you choose which ones are good? Right? But if 2651 02:24:03.680 --> 02:24:07.639 you buy the fund, either you buy the mutual fund 2652 02:24:07.959 --> 02:24:11.159 you need trust or the ETA that is tracking the index, 2653 02:24:11.239 --> 02:24:13.959 then you bought everything Nigeria, right, So if buy that 2654 02:24:14.120 --> 02:24:17.879 one you've not bought Nigeria, then inside that Nigeria you 2655 02:24:17.920 --> 02:24:20.799 can just okay, what sectors you even focus on? Should 2656 02:24:20.840 --> 02:24:24.200 I buy food? Okay? With with company food, there's Bua, 2657 02:24:24.360 --> 02:24:26.680 there's Aumo, there is this. Then you not have to 2658 02:24:26.799 --> 02:24:31.920 go individual, but you are coming top down Nigeria food 2659 02:24:32.479 --> 02:24:36.360 there with particular food company. As your income increases, because 2660 02:24:36.360 --> 02:24:38.479 if you take your income, I want to chat to 2661 02:24:38.559 --> 02:24:41.040 buy in the store. You don't buy a lot, you 2662 02:24:41.120 --> 02:24:43.959 won't buy enough, so you're gonna spread your beds so 2663 02:24:44.280 --> 02:24:47.120 thin that they need to make. One hundred percent on 2664 02:24:47.479 --> 02:24:51.479 one narrow is to narr. One hundred percent on one 2665 02:24:51.600 --> 02:24:54.600 narror is too narrow. But ten percent on the million 2666 02:24:54.760 --> 02:24:57.680 is one million, one point one million. Look at it 2667 02:24:57.760 --> 02:25:01.799 that way. Two narror and thousand. It's the same percentage, 2668 02:25:01.920 --> 02:25:04.479 but look at it that way. So you want to 2669 02:25:04.559 --> 02:25:09.200 start do take those steps first, right and most importantly, 2670 02:25:09.239 --> 02:25:11.799 you've got to really start it before you invest. Don't 2671 02:25:11.879 --> 02:25:14.239 don't like I heard you saying. People are saying this, 2672 02:25:14.399 --> 02:25:16.280 people are saying that, what do you say? Like you know, 2673 02:25:16.680 --> 02:25:19.079 go on YouTube, put that company in there to give 2674 02:25:19.079 --> 02:25:21.360 you lots of information about the company. Tell you lott 2675 02:25:21.559 --> 02:25:24.520 this stuff you're you're listening today, you're picking up a 2676 02:25:24.559 --> 02:25:27.239 few stuff. Excellent. You're learning how to invest in, learning 2677 02:25:27.239 --> 02:25:29.879 a few words. Keep on doing that. You've got to 2678 02:25:29.959 --> 02:25:33.079 understand investing before you put a couple down. There's the 2679 02:25:33.159 --> 02:25:36.959 point I'm making, right, don't do don't invest without knowing 2680 02:25:37.079 --> 02:25:39.399 understanding why you're putting money with. If you do that way, 2681 02:25:39.639 --> 02:25:41.920 it's going to work out for you. Right. But you've 2682 02:25:41.920 --> 02:25:43.879 got to know why you're investment before you invest. So 2683 02:25:44.159 --> 02:25:46.719 you can't say should I buy this or should I 2684 02:25:46.799 --> 02:25:49.239 buy that? Does it meet your objectives? That should be 2685 02:25:49.319 --> 02:25:51.479 the word for you. Is it going to pay you dividends? 2686 02:25:52.360 --> 02:25:54.760 Will the share price rise on hundred percent tomorrow? That's 2687 02:25:54.799 --> 02:25:57.280 what you want to ask and you know that from 2688 02:25:57.360 --> 02:26:01.239 knowing your objective. If your objective is to make income, 2689 02:26:01.319 --> 02:26:03.920 if you are older, that's your objective. If your income, 2690 02:26:04.000 --> 02:26:06.799 if your objective is to grow, grow, grow, grow grow 2691 02:26:07.000 --> 02:26:09.440 because you're younger. Good. Do you want to find out 2692 02:26:09.479 --> 02:26:11.959 at those companies that you want to buy that? Not sure? 2693 02:26:12.000 --> 02:26:15.639 If I help you, sir? Did I help out a bit? Yes? 2694 02:26:16.000 --> 02:26:20.120 Thank you so much, Thank you so much, sir. Yeah. 2695 02:26:21.159 --> 02:26:23.760 I reaction to you guys all right, guys two hours 2696 02:26:23.840 --> 02:26:25.319 answered to me. I think I'm going to call it 2697 02:26:25.360 --> 02:26:28.079 a day unless anyone has any last thing to say. 2698 02:26:28.239 --> 02:26:31.680 DM guys, I bridged you guys have searched. True, I'm 2699 02:26:31.719 --> 02:26:33.600 looking for any unique question there. Most of you are 2700 02:26:33.600 --> 02:26:35.520 asking the same questions. I preached the questions, but I 2701 02:26:35.520 --> 02:26:38.159 think I've answered most of them. This one as oh, 2702 02:26:38.360 --> 02:26:41.159 this is good. So it's asking about pension although your 2703 02:26:41.280 --> 02:26:43.520 questions know what you're asking. Let me rephrase your question. 2704 02:26:44.079 --> 02:26:47.760 It's asking about I don't have any savings, I say 2705 02:26:47.840 --> 02:26:53.440 to my PFA. Is that enough? Yes, good question. So 2706 02:26:53.760 --> 02:26:57.120 most folks in Nigeria do not have any savings apart 2707 02:26:57.159 --> 02:27:00.239 from what's ordered by the government. So most folks this 2708 02:27:00.479 --> 02:27:03.559 retirement sives account in their That's where they say them, 2709 02:27:03.600 --> 02:27:06.639 when the retirement saves account. That is a very very 2710 02:27:06.719 --> 02:27:10.959 good way to invest. Why Number one, your investments are 2711 02:27:11.040 --> 02:27:14.680 growing tax free? Tax free. What means if you put 2712 02:27:14.719 --> 02:27:17.920 a nyr in that account, the government will not collect 2713 02:27:18.079 --> 02:27:20.479 taxes on that one narra till you take it out, 2714 02:27:21.399 --> 02:27:25.559 so it's growing tax free. It's compounded. Number two, so 2715 02:27:25.639 --> 02:27:27.840 you always say a compounded on the compounded This is 2716 02:27:27.879 --> 02:27:34.280 a compounded savings account. Your RSSAY is a compounded savings 2717 02:27:34.680 --> 02:27:38.200 tax deferred accounts. You can't get that anywhere. There is 2718 02:27:38.319 --> 02:27:43.399 no other investment in AGLA is compounded deferred and tax free. 2719 02:27:43.479 --> 02:27:46.600 I think maybe insurance. But insurance doesn't take money from 2720 02:27:46.639 --> 02:27:50.520 you every month. Okay, it does, so let's see what's 2721 02:27:50.520 --> 02:27:54.879 a dependent on insurance and your RSSA. Insurance growth is 2722 02:27:55.040 --> 02:27:57.920 not I don't know if the income growth is tax deferred. 2723 02:27:58.000 --> 02:28:01.239 I think it is. But with the RSSAY you can 2724 02:28:01.360 --> 02:28:04.719 invest literally two amounts. It's based off your salary. Yeah, 2725 02:28:04.760 --> 02:28:07.760 that's the difference. When insurance, you are the one pain. 2726 02:28:09.000 --> 02:28:13.360 With your RSSAY, you pay your company is pain. So 2727 02:28:13.479 --> 02:28:16.840 if you do arrass, your company's pain is ten percent 2728 02:28:17.440 --> 02:28:21.600 of your basic housing transport if you do your so 2729 02:28:21.959 --> 02:28:24.399 if you're doing insurance, you are the one pain. But 2730 02:28:24.520 --> 02:28:29.920 it's a tax deferred compounded savings accounts you can't get 2731 02:28:30.040 --> 02:28:33.239 anywhere in Nigeria. This dis tratings. So you put on 2732 02:28:33.360 --> 02:28:37.159 into your RSSA and you save and it's good for you. 2733 02:28:37.280 --> 02:28:40.000 The question is not asking that is this enough? I 2734 02:28:40.040 --> 02:28:42.959 think the answer is no, it's not enough because when 2735 02:28:43.040 --> 02:28:46.479 you invest in an RSSAY, remember it's just you're just 2736 02:28:46.639 --> 02:28:50.479 investing your basic housing and your transport. You have to 2737 02:28:50.559 --> 02:28:53.040 do a calculation. If you go to your to a 2738 02:28:53.200 --> 02:28:55.840 good funcial advisor or to a banker, you ask him, 2739 02:28:56.319 --> 02:29:00.360 I want to retire in X amount of years. I 2740 02:29:00.520 --> 02:29:02.959 want to have X amount of money when I retire. 2741 02:29:03.559 --> 02:29:05.959 How much should I save? He will give you an answer. 2742 02:29:06.600 --> 02:29:09.200 It's just called present value calculation. He will take out 2743 02:29:09.200 --> 02:29:11.760 to this calculator. He will press some buttons, he will 2744 02:29:11.760 --> 02:29:14.239 do a few assumptions. He will give you an answer. 2745 02:29:14.920 --> 02:29:18.399 It's called present value of an annuity. He can If 2746 02:29:18.440 --> 02:29:21.840 he can't do it, you should be he shouldn't do it. 2747 02:29:21.920 --> 02:29:25.360 Do that for you a banker, a stockbroker, the present 2748 02:29:25.559 --> 02:29:28.520 value of an annuity. So what you don't want is 2749 02:29:28.600 --> 02:29:31.479 you not? You now come back and your company. You say, today, 2750 02:29:31.959 --> 02:29:36.040 I'm saving ten thousand Era every month in my RSS, 2751 02:29:37.040 --> 02:29:40.559 but when I do my calculation, I should be saving 2752 02:29:41.120 --> 02:29:44.440 fifty thousand a month in my arresses. So what you 2753 02:29:44.559 --> 02:29:48.520 do you do an additional for lunchy contribution, because we 2754 02:29:48.760 --> 02:29:52.040 do that calculation. If you want to save to get 2755 02:29:52.159 --> 02:29:55.280 fifty million ERA in ten years, if you do a 2756 02:29:55.399 --> 02:29:58.319 present value back to today, it might translate to you 2757 02:29:58.479 --> 02:30:03.520 paying fifty thousand narra today you do that calculation, your 2758 02:30:03.520 --> 02:30:07.440 an additional vundure contribution. You saving your RSC. Yes, you 2759 02:30:07.520 --> 02:30:10.239 can do your RSC. You can mirror your RC and 2760 02:30:10.319 --> 02:30:14.079 save somewhere else. But you want to increase your investment. 2761 02:30:14.639 --> 02:30:19.079 Your most important savings is your retirement account, not your 2762 02:30:19.200 --> 02:30:24.479 kid's schooling account, not your mortgage. Your most important investment account. 2763 02:30:24.559 --> 02:30:29.600 It's your mortgage, it's your retirement account. Why, as you 2764 02:30:29.719 --> 02:30:33.959 get older, you can no longer work, so you have 2765 02:30:34.079 --> 02:30:36.600 a limited time to make money. Doesn't matter if you 2766 02:30:36.680 --> 02:30:39.879 have a brain that is functional, you can't work. You're 2767 02:30:39.920 --> 02:30:43.040 going to get older. So because you're going to get older, 2768 02:30:43.399 --> 02:30:48.399 everybody here has a terminal time that will work with 2769 02:30:48.559 --> 02:30:51.319 means we only have a fixed amount of time we 2770 02:30:51.440 --> 02:30:56.600 can save and invest. Everybody here we're going to have 2771 02:30:56.680 --> 02:31:00.479 a fixed time that we can save an invest. So 2772 02:31:00.639 --> 02:31:02.840 if we know that to be true, then want to 2773 02:31:02.920 --> 02:31:05.680 make sure that we are maximizing that time. Remember, you 2774 02:31:05.840 --> 02:31:08.479 have to first of all end the money. They have 2775 02:31:08.639 --> 02:31:11.719 to save the money, they have to invest the money, 2776 02:31:11.959 --> 02:31:15.000 all in the same time period. We have maybe twenty 2777 02:31:15.120 --> 02:31:17.559 five fifty years. That's say we have fifty years. You 2778 02:31:17.680 --> 02:31:19.879 have to end the money that fifty years. Sometimes they're 2779 02:31:19.879 --> 02:31:22.120 going to end the money, but you don't save it, 2780 02:31:22.479 --> 02:31:24.520 so it's gone away to the wind. So you've got 2781 02:31:24.559 --> 02:31:29.040 to end that money, then save that money, then invest 2782 02:31:29.120 --> 02:31:32.120 that money for those fifty years. So first start where 2783 02:31:32.120 --> 02:31:35.559 we're at zero. Some start at ten, some start at 2784 02:31:35.680 --> 02:31:38.840 forty five. But you must do all these three. If 2785 02:31:38.879 --> 02:31:41.360 you don't do all this three, you'll be destitute. I'm 2786 02:31:41.479 --> 02:31:44.680 just saying, because you would have no money when you 2787 02:31:44.840 --> 02:31:49.719 are at retirement. So you have to end, save, invest 2788 02:31:49.920 --> 02:31:53.399 and the time is fixed. You can't increase how long 2789 02:31:53.399 --> 02:31:58.639 you're gonna live yet. So if you notice your most 2790 02:31:58.719 --> 02:32:04.719 important investment, it's your retirement account. That's it. Your retirement account. 2791 02:32:05.159 --> 02:32:08.520 Before you train your kids, before you pay for your house. 2792 02:32:09.079 --> 02:32:13.520 You pay yourself first by saving into your retirematam's account, 2793 02:32:13.559 --> 02:32:16.280 so you are there and not a burden on anyone 2794 02:32:16.639 --> 02:32:19.559 when you get older. If you're in America, there are 2795 02:32:19.680 --> 02:32:23.079 lots of things you have to do long term savings 2796 02:32:23.840 --> 02:32:26.600 because you know there when you get older, they put 2797 02:32:26.639 --> 02:32:29.399 you in an old people's home. But if you have money, 2798 02:32:29.600 --> 02:32:31.440 you can pay for someone to come to your house 2799 02:32:31.559 --> 02:32:33.120 and take care of you. So you have to start 2800 02:32:33.159 --> 02:32:37.600 to save for long term care. Very important. It's not 2801 02:32:37.760 --> 02:32:39.799 medical care. This is long term care. So you're in 2802 02:32:39.879 --> 02:32:42.079 your house, so when it's come to your house, take 2803 02:32:42.120 --> 02:32:44.520 care of you or your kids might not be there, 2804 02:32:45.360 --> 02:32:47.959 your kids might travel, might not be there. So this 2805 02:32:48.079 --> 02:32:50.959 is in America. You did you know when in Nigeria, 2806 02:32:51.079 --> 02:32:53.520 we know worry about long term care because we have community, 2807 02:32:53.719 --> 02:32:56.079 we have welfare in your village. So I'm going to 2808 02:32:56.159 --> 02:32:58.079 take care of you. In America, you know, we just 2809 02:32:58.280 --> 02:33:01.120 jack back to America all the jackbad that people are 2810 02:33:01.159 --> 02:33:04.159 only get to sixty seventy, Your kids are not going 2811 02:33:04.239 --> 02:33:06.239 to be at home. Who will take care of you? 2812 02:33:06.360 --> 02:33:10.000 If you are married? Fantastic? But what if you're not married, 2813 02:33:10.239 --> 02:33:12.000 or what if both of you are old? You need 2814 02:33:12.079 --> 02:33:14.959 to have long term care, so you pay for that one. 2815 02:33:15.520 --> 02:33:17.399 So now means have to save in your health savings 2816 02:33:17.479 --> 02:33:21.200 account to pay for that long term care. This American 2817 02:33:21.239 --> 02:33:24.399 I'm doing to write Naijerz is different, different, but entirely 2818 02:33:24.680 --> 02:33:28.079 Najams will do welfare if you are old. Yeah, but 2819 02:33:28.200 --> 02:33:30.600 if you're Americans started to think of yourself in sixty 2820 02:33:30.719 --> 02:33:32.520 seventy years and say where would you be at when 2821 02:33:32.559 --> 02:33:34.959 you're old? How would you fund your retirement? Very very 2822 02:33:35.000 --> 02:33:38.520 important conversation. You do it very very dispassionately. You go 2823 02:33:38.639 --> 02:33:41.639 to your guy, he'll give you numbers. You start to save. 2824 02:33:41.840 --> 02:33:44.799 So that's the most important savings accounts. Don't don't sleep 2825 02:33:44.879 --> 02:33:48.760 on it. Don't sleep on it if you haven't. If 2826 02:33:48.799 --> 02:33:50.559 you don't have an IRA, if you're an American, you 2827 02:33:50.600 --> 02:33:53.520 don't have an iran, you don't have an individual retirement account, 2828 02:33:53.760 --> 02:33:55.600 you should be deported. What the heck are you doing 2829 02:33:55.639 --> 02:33:59.760 there in America without an individual retirement account? What are 2830 02:33:59.799 --> 02:34:03.239 you doing? And we have the same version of iras 2831 02:34:03.319 --> 02:34:05.879 in Canada, and I believe also in the UK. All 2832 02:34:06.000 --> 02:34:09.680 it means is that you have an account individual that 2833 02:34:09.840 --> 02:34:14.559 you can save towards your retirement, your individual retirement account. 2834 02:34:15.399 --> 02:34:18.879 It is so good that the US government to restrict 2835 02:34:18.959 --> 02:34:21.280 you from how much you can put in your ERA, 2836 02:34:21.760 --> 02:34:23.639 so they won't let you put on a seven thousand. 2837 02:34:23.719 --> 02:34:26.239 When the government is saying we won't let you save, 2838 02:34:26.360 --> 02:34:29.559 you know it's good. You know it's good, So you 2839 02:34:29.680 --> 02:34:32.120 want to save. Their rules about iras, you can't see 2840 02:34:32.159 --> 02:34:33.879 if you're any lot and all that kind of stuff. 2841 02:34:33.959 --> 02:34:37.600 But overall, you should be saving in your company for 2842 02:34:37.799 --> 02:34:40.479 one k plan. If you work for a company, find 2843 02:34:40.520 --> 02:34:44.840 out from them what is my match? What is the match? 2844 02:34:45.319 --> 02:34:48.319 If the match is three percent, please save minimum three 2845 02:34:48.360 --> 02:34:54.079 percent minimum. Then open up an ERA. I like ROTH. Google. 2846 02:34:54.159 --> 02:34:57.719 This is what I'm saying, rot Ira google them save there. 2847 02:34:58.159 --> 02:35:00.600 Niger don't have ROTH, We don't have ERA, but we 2848 02:35:00.719 --> 02:35:03.879 have Retirement Service account. You must make sure don't don't 2849 02:35:03.920 --> 02:35:06.879 say government is bad, going to corrupt that story. Save 2850 02:35:07.200 --> 02:35:09.360 in your retire SIMS account because no other accounts in 2851 02:35:09.440 --> 02:35:13.360 Nigeria gives you tax deferred, tax deferred, so you know 2852 02:35:13.399 --> 02:35:16.760 you're not gonna pay tax on the groot of that investment. 2853 02:35:17.200 --> 02:35:20.319 You're not gonna pay tax because of that investment. Compounded 2854 02:35:20.479 --> 02:35:23.760 returns what means that if you put a narror today, 2855 02:35:24.280 --> 02:35:27.120 they pay you interest of tankoble. Next year they invest 2856 02:35:27.239 --> 02:35:29.840 one tenble on your behalf. You don't have to do anything. 2857 02:35:30.200 --> 02:35:33.440 It's compounded tax. The Fed Insurance does it. I think 2858 02:35:33.600 --> 02:35:36.040 nhi is does it. But this is your arrests. You 2859 02:35:36.079 --> 02:35:39.600 want to do it as well. Right, very important? All right, folks, 2860 02:35:39.680 --> 02:35:43.120 are I've got a Cosmos Cosmos exchange. 2861 02:35:44.879 --> 02:35:45.280 What's up? 2862 02:35:46.479 --> 02:35:47.600 Yeah, Cosmos, what's happening? 2863 02:35:48.680 --> 02:35:52.920 Okay, be even mister, I'm sorry. Yeah, I'm sorry, happy 2864 02:35:53.040 --> 02:35:55.799 to be in your space. I'm follow you since since 2865 02:35:56.120 --> 02:36:01.040 two twit and T two yeah and one person again, 2866 02:36:01.120 --> 02:36:03.719 mister toyb is in UK and dog so I love 2867 02:36:03.799 --> 02:36:07.000 your program with the Lumida. I'm following your people because 2868 02:36:07.440 --> 02:36:09.680 the value you people are giving to the community. So 2869 02:36:10.360 --> 02:36:12.959 it's so it's say in the mirrors, I'm so happy. 2870 02:36:13.040 --> 02:36:17.319 So just a compliments. I'm so opportuned you accepted my 2871 02:36:17.479 --> 02:36:20.920 March to Day since twenty twenty two. I'm so happy today. 2872 02:36:21.879 --> 02:36:26.639 The value is encouraging. Al I'm also invested in the 2873 02:36:27.799 --> 02:36:31.959 in the in the stock issue, using bamboo and having 2874 02:36:32.079 --> 02:36:35.920 some knowledge and what you are giving out both Spifi 2875 02:36:36.000 --> 02:36:42.000 Fund and a lot of tech companies there over the 2876 02:36:42.120 --> 02:36:44.959 years they have given a good Also, I'm so happy 2877 02:36:45.000 --> 02:36:47.719 with the knowledge and information you are sharing with all 2878 02:36:47.760 --> 02:36:51.799 the media and everyone in this because section is so encouraging. 2879 02:36:51.920 --> 02:36:53.479 Thanks and rememberance, Thank. 2880 02:36:53.360 --> 02:36:56.760 You, appreciate you, Thanks for thanking. I appreciate you so much. 2881 02:36:56.840 --> 02:36:59.719 That guys, I don't want to be very modest right 2882 02:37:00.440 --> 02:37:03.920 the job I do. People come, it's not telling you, 2883 02:37:04.239 --> 02:37:07.760 they pay me. I tell them. So I'm doing this 2884 02:37:07.920 --> 02:37:11.079 really for Nigerians. So if you notice my space, it's 2885 02:37:11.159 --> 02:37:13.920 you guys, you know. So please don't take it for 2886 02:37:14.040 --> 02:37:16.000 granted because I'm giving to you for free and I'm 2887 02:37:16.040 --> 02:37:19.559 asking questions for free this. I learnd this stuff and 2888 02:37:19.639 --> 02:37:21.399 I'm giving it to you. It's not for free. People 2889 02:37:21.440 --> 02:37:24.280 will pay and I give it to you, So don't 2890 02:37:24.280 --> 02:37:27.000 take it for granted. I'm not trying to be I 2891 02:37:27.239 --> 02:37:29.639 talk like this cold because I want you to learn 2892 02:37:29.719 --> 02:37:33.680 it right, So please what I say is best practice. 2893 02:37:35.120 --> 02:37:40.959 Plan your retirement and save. Invest. This is just best practice, right. 2894 02:37:41.000 --> 02:37:42.920 You've got to invest. You don't want to be a burden. 2895 02:37:43.360 --> 02:37:45.760 The world is changing. When we grew up, we took 2896 02:37:45.799 --> 02:37:48.520 here for our parents. When you grew up, your kids 2897 02:37:48.600 --> 02:37:51.079 might not be there for you. Your retirement plan is 2898 02:37:51.120 --> 02:37:54.000 no longer your kids. You've got to plan yourself right. 2899 02:37:54.120 --> 02:37:55.879 If you live in a big house, You've got to 2900 02:37:56.000 --> 02:37:59.120 ask yourself it's five rooms your kids you build? That 2901 02:37:59.200 --> 02:38:01.200 help because your kids going to be there. Your kids 2902 02:38:01.200 --> 02:38:02.559 are not going to come back and live in the house. 2903 02:38:02.920 --> 02:38:05.520 They won't. They have their own plans. So start to 2904 02:38:05.639 --> 02:38:08.719 ask yourself, how can we monetize that big house in gire? 2905 02:38:09.440 --> 02:38:11.920 Where can we go to live things like that. So 2906 02:38:12.239 --> 02:38:15.479 start to think about think do it now, because in 2907 02:38:15.559 --> 02:38:18.440 twenty years time, there's going to be a huge demographic shift, 2908 02:38:19.440 --> 02:38:21.639 not just in America, also in Nigeria. Many things we 2909 02:38:21.680 --> 02:38:25.079 don't do in Nigeria today you will start to see 2910 02:38:25.120 --> 02:38:27.000 them in twenty years time. You're going to see old 2911 02:38:27.000 --> 02:38:29.719 people's homes are going to spring up in Nigeria. Old 2912 02:38:29.760 --> 02:38:33.520 people's homes. Lots of folks that are in America, in Canada, 2913 02:38:33.639 --> 02:38:36.639 in the UK will want to come back to Nigeria 2914 02:38:36.799 --> 02:38:40.040 when they are seventy, when they are eighty, they want 2915 02:38:40.079 --> 02:38:42.639 to come back. They will, and they need to a 2916 02:38:42.719 --> 02:38:45.920 place that is safe, that they have all those facilities 2917 02:38:45.959 --> 02:38:47.559 that I enjoyed in the UK, but don't just live 2918 02:38:47.559 --> 02:38:52.959 in Nigeria. So if you're an entrepreneur, you live outside Legos, 2919 02:38:53.120 --> 02:38:57.360 you can literally start to build estates targeted at the 2920 02:38:57.440 --> 02:39:00.479 returning Jamar people. It's going to start to happen pretty soon. 2921 02:39:01.079 --> 02:39:02.840 It's going to have to happen even right now. Lots 2922 02:39:02.840 --> 02:39:05.200 of putter even America on the comeback, but they don't 2923 02:39:05.200 --> 02:39:07.120 want to go a because it's not safe, they don't 2924 02:39:07.159 --> 02:39:08.959 have a nurse and all that. But it might say 2925 02:39:08.959 --> 02:39:11.879 if you had an estate where how much how much 2926 02:39:11.920 --> 02:39:13.559 is a nurse and don't mean to be it, don't 2927 02:39:13.559 --> 02:39:15.159 mean to be rude, but how much does the nurse? 2928 02:39:15.200 --> 02:39:17.719 And in Nigeria, so you have an esset where you 2929 02:39:17.840 --> 02:39:21.280 have each home has a nurse. Then the esset has 2930 02:39:21.280 --> 02:39:25.159 got a doctor on site, has at on site, has 2931 02:39:25.280 --> 02:39:29.600 old people's gym on site. How security is, has a wall, 2932 02:39:29.840 --> 02:39:32.360 you have more port or whatever there and then you 2933 02:39:32.479 --> 02:39:36.719 have Charlie's, you have organic food, you have entertainment, the 2934 02:39:36.799 --> 02:39:38.360 same thing we have in America where you have those 2935 02:39:38.399 --> 02:39:40.639 old people's home, but you have in Nigeria. Do you 2936 02:39:40.719 --> 02:39:43.760 know you can charge each home? You can charge those homes, 2937 02:39:43.760 --> 02:39:48.159 each home there in dollars five thousand dollars. People will 2938 02:39:48.159 --> 02:39:51.079 pay to come back home to Nigeria and live there 2939 02:39:52.000 --> 02:39:54.840 and doesn't have been legos or in any built up area. 2940 02:39:54.920 --> 02:39:57.840 You can do it in those It makes more balley 2941 02:39:57.920 --> 02:40:00.239 in those towns because they're coming back to go back 2942 02:40:00.760 --> 02:40:05.360 to the quote unquote rural life. So you say insecurity, 2943 02:40:05.719 --> 02:40:07.879 if you have a compact with it with the town people, 2944 02:40:07.920 --> 02:40:09.600 and you see, listen, we're going to bring these people 2945 02:40:09.639 --> 02:40:12.799 into this place. No kid, not paying, no whatever, you're 2946 02:40:12.799 --> 02:40:15.399 gonna get a share of the revenues. People will come 2947 02:40:15.920 --> 02:40:20.239 in Ecuador. Ecuador use to the US dollar. Lots of 2948 02:40:20.319 --> 02:40:23.120 Americans go to Ecuador and retire in Ecuador. They just 2949 02:40:23.200 --> 02:40:25.399 live there because it's lower cost of living. Because if 2950 02:40:25.440 --> 02:40:28.280 you end social security in America, it's two thousand dollars 2951 02:40:28.479 --> 02:40:32.440 in America is nothing in Ecuador, in Costa Rica, in Mexico, 2952 02:40:32.479 --> 02:40:35.719 it's a lot of money. The average social secreity benefits 2953 02:40:35.719 --> 02:40:38.159 is going to be about three thousand dollars a month. 2954 02:40:38.840 --> 02:40:41.760 So if you live in America, the government when you 2955 02:40:41.879 --> 02:40:44.799 retire would pay you three ten dollars. This is just 2956 02:40:44.959 --> 02:40:48.280 on social security alone. Why would I live here if 2957 02:40:48.360 --> 02:40:50.879 I have to pay rent at a thousand ira thousand 2958 02:40:50.879 --> 02:40:53.559 dollars a month. A thousand dollars a month is how 2959 02:40:53.639 --> 02:40:57.120 much in Nira if you build a flat, even if 2960 02:40:57.120 --> 02:41:00.120 it's a flat, and you put old people there that 2961 02:41:00.239 --> 02:41:02.440 want to come out to Nigeria and you protect them. 2962 02:41:02.760 --> 02:41:06.159 They have medical care, they're eating the the all those 2963 02:41:06.280 --> 02:41:09.239 traditional food you take that we boss every week to 2964 02:41:09.319 --> 02:41:12.600 go the same thing you do here. People will pay. 2965 02:41:13.760 --> 02:41:16.319 People will pay, and you make a lot of money, 2966 02:41:16.440 --> 02:41:19.319 and that town will make a lot of revenues from 2967 02:41:19.600 --> 02:41:22.040 justice in Flox. The same way pole live in Nigeria. 2968 02:41:22.879 --> 02:41:24.559 Go to the jackpar It's going to be the exact 2969 02:41:24.639 --> 02:41:27.319 same thing. You're gonna see. Lots of folks want to 2970 02:41:27.360 --> 02:41:29.719 come back, but they are gonna come back because it's 2971 02:41:29.760 --> 02:41:33.159 not safe. There's no medical care, there's no nine one one, 2972 02:41:33.639 --> 02:41:35.559 there is not all that stuff. So you create a 2973 02:41:35.639 --> 02:41:41.079 little village somewhere at Belkutar, somewhere off Umaria, somewhere off Nasarawa. 2974 02:41:41.159 --> 02:41:43.920 People will come back because they want to come back there. 2975 02:41:43.920 --> 02:41:45.879 They want to live there. You are just seen the 2976 02:41:45.959 --> 02:41:48.399 jack Bar. You're just the that's in December, but you 2977 02:41:48.520 --> 02:41:52.280 have eleven months. The same way those guys come back 2978 02:41:52.319 --> 02:41:55.000 for December because they want to enjoy Nigeria. It's the 2979 02:41:55.079 --> 02:41:58.719 same way they guys that have retired want to come 2980 02:41:58.840 --> 02:42:02.200 back to Nigeria and live here and move around. They 2981 02:42:02.280 --> 02:42:04.440 just want to come against it's not safe and there's 2982 02:42:04.479 --> 02:42:07.000 no medicare. You you go, you you have a hopblo 2983 02:42:07.000 --> 02:42:08.760 in Nigeri. You say, okay, we're going to use this 2984 02:42:08.840 --> 02:42:12.239 hospital as Medicare and Medicare approved or Medicaid approved or whatever. 2985 02:42:12.520 --> 02:42:14.760 If you go to the hospital, you can share America 2986 02:42:14.879 --> 02:42:18.159 records on that hip hop with the hobble in America, 2987 02:42:18.319 --> 02:42:20.159 things like that. You've got to get you know, innovative 2988 02:42:20.200 --> 02:42:23.879 and creative. There lots of Americans that work in America, 2989 02:42:24.000 --> 02:42:26.520 that working, lot of Nigers in America that can help 2990 02:42:26.600 --> 02:42:30.879 you pass this laws. Texas, Atlanta, then Baku. They don't 2991 02:42:31.000 --> 02:42:34.360 stay there, don't come back home. But you've got to 2992 02:42:34.520 --> 02:42:36.479 have a plan. And if you can do the loone, 2993 02:42:36.840 --> 02:42:41.079 talk to your state government. That's that's that's remediances. They 2994 02:42:41.120 --> 02:42:43.559 will pay this money diagon to the state government for 2995 02:42:43.719 --> 02:42:47.440 a safe place they can go to. That is fantastic living. 2996 02:42:47.479 --> 02:42:50.559 The weather is beautiful, they can live here. They think 2997 02:42:50.600 --> 02:42:54.559 they're pan Wie and their planetium. That's what needs to happen. 2998 02:42:54.920 --> 02:42:58.920 So that demographics is going to create opportunities in Nigeria 2999 02:42:59.120 --> 02:43:01.959 going forward. And if not, just not ready, they'll go 3000 02:43:02.040 --> 02:43:04.559 to Ghana and Togo and live in Ghana and Togo 3001 02:43:04.600 --> 02:43:08.079 at least in West Africa. So don't assume almost happened. 3002 02:43:08.520 --> 02:43:11.280 So that's a good business plan for noone that's interested. 3003 02:43:11.399 --> 02:43:13.079 You've got to go and plan. You know, there are 3004 02:43:13.239 --> 02:43:16.239 folks over there, get in touch with them. Getting branded 3005 02:43:16.360 --> 02:43:20.040 name girl, this medical stuff, put it together. People will come. 3006 02:43:20.239 --> 02:43:23.920 It is dollars waiting for you right there. Dollar in 3007 02:43:24.079 --> 02:43:27.200 flo but you are spending in Naira. It's not the repressal. 3008 02:43:27.479 --> 02:43:30.559 They will pay you in dollars, but all the costure 3009 02:43:30.559 --> 02:43:32.959 are giving them is in Nira. They're not spending Nira. 3010 02:43:33.319 --> 02:43:36.399 Right is in Naira. But you are any dollars in 3011 02:43:36.559 --> 02:43:38.600 your villager. They want to go to the they don't 3012 02:43:38.600 --> 02:43:40.399 want to live in legals. Don't live in your village 3013 02:43:40.600 --> 02:43:43.239 because that's what they're coming back for. But it has 3014 02:43:43.280 --> 02:43:46.319 to be safe. They've got to have medical care. They 3015 02:43:46.639 --> 02:43:49.280 have cast your life. If you do that, you are 3016 02:43:49.360 --> 02:43:52.879 on something. All right, folks, let's call it thanks for 3017 02:43:53.079 --> 02:43:58.479 hanging out with me, all true God about two hours 3018 02:43:58.520 --> 02:44:00.200 and for the five minutes already and at thank you 3019 02:44:00.239 --> 02:44:02.200 guys for doing that. Let's go make a good year. 3020 02:44:02.280 --> 02:44:04.280 Don't forget to get the book. I wrote the book. Right, 3021 02:44:04.680 --> 02:44:08.399 Let's talk about your money. Great book, lots of pictures. 3022 02:44:08.600 --> 02:44:10.719 Everything we'll talk about on this space in that book. 3023 02:44:10.920 --> 02:44:18.440 Everything credit, debt, investing, crypto mortgages, real estates, planning out 3024 02:44:18.520 --> 02:44:22.200 your your your target, savings, planned education. Everything is there, 3025 02:44:22.680 --> 02:44:27.239 even love and money. How to take talk about money 3026 02:44:27.280 --> 02:44:29.239 when you are dating, mind and all that. So it's 3027 02:44:29.280 --> 02:44:31.520 a great book to have to read. It's not chapter 3028 02:44:31.559 --> 02:44:33.680 to chapter, it's not it's not covered to cover. It's 3029 02:44:33.840 --> 02:44:35.680 chapter by chapter with means you can read. You just 3030 02:44:35.840 --> 02:44:38.600 talk market and understand you have to read the whole book. 3031 02:44:38.920 --> 02:44:41.680 But it's a good book to reference from. Is written 3032 02:44:41.760 --> 02:44:44.959 with the Nigerian region, Nigian mindset. So I tried to 3033 02:44:45.079 --> 02:44:47.200 use most of the international things that we do, but 3034 02:44:47.399 --> 02:44:49.879 make it Nigerian so you can also follow. So I 3035 02:44:49.920 --> 02:44:53.079 will say get it is available on Amazon anywhere you 3036 02:44:53.200 --> 02:44:56.479 are just Amazon and Nigers or Roving Heights, but amso 3037 02:44:56.520 --> 02:44:58.200 it's going to be your best bet to get that book. 3038 02:44:58.639 --> 02:44:58.760 Right. 3039 02:44:58.840 --> 02:45:02.120 Folks on Donald's did you want to do you want? 3040 02:45:02.200 --> 02:45:04.559 You have to follow up? Or Johanna for c S 3041 02:45:05.799 --> 02:45:08.239 did you follow up? Sorry? Was the name? What the 3042 02:45:08.319 --> 02:45:10.399 name of the book? What's the name of the book. 3043 02:45:10.680 --> 02:45:13.120 Let's talk about your money. It's right there on my DP. 3044 02:45:13.319 --> 02:45:14.920 Let's talk about your money. You see it right there? 3045 02:45:15.040 --> 02:45:18.840 Pin twit? Yeah, let's talk about your money. All right? Okay, 3046 02:45:18.920 --> 02:45:19.959 thank you, you're welcome. 3047 02:45:20.040 --> 02:45:20.280 Thank you. 3048 02:45:20.440 --> 02:45:23.680 What I want to know about the book, Yeah, yeah, 3049 02:45:23.719 --> 02:45:24.959 I've seen it in your pink. 3050 02:45:25.040 --> 02:45:28.319 Actually all right, perfect, all right, folks, have a good one. 3051 02:45:28.399 --> 02:45:30.000 What's nice hanging out with you guys. Will be here 3052 02:45:30.000 --> 02:45:34.600 again same time next Sunday, seven thirty pm West African time. 3053 02:45:34.680 --> 02:45:37.040 You guys have a great day, Thanks so much and 3054 02:45:37.200 --> 02:45:37.360 by