Speaker 1: Hey, folks, I'm good evening to you all, and welcome
Speaker 1: to another money space with me carlu Aja. Of course
Speaker 1: on the space, we're here every Sunday seven pm, so
Speaker 1: seven thirty pm, sorry about that West African time. And
Speaker 1: of course we're talking money, the economy and finance, and
Speaker 1: the whole idea is to make ourselves better investors. That's
Speaker 1: why we're here. So guys, today we've got the topic
Speaker 1: of debt and just go to what we've been doing
Speaker 1: all to we say, from twenty twenty four December till
Speaker 1: this year. We're talking about the major themes in financial planning. Right,
Speaker 1: we're set up with the income and expenses. Then we
Speaker 1: went into network, which is your assets and your liabilities,
Speaker 1: and then of course we talked about also about investing,
Speaker 1: you know, how to do asset a location. We talked
Speaker 1: about inflation. We brought into folks that talked about how
Speaker 1: to even invest in tween twenty five and we felt
Speaker 1: it was all so expedient this week. Then talk about debt,
Speaker 1: you know, because death gets a bad wrap in investing. You know,
Speaker 1: lots of people say, oh I don't want to borrow,
Speaker 1: or lots of folks want to borrow, but don't know
Speaker 1: how death is not good or bad. Not even finance
Speaker 1: is good or bad. It's just how you use it.
Speaker 1: So let's do a space ast where on debt, borrowing,
Speaker 1: what is good debt, what is bad debt? And all
Speaker 1: that kind of stuff, right, so that we can learn
Speaker 1: and hopefully we can use that advantage. Of course, death
Speaker 1: is going to be from mortgages all the way to
Speaker 1: credit cards. Now, guys, it's going to be very interactive space.
Speaker 1: You know, I can really talk a lot about debt.
Speaker 1: If you guys ask us questions, it'll be fantastic so
Speaker 1: that we can all learn together. But let me just
Speaker 1: give you a primer. Right, They're just start with good debt,
Speaker 1: bad debt. Good debt is good is debt? First of
Speaker 1: what is debt? Death is front loaded consumption? Right, front
Speaker 1: loaded consumption When you borrow, what you're doing essentially is
Speaker 1: that you are borrowing against future income. So you're going
Speaker 1: to make money tomorrow, but you want to spend money today,
Speaker 1: so you borrow against that future income, and that that
Speaker 1: becomes front loaded consumption because you are borrowing to consume
Speaker 1: or to invest, so you are front loading that investment
Speaker 1: or that consumption. It means that you are created that
Speaker 1: whole in the future. Right, there's a hole in future
Speaker 1: you have created, so you have to cover that whole up.
Speaker 1: So the whole concept of debt is that when you
Speaker 1: borrow today, you want to make money to the next
Speaker 1: day to pay off in the coming years. That's the
Speaker 1: whole issue of death. If you are borrowing because there's
Speaker 1: an unexpected expense, the same thing you are front loading
Speaker 1: that consumption today, you are going to create a whole
Speaker 1: tomorrow which you need to cover up, which means right,
Speaker 1: Which means right that death can be good and debt
Speaker 1: can be bad if we can generate revenues today to
Speaker 1: cover up the expenses whole we have created to the future.
Speaker 1: So what's a good debt? A good debt is going
Speaker 1: to be like a mortgage. Right. Let's say you have
Speaker 1: a thirty year mortgage and then you are borrowing to
Speaker 1: buy that house. The issue is when you borrow, the
Speaker 1: house or the asset is also appreciating value, but your
Speaker 1: debt or the interest rate that you're paying is more
Speaker 1: or less fixed. It could be fixed for thirty years,
Speaker 1: it could be fixed for even ten years. But when
Speaker 1: you compare the debt, the rise and the debt, and
Speaker 1: then the rise and the asset value. You see that
Speaker 1: the asset value, which is the house in most instances,
Speaker 1: would keep paid to the debt or would even grow
Speaker 1: faster than the debt. So the revenues that you are
Speaker 1: getting or the benefits you are getting tend to be
Speaker 1: better or to grow more or to be you know,
Speaker 1: give you a better net worth than the cost of
Speaker 1: the debt itself. Good debt number one. The cost of
Speaker 1: this debt is not larger than the revenues or the
Speaker 1: asset growth of what you have bought. So if it's
Speaker 1: a good debt, it means that what you are paying
Speaker 1: is less than what you are getting with the mortgage.
Speaker 1: You're paying a fixed costs, but the asset apprecision is
Speaker 1: basically going on and on, and it's also tagging onto inflation.
Speaker 1: So take Nigeria for instance. If you bought a house insane,
Speaker 1: a bar or lucky or caduna right, the house value
Speaker 1: would appreciate with inflation, but the loan that you've taken
Speaker 1: to buy that a house is usually fixed usually get
Speaker 1: to fix deposit or sorry fix credit from the bank
Speaker 1: to buy that loan, so you see that balace that
Speaker 1: you get, you are every month that goes front, that
Speaker 1: goes forward, your INTERESTRCE is bending down, but your asset
Speaker 1: value is going up. That's good debt. So what's bad debt.
Speaker 1: Bad debt is of course the debt where the cost
Speaker 1: of the interest is higher or is more costly than
Speaker 1: the revenue news or the enjoyment you're going to get
Speaker 1: from that from that activity. So if you say you
Speaker 1: use your credit card and you're going to vacation, you're
Speaker 1: right to say, do buy. You're not making any revenue.
Speaker 1: It's just vacation holiday. It's good for your soul, but
Speaker 1: you're not making any revenues, right, So you're putting points
Speaker 1: or should we say cash or balance on that credit card.
Speaker 1: So the rate of growth of that credit card is
Speaker 1: going to be higher than the rate of growth that
Speaker 1: you're going to get from the asset appreciation if there
Speaker 1: was no asset boss anyway, So you could argue that
Speaker 1: that's bad debt because you have to pay that consumption
Speaker 1: over time with interest and there's no revenue that has
Speaker 1: come true to help you to pay that. So that's
Speaker 1: good debt and bad debt in simple forms. If you
Speaker 1: borrow to buy something or to invest in something that
Speaker 1: can pay you back, that's good debt. If you are
Speaker 1: borrowing to do to buy or invest in something that's
Speaker 1: not going to pay you back on the revenues, that's
Speaker 1: of course bad debt. And like we said said, it's
Speaker 1: a lot we're going to talk about. Really, I don't
Speaker 1: want to take your time. So if you folks have
Speaker 1: got questions, I see the d MS popularity active, let's
Speaker 1: ask right, let's make it a very interactive session's let's
Speaker 1: let me let me get those questions and then we
Speaker 1: can take them. I have a long list here. Look
Speaker 1: at the what we posted up here, fico. How can
Speaker 1: you get a good credit score? Right? How can you
Speaker 1: don't go that bad debt? Mortgages? Credit cards? How is
Speaker 1: the best way to use them? I can go on
Speaker 1: and on and on, but I don't want to, so
Speaker 1: I prefer to basically take my answers down to what
Speaker 1: you guys really really want to know about so that
Speaker 1: I can answer and let me just jump real quick
Speaker 1: on the d MS. It's our credit is a great
Speaker 1: question from Shay from Shay O want Shay? Yeah, she
Speaker 1: is asking our credit cards? Should I get the credit cards.
Speaker 1: Are they good? What is the pros and cons of
Speaker 1: getting credit cards? Great question? Now I call credit cards.
Speaker 1: Credit cards can be good and credit cards can be bad.
Speaker 1: But you put it very very careful about credit cards.
Speaker 1: When you go to the West, it's a credit society,
Speaker 1: which means that everything is on credit. You can pay
Speaker 1: for really anything on credit, and you are encouraged or
Speaker 1: she even say mandated to get credit in the West
Speaker 1: because you have a credit score. And if you want
Speaker 1: to buy a house, or you want to buy a car,
Speaker 1: unless you have the cash in hand, you've got to
Speaker 1: go borrow. And then if you want to go borrow,
Speaker 1: they look at your credit score. So the point is this,
Speaker 1: even if you have your own cash, even if you
Speaker 1: never borrow, you are doing all good and all that.
Speaker 1: If you don't have a good credit score, it counts
Speaker 1: against you. So let's say you don't borrow, You've been
Speaker 1: kept good balance sheet, you know, and all that. But
Speaker 1: you want to buy a house, right, they're gonna pull
Speaker 1: your credit. And when they pull your credit, if you
Speaker 1: have no credit score, you're gonna pay higher interest rate
Speaker 1: than someone that just has maybe average credit. So it's
Speaker 1: always advisable to have credit. The promise you can have
Speaker 1: credit without paying anything. You don't have to pay interest
Speaker 1: to have credit. So let's come back to credit card
Speaker 1: shaw you. If I want to get the credit card
Speaker 1: in in the West, I will get a credit card
Speaker 1: that has points when I mean pointed. When you use
Speaker 1: the card, you get a cash back reward or you
Speaker 1: get points or whatever. It is. Going to give me
Speaker 1: a card that has got a reward. That's number one.
Speaker 1: The number two. How do I want to use my
Speaker 1: credit card? I want to use my credit card without
Speaker 1: paying interest. The way all credit cards work is this.
Speaker 1: If you swipe the card, say on the first, you
Speaker 1: have to pay within the cycle date or the calendar
Speaker 1: date or whatever the card company tells you, if it's
Speaker 1: twenty days or thirty days. If you pay the balance
Speaker 1: within that period, you pay absolutely no interest. So what
Speaker 1: do I pay with my debit card? I pay my
Speaker 1: debit card. Say I pay my groceries or I buy
Speaker 1: gas to my credit card, right, my debit card. Right.
Speaker 1: Instead of bringing that to my debit card, I use
Speaker 1: my credit card. I pay for those same groceries that
Speaker 1: I've paid for with my credit card, but now I'm
Speaker 1: getting the points. So I pay for gas on the first,
Speaker 1: I pay for gas on the seventh, I pay for
Speaker 1: gas on the twenty first, So I've paid for gas
Speaker 1: three times, Right, But what do I do. I immediately
Speaker 1: before the month is over, I clean up my credit
Speaker 1: card expenses, so I pay zero percent. It's like having
Speaker 1: a thirty day no interest loan. I use the card,
Speaker 1: I pay off. The credit card gives me a reward.
Speaker 1: It can be cash, it can be pointed, it can
Speaker 1: be whatever the card says it is. But I also
Speaker 1: increase my credit scoring because every time I swipe my card,
Speaker 1: I've taken the loan. When I pay back, I paid
Speaker 1: back the loan, So of course my credit score goes
Speaker 1: up for doing nothing. I'm doing the exact same thing
Speaker 1: that used my debit card I do on my credit card. Right.
Speaker 1: So that's the good side of using a credit card.
Speaker 1: You can use a credit card to increase your credit scoring.
Speaker 1: Number one, And of course you can use credit card
Speaker 1: at no cost to you. And of course they get
Speaker 1: a credit card card work to give you rewards. If
Speaker 1: you get a credit card that pays your airline points,
Speaker 1: for instance, and you use that credit card all through
Speaker 1: the year to buy just gas, and groceries, you might
Speaker 1: be paying for your trip back to Nigeria. Right, you
Speaker 1: can use those points and then get a ticket that
Speaker 1: will bring it back to Nigeria every year. So you've
Speaker 1: got to plan it out and choose the right card.
Speaker 1: Credit Cards are not good or bad, it's how you
Speaker 1: use it. What you don't want to do. She is
Speaker 1: to use a credit card to go shopping. Right, if
Speaker 1: you go shopping and you load up the credit card,
Speaker 1: once you use your card more than thirty percent, it
Speaker 1: counts against you. So let's say your card is a
Speaker 1: thousand dollars. Once you carry a balance, not when you spend.
Speaker 1: You can spend one thousand dollars and pay back a
Speaker 1: thousand dollars, no problem. But once you carry over more
Speaker 1: than three hundred dollars or thirty percent into the next month,
Speaker 1: it starts to count against you. Credit cards have a
Speaker 1: limit of thirty percent before it counts against you. So
Speaker 1: what I mean to carry it over into the next month.
Speaker 1: That's going to cost you about thirty points on your
Speaker 1: if you use that as a percentage out of how
Speaker 1: you get your score. If you want to have a
Speaker 1: good score, Number one you pay on time. Number two
Speaker 1: you don't carry over more than tty percent. If you
Speaker 1: just do this too alone, you've got sixty five percent
Speaker 1: of the points that count towards your credit card and
Speaker 1: your fiical score. So she hope that helps you, right?
Speaker 1: I would say number one, Yes, take the advantage. It
Speaker 1: doesn't matter what credit card you get. Get one. The
Speaker 1: bank won't give you a credit card because you don't
Speaker 1: have a credit call. Go try and see what's called
Speaker 1: called a secured credit card. Secured credit card. What that
Speaker 1: means is that you you're gonna go to the bank
Speaker 1: or the credit union. You're gonna give them your mostly
Speaker 1: called your You give them cash, and the bank will
Speaker 1: then give you that credit card. You give them cash,
Speaker 1: they give you a credit card. Then use that credit
Speaker 1: card responsibly. Like I said, get one that has points, right,
Speaker 1: or get one that pays your cash back. Put the
Speaker 1: balance on it, pay the balance of don't carry the
Speaker 1: balance into the next month. That way, your card is
Speaker 1: zero percent, but you are getting the cash for free.
Speaker 1: Yeah hope, I held there. Thank you? Say second point,
Speaker 1: whats fyco? Your FYCO is just your credit scoring. FICO
Speaker 1: is the name of a company fair Isaacs Corporation. FYCO
Speaker 1: simply is the issue. We say, the company or the
Speaker 1: prenet company that tracks your credit scoring in America, about
Speaker 1: four of them. I just know three off hand. I
Speaker 1: know I know TransUnion, I know Experience, I know Experient.
Speaker 1: So those three guys track your credit scoring. What that
Speaker 1: means every time you spend money or you take a loan,
Speaker 1: if you take a loan from a bank, which your
Speaker 1: social security, anytime you take a loan, those guys basically
Speaker 1: will send the report. The bank send the report to
Speaker 1: the credit bureau. So once you go to a bank
Speaker 1: or credit union, or to anyone that uses your social
Speaker 1: Security to give you a loan, you are creating a
Speaker 1: copy or a record that the bank or lending the
Speaker 1: lending institution will send to the credit scoring bureau. So
Speaker 1: what you see is that over time they build up
Speaker 1: your credit history, who you are borrowing from and who
Speaker 1: you are paying back to. So ather lenders use that
Speaker 1: credit score in your FI cod as it were, but
Speaker 1: that's a name for it to determine if you're a
Speaker 1: good lender or if you're a bad lender. In simple terms,
Speaker 1: if you borrow and you pay back on time, then
Speaker 1: you're a good lender. Was the implication. Your credit cost
Speaker 1: goes down because your credit scoring goes up, so they
Speaker 1: hire your credit scoring to lower your cost of boring. Guys,
Speaker 1: don't sleep on this. If you want to buy a
Speaker 1: house in the West and you have a high credit score,
Speaker 1: that extra one percent that your house gives you, that
Speaker 1: extra one percent that you get right because you have
Speaker 1: a good credit score, can transit anywhere from ten thaland
Speaker 1: dollars to thirty thaland dollars over those thirty years. So
Speaker 1: it's very very important that you have a good credit score.
Speaker 1: And you don't wait. Don't wait and sit till I
Speaker 1: get a job. Once you get to it to the country.
Speaker 1: Like I said, if you don't have a job and
Speaker 1: all that, get a secure credit card. It's good to
Speaker 1: get it on your social I don't advise you getting
Speaker 1: it without a social so that it tracks no over time.
Speaker 1: And another thing you can do is if you're married,
Speaker 1: or you can put yourself on your wife's card, on
Speaker 1: your husband's card, on your partner's card, so that you'll
Speaker 1: ask the bank, if I put myself on this card,
Speaker 1: will I also get the point or the credit scoring?
Speaker 1: Will it also show up on my score? Some banks
Speaker 1: don't do that, just give you a card that you
Speaker 1: can use. Some banks will do that. They'll give you
Speaker 1: a card that you can use and the points come
Speaker 1: to you. So be very clear. Ask them. If they
Speaker 1: say no, there's no point getting it, they say yes,
Speaker 1: do get it. So fyco is very important. Is one
Speaker 1: of the most important things on non in America after
Speaker 1: your social agree. So you want to make sure you're
Speaker 1: getting a good fycle there, all right, great, So lots
Speaker 1: of great questions here, guy, I'm just trying to read
Speaker 1: through and just pick the ones that are beat unique.
Speaker 1: Abdurahim is asking what sort of investments should we avoid
Speaker 1: making with the debt or broad funds? Great question, Abdurahim.
Speaker 1: So avoid spending or using your credit card to invest
Speaker 1: in to invest in a new project that has a
Speaker 1: lower return of investment than the ap R of the card.
Speaker 1: So let me explain it this way. The ap armies
Speaker 1: the interest rate the card will charge you. Right, if
Speaker 1: the card is charging you twenty percent interest rate, that
Speaker 1: of course you should not use your card to do
Speaker 1: anything that will charge you less than twenty percent. That's
Speaker 1: number one. On second place, I'm going to meet you
Speaker 1: in you speak, that's number one, Number two, a credit
Speaker 1: card should not be used for investing. So after the man,
Speaker 1: you don't want to use your credit card to invest.
Speaker 1: You don't want to use your credit card to go
Speaker 1: buy stocks and shares. Why because, like I said, your
Speaker 1: credit card is thirty days or based on what the
Speaker 1: card complete tells it is thirty days interest free. So
Speaker 1: if you have any transaction it's going to make you
Speaker 1: a profit. That's good, but that profit must be closed
Speaker 1: out within those thirty days or whatever days your credit
Speaker 1: card company gives you. So a credit card company says
Speaker 1: you're going to pay back in thirty days, no interest free.
Speaker 1: Of course, when you don't borrow to invest, it should
Speaker 1: be able to clean up that transaction within thirty days,
Speaker 1: So you make a higher return on investment if you
Speaker 1: borrow and you do a good transaction that is going
Speaker 1: to pay you in sixty days. Of course, going to
Speaker 1: pay a credit card company back with interest for two months,
Speaker 1: so it doesn't make any sense. So Number one, the
Speaker 1: tenure of the man is very very important. The tenure
Speaker 1: of the of the investment. It should be lower than
Speaker 1: thirty day's number one. Number two, I don't advise to
Speaker 1: do any investment because you're not sure of that tenure.
Speaker 1: And like I said, you use the credit card to
Speaker 1: build your credit score up and to get points. Credit
Speaker 1: cards are very dangerous. They have the highest interest rateing
Speaker 1: and highest aprs that you pay twenty percent is average
Speaker 1: you pay twenty five twenty nine, So they are very expensive.
Speaker 1: But you can't use them to your advantage. So try
Speaker 1: not to use your credit cards to do investing. Use
Speaker 1: your credit cards to get the points and to increase
Speaker 1: your score. And second, how are you doing. You've got
Speaker 1: the flownouts, so go ahead on second? All right? So
Speaker 1: before gets ready? Yeah, So, just wanting to clarify on
Speaker 1: the mortgage example you gave. This is from Lorry Lourie
Speaker 1: wants me to clar five on the mortgage example I
Speaker 1: gave earlier. Yes, so if you take a loan to
Speaker 1: buy a more to buy a house, right, that's usually
Speaker 1: looked that looked at as a good investment, good debt. Okay,
Speaker 1: see a question, So let me clarify, right, So you're
Speaker 1: asking if all mortgages are good investment. Of course not
Speaker 1: number one. The rule of mortgage is say location, location, location,
Speaker 1: which means that when you want to buy a house,
Speaker 1: you want to look at the location you're buying that house. Correct,
Speaker 1: So let's say all things being equal, you are paying
Speaker 1: rent today. You are paying rent today, which means that
Speaker 1: you want to whatever happens, you're going to pay rent.
Speaker 1: So it's it that you pay rent or you pay mortgage,
Speaker 1: but you are still going to pay something from your
Speaker 1: account to live somewhere. Now, which would you prefer to
Speaker 1: pay rent or to pay mortgage? Mortgage is always better?
Speaker 1: Why because to the mortgage you are getting equity. What
Speaker 1: is equity in the West. The way the structure there
Speaker 1: are loans is that when you pay five percent for
Speaker 1: a house, you own the house. So if a house
Speaker 1: is worth one hundred thousandner or dollars, and I pay
Speaker 1: ten thousand dollars of the bank, I own the house.
Speaker 1: I am paying my mortgage. That's a separate matter. But
Speaker 1: if the house appreciates from one hundred thousand to two
Speaker 1: hundred thousand, that one hundred thousand is my own. It's
Speaker 1: not owned by the bank. It's owned by me. I
Speaker 1: can use that appreciation and take a loan and use
Speaker 1: the money to do what I like. I still pay
Speaker 1: my mortgage, but it's owned by me. But that's equity.
Speaker 1: So when you buy a home, you are giving yourself
Speaker 1: access to equity. So in terms of that a loan,
Speaker 1: even if you're going to pay the same cost as
Speaker 1: for your rent and for your mortgage, it's always should
Speaker 1: we say better to own a mortgage because it still
Speaker 1: going to pay something, but at least the mortgage gives
Speaker 1: you equity. So if you are to do that, you
Speaker 1: want to have a great credit scoring to buy a
Speaker 1: home in America. What you need two years tax return
Speaker 1: credit score more than seven hundred. Now the higher credit
Speaker 1: score and looking at your debt income determines the interest
Speaker 1: rate you will pay to the bank for that mortgage.
Speaker 1: The difference between pain four percent and five percent that
Speaker 1: one percent is almost ten thousand dollars over thirty years.
Speaker 1: So you want to make sure you have planning to say,
Speaker 1: I want to get the highest credit care with the
Speaker 1: lowest loan to value so that I can get a
Speaker 1: very very very very good interest rate on my loan.
Speaker 1: That's your target. So the mortgage is not all mortgages
Speaker 1: that you should take a loan for. If I wouldn't
Speaker 1: take a loan to build a home where I'm not
Speaker 1: going to live in, if I'm if the home it's
Speaker 1: going to be in my village. So if I am
Speaker 1: from a small village right in the southeast, I willn't
Speaker 1: take a loan to build that house because I don't
Speaker 1: live in that house, so that it's not advantage for
Speaker 1: me in terms of the equity. Right. But if I'm
Speaker 1: living in, say in a bar, I can take a
Speaker 1: loan to build a house, but because I still have
Speaker 1: to pay rent in a bar. But if I leave
Speaker 1: in mount House, Namba, at least I get the equity.
Speaker 1: You see the point I'm making so that equity, don't
Speaker 1: don't step on equity. Great and second, I ready to
Speaker 1: speak a second, move on a second? You were first year? Okay,
Speaker 1: let's get this. I got real on the score, deem
Speaker 1: the real on the score? Dem how are you doing
Speaker 1: so the real? Yeah? Yeah, very good going from here?
Speaker 1: How you do? Go ahead?
Speaker 2: I'm okay, I'm very good. Different everyone, Thank you very much.
Speaker 3: Following you, you have im panted the lotch to me
Speaker 3: basically when it comes to finance.
Speaker 2: I'm so happy, God bless you. Man.
Speaker 3: I wanted to ask you a question because I have
Speaker 3: an opportunity. I have an opportunity is to a place
Speaker 3: to borrow money with an interest or.
Speaker 1: What personal I didn't hear that what percent? Please, I
Speaker 1: didn't hear that one percent?
Speaker 4: One point five?
Speaker 1: Okay point five? But wow, wow.
Speaker 3: Zero point five percent interest? And currently the money is
Speaker 3: not Innyra is an African country, but is more higher
Speaker 3: than Ira. Then I wanted to know if it's advisable
Speaker 3: to invest in Naira that I'm be able to give
Speaker 3: me a yearly of twenty one point five percent interest
Speaker 3: with money I don't know a little bit countries, and.
Speaker 2: So that is.
Speaker 1: That's an interesting question because at one percent, that's a
Speaker 1: very very good loan because I'm not sure their interests,
Speaker 1: their inflation reason that country will be very very low.
Speaker 1: So if somebody is giving me a loan at one percent, wow,
Speaker 1: that looks good on paper. So your question is, now,
Speaker 1: can you borrow at that one percent and invest in
Speaker 1: Naira at twenty percent? Is that what you're asking exactly?
Speaker 2: Exactly?
Speaker 1: Okay, let's assume that was possible. Let's assume you take
Speaker 1: that on a one percent. Let's assume it's in dollar.
Speaker 1: Let's just for arguments in dollar. You take that dollar
Speaker 1: loan at one percent, you've come to Nigeria. You invest
Speaker 1: in it and I give you in five percent in investments.
Speaker 1: You do that, Now you have in five percent, how
Speaker 1: do you take it back to dollar? Do you are
Speaker 1: you going to buy dollar and go back to the
Speaker 1: paid because you have to pay them back in dollar? Right? Yes, yes, yes,
Speaker 1: that is it.
Speaker 2: Yeah, but I can I can move in.
Speaker 3: With which buying goes to transfer true coudse yes and solid.
Speaker 2: Then I can convert its truths.
Speaker 1: Yeah. So you see the problem is not the interest rate.
Speaker 1: Is that convertion from Nyra back to their currency. You
Speaker 1: are saying you're going to buy good What if the
Speaker 1: ports are bad? What if you buy these goods the
Speaker 1: guest stock in the port or guests doing so? That's
Speaker 1: the risk. The risk to me is not the interestship
Speaker 1: based on what you've told me. I like the interest
Speaker 1: rate way you're going to borrow, but is to go
Speaker 1: from naira back to dollar. It's my problem. So are
Speaker 1: there twenty one percent investments in Nigeria? Yes they are
Speaker 1: and they're very very safe. Is the federal government treasury
Speaker 1: bills are paying anywhere from eighteen to about twenty twelve percent,
Speaker 1: But you have to have this fifty million naira to
Speaker 1: qualify for that at least fifty million Ira. The savings
Speaker 1: bonds are paying anywhere from eleven percent to about ten
Speaker 1: ten percent you need or just five thousand. So yes,
Speaker 1: if I borrow at one percent, I don't know what
Speaker 1: country it is at one percent and I bring that money.
Speaker 1: What you're doing is called it's called the carry trade.
Speaker 1: So you're ask him about the carry trade. If I
Speaker 1: carry that money from that country to Nigeria, yes, I
Speaker 1: get the high investment. My problem is I have to
Speaker 1: find a way to go from naira back to that currency.
Speaker 1: If you can find that answer, I would say do it.
Speaker 1: If you can't find that answer, I'll be careful. You know,
Speaker 1: look at Nigeria. A Julos Burger. It's now exporting cashw notes.
Speaker 1: This is Julos Burger. So they do contracts in naira,
Speaker 1: but they're a German company. Nigeria has no Nira dollars.
Speaker 1: They do their exporting cash.
Speaker 2: You not.
Speaker 1: This is lots bigger. Can you do the same thing.
Speaker 1: It's up to you. But that's my only thing. I'll say,
Speaker 1: should watch out for right, If you can find a
Speaker 1: way to go back from naira to that country, maybe
Speaker 1: you can say you can find people. It just depends
Speaker 1: on the exchange, the differential. That's really the answer. In
Speaker 1: the past, in Nigeria, we used to have what we
Speaker 1: call a foreign exchange forward market, which means you could
Speaker 1: go to that market and buy your dollars for five
Speaker 1: or four three years. We don't have it anymore. So
Speaker 1: I would say the one leg is good. The only
Speaker 1: part I don't have I have issues with is the
Speaker 1: one that is going to go back. That's what I'll say.
Speaker 1: So does I answer the question? Yeah, thank you very much.
Speaker 1: I have gotten what I heard. Perfect. Perfect, Let's get
Speaker 1: sick and second, go ahead. You've got the floor.
Speaker 5: All right, sir, thank you so much for this session.
Speaker 5: I'm actually listening in from the UK.
Speaker 1: I beuti. If you can't hear me, I can very well. Right.
Speaker 5: So i'm internationals today into here doing my mESC.
Speaker 1: I would like to.
Speaker 5: Know if you would, you know, encourage any international students
Speaker 5: in the U gate to take a credit card.
Speaker 1: Yeah, that's what I just said. So let's let's step
Speaker 1: back a bit right. The West is the credit society,
Speaker 1: so I always advise that when you are in Rome,
Speaker 1: you do as the romance. Do you get a credit card?
Speaker 1: But let me have yet, as a students, you don't
Speaker 1: have that much income. So what I want you to
Speaker 1: get to get a credit card that helps your credit score,
Speaker 1: not a car that you're going to spend it. So
Speaker 1: I would go to a bank and say, I want
Speaker 1: to get a credit card, but I want to have points.
Speaker 1: You know it has cash back points, or it has
Speaker 1: travel points, or whatever reward it is. I want to
Speaker 1: get the reward a car that has a reward. If
Speaker 1: I get that, how do I use that card? I
Speaker 1: buy groceries, the same thing you would buy with your
Speaker 1: debit card, not shopping. Not know what I mean shopping,
Speaker 1: not going on a shopping spree, but the same items
Speaker 1: you pay for your utilities, your gas, your books, the
Speaker 1: same thing you pay with your debit card. Use your
Speaker 1: credit card, get the points, then make sure you clean up.
Speaker 1: You pay up before the month is over. As long
Speaker 1: as your balance at the end of the month is zero,
Speaker 1: the credit card company will not charge you any interest
Speaker 1: irrespective of what the interest is charged on the card.
Speaker 1: So if you do it this way, I've explained it, Yes,
Speaker 1: get a credit card. In that line, that's the only
Speaker 1: time I recommend you get a credit card as a student,
Speaker 1: if you want to get a credit card to spend.
Speaker 1: The answer is no, they're very very dangerous. They charge
Speaker 1: you are very very high and all percentage your rate.
Speaker 1: So unless you are getting a credit card to get
Speaker 1: the point and going to clean up every month, do
Speaker 1: not get the credit card. Does that answer the question? Yes? Perfect.
Speaker 1: I have a question here from Joseph on the DM
Speaker 1: but let me get a duke to answer, because Joseph's
Speaker 1: question is very exploit Duke of you've got the floor.
Speaker 2: Yeah, thank you very much.
Speaker 6: I appreciate what you do here. So my question is
Speaker 6: all the credit card. I understand that what the credit
Speaker 6: card does because I've been doing a little bit of
Speaker 6: a sarch on that. But I'm looking at the outside
Speaker 6: of credit card now I get to understand that there
Speaker 6: may be a cap on spending. Like if you get
Speaker 6: a credit card, the credit card company may be expecting
Speaker 6: you to spend a particular amount in a month. My
Speaker 6: question is how if you are not able to spend
Speaker 6: that particular amount, the credit card company expect you to
Speaker 6: spend in a particular amount.
Speaker 2: What happened is.
Speaker 6: It that your your credits call will go negative or
Speaker 6: what that?
Speaker 1: Yeah, a great question, great question. I don't think credit cards.
Speaker 1: Most credit cards I know do not require you to
Speaker 1: spend that you're not mandated to spend. What most credit
Speaker 1: cards do that is that is bad is that they
Speaker 1: give you an annual cost. So they'll say you have
Speaker 1: to pay an annual cost for this card. What is
Speaker 1: why I'm saying you want to shop around, You don't
Speaker 1: want to get a credit card that has an annual
Speaker 1: cost because an annual cost means whether you shop you
Speaker 1: don't show up, you're going to pay. So let's assume
Speaker 1: you get a car that has a zero percent annual cost.
Speaker 1: You don't have to spend. The point is, if you
Speaker 1: don't spend, your credit card does not go up. You see,
Speaker 1: they are forcing you to spend because that's how their
Speaker 1: culture is. So you don't argue. You basically go to
Speaker 1: Rome and do what the Romans do. So if they're
Speaker 1: saying you want you need to have a good credit
Speaker 1: card to buy a house at the lower point, you
Speaker 1: do you follow them. But what you do is that
Speaker 1: you follow them with with sens right, So what you
Speaker 1: say is, Okay, I'm going to get a credit card
Speaker 1: for a thousand dollars, It doesn't matter how much the
Speaker 1: card is. A card of five hundred and a cad
Speaker 1: of ten thousand is the same principle. If you get
Speaker 1: that card, as long as you use the card and
Speaker 1: pay back on the card, you've got thirty five points.
Speaker 1: So as long as I use the card and I
Speaker 1: pay back on time, thirty five points. As long as
Speaker 1: I keep less than thirty percent on that card, meaning
Speaker 1: that I don't carry more than thirty percent from the
Speaker 1: one month to the next month, I get thirty percent.
Speaker 1: So thirty five plus thirty I already have sixty five
Speaker 1: points from just doing these two activities. So pay your
Speaker 1: card on time, don't carry more than thirty percent over
Speaker 1: from one month to the next month, you are already
Speaker 1: as sixty five percent. Then what another point, how long
Speaker 1: I've got my credit card is ten points, which is
Speaker 1: why we like you take an axe. You want to
Speaker 1: get your credit card as early as possib because you're
Speaker 1: going to lose ten points if you don't get it.
Speaker 1: What is the other point the type of credit that
Speaker 1: you have. So if you just have only credit cards,
Speaker 1: maybe you don't get enough point. But if you have
Speaker 1: a credit card and a personal loan. Ooh, now you
Speaker 1: get extra point for the type the spread of credit
Speaker 1: that you have. Right then, The most dangerous one delay
Speaker 1: is this when you have a credit card, please don't
Speaker 1: apply for a second one, especially if you're like a
Speaker 1: student or a loan income in. Every time you apply
Speaker 1: for credit and the credit card company pulls your credit card,
Speaker 1: we just called an inquiry. It deeps your score. So
Speaker 1: unless you really want to get the loan, you go
Speaker 1: to the store. Most stores will tell you, hey, welcome
Speaker 1: to TM TG max. Right, do you want to get
Speaker 1: a TG max card? I should name do you want
Speaker 1: to get a card so that you can get a
Speaker 1: discount today? If you say yes, you are applying for
Speaker 1: a credit card. They don't say that way, but you're
Speaker 1: applying for a credit card. Every time you apply for
Speaker 1: a credit card, it does an inquiry. It reaches your score,
Speaker 1: So you want to be very careful. Once you have one,
Speaker 1: leave it that one because you want to build up
Speaker 1: your score. So get a card with no annual points.
Speaker 1: You get a card with reward. Just buy your grocery
Speaker 1: or your gas. Buy fifty dollars or fifty pounds every week,
Speaker 1: pay it off fifty pounds every week, pay it off.
Speaker 1: If you just do this for one year, you're gonna
Speaker 1: have the highest credit scoring. It's not hard. You don't
Speaker 1: have to do anything complicated. Get a cap of five
Speaker 1: hundred pounds of five pound dollars, use fifty dollars, use
Speaker 1: fifty pounds, pay it off, repeat, do it every week
Speaker 1: for at least eight months. You're gonna have the highest
Speaker 1: credit score. You might not have the highest because you
Speaker 1: don't have a personal loans, but you get what I mean.
Speaker 1: You'll be at very, very high our number. Does that
Speaker 1: work for you, sir?
Speaker 2: Yes, thank you? Sorry, sorry just one moment.
Speaker 6: So in the case of muggage, Hello, yeah, the case
Speaker 6: of muggage you talked about for this time. Okay, looking
Speaker 6: at the hya, now, say maybe I'm then I moved
Speaker 6: to the west and I want to buy a house,
Speaker 6: and I put in maybe a house of hundreds hundred
Speaker 6: thousand pounds.
Speaker 2: And maybe one hundred thousand dollars night, and.
Speaker 6: I put in maybe the period is thirty years, and
Speaker 6: I am like, let me say, like forty and I
Speaker 6: probably I said I was stop working maybe at the
Speaker 6: dige of fifty five or at the age of fifty.
Speaker 6: So is it advisable that you put down a ten
Speaker 6: percent or five percent and say you want to get
Speaker 6: a mortgage for the house.
Speaker 1: So the reason why you put a down payment has
Speaker 1: nothing to do with how long you want to stay
Speaker 1: or how long you want to stay. It has to
Speaker 1: do with your how much interest you want to pay
Speaker 1: every month from your pocket. So there are two types
Speaker 1: of mortgage in the West. Two types. One is the
Speaker 1: adjustable rate mortgage. The world we call the ar adjustable
Speaker 1: rate mortgage. That one means that when you buy that house, right,
Speaker 1: your mortgage can go or down based on what the
Speaker 1: Central banks rate goes up and down with. Right. The
Speaker 1: other one is called a fixed rate of fixed rate mortgage. Right,
Speaker 1: that's a normal one where once you buy the house,
Speaker 1: it's going to be a fixed rate going forward. It
Speaker 1: doesn't go up or down. Now, your question is this,
Speaker 1: if you are going to stay for four years, three years,
Speaker 1: if you're going to stay less than five years, then
Speaker 1: it may make sense to buy an adjustable rate mortgage
Speaker 1: if the rates are lower, because you are trying to
Speaker 1: get that house at the lower cost and you are
Speaker 1: hoping that the house value goes up so you can
Speaker 1: get out of the transaction. So you can sell. So
Speaker 1: you want to keep your interest rates very very low.
Speaker 1: Get the house. Then you're hoping that you want you
Speaker 1: have to flip this house in two three years, then
Speaker 1: you can flip the house without paying that high interest cost.
Speaker 1: You see the point I'm making, It's not really has
Speaker 1: to do with your arm with what it has to
Speaker 1: do with your objective. If you want to buy that
Speaker 1: house to live in that house, right, and rates are low,
Speaker 1: always go for the fixed because you are locking the
Speaker 1: low rate going forward. Right, Let's look at today in America,
Speaker 1: rates for mortgage are higher than usual. They're about six
Speaker 1: seven eight percent. They are higher than usual. So if
Speaker 1: I want to buy a mortgage now in America, with
Speaker 1: all the uncertainty, would I buy an adjustable rate mortgage?
Speaker 1: Maybe not, because no show will happen in the future,
Speaker 1: and I want to buy something that I think is low. Right,
Speaker 1: But even if I buy today at eight percent and
Speaker 1: I lock it in, if rates fall down, I can
Speaker 1: refinance at a lower rate. So I can go from
Speaker 1: eight percent to six percent by refinancing my mortgage. But
Speaker 1: if I buy an adjustable rate mortgage, I'm saying that
Speaker 1: the rates can go up. Rates can come down. So
Speaker 1: it's not really to your question. It doesn't matter. Your
Speaker 1: down payment has got to do with what you want
Speaker 1: to achieve with that home. The more you pay down payment,
Speaker 1: the less your more interested. In America, we have what
Speaker 1: we call the the insurance this insurance PMI. PMI is
Speaker 1: insurance you pay to the lender, not yourself. To the lender,
Speaker 1: if you pay less than twenty percent to buy a house,
Speaker 1: they will charge you PMI. You don't want to pay
Speaker 1: PMI because not your insurance. It's like you're buying insurance
Speaker 1: for the bank. So if you pay more than twenty percent,
Speaker 1: you don't pay PMI. But the question that you want
Speaker 1: to ask yourself is, Okay, if rates are so low,
Speaker 1: I just maybe just pay it together. Why you have
Speaker 1: to pay twenty percent of my money on the house.
Speaker 1: I have that cash, I can go somewhere else. So
Speaker 1: one I'm trying to answer is this duke, is it
Speaker 1: has to do with the objective why you are buying
Speaker 1: that house. Will determine if you should pay a high
Speaker 1: down payment or a low down payment. If you're going
Speaker 1: to flip that house, you are looking at keeping as
Speaker 1: much cash as you have with yourself. But if the
Speaker 1: house you're going to live in for ten years, oh
Speaker 1: bye bye, pay the PM paid twenty percent and reduce
Speaker 1: your future interest payments on the house. Does that make sense, Duke,
Speaker 1: Oh yeah, yeah, So look at it that way. Adjustable
Speaker 1: rate is fluctuating, but it's cheaper initially. So you're looking
Speaker 1: at send the house quickly, that's your objective a RM.
Speaker 1: But if you're looking at living that house with your
Speaker 1: kids in school, good school district, pay the thing, reduce
Speaker 1: your monthly interest rate and enjoy it. You can always
Speaker 1: refinance downwards, doesn't matter, right, So that's how I want
Speaker 1: to look at it. Yep. Okay, Joseph, I'm reading your
Speaker 1: DM very interesting DM. So j Justef said, let me
Speaker 1: try to explain to you. Joseph says he has an
Speaker 1: opportunity for a loan of twenty percent. So, Joseph, our
Speaker 1: loan is twenty percent rebate of six percent, so mean
Speaker 1: you're gonna pay about fourteen percent. So it's fourteen percent loan, right,
Speaker 1: and it's for one to three years. So we have
Speaker 1: a fourteen percent loan for one to three years. The
Speaker 1: repayment is is three years and it's going to cost
Speaker 1: you tenenty five percent of your salary. You didn't tell me, Okay,
Speaker 1: tirty five on your salary. Okay. Now I think you
Speaker 1: are asking me if you should buy a government bond
Speaker 1: for twenty three percent or a mutual fund at twenty
Speaker 1: one percent. It's a simple answer, Joseph. And it's a
Speaker 1: simple answer. The loan is for fourteen percent. You can't
Speaker 1: buy anything that you are not sure of getting more
Speaker 1: than fourteen percent. You can't buy anything. So when you
Speaker 1: say mutual fund, is that mutual fund guaranteeing you twenty
Speaker 1: tw one percent? If if it's an equity mutual fund,
Speaker 1: it's not guaranteed. Even if it's a money market mutual phone,
Speaker 1: I'm not sure it's guaranteed. The government bond is twenty
Speaker 1: three percent. I like that one more because you are
Speaker 1: taken at fourteen percent to make twenty three percent, So
Speaker 1: you've already locked in your profit. There's no risk there
Speaker 1: because it's the government. So you are borrowing from your
Speaker 1: company at fourteen you are given to the government at
Speaker 1: twenty three. You've locked the money in, no no, no risk.
Speaker 1: You're going to make how more twenty three let minus fourteen?
Speaker 1: How much is that about nine percent or so risk free.
Speaker 1: The only question is that if you want to quote
Speaker 1: unquote do more, then you are going to have to
Speaker 1: take more risk. And this mutual fund you're talking about
Speaker 1: is more is riskier than the government bond. If it's
Speaker 1: an equity mutual fund. I would not do it with
Speaker 1: the loan because it can go up to one hundred percent,
Speaker 1: it can go down to two percent. So be careful
Speaker 1: about borrowing to invest in something that the value is
Speaker 1: not locked in now, there's no way you can hedge that.
Speaker 1: So I would prefer the government bond. It's going to
Speaker 1: be a simple tidy exchange. You maximize that borrowing. It
Speaker 1: can give you borrow your hundred million eire, borrow one
Speaker 1: hundred million Eira, take it and go and buy the
Speaker 1: government bond at twenty percent and make nine percent risk free.
Speaker 1: They might have some tax advantages there if you do
Speaker 1: the government bond. So based on your on your d M. Joseph,
Speaker 1: that's it's a simple thing to analyze. Remember, if you
Speaker 1: take a fixed cost loan, you don't want to invest
Speaker 1: in a variable return investment. I say it again, if
Speaker 1: you take a fixed cost loan, you don't want to
Speaker 1: invest in a variable return instrument, because then you are
Speaker 1: chasing what you don't know. Just how that makes sense
Speaker 1: for you? Great question. I love those kind of questions.
Speaker 1: Thank you, doctor Smart, you've got the floor. Go ahead, sir,
Speaker 1: Thank you.
Speaker 2: A very much. Sir, So, I don't want to find
Speaker 2: out on this your phone and you insight on money
Speaker 2: market I could say.
Speaker 4: More specifically because I use this Tanard.
Speaker 1: Money and money markets.
Speaker 2: Standing contract funds really give us more insight.
Speaker 1: And so can you be more specific? What where do
Speaker 1: you want to focus on? If I may ask?
Speaker 2: Yeah, regarding the interests.
Speaker 1: Oh, I see, okay, so I see, and I've seen
Speaker 1: the dms as well. So whenever you hear a finance
Speaker 1: person say say interest rates, it's he's always quoting a paranom.
Speaker 1: Interest rates by say five percent, I'm always meaning five
Speaker 1: percent parandom. If a bank tells you four percent, they
Speaker 1: always mean four percent paranum. It's always going to be
Speaker 1: a parandom. So just to answer those DMS always present panum.
Speaker 1: So Smart, look at it this way, right, and I'll
Speaker 1: try to share something if I can. When you invest,
Speaker 1: there are only two forms of investment. There are only
Speaker 1: two forms of investment. Number one, that's what we call
Speaker 1: fixed return. Fixed return means as you are investing, you
Speaker 1: know exactly what you are getting back. So fixed return.
Speaker 1: If I invest tenera today, the banks isn't going to
Speaker 1: end ten percent. I'm not going to end ten percent
Speaker 1: on my tenera. No argument is fixed return. I'm ending
Speaker 1: interest on my principle, fixed guaranteed, no debate. The other
Speaker 1: investment is called a variable return. So when I buy
Speaker 1: a stock, if I buy Dango to cement, my profit
Speaker 1: is based on how much profit dank the cement makes.
Speaker 1: I want to pay me. They can make one hundred
Speaker 1: percent and pay me one hundred percent. They can make
Speaker 1: one percent and pay me one percent. So you see
Speaker 1: that's fixed and there's variable. Let's now go to mutual funds.
Speaker 1: Mutual funds are just a basket. They will take that
Speaker 1: basket and then they put things in a basket. So
Speaker 1: they're now sell it to you, and you will say, listen,
Speaker 1: instead of you buying a Mercedes car, a BMW, a Toyota,
Speaker 1: a Lexus, a Tesla, just buy this basket. Once you
Speaker 1: buy this basket, you have bought all those car companies immediately.
Speaker 1: So when you buy a mutual fund, Americans call it
Speaker 1: mutual funds. Nigerians we call it unit trust. So Americans
Speaker 1: don't have trust or they don't have a what trust
Speaker 1: deed in Nigerian read real palace is unit trust in English?
Speaker 1: Mutual funds in America, But it's the same thing. Even
Speaker 1: when you hear ETFs exchange traded funds, it's the same thing.
Speaker 1: They are all a pool of funds managed by an
Speaker 1: investor on your behalf. So when you want to buy
Speaker 1: a mutual fund or in a trust, you want to
Speaker 1: ask yourself. Are you buying a trust that is doing
Speaker 1: fixed return or is doing variable return? How do you
Speaker 1: know your actual manager? What is this you need trust for?
Speaker 1: If they are only buying bank loans, certificate of deposits,
Speaker 1: fixed deposits, treasury bills, anything that they know the interest
Speaker 1: rates in advance, that's the fix return and they usually
Speaker 1: will tell you on the you'll see IBTC equity or
Speaker 1: IBTC fix return. You'll see it on the name. If
Speaker 1: you're not sure, ask them. So, if it's a fixed
Speaker 1: return mutual fund, you are only going to get a
Speaker 1: return based on the fixed fixed returning instrument that they
Speaker 1: have bought. If it's a variable return, right, then you
Speaker 1: are getting mutual funds equities, you are binding to the
Speaker 1: profit and loss of a company. So most once you
Speaker 1: see are sometimes equity. You can also have what we
Speaker 1: call a balanced where you are buying half equities or
Speaker 1: half mutuals, but they will give you the percentage. That's
Speaker 1: basically it's when you hear me say VT in America,
Speaker 1: that's a mutual fund or an ETF. That's an ETF
Speaker 1: that is investing in variable income, which are equities. When
Speaker 1: you hear me say b ND, that's an ETF that
Speaker 1: is investing in a fixed return, which are like bonds
Speaker 1: and money market instruments. So smart, what you want to
Speaker 1: do is that when you want to buy anything, you
Speaker 1: tell the banker or you tell on your app. Use
Speaker 1: your app. You say fixed income mutual fund, neutral, it will,
Speaker 1: it will, it will screen for you and give you
Speaker 1: only fixed income. Fixed income means that your principle will
Speaker 1: not increase. What you are going to get is that
Speaker 1: you are making a return on your principle. So it's
Speaker 1: what were called capital preservation. Principal preservation. If you give
Speaker 1: a bank a billion, your one billion will not increase.
Speaker 1: What you are doing is that you are going to
Speaker 1: get to return on your one billion. You see what
Speaker 1: point I'm making. Even if they give you one hundred
Speaker 1: percent return, you are getting one hundred percent return on
Speaker 1: your principle. But when you invest in variable income, you
Speaker 1: invested in the profit and loss of that investment. So
Speaker 1: it's your princes park can actually go up if the
Speaker 1: share price goes from one dollar to two dollars, and
Speaker 1: your princepe can actually go to zero if it goes
Speaker 1: from one dollar to zero. Did I answer that question
Speaker 1: right with towards.
Speaker 2: The smith, Yeah, yes, yes, yes, that's my.
Speaker 1: So you want to find out ask them, make sure
Speaker 1: you look at it the summary prospect us. Ask them
Speaker 1: for the summary prospects and ask them right, and then
Speaker 1: they will let you know what it is. Yeah, yeah, yeah,
Speaker 1: thank you. All right, perfect, someone is asking them. Let
Speaker 1: me let me get poor Harry. Is poor Harry? Zaiah? Hi, sir, Hello,
Speaker 1: call good evening. He hi, my brother, thanks.
Speaker 7: So much as usual for the education session.
Speaker 8: Yes, so two teams. The first.
Speaker 7: For example, as a civil servant, just to speak, who
Speaker 7: earns a salary and wants to diversify in terms of
Speaker 7: getting income, Is it a good idea to get a
Speaker 7: loan from a bank? With salary dominciliation as the comfort
Speaker 7: to start a business specifically see trading, buying and selling.
Speaker 1: Is it?
Speaker 8: Is it a wise choice? That's one.
Speaker 9: Secondly, on the issue of bad debt, do we do
Speaker 9: we do we look at someone financing his luxury life
Speaker 9: getting a loan from a bank, ankle, or any other
Speaker 9: institution that would be able to grant a loan to
Speaker 9: him to finance lock like say, okay, he needs a car,
Speaker 9: and maybe he gets a car.
Speaker 7: Should that one't be classified as a as well?
Speaker 1: To Clain, explain that second one to me. You say
Speaker 1: bad debt, but say it again so I can understand.
Speaker 7: Okay, so someone getting a loan to finance a luxury
Speaker 7: is that a bad debt?
Speaker 1: I hear if already answered the question. That's why I'm laughing.
Speaker 1: You already answered the question. So I mean, look at
Speaker 1: like I said, right, there's good debts. Let's do your
Speaker 1: second question first, there's good debt. That's bad debt. What
Speaker 1: is good debt? Good debt is deb that the returns
Speaker 1: are more than the cost of the loan. What is
Speaker 1: bad debt The cost is more than the returns on
Speaker 1: the loan. That's basically what we're saying, so if I
Speaker 1: go borrow money, right, and what have I done? Like
Speaker 1: I said, I've I've front loaded my consumption. If I
Speaker 1: borrow or one hundred million narror and I buy a
Speaker 1: brand new Lectus cheap, what have I done? I have
Speaker 1: gone to the future taking one hundred million of my
Speaker 1: earnings brought you till today, and I'm consuming with buyinger
Speaker 1: a Lexus chip. It would make perfect sense if that
Speaker 1: Lexus jip, I'm going to use a Legus jip as
Speaker 1: car higher or movie you higher and people pay me
Speaker 1: back money and over the years I make money to
Speaker 1: service that loan that when that hole, that one hundred
Speaker 1: no A hole comes, I have made so much money
Speaker 1: from renting that car out that I can cover that loan.
Speaker 1: So it makes sense. But if there is no income
Speaker 1: to cover that one hundred million IRA hole, how do
Speaker 1: you cover it up? It's going to be covered up
Speaker 1: one way or the other by you reducing your livelihood
Speaker 1: and your expenses. So even if you're going on holidays
Speaker 1: with your family when you're older, you'll find yourself paying
Speaker 1: a loan to a car company. That's a problem. So
Speaker 1: you want to be very very careful about borrowing to invest,
Speaker 1: not just in luxuries, but any venture that does not
Speaker 1: give you a rate a return back. You know, when
Speaker 1: you look at when you look at how accountants do
Speaker 1: balance shift, they will do assets and liabilities. But when
Speaker 1: financial planners do a balanceship, we look at we will
Speaker 1: classify your asset in terms of is the asset any
Speaker 1: money for you? That's what we look at the assets.
Speaker 1: If you have a phone, let me give a better
Speaker 1: example of hurry. A brand new Apple phone, latest model
Speaker 1: will cost you maybe one thousand dollars. It's that phone
Speaker 1: in your hands. It is an asset or a liability.
Speaker 1: And I count tell you that that phone is an
Speaker 1: asset full stop. But the financial advisor will tell you
Speaker 1: it depends on what you are doing with that phone.
Speaker 1: If I use that phone to make calls, to receive text,
Speaker 1: to take selfies, it's a liability. It's not an asset.
Speaker 1: It's a liability because why it's taking money away from
Speaker 1: me and paying alone to buy that one thousand dollars iPhone.
Speaker 1: But what if I use that iPhone because the memory,
Speaker 1: because the graphics on the phone to run my podcast,
Speaker 1: and from that podcast, I get folks that advertise on
Speaker 1: my podcast and I make returns for me. Of course,
Speaker 1: that phone becomes an asset because it's generating income for me.
Speaker 1: So the phone itself can be an asset. It can
Speaker 1: be a liability. Your car can be an asset, it
Speaker 1: can be a liability. That accountancy is different from how
Speaker 1: financial planning because if it's not bringing you money. You
Speaker 1: can have a house in Lacky that is worth a
Speaker 1: lot of money, but that house is flooded so you
Speaker 1: can't rent it out. That house is a liability to you,
Speaker 1: not an asset, because you are it's costing you more
Speaker 1: money to maintain that house than you are making from rents.
Speaker 1: So it's not asset liability in the accounting sense. But
Speaker 1: is it giving you money or is taking money away
Speaker 1: from you? That's how in planning I define assets and liabilities.
Speaker 1: I'm not saying I can. That's the wrong, but when
Speaker 1: you look at it that way, it clarifies many things
Speaker 1: for you. Right. That's to answer your question. So that
Speaker 1: answers your question without me answering it tells you it
Speaker 1: might not be a good idea to fund any lifestyle
Speaker 1: that you're not making money back from. Let me give
Speaker 1: you an example again. Just make it close to you. I
Speaker 1: saw Bonnarp Boy his his parking lot. He had lots
Speaker 1: of Ferraris there. I saw what's his name that video
Speaker 1: he's driving the latest rolls roys Is? Are those rolls
Speaker 1: roys and Ferraris? Is it a bad investment or a
Speaker 1: good invent for those guys to buy Ferraris and rolls stroys?
Speaker 1: It's not a bad investment for them. They are in
Speaker 1: the business of entertainment, so they need to entertain and
Speaker 1: show you off. So if bona boy was make a
Speaker 1: Camaro and nobody will follow him, he has got to
Speaker 1: drive a Rose Royce to show he's an entertainer. It's
Speaker 1: like him buying a brand new iPhone. That's the same
Speaker 1: way he's buying a brand new Rose Royce. So he
Speaker 1: can do that because it's his job to buy to
Speaker 1: wear diamonds. That's his job. But if you work in
Speaker 1: a farm, your job is not to show off or
Speaker 1: to entertain, even if you have the money, So it's
Speaker 1: not the again, go back to the example. It's not
Speaker 1: the income or the expenses, it's is this thing bringing
Speaker 1: money for you? That's the question. Bonnap boy is gonna
Speaker 1: use that rolls Royce to get more gigs. So that's
Speaker 1: why it's an asset for him. But if you go
Speaker 1: borrow buy a ferrari to drive the ferrari, it's not
Speaker 1: an asset for it because you don't make any money
Speaker 1: from that ferrari because you work in the library. How
Speaker 1: do that makes sense on the question? But let's go
Speaker 1: to your first question, Barr is a very ver supple answer.
Speaker 1: You should, in no circumstance go to a bank to
Speaker 1: borrow money to start a business. Where in America, where
Speaker 1: in the UK, where in Nigeria? Banks are not set
Speaker 1: up to lend you money to start a business. No,
Speaker 1: you start a business with your family and friends and
Speaker 1: your own savings and equity what we call patient capital.
Speaker 1: You don't want to borrow from a bank because when
Speaker 1: you're a startup, what defines a startup, Harry, there's no cash.
Speaker 1: It startup basically means you don't have any cash. So
Speaker 1: if you don't have any cash, why are you taking
Speaker 1: the limited cash you're even making from operations to pay
Speaker 1: the banks? What more, you see anything that are going
Speaker 1: to be taking your principle to pay back that bank loan.
Speaker 1: That's why there's this question always ask people. There's a
Speaker 1: stratestic that shows that most businesses in Abuja closed after
Speaker 1: two years. And I asked, why do you think it's
Speaker 1: two years? Because two years when your rent expires, so
Speaker 1: the business really died, but since two years twenty then
Speaker 1: they formally closed. You should not to answer is simple, buyer.
Speaker 1: You should not go to the bank to borrow money
Speaker 1: to start the business when you have started the business
Speaker 1: and then you need working capital. Let's say you have
Speaker 1: a contract to supply. The guy says, if you supply
Speaker 1: me this, i'll pay you one week.
Speaker 2: Good.
Speaker 1: You go to the bank, you borrow money from the bank,
Speaker 1: You supply, the guy pays it back in one week.
Speaker 1: You go back to the bank, you clean up. That's
Speaker 1: called you know, you close that cycle. That's working capital.
Speaker 1: You don't borrow from the bank to who buy computers,
Speaker 1: buy the car, buy the head office? Because I answer a.
Speaker 8: Question, Oh yes it does.
Speaker 2: Thank you so much.
Speaker 7: I was reading a finance book and it was saying
Speaker 7: like leaky businesses should see borrowing money to start up
Speaker 7: a business as a myth.
Speaker 8: And you've clarified that. Thank you so much.
Speaker 2: Thank you.
Speaker 1: You should never do that, all right, perfect you clarifieder. So,
Speaker 1: I have a question DM from al. I love this
Speaker 1: question again. Technocrat is asking should I do what is
Speaker 1: the advantage of getting the students loan with twenty years
Speaker 1: payment plan? Of course it's four hundred dollars spread over
Speaker 1: ten years. Techno. I see all these numbers you have
Speaker 1: given to me, right, they make sense. But look at
Speaker 1: it this way. Let me give you a breakdown of
Speaker 1: student loans. A student loan is an investment. Someone is
Speaker 1: telling you that we're going to give you. I want
Speaker 1: you to pay me twenty three thousand dollars, and I'm
Speaker 1: going to give you a piece of paper. That piece
Speaker 1: of paper can change your life, or it can be
Speaker 1: a cost, it can be an asset, it can be
Speaker 1: a liability. There After, the student on is this, will
Speaker 1: you get a job that can pay back twenty three thousand?
Speaker 1: That's the only answer. It's not a numbers question, per se, Techno.
Speaker 1: It has to do if you spend, if you invest
Speaker 1: twenty three thousand and so something, no matter the interest rate,
Speaker 1: will you get a return that would pay back twenty thousand?
Speaker 1: That's your question if you are doing it. Of course,
Speaker 1: in anxieties usually yes, because the it folks are not
Speaker 1: show how they may do it, but they're able to
Speaker 1: make a lot of revenues from their certification. Maybe they
Speaker 1: go and do Python or whatever they I don't name,
Speaker 1: but they get a lot of revenues. Is salary revenues
Speaker 1: that can pay back their loone right, same thing we'd
Speaker 1: say a certify financial analysts is that certificate is in demand.
Speaker 1: Is an international certification. If you get it, you're able
Speaker 1: to get a good job to pay back your loan.
Speaker 1: So it's a question really of what are you getting
Speaker 1: when you say NBA internationally this program. I would say,
Speaker 1: don't do it, not with the loan, because NBA is
Speaker 1: and I'm not. I have an MBA, so let me
Speaker 1: just make sure. Don't get me right. NBA is like water.
Speaker 1: If you want to do an NBA, I want to
Speaker 1: borrow do an NBA. Borrow money and go to Harvard.
Speaker 1: At least you get the network and then you can
Speaker 1: say I'm investing in the network. There is nothing Harvard
Speaker 1: to teach you that the business could No nature will
Speaker 1: not teach you, trust me. The difference is this in
Speaker 1: Harvard they're going to meet the folks that will be
Speaker 1: ceeos in ten years in a Nature Business school. They
Speaker 1: might be seals in ten years, but they're in Nigeria.
Speaker 1: Which one has more currency for you, Harvard or Nature
Speaker 1: Business School? So it's not really technolog You get my
Speaker 1: point right. It's not what you're paying for. It's not
Speaker 1: what it costs. It's what you're going to get from that.
Speaker 1: If somebody tells you to forget the education part. Let's
Speaker 1: say someone tells you buy a ticket. This is gonna
Speaker 1: cost you twenty three thousand dollars, and this ticket you're
Speaker 1: gonna have just two outcomes. You're gonna have up or down.
Speaker 1: Up means if you buy this ticket you get double,
Speaker 1: So you spend twenty five thousand, you get fifty thousand,
Speaker 1: or if you buy this ticket, your ticket are going
Speaker 1: to get zero. So it's a binary choice. You give
Speaker 1: up twenty five thousand dollars you buy a ticket that's
Speaker 1: going to go up fifty thousand or down zero. Would
Speaker 1: you do it? Would you? Would you take that risk
Speaker 1: and say if I spend twenty five thousand, I'm going
Speaker 1: to get fifty thousand, nine or zero. That's number one.
Speaker 1: Number two the NBA you want to go for NBA
Speaker 1: is you are buying the school name, not the education.
Speaker 1: Forget that. Can I tell you are buying the name
Speaker 1: of the school. If somebody applies to your company from Harvard,
Speaker 1: you will take him and you'll put on your on
Speaker 1: your another point and say we have this guy, he's
Speaker 1: trained in Harvard. That's why you're saying. Anyone that goes
Speaker 1: to Harvard, they always put it there had along Night
Speaker 1: Mit along Night Sloan School along Night Year alumni. Why
Speaker 1: they are telling you they went to this unique, very
Speaker 1: very exclusive place. And that's current se That exclusivity is
Speaker 1: the crazy. That's what you're paying for. It's not what
Speaker 1: they leent in that school. It's who they can call
Speaker 1: and say, Okay, I wasn't habut with this guy. You
Speaker 1: can't have it a long nine. So if it's just
Speaker 1: gonna be an NBA program, I wouldn't do it. If
Speaker 1: I have the money, I would do it. If you
Speaker 1: have the money in your bank account, sure do it.
Speaker 1: Add to your CV. So if you want to go
Speaker 1: for I don't call any name schools school and the
Speaker 1: school's name, and you have the money, do it add
Speaker 1: to your your program. It favors you. Your CV is
Speaker 1: you know it's health your CV, but don't borrow to
Speaker 1: do it unless it's those Marquee unique schools that you
Speaker 1: can then relocate even because you did that. If it's
Speaker 1: just gonna you're gonna spend that all that dollars to
Speaker 1: get around the Male Business Program, I wouldn't do it.
Speaker 1: I wouldn't. If you're gonna go to China and lend
Speaker 1: Chinese to do one international program, that're gonna live in China, fantastic.
Speaker 1: But if it's gonna be an NBA program, what's it
Speaker 1: gonna give you NBA? Unless you're gonna use that NBA
Speaker 1: program in Nigeria and become CEO based on your MBA,
Speaker 1: then it makes sense. We don't roll like that in Nigeria.
Speaker 1: Right in the UK, US they rod with where you
Speaker 1: attended Yale? How many presents have yield brought out? Obama
Speaker 1: was Harvard, the VP we have today in America, Yale,
Speaker 1: even Trump, Prince was it was it, Pennsylvania school went
Speaker 1: to Psvan went to So they all rolled like that.
Speaker 1: But if it's not that, be careful. If you have
Speaker 1: the money, do it. But if it's something going to borrow,
Speaker 1: be careful. If you're going to borrow, then invest in
Speaker 1: a school that has name, So you're buying in quote
Speaker 1: the name of that school to help your CV because
Speaker 1: it's a business man. Yeah, it's a business in the end.
Speaker 1: All right, thanks, Thanks, that's just my opinion right again,
Speaker 1: So let's get the fair. I am oddo the fermi?
Speaker 1: I am Hey, what's hi?
Speaker 10: I'm speaking from Nigeria, from Legos, Nigeria's yes, I can
Speaker 10: hear you perfectly, Okay, I'm speaking from Legos, Nigeria. I
Speaker 10: wanted to know your opinion regarding regarding taking a lease
Speaker 10: and then renting out. So there's a property on my street.
Speaker 10: I can take a lisse for seven million right to
Speaker 10: own that property for fifteen years. I do not have
Speaker 10: the seven million, However, I am eligible for a loan
Speaker 10: that can give me that seven million. The loan is
Speaker 10: going to be twenty three percent perannum for two years.
Speaker 10: Do you think it is wise for me to take
Speaker 10: that property? So be on your mind that if I'm
Speaker 10: going to lease the property, I'm not going to stay
Speaker 10: there because I already went the place on that same street.
Speaker 8: I'm going to rent it.
Speaker 1: Out for say one point to one.
Speaker 8: Point five million per year rent.
Speaker 10: So what I'm what I'm considering, or the factors.
Speaker 1: That are making the decision. It need to be hard.
Speaker 10: I'm sure if we had to figures, it sounds like
Speaker 10: a great thing. But I'm also considering time value of money.
Speaker 10: So if I take that seven million, for instance, and
Speaker 10: I put it in motor funds, I can probably get
Speaker 10: twenty to twenty one percent parl, which would almost amount
Speaker 10: to the same figure I would have gotten if I
Speaker 10: was renting the apartments out right. Then again also oning
Speaker 10: that property for fifteen years, I could decide to maybe
Speaker 10: do short let if I want to be able to
Speaker 10: be risky or something. So those are the factors I'm
Speaker 10: that weigh on my mind. I don't know what you
Speaker 10: think about it.
Speaker 1: I mean your question, your question looks like a realistic question,
Speaker 1: but it's actually a question about should you invest in
Speaker 1: Nigeria looking at the interest rates and the inflationary Actually
Speaker 1: what your question is. I have friends that do exactly
Speaker 1: this business you're talking about. So they get leases and
Speaker 1: then and they've come to the space I think two
Speaker 1: or three times they do leases in legers. They get
Speaker 1: a building and they convert their build to shot them leases.
Speaker 1: Then you can invest with them and own the short
Speaker 1: let apartment and then they manage it for you. They've
Speaker 1: now even gone to owning the building at themselves being
Speaker 1: very successful. They've come here three times. If you fill
Speaker 1: the space, you will know about them, right, and they've
Speaker 1: done pretty well. So but look at your question, Like
Speaker 1: I said, it's not a relative question. Is a question
Speaker 1: about if the risk free rates in Nigeria at risk
Speaker 1: free without doing anything is twenty one percent. Let's say
Speaker 1: it's twenty percent, why would someone take the risk and
Speaker 1: invest in something that's going to pay him t percent
Speaker 1: twenty five percent. That's really your question and that's the
Speaker 1: problem with Nigeria and high interest street. If I have
Speaker 1: a billion era, I can make two hundred million Eira
Speaker 1: without lifting a finger. If I have a million error,
Speaker 1: I can make two hundred No not if I have
Speaker 1: fifty million or one hundred million, I can make twenty
Speaker 1: million every year without lifting a finger. With twenty million,
Speaker 1: I can pay my driver, pay my cook, go from
Speaker 1: somewhere in Malta and come back. I don't have to
Speaker 1: do anything. I do have to chase workers, I have
Speaker 1: to chase tied to or nothing because I am and
Speaker 1: in twenty percent risk free So that's what question you're asking.
Speaker 1: You don't have You don't have one hundred million of
Speaker 1: your own. You want to go borrow at money in
Speaker 1: cure the risk that if that loan fails, you're on
Speaker 1: the hook. Because Nijera does not have non recost loans,
Speaker 1: they're gonna come after you if you if that project fails,
Speaker 1: you have to pay. You want to take the risk
Speaker 1: to invest in that project, and you want to make
Speaker 1: a return that will first of all pay back the
Speaker 1: bank or whoever I lend the money from, and number
Speaker 1: to make it worth your while. In finance, something we'll
Speaker 1: call capital asset present model. That's answer your question by
Speaker 1: doing the official numbers and all that to say, hey,
Speaker 1: is it worth it? But let me ask you a question.
Speaker 1: Come come back to yourself. The return you think you're
Speaker 1: going to make, You've done your modeling. What's the return
Speaker 1: number you think you're going to make if everything goes
Speaker 1: as you have planned? There's no ware you invest this money,
Speaker 1: you buy this building, what's the return you believe you're
Speaker 1: going to make? All in no issues or return you make?
Speaker 10: So I have a high risk appetite than most, So
Speaker 10: I was thinking of shortlets. If I was to do shortlets,
Speaker 10: I would make stay three to four million.
Speaker 1: In percentage terms. Could you do what's the percentage percentage terms?
Speaker 10: Let's say about.
Speaker 1: Okay, So the risk free watt in Nigeria, right is
Speaker 1: the rate that we we look at the treasure bill
Speaker 1: in Nigeria. Whatever that rate is is, we can use
Speaker 1: that as our risk free rate. So treasury building, the
Speaker 1: last time I saw it from fifty millionaire, I was
Speaker 1: nearly about nineteen to the say twenty one percent for
Speaker 1: one year. So what you're saying is that if you
Speaker 1: get an extra twenty percent, that would compensate you for
Speaker 1: the risks that you are taking. That's basically what I
Speaker 1: hear you saying. Because the risk filated. If I have
Speaker 1: one hundred millionaire today, I can go to my bank,
Speaker 1: give them that one hundred millionaire, tend to buy me
Speaker 1: treasury bills. My bank will give me twenty million guaranteed,
Speaker 1: no wahala. If I give it to you, you are
Speaker 1: going to give me forty percent. So the question is
Speaker 1: that extra twenty percent is it compensate me enough to
Speaker 1: invest in you. That's the point I'm asking you. I
Speaker 1: think it's okay. So you also have to ask yourself
Speaker 1: that question. If everything goes well and you can make
Speaker 1: forty percent, you are just barely bit in inflation. Number
Speaker 1: one and number two are just covering your your bank
Speaker 1: your bank side. But there is no rich person that
Speaker 1: didn't take risk today. None. If you do this project
Speaker 1: and it works out, it's on your CV, you can
Speaker 1: go back and say I did this and to do more.
Speaker 1: So he said, you're asking me a question. Should I
Speaker 1: take risk? It depends? Can you take it? How do
Speaker 1: you are you feeling lucky? Do you get the point
Speaker 1: I'm making. No one's going to answer that question for you.
Speaker 1: No one's going to tell you take risk. But you've
Speaker 1: got to do your modeling correct. You've got to do
Speaker 1: a lot of sensitivity in Nigeria. You've got to say,
Speaker 1: what will happen if exchange rate goes to one eight,
Speaker 1: what happens if it's faced to one one, what happens
Speaker 1: if inflation goes up. You've got to do that modeling.
Speaker 1: But I also think it's a good business, it's a
Speaker 1: good sector. If we do the rebasing, you're going to
Speaker 1: say that real estate is going to really blow up
Speaker 1: in Nigeria. It's all about location, location, location if we
Speaker 1: were is that building. Remember you are targeting for short,
Speaker 1: two shorts and illegals. The guys are coming the jackbad
Speaker 1: the guys that have money, the upper ended people. So
Speaker 1: they want to go to where it is considered safe.
Speaker 1: If you're going to put a shotlet in some locations,
Speaker 1: they won't go there. If they be short, in some
Speaker 1: good locations, they will go there. So I will say, really, really,
Speaker 1: get your modeling numbers correct. If you get your modern
Speaker 1: numbers correct, try and get a very very low cost
Speaker 1: of doing the low cost of equity if you can.
Speaker 1: My friend, I've told you that I come to the space.
Speaker 1: If you notice they don't go to the banks. They
Speaker 1: raise money from the owners that want to own that
Speaker 1: short letter apartments. The reason why they're not going to
Speaker 1: the bank. The guys that have done it that I
Speaker 1: know that I've come here more than three times making love.
Speaker 1: When they don't go to the bank to borrow. So
Speaker 1: that's for you to consider. If you can do what
Speaker 1: we call other people's money. So if somebody wants to
Speaker 1: invest with you, perfect that's patient capital, right, you can
Speaker 1: do more with that sort of capital. If you go
Speaker 1: to the bank. The bank is gonna charge you every
Speaker 1: month without feel. Every month. This is going You're gonna
Speaker 1: pay for diesel without feeling, So be do your modeling correct.
Speaker 1: It's a good sector, but it needs cash flow. In
Speaker 1: this business, they're gonna invest upfront and then recover. You
Speaker 1: see what, I'm gonna invest a lot of your money upfront.
Speaker 1: Then you want to do recoveries or like a trading business.
Speaker 1: We but you have good you buy, you sell, you
Speaker 1: know your binance. This is you're gonna invest the bulk
Speaker 1: of the money upfront. It's gonna go cash will go out.
Speaker 1: Then you start recovering cash cash cash cash very risky.
Speaker 2: Okay, thank you very much.
Speaker 1: I try to talk to people. Try to talk to
Speaker 1: people that have done this before. You know the guy
Speaker 1: I'm talking about that have come to my space for
Speaker 1: a short let apartments.
Speaker 10: You know them, and this is the first time I'm
Speaker 10: joining your space.
Speaker 1: Okay, if you send me a DM, I'll try to
Speaker 1: connect you with them. Go and talk to them. Just
Speaker 1: say Calos said she want to do this business. Just
Speaker 1: they're very nice. I'm sure they will just talk to
Speaker 1: you for tetim. Just speak to them. Make sure you
Speaker 1: know what you're doing, like the modeling numbers have to
Speaker 1: look right to make sense, because anything to do with Nigeria,
Speaker 1: you have to do your modeling properly, otherwise you've be
Speaker 1: in love of trouble, especially if you want to borrow.
Speaker 1: I prefer equity than debt in Nigeria, just because it's
Speaker 1: cheaper in Nigeria or not anywhere else. Makes sense. I
Speaker 1: like that question though, thanks so much, thank you, perfect, Hey,
Speaker 1: perfect I've got let me see he dropped off, So
Speaker 1: let's go back to d MDMs asking Calu, can you
Speaker 1: talk about crypto? We always get crypto questions? Can you
Speaker 1: talk about crypto? Is it a good investment? It's something
Speaker 1: that I should do. I've been trading crypto, the normal questions.
Speaker 1: So you see the thing with this crypto thing? Is
Speaker 1: this right now? Now? Now? Because of the new administration
Speaker 1: in America, they seem to be crypto friendly. Every day
Speaker 1: I wake up, I read about a new state in
Speaker 1: America that is going to do strategic crypto reserve. I
Speaker 1: think it was Ohio that did one, then Wyoming, then Miami.
Speaker 1: So you read about all these things happening, even as
Speaker 1: in Canada are better always wants to do crypto reserve
Speaker 1: so there's a lot of noise around crypto, especially bitcoin.
Speaker 1: If you in America, now you have ats that invest
Speaker 1: in bitcoin. That's a big deal. That means that the
Speaker 1: largest institutions in the world have adopted bitcoin. They said, okay,
Speaker 1: this particular one is okay, and we can invest in it.
Speaker 1: So I buy bitcoin through my bank. I don't buy
Speaker 1: it to the exchange, I buye I go to the
Speaker 1: bank site, I buy it. It's that mainstream. Now there
Speaker 1: was an investment that a few years ago was considered
Speaker 1: as very, very risky and not even worthy of being
Speaker 1: invested in. Today, if you go to your bank in America,
Speaker 1: they are ETFs, black Rock and the rest, they are
Speaker 1: ETFs that allow you to invest in bitcoin. Bitcoin alone.
Speaker 1: Right now, you've seen AI, You've seen a lot of
Speaker 1: noise around it. So it looks like there's going to
Speaker 1: be a market for this thing, and that it's going
Speaker 1: to be not just holding it because it's scarce, but
Speaker 1: they might be utility for it going down the road,
Speaker 1: it looks like. But still we don't know what these
Speaker 1: things do. What I mean, we don't know what these
Speaker 1: things do. Everybody says bitcoin, bitcoin, bitcoin, but how many
Speaker 1: transactions can you do in legals with bitcoin. I liked
Speaker 1: there's a guys on team in America talking about that.
Speaker 1: He was a realistic guy and he was saying that
Speaker 1: the way they finance real ested now or how his
Speaker 1: fam fantasis real est is that when you come to
Speaker 1: them to borrow money, Let's say, want to borrow ten
Speaker 1: million dollars, they would they will borrow you twelve million dollars.
Speaker 1: Then they will tell you to use the extra two
Speaker 1: million dollars to go buy bitcoin. So what they're doing
Speaker 1: is that they're buying bitcoin to give the project liquidity
Speaker 1: and safety. So when you're building the house, you have
Speaker 1: these two million bitcoin that you bought when you took
Speaker 1: the loan, and it just sits there. So if something
Speaker 1: happens to the house, maybe there was a fire or
Speaker 1: folks not buy the house, in their mind they can
Speaker 1: sell that two million bitcoin and do recoveries. So you know,
Speaker 1: you borrowed twelve million, but you only want to ten.
Speaker 1: They gave you two million to buy bitcoin, so in
Speaker 1: their mind, the bitcoin price is going to be stay
Speaker 1: more stable than when you're home at your building, so
Speaker 1: they're able to use that bitcoin as collateral or to
Speaker 1: guarantee the cash flows of that realistic investments. If we
Speaker 1: start to see more of these things that will happen
Speaker 1: where people are finding innovative ways to use crypto, bitcoin
Speaker 1: and the rest to do normal transactions, then this thing
Speaker 1: can really really take off. Well, I mean this thing
Speaker 1: crypto currencies or crypto as a utility can really take
Speaker 1: off because then people will see, oh, I can use
Speaker 1: it for this. There's a blockchain. You can use blockchain
Speaker 1: for elections for currency, which is what bitcoin is. But
Speaker 1: if this thing really takes off where Walls is able
Speaker 1: to make it mainstream, then of course it's a good investment, right.
Speaker 1: But I wouldn't say be very careful by putting on
Speaker 1: putting more than ten percent of your portfolio in this.
Speaker 1: If you want to invest in this, yeah, there's one percent,
Speaker 1: two percents of a portfolio. I wouldn't say that's the
Speaker 1: wrong thing to do. But putting ten percent is taking
Speaker 1: it a bit. You are making the larger part of
Speaker 1: a portfolio for now, unless, of course you can accommodate
Speaker 1: that risk and you think you're a younger person you
Speaker 1: can catch up. But be very very careful about buying
Speaker 1: to something we don't yet have regulations on yet. No
Speaker 1: matter what the guys today are saying, there is still
Speaker 1: no definite regulation on crypto, blockchain and all that. They
Speaker 1: are talking about it, but not in final act wear
Speaker 1: so until because something final and definitive, just be careful
Speaker 1: a bit, right and how you want to invest in
Speaker 1: that space. Nigerians buy it because nayra is a bit
Speaker 1: you know, which will say a weak. So Nigeans like
Speaker 1: to buy crypto because it's sort of it's a hedge
Speaker 1: against investments and all that. I get it and also
Speaker 1: just make a lot of money from it. Also get it,
Speaker 1: but just be careful. Still today you can go to
Speaker 1: a bank and open an account and say it's a
Speaker 1: bitcoin account or it's a crypto account. They won't let
Speaker 1: you do it, but Najians are doing it because they
Speaker 1: have to. It's also the way we transform on with
Speaker 1: from America Nigeria true pip. I get that part. So
Speaker 1: in Nigeria, in India and all those brass in all
Speaker 1: those countries is a big thing. But for now, until America,
Speaker 1: the UK, the West adopt it really and it goes mainstream.
Speaker 1: It's not something you can put on a temperature. It's
Speaker 1: not like an equity you can buy more than ten
Speaker 1: percent in, but it does make money for you. That's
Speaker 1: I won't lie about that one. So keep that in mind,
Speaker 1: all right, Guess next year I like this one calor
Speaker 1: just to be clear about the credit cards again, just
Speaker 1: to be sure. I already have credit card and I'm
Speaker 1: owing a lot of I'm owing a lot. I have
Speaker 1: to credit cards and I've marked them out, and I'd
Speaker 1: like to take a TED credit card because this TED
Speaker 1: credit card allows me to do a balanced transfer. Am
Speaker 1: I doing the right thing? Okay? So there's a great
Speaker 1: question on you are already in debt, how can you
Speaker 1: come out of debts? And credit card, like I said,
Speaker 1: are very very easy for you to going into debt
Speaker 1: because they're very easy to use. A credit card has
Speaker 1: a trick. I have to remember this trick that banks
Speaker 1: used to get you. When you are giving a credit
Speaker 1: card of one thousand dollars, if you spend that one
Speaker 1: thousand dollars, all the bank wants from you to say
Speaker 1: you have paid is two point five percent. So if
Speaker 1: you spend the one hundred dollars and you pay two
Speaker 1: dollars or let's say five dollars to the bank. You
Speaker 1: have paid. That's it. You've paid for the month, so
Speaker 1: you can carry over ninety five dollars. Why does the
Speaker 1: bank do this, because when you carry over ninety five dollars,
Speaker 1: they charge you twenty seven percent or whatever the ap
Speaker 1: ar is. That's the trick about credit cards. They do
Speaker 1: not want you to pay everything in full in the
Speaker 1: month of usage, so it becomes very very easy to use.
Speaker 1: So if you have a loan or if you have
Speaker 1: a bill to pay, you put it on your credit card.
Speaker 1: But if you put a one hundred dollars in a
Speaker 1: credit card, you only pay five dollars. You see, so
Speaker 1: it's easy. If you go to the store, you buy
Speaker 1: two hundred dollars worth of goods, you only pay ten dollars.
Speaker 1: You're fine. The bank lets you carry over that tony
Speaker 1: that's one eighty the next month. So you keep on
Speaker 1: carrying over, keep on caring over, keep on carrying over
Speaker 1: until you've maxed out the card. And when you max
Speaker 1: out your card, it's the same as if you are
Speaker 1: not paying use that percent, your creditscore will also come down.
Speaker 1: So now you're in the big problem because now you
Speaker 1: have been living your life on credit. You don't have
Speaker 1: the money to shop in the grocery store. You're not
Speaker 1: going to even pay your rent, but you've been paying
Speaker 1: it on your credit card. Now your credit cards are
Speaker 1: maxed out. You can no longer live that life anymore.
Speaker 1: So what you should you do? You want to come
Speaker 1: out of debt. So how do you come out of debt?
Speaker 1: We have two ways. We have the avalanche and we'll
Speaker 1: have the snowball. I always get confused about which is which,
Speaker 1: But there are two ways to do this. The first
Speaker 1: way to say, you write down everything you are owing.
Speaker 1: So you write down all your debts. You do, your
Speaker 1: credit cards, your personal loans, your everything you are owing.
Speaker 1: You write it down. Then you write the cost of
Speaker 1: the loan, so that's the interest rates, what we call
Speaker 1: the API. Write down the cost of the loans interest
Speaker 1: rates to the APR. Then of course you write the amount.
Speaker 1: So you have all your debts, the cost of the debts,
Speaker 1: and of course the amounts. So there are two ways
Speaker 1: to pay your debt. The first one is to pay
Speaker 1: the debt with the lowest amount. So if you're right,
Speaker 1: if you have if you owe, like this guy owns
Speaker 1: two credit cards, maybe he owns the personal and let's
Speaker 1: say he owns five thousand, four thousand, one thousand. The
Speaker 1: first method is to pay down the debt that is
Speaker 1: charging you one thousand. Why because it gives you an
Speaker 1: early win, so psychologically it helps you. So you own
Speaker 1: five thousand paying ten percent, you own four thousand paying
Speaker 1: five percent, then you own one thousand paying twelve percent.
Speaker 1: So you are paying down that first one thousand dollars,
Speaker 1: so your initial quick win. And once you pay that
Speaker 1: loan off, you take that money you used to pay off.
Speaker 1: You now start to pay off the other loans. So
Speaker 1: you write your loans down, you pay off the lowest amounts.
Speaker 1: Then you take that same money and you're attack the
Speaker 1: next loan to pay it off as well. What advantage
Speaker 1: you get an initial early quick win. The other method
Speaker 1: is that it's still a you pay the lowest amount,
Speaker 1: you pay the highest interest costs. So if you have
Speaker 1: three loans, you pay the one with the highest interest
Speaker 1: cost first, not the one with the lowest amount. So
Speaker 1: if you look at the loans, you have five thousand
Speaker 1: at three percent, you have four thousand at ten percent,
Speaker 1: you have one thousand at five percent. You pay the
Speaker 1: four k own that has a higher interest rate first,
Speaker 1: because that's what's taking money away from you. So if
Speaker 1: you pay that one first, you are reducing the cost
Speaker 1: of the loan, even though it might take you longer,
Speaker 1: but the cost is reducing because you are paying it first.
Speaker 1: If you look at all your loans, your credit card
Speaker 1: loans are always going to be the highest APR always,
Speaker 1: so you want to pay those ones down first. So
Speaker 1: what he is trying to do is to take a
Speaker 1: new credit card and do what's called the balance transfer,
Speaker 1: where you can take the balance from your old card
Speaker 1: to this new card. Usually when you do this, the
Speaker 1: credit card company will give you a time before you
Speaker 1: start to make your payments with interest. So you're doing
Speaker 1: a good job on doing the balance transfer, but make
Speaker 1: sure you get one with a longer and you didn't.
Speaker 1: You didn't mention how long your balanced transfer your zero
Speaker 1: percent APR on the balance transfer is. If you want
Speaker 1: to do that, make sure you get a credit card
Speaker 1: with it with a very very long period before you
Speaker 1: start to pay interest, so that gives you more time
Speaker 1: to pay off your credit card that has those high balances.
Speaker 1: Transfer the credit card with the highest APR first, not
Speaker 1: the credit card with the highest amount, So you don't
Speaker 1: know how you just said. You have two credit cards.
Speaker 1: So after the two credit cards, which one has a
Speaker 1: higher ap are higher annual percentage rate, transfer that first
Speaker 1: to the new card and then try to then pay
Speaker 1: it off. You now have more time to pay it off.
Speaker 1: You take it away from your old card. You don't
Speaker 1: have you say yeah, they give you try to pay
Speaker 1: off within a year. So bounce transfer is a great
Speaker 1: way to do it. And once you do this, you
Speaker 1: want to now look at your butt and try to
Speaker 1: establish the order so going forward, you don't fall into
Speaker 1: a debt trap. You're in a debt trap, bro. If
Speaker 1: you don't come out of it and you get stuck
Speaker 1: into it, you're gonna be in serious trouble. Right. You
Speaker 1: don't want to cancel a card or you don't want
Speaker 1: the card to cancel. You don't want to put your
Speaker 1: name down with the credit bureaus that you don't pay
Speaker 1: your debts on time, because that would really bring down
Speaker 1: your score, get a negative mark on your credit. So
Speaker 1: you want to avoid that. Whatever you do, you want
Speaker 1: to avoid not paying your credit card or any loans
Speaker 1: because they get reported and to affect your credit card.
Speaker 1: So please, please please pa piece. Do this credit transfer.
Speaker 1: You're doing transfer, do the highest APR. Get that going.
Speaker 1: Then you need to really cut down your expenses and
Speaker 1: start to pay down a credit card. You need to
Speaker 1: really cut down, cut down your cable, cut down everything
Speaker 1: else you're doing, and just focus on debt repayment. Right,
Speaker 1: great job. Oh I just lost I just lost dark board.
Speaker 1: Was gonta invite you to speak, but you just dropped
Speaker 1: off now, so I want to add you back. If
Speaker 1: you come back on time, I can take a question
Speaker 1: or I'm going to go back to DM again. Yeah,
Speaker 1: I just want to talk about our mortgages. Yeah, so
Speaker 1: this is a great question. But I think I wrote
Speaker 1: an article guys about mortgages and the article was titled
Speaker 1: how an immigrants can buy a house into the six months.
Speaker 1: So I gave you step by step, not not to
Speaker 1: step by step, how you can go from you leave Nigeria,
Speaker 1: you go to Europe. Anyway, in Europe you can buy
Speaker 1: a house into the six months, and I poot qualifications
Speaker 1: there as well. Number one, you have to have a job.
Speaker 1: Once you have a job, I can get you a
Speaker 1: house into the six months. You have to have that plan.
Speaker 1: And if you want to google it just go online.
Speaker 1: I read it for Nura Metrics. So just say how
Speaker 1: immigrants can buy a house into the six months caln metrics.
Speaker 1: That's article should pop up and I'll give you because
Speaker 1: that's what you're asking cyber, that's what you're asking you
Speaker 1: on your DM. Let me explain to you. To buy
Speaker 1: a house, you need three things. Number one, credit score,
Speaker 1: what number I will say minimum seven hundred, minimum seven hundred.
Speaker 1: Number two, you need to have your down payment. So
Speaker 1: you want to save some money down because I'm going
Speaker 1: to ask you to do a down payment. So number
Speaker 1: two down payment right. Number three it's up your credit
Speaker 1: call down payment. Tax returns. You need at least two
Speaker 1: years tax returns. Right. So let's say you leave Nigeria.
Speaker 1: There are few things you want to do. Well I
Speaker 1: leave in Nigeria. If you have money in Nigeria, I
Speaker 1: want to jack bar. Make sure you have a pay
Speaker 1: per trail. So if you sell your car, collect the check,
Speaker 1: pay it to the bank account. Pay everything to the
Speaker 1: bank account. Don't collect cash even if it's your friend.
Speaker 1: Just just leind me cat, just let me check, collect check,
Speaker 1: pay to your bank account. Right, it shows off my
Speaker 1: bank account. Cut yourself a check, print your bank account,
Speaker 1: take it with you. Number one. So you want to
Speaker 1: establish a paper trail of how you got money. And
Speaker 1: you are taking to the United States, especially I don't
Speaker 1: know if UK, I know America, right, So you have
Speaker 1: the perpetuate where you sold your asset, you sold your house,
Speaker 1: you sold your car, you paid your bank account. It's
Speaker 1: in your bank account. You have pick your account statement,
Speaker 1: print your account statement, get the bank to stamp it.
Speaker 1: Put in your pocket your travel when you get to America.
Speaker 1: What's the first thing you want to do. You want
Speaker 1: to get a job. You want to get a job
Speaker 1: when you get it. While you're getting a job, because
Speaker 1: you like to want to show income. You want to
Speaker 1: show end income so you can pay taxes. You don't
Speaker 1: need a job to pay taxes. You can pay taxes
Speaker 1: in America without a job. But get a job if
Speaker 1: you don't have papers. As a different matter, if you
Speaker 1: don't have papers, you can still pay pay taxes. So
Speaker 1: let's say you don't have papers, still pay taxes. How
Speaker 1: you apply for a tax and especial number ten. You
Speaker 1: can still pay taxes without having social or being a citizen.
Speaker 1: But let's assume you emigrate the right way, and you
Speaker 1: are there. You are now getting a job. So you
Speaker 1: get a job so you can show end income right
Speaker 1: when you get a job. Next thing you want to
Speaker 1: do you get a credit card or a personal loan.
Speaker 1: Don't wait if you don't have credit cad go to
Speaker 1: a credit union or to any back. I said I
Speaker 1: want a secured credit card, I would say, do two
Speaker 1: of them, get a secret credit card, get a secured
Speaker 1: personal loan, two of them. It's the reason why I'm
Speaker 1: watching to get two of them. You don't have to
Speaker 1: put big money. You put five hundred dollars. You put
Speaker 1: it's your money, So you put five hundred dollars, five
Speaker 1: hundred dollars. It's not going to cost you a lot.
Speaker 1: It's your money. You put the money on the credit card,
Speaker 1: use the same credit card and buy your groceries and
Speaker 1: you pay. So you have established credit number one number two,
Speaker 1: you have established end income number two. You do this
Speaker 1: for at least twenty four months, or when you go
Speaker 1: to the America to the abbey, you do this for
Speaker 1: twenty four months. So you for the twenty four months
Speaker 1: you have your credit card running, you have your personal
Speaker 1: loan running, secured personal it means you don't need the money.
Speaker 1: It means you give them your money. They give you
Speaker 1: a personal loan and you'll also payments back. It sounds confusing,
Speaker 1: but Google it's secured personal loan, secure credit card. So
Speaker 1: you have a job end income. You've paid taxes in
Speaker 1: year one, you pay taxes in year two. You have
Speaker 1: a credit card and a personal loan that you have
Speaker 1: been paid without fail for another twenty four months. You
Speaker 1: have your bank statement showed that in Nigeria you paid
Speaker 1: all your assets. You have that that ten thousand dollars
Speaker 1: cash that you brought with you from Nigeria to America,
Speaker 1: you have it with you. You have to prove where
Speaker 1: it came from if you have people giving your money
Speaker 1: in Nigeria that Let's say your mom has money and
Speaker 1: your mom's going to give you money to buy your house.
Speaker 1: Your mom will write a letter saying it is a
Speaker 1: gift to you. She does not want to pay the
Speaker 1: money back. She's giving you a gift. She'll write a letter.
Speaker 1: You take that letter, you keep it with you. You
Speaker 1: now go to your bank. This is after twenty four months, Abe,
Speaker 1: We're now in the third year. You go to your bank.
Speaker 1: What would they ask you for tax return. You have
Speaker 1: it two years, you've been paying taxes. Credit score. They're
Speaker 1: going to pull it because you've been paying your credit
Speaker 1: card and your personal loan without fail for twenty four months.
Speaker 1: You're going to have a very very high score. It's
Speaker 1: going to be more than seven hundred without fail. You
Speaker 1: will also have two years of returns, so you get
Speaker 1: that extra ten points. You also have no inquiries. Don't
Speaker 1: try to apply for another card. You don't need another card.
Speaker 1: Just need that one credit card and one personal and
Speaker 1: doesn't even like that hires too, But don't try to
Speaker 1: apply for more. You have their inquiries. You've done good.
Speaker 1: They will pull your credit number one to put your
Speaker 1: attack to chump, but to based on your income. Based
Speaker 1: on your income, they are going to use what's called
Speaker 1: a debt to income to tell you the kind of
Speaker 1: house you qualify for. The only thing you can change
Speaker 1: is the kind of income you make. Don't wait and
Speaker 1: say till like make big income, I will go and
Speaker 1: buy the house. Even if you work in Amazon and
Speaker 1: you're parking or walk in Walmart, you still have income.
Speaker 1: The bank will tell you, based on your income, you
Speaker 1: can afford this kind of house. So now you've qualified
Speaker 1: to get the loan. You go to the bank. Bank stage.
Speaker 1: We're going to give you a pre qualification of even
Speaker 1: if it's forty thousand or a few thousand dollars. You
Speaker 1: have that one from the bank. You have your down
Speaker 1: payment from the you sold your money in your assets
Speaker 1: niger You have the money in cash in the bank.
Speaker 1: You have a letter from your parents or whatever's giving
Speaker 1: me your money in Nigeria. You have your bank statement.
Speaker 1: You have all that. The bank will take all that
Speaker 1: from you. What house should you buy the first time
Speaker 1: in America. You don't go and buy the house you like.
Speaker 1: You buy the house that you can rent out. So
Speaker 1: when you go to the city, you want to buy
Speaker 1: a house in a place where you can rent out.
Speaker 1: There's a reason for these guys. Let's assume you are
Speaker 1: not married. Perfect. If you are married, don't have kids,
Speaker 1: this is perfect for you. You buy the house where
Speaker 1: you can rent out. So you go them because you
Speaker 1: might not have enough income to get your house in
Speaker 1: the suburb. So you go and get a house you
Speaker 1: can rent out, even if it's one bedroom, you buy
Speaker 1: that one, you stay there. You have entered now the
Speaker 1: mortgage business in America. Once you are in that house,
Speaker 1: you can stay one year. You build up your equity there.
Speaker 1: You can, when you now have kids, move to the
Speaker 1: house that you want in your own school district. Because
Speaker 1: now you have a house, you can rent that house out.
Speaker 1: It's our income. When you go back to the bank
Speaker 1: to get your second house where you really like, where
Speaker 1: you have the school district, that house is going to
Speaker 1: be listed as income because I'm going to leave that
Speaker 1: house rented out, So it's income and your balance shape.
Speaker 1: The bank will consider that you have income from your job,
Speaker 1: you have income from your house. You can then get
Speaker 1: the house that you like. That's how you do it.
Speaker 1: You get in at the lower end. You move on.
Speaker 1: Let's say you are married. You already have kids, so
Speaker 1: you can't do this, go and get the house in
Speaker 1: the rental area. That's fine. You man need to do more.
Speaker 1: You maney to buy a smaller house today before you
Speaker 1: get to the bigger house. In America, people buy homes
Speaker 1: based on school district. Not that the road is fine,
Speaker 1: is it because it's your kids. So if you don't,
Speaker 1: if you have kids, the need to go to a
Speaker 1: particular school, that's why you spend more. Unless you do
Speaker 1: the commute, but that's how you want to do it.
Speaker 1: But the elements are the same tax return which you
Speaker 1: get from two years credit. You do that, you don't
Speaker 1: waste time. You do it in Miliatoy. It accounts for
Speaker 1: you to inform on start account for you secured with
Speaker 1: means to doing the credit card, to get a credit card,
Speaker 1: secure credit, seecret personal loan, tax returm, savings for your
Speaker 1: down payment. That's your money brought from Nigeria or if
Speaker 1: someone's going to give your money from Nigeria, you want
Speaker 1: to make sure you have it. Your letter saying this
Speaker 1: is not a gift. This is a gift. It is
Speaker 1: not a loan. I'm giving it to him. It's not
Speaker 1: going to pay back. All right, guys, So pull off
Speaker 1: the articles detailed is listed. I listed the steps for
Speaker 1: you one buy one by one by one, so it's
Speaker 1: not theory. That's what I do, right all right, folks, excellent,
Speaker 1: all right. So I've got b wires. You guys should speak.
Speaker 1: I have a lot of DMS. I didn't want to
Speaker 1: speak and have an intact session. I by saying my
Speaker 1: question about the government bond, how can I buy it?
Speaker 1: If you want to buy a government bond, just speak
Speaker 1: to your broker or your banker. We have treasury bills,
Speaker 1: We have treasury bonds, but those ones are from fifty million,
Speaker 1: so you can buy that one directly, or you can
Speaker 1: buy a mutual fund issouled, buy a broker or a banker.
Speaker 1: So buy talk to your broker or your banker. If
Speaker 1: you're not buying two bond number two, can I opt
Speaker 1: out and get my principal? Sure, you can sell at
Speaker 1: any time, just ask them that if you sell before
Speaker 1: it's matured, what do you get. Remember, if you buy
Speaker 1: a mutual phone, there's no maturity. Yout us buyd into
Speaker 1: a phone. You can sell your phone and move away
Speaker 1: immediately anytime. But when you buy the treasury bill from
Speaker 1: the market primary market, you have to hold for telling matures.
Speaker 1: Or you can sell during and just get your just
Speaker 1: kind of money and grave with There's no penalty if
Speaker 1: people will buy it from you, you can just get
Speaker 1: your money and working with you. So, yes, you can
Speaker 1: get your principal and opt out. That's no problem. Is
Speaker 1: the any background check to buy? There's no background check
Speaker 1: per se. Just pick to your banker. I think Niga
Speaker 1: likes to do the money has to be in Nigeria
Speaker 1: and all that kind of stuff. KYC. So I'm not
Speaker 1: gonna have a bank account in Nigeria. Tell your banker,
Speaker 1: tell your broker, they will buy it for you. It's
Speaker 1: a normal key YC that they do. They will do
Speaker 1: that for you and you to get that loan. Like
Speaker 1: got phoos, I got foods? Folls on the score, king,
Speaker 1: guys are having a great session, right, foth on the score? King?
Speaker 1: What's your mind? Talk to me?
Speaker 2: Yeah, thank you so much. I'm calu really, thank you.
Speaker 1: I'm coming.
Speaker 2: If you can't hear me, can you hear me?
Speaker 1: Yes?
Speaker 2: Okay, awesome.
Speaker 11: So you know I've been following from by the web
Speaker 11: with you think I'm on your space. I want to
Speaker 11: ask question because you know most folks have been asking
Speaker 11: questions as a reality with personal income. Right, if I'm
Speaker 11: going to put you on the spot, right, if you
Speaker 11: have an opportunity to listen to to to to get
Speaker 11: a loan, right, would you prefer to get it on
Speaker 11: on your personal accounts or probably on your business account?
Speaker 11: That is, if you want to use that debt to
Speaker 11: increase your assets.
Speaker 2: Would you prefer its being on.
Speaker 11: Your business account or on your personal account just.
Speaker 1: On my business because I can do more what's it
Speaker 1: called deductions tax deductions from the business side. So if
Speaker 1: I have a business count, there are more expenses I
Speaker 1: can write of them on the personal side. That's that's
Speaker 1: the reason why I like on my business side.
Speaker 2: Okay, awesome.
Speaker 11: Now, second question is this, So I am currently in
Speaker 11: kik Ali, right, relocated sometime last year February to expand
Speaker 11: my business operations here. Would you would you advise someone
Speaker 11: who got into the country right, I'm wanting to own,
Speaker 11: reinstrate property for the aim of, of course, advancing his
Speaker 11: ambition of getting citizenship with that. Would that be a
Speaker 11: wise investment from your end?
Speaker 7: Bason?
Speaker 11: You know experiences that you've had on conversations that you've
Speaker 11: had as well.
Speaker 1: I think it depends on what the conscious laws are,
Speaker 1: so they're all conscious specific. In America, they have laws
Speaker 1: about how you can buy property to get citizenship or
Speaker 1: green cards. So you have to find out the laws there.
Speaker 1: If the laws essay it's possible, yeah, sure, if you
Speaker 1: have the money. It's an expensive way to get citizenship.
Speaker 1: It's more like property should be more of I want
Speaker 1: to invest. Andrew Rwanda is a very very liberal in
Speaker 1: terms of immigration and business. So I don't think you
Speaker 1: need to worry about if you are there, you're not
Speaker 1: going to come kick you out. So if you only
Speaker 1: invest in properties because of the returns, not because you
Speaker 1: want to stay or for immigration, if you get what
Speaker 1: I'm saying, so you're your your criterias should be is
Speaker 1: it a good investment rather should I want to buy
Speaker 1: this passport from kig as something like that?
Speaker 11: Okay, all right, so listen, Thank you so much because
Speaker 11: I am had a couple of my friends over we're
Speaker 11: having this conversation. I think on Friday, I have them
Speaker 11: over here, so you know, I don't say to bring
Speaker 11: that up, so you know they could learn from your
Speaker 11: experience as well.
Speaker 2: Nice, Thank you so much.
Speaker 1: Welcome, have a good one, yea, I appreciate you. Let's
Speaker 1: get ny ware room ignacious choose or bam m P.
Speaker 1: How are you doing when I can hear me? So
Speaker 1: let me get to go to is it? Let me
Speaker 1: as if you could back in there and whenever I
Speaker 1: added you and you're not speaking, you know, yeah, please
Speaker 1: go ahead.
Speaker 12: Thank you mister Carlo for this exciting episode. I call
Speaker 12: I speak from a cadacnastic Nigeria. And my question is this,
Speaker 12: asce civil.
Speaker 13: Servants, it's wise for me to borrow from a staff
Speaker 13: corporative outfits at the rate of ten thousand, I mean
Speaker 13: ten percent to invest in Nigerian shears and.
Speaker 12: This lord payable in two years. I need to be
Speaker 12: the doctor from my salary. So will it be a
Speaker 12: nice financial investment to do?
Speaker 2: Thank you?
Speaker 1: So, so let me make sure I quote my I
Speaker 1: use my words very carefully. So there are two questions there.
Speaker 1: You're ask Norber One, should you borrow from a cooperative?
Speaker 1: The answer is at what interest rate you give us?
Speaker 1: That interest rate at ten percent, So ten percent is
Speaker 1: lower than the cost of inflation. So on the surface,
Speaker 1: it looks like a very very good load because if
Speaker 1: I borrow, I'm borrowing lower than inflation, with means that
Speaker 1: I have one leg good. I simply have to look
Speaker 1: for something that can pay me ten plus and I'm okay.
Speaker 1: So once I get ten plus, I'm okay. So the
Speaker 1: first part of your question we've passed that, we've answered it.
Speaker 1: If I can get any investment that can pay me
Speaker 1: ten plus, I'm okay. Let's not go to your second part.
Speaker 1: You say you want to invest in shares in equities
Speaker 1: in niger stock market. Now that's the problem. Why is
Speaker 1: it a problem? Because shares are what we call variable return.
Speaker 1: The returns can be one hundred percent, the returns can
Speaker 1: be one percent. So if I borrow at ten and
Speaker 1: I invested in the stock market last year, last day,
Speaker 1: market did about ten six percent at our made money
Speaker 1: last upper other So it's really down to do why
Speaker 1: I think the market to make ten plus in twenty
Speaker 1: twenty five, And no one can answer that question for you.
Speaker 1: It is a risk that if it pays off, you
Speaker 1: make money. If it doesn't payoff, you're going to lose money.
Speaker 1: But they always say the past is prologue, But in investments,
Speaker 1: we always say past performance is not a should not
Speaker 1: be used to judge the future. If you look at
Speaker 1: stock market returns across Nigeria for even the last twenty years,
Speaker 1: many times the only investments has put in inflation. Nigeria
Speaker 1: has been a stock market last year. The stock market
Speaker 1: bet inflation last year. So it's a question really for you,
Speaker 1: are you comfortable taking that risk to invest in ten
Speaker 1: percent in a market where it has a propensity to
Speaker 1: beat inflation, But the risk of even one percent would
Speaker 1: make you not made that's return. The question is this,
Speaker 1: how are you hedged? If you take that ten percent
Speaker 1: and invest in stock market and market returns five percent,
Speaker 1: can you still pay back that loan in two years
Speaker 1: without anything happening to your network oricuusly harming you? If
Speaker 1: you can, it increases the option of variable markets. If
Speaker 1: you cannot, I will not advise you do that. I
Speaker 1: would advise you go like I told you a gentleman,
Speaker 1: you're having ten plus. We have the Sameston Nigeria is
Speaker 1: savings bonds by the federal government that they're paying twelve percent.
Speaker 1: That's only two percent for you. If you want to
Speaker 1: take the risk to go and do money markets, mutual
Speaker 1: funds or unit trust, they pay you more. Is still
Speaker 1: more secured. So the answer is if in two years
Speaker 1: the market is zero, stock market is zero, will you survive.
Speaker 1: If you can survive, it means that you have a
Speaker 1: greater propensity to invest in stock market. But if the
Speaker 1: market is zero and you can survive, I would say,
Speaker 1: don't even think about it. That's all right.
Speaker 2: Thank you, Thanks to.
Speaker 1: You are very welcome. It's a check quilo. How are
Speaker 1: you doing so?
Speaker 8: Thank you God?
Speaker 1: What's happening. I can't hear you. If you can't hear
Speaker 1: I can't hear you. Oh I think he's speaking, but
Speaker 1: I can't hear him. Yeah, so he dropped off. Let
Speaker 1: me get tall nero, tall nero, what's up? Man? Thank
Speaker 1: you for for for a compliment, sir, Thank you.
Speaker 2: It's a lovely thing what you're doing every weekend. And
Speaker 2: and I learned you.
Speaker 1: Thank you.
Speaker 2: I'm learning the things about trying anything, and I'm very I.
Speaker 4: Wish to talks more about Yeah, I do under find stay.
Speaker 1: I stay in both I stay in both places. And
Speaker 1: if you ask me a drunk question, I answer, I
Speaker 1: stayed both. Nobody else asked me a drunk They've as
Speaker 1: been a drug question. I've answered. So the problem in
Speaker 1: job we don't have a very very developed credit market.
Speaker 1: We have credit scoring Niger right now. We used to
Speaker 1: have credit card nager right now, we have a lot
Speaker 1: of we don't have mortgages in real estense nager. That's
Speaker 1: also problem. So it's difficult to talk because the bread
Speaker 1: is not there. But if you ask me a question, jobs,
Speaker 1: go ahead.
Speaker 4: Yes, Like I said, I was listening to but when
Speaker 4: you mentioned what captured my attention when you mentioned that
Speaker 4: you can in a way you use your credits car
Speaker 4: have the tds before you start.
Speaker 2: Approving interest and that's like very nice.
Speaker 4: I was something that is something like that in this
Speaker 4: country to because.
Speaker 2: I have a friend that did that.
Speaker 4: For me last Yes, the regionally giving interests, I pay
Speaker 4: back at the end of the month.
Speaker 2: That is support my business and lot and it really
Speaker 2: have doing loads in will do that this year.
Speaker 4: I don't think it's the game that's acts a lot
Speaker 4: of things that he's doing.
Speaker 2: But if like in this country now banks or.
Speaker 4: Whether the entire credit of fars was final fool, I
Speaker 4: haven't heard of it before.
Speaker 2: Actually the best because every time you.
Speaker 4: Talk about borrowing, there's always interests and it doesn't take
Speaker 4: up to tech fugi interests feeling.
Speaker 2: That's one. So it's about one in there.
Speaker 4: What are you I don't know if I'm taking it
Speaker 4: outside the studies about what are your lumbers that you
Speaker 4: look outful before you go to any stuff like from
Speaker 4: the company's financial probably you look out for before you buy,
Speaker 4: before or when you want to tell you.
Speaker 1: Good, great, great question. Let me talk about the credit
Speaker 1: card so it's not thirty days is what we call
Speaker 1: the cycle date. It's most of the thirty days you
Speaker 1: come to in two days, but the credit card company
Speaker 1: will tell you so it's not a fixed thirty. Make
Speaker 1: sure you find out what the cycle date is. That's
Speaker 1: how long you go from when you use the card
Speaker 1: to when you are to pay right, So make sure
Speaker 1: you find out that number. And it's all credit cards,
Speaker 1: even credit cards in Nigeria if they have them, they
Speaker 1: all have a cycle date. You swipe on the first
Speaker 1: you'll have the time that you have to pay back
Speaker 1: that card. If you don't pay back that card, then
Speaker 1: you don't pay interest. You don't pay interest when you swipe,
Speaker 1: you pay interest of what you carry over to the
Speaker 1: next cycle data. That makes any sense, So make sure
Speaker 1: you find out and then the company lets you know.
Speaker 1: That's on your first question. So your second question about
Speaker 1: what you look out for in the top before you invest.
Speaker 1: So you have to let's ask yourselves what is a
Speaker 1: stock or a share? I think the word described that
Speaker 1: I'm buying a share of a company. So let's use
Speaker 1: let's use footballer analogy because people tend to understand when
Speaker 1: you use footb analogy. If I want to buy messy,
Speaker 1: it's messy A good bye. Today everybody will say, of
Speaker 1: course Messy is a goodbye. Of course miss a goodbye.
Speaker 1: So let's say a in Ba Eyingba football Club and
Speaker 1: Namba wanted to buy Messy. They can't afford him because
Speaker 1: right now he's worth millions, you can't sign him. But
Speaker 1: ay Inba could have bought Messy thirty years ago because
Speaker 1: back then Messy was what maybe how much? Maybe ten
Speaker 1: thousand dollars And that's just some examples, right, So what
Speaker 1: should a Inba have looked at if they saw Messy
Speaker 1: training in a bar and wanted to buy him. Number one,
Speaker 1: they have to ask themselves is this person? Is this
Speaker 1: footballer going to make money? They're going to be a
Speaker 1: good footballer in thirty years time. That's what they want
Speaker 1: to look at. They want to look at what called
Speaker 1: the intrinsic value of Messy. Ah, he can trap balls.
Speaker 1: Look at how he is They can run and dribble
Speaker 1: at at age five. So because he's sure knows these flashes,
Speaker 1: we believe that in thirty years time he will, he
Speaker 1: will get better, he will win market share and he
Speaker 1: will even be the best in this field that he's doing.
Speaker 1: So when you look at MESSI at five years old.
Speaker 1: You want to value him then with the mind to
Speaker 1: the future. The same as a stock. So I asked myself,
Speaker 1: will MESSI make more problem? How do I know he'll
Speaker 1: make more profit? Okay? Can he trackball? Can he run tankmentters?
Speaker 1: Can he dribble? Can he head can he do free kicks?
Speaker 1: Are all things I'm looking out for. Same with stocks.
Speaker 1: What is the market share of this company? What is
Speaker 1: the company selling? And what the company is selling? Can
Speaker 1: it grow market share to beat competition in the future.
Speaker 1: A stock price is simply the present value of future innings.
Speaker 1: With means that if I want to know if his
Speaker 1: stock is going to go up, I want to look
Speaker 1: at if that stock can make revenues tomorrow. So let's
Speaker 1: come to Nigera. Let's look at Dango Teste Cement. In
Speaker 1: forget that the name is called Dango Cement. If a
Speaker 1: company came and said, we want to build factories in
Speaker 1: Nigeria that will make cement, Wow, that makes a lot
Speaker 1: of sense because Nigeria's import a lot of cement. So
Speaker 1: if I have a company in Nigeria that is making
Speaker 1: cement in Nigeria, will they make sales? Of course, they'll
Speaker 1: mix sills because Naja is always important cements. Okay. Will
Speaker 1: they make sales into the future. Of course, they'll mix
Speaker 1: it because Najas will keep on buying homes into the future. Okay.
Speaker 1: Will they grow market share and beat the foreign guys?
Speaker 1: Of course, because Nigeria laws are saying that if your
Speaker 1: local manufacturer of cement will give you a better tax
Speaker 1: treatment and better import treatment than the foreigners. So if
Speaker 1: I have these three things, I'm looking at the intrinsic
Speaker 1: value of dango teste cement ty years ago. It's going
Speaker 1: to be higher twenty years in the future. So I invest.
Speaker 1: You say, I'm not giving your numbers. Don't do ten percent. No,
Speaker 1: that's that you've been to twenty Be too clever. Ask
Speaker 1: yourself this company you're looking at in Nigeria today, will
Speaker 1: it you around in ten years? Will it gain market
Speaker 1: share in ten years? Will the laws in Nigeria support
Speaker 1: this company to gain market share in ten years? If
Speaker 1: those as are all yes, yes, yes, that's when you
Speaker 1: now start look at the numbers. Okay, what their profits?
Speaker 1: They must make a profit, right, they must sell, So
Speaker 1: won't look at your the sales return, so look at
Speaker 1: the income. Tame look at the sALS. Are the sales
Speaker 1: increasing in five years over a five year period, at
Speaker 1: their sales increasing. If that company is going to make
Speaker 1: profits in twenty years time, then there are five year
Speaker 1: sales should mirror the twenty years period, right, so you
Speaker 1: don't look at their five year sALS. Is it going up?
Speaker 1: Then from sales, you look at their cost of doing business?
Speaker 1: Is their cost of doing business going up or down?
Speaker 1: If a company starts is going to have very very
Speaker 1: high costs, But as a company now gets better in
Speaker 1: what is doing, the cost should be going lower. With
Speaker 1: means that you know, you want to look at their
Speaker 1: cost of operations. Is he going lower? Is he going higher?
Speaker 1: They look at the cross profit the company making it
Speaker 1: operationally operationally, I didn't make any profit before they pay
Speaker 1: bank loans. I didn't making a profit. They should at
Speaker 1: least be making operational profits either making losses operationally, but
Speaker 1: they are making their returns from loans or extraordinary items.
Speaker 1: That means in five years time, he might not be
Speaker 1: a good thing. Just like in if Messi was a
Speaker 1: footballer and all his goals were from penalties, would you
Speaker 1: buy him all his goals were penalties, He's not a
Speaker 1: good striker. That means he needs penalties to score. It's
Speaker 1: civil with the business. If the basin is making money
Speaker 1: from borrowing money to pay salaries, hmm, we're only like
Speaker 1: that company one that come to make will call organic growth.
Speaker 1: So the products are selling, people are buying in domed
Speaker 1: in theme is selling, They're making revenues, they are growing
Speaker 1: their their capacity. You want to look at the story
Speaker 1: of the company, not just the numbers. This story is
Speaker 1: a company going to make money in five years. So
Speaker 1: you ask yourself ten years ago was their Indom in
Speaker 1: Nigeria as it is today? Which have been invested in
Speaker 1: Endome ten years ago? That's the question you want to
Speaker 1: ask yourself. So if you can answer those three questions,
Speaker 1: that's when you can look at the numbers. Number one,
Speaker 1: do you think this is going to make profit tomorrow?
Speaker 1: Number two? Will we make profits with the market share
Speaker 1: go up tomorrow? Number three? Will the government policies help
Speaker 1: this company? If you get too out of three, it's
Speaker 1: not enough. It has to be three across the board.
Speaker 1: When you get this three, you can then come back
Speaker 1: and say, okay, let's look at the balance sheet, look
Speaker 1: at the things like that. So this is this top
Speaker 1: question asked. It's a huge topic. Right, we can talk
Speaker 1: one hour, but at least there's three questions. As a
Speaker 1: non finance person, you can figure it out yourself and
Speaker 1: know if it's going to go up. Does that make sense, sir?
Speaker 1: I appreciate you are welcome. Let me try to get
Speaker 1: it's articularly impacting here, but let's get it a yeah,
Speaker 1: you can speak nor ahead. Let me go back to
Speaker 1: d M d M.
Speaker 8: Folks, I love you, hear me. I can't hear yeah, okay,
Speaker 8: I think the connection is quite bad. Thanks really quickly, alicle.
Speaker 9: M.
Speaker 1: I think it's gone off again. So a good investment
Speaker 1: that is going to be Any investment that gives you
Speaker 1: what's it called good internet, that's gonna be a good
Speaker 1: investment because every every every week we get this. I
Speaker 1: can't hear you dropped off again. Let me get the chief.
Speaker 1: The chief is trying to hook on the chief, let
Speaker 1: me add him. Someone is asking on to that space. Guys.
Speaker 1: I cannot tell you what to invest in. So if
Speaker 1: you ask me should I buy this? Should I buy that?
Speaker 1: I can answer that question. Right. I can't give you advice.
Speaker 1: All we're doing here is educational. I can't tell you
Speaker 1: buy this or buy that. I can tell you about it.
Speaker 1: I can tell you all that, but I can't tell
Speaker 1: you to go buy this or buy that. I just can't.
Speaker 1: I'm a licensed guy, so I can't tell you without
Speaker 1: doing analysis of you. So if you're asking me, I
Speaker 1: lot your question to buy this, I can answer that question.
Speaker 1: So this guys saying I have time learn in savings
Speaker 1: invested the money to purchase land or savings bond. These
Speaker 1: are two very very So he's asking I have a MILLIONAIERR,
Speaker 1: I want to buy a bond or I can or
Speaker 1: buy land. These are two different investment as a classes,
Speaker 1: and they offer two different things. When you buy a bond,
Speaker 1: you are getting income. When you buy land, you are
Speaker 1: getting capital appreciation with no income. So the question is
Speaker 1: do you want income or not? You know there is
Speaker 1: no good or bad investment. The investment simply have to
Speaker 1: match your objective. So you don't go and buy a car.
Speaker 1: You say why you want to buy a card, and
Speaker 1: you buy the car to suit your objective. So back
Speaker 1: to you, mister j. The question is this, do you
Speaker 1: want income? If you want income, you buy the savings bond.
Speaker 1: If you want capital appreciation, you buy the land. There
Speaker 1: are two different things here. You can compare land and
Speaker 1: savings bond. You compare your objectives. If you want to
Speaker 1: earn income, buy the savings bond. If you want to
Speaker 1: do capital appreciation, you buy the land. Right, go ahead,
Speaker 1: go ahead.
Speaker 14: Okay, okay, thanks, good, great conversation. I had a question.
Speaker 14: But before I answer that question, let me just quickly
Speaker 14: hear what has worked for me with credit card put
Speaker 14: in Europe and in America. If you do this, your
Speaker 14: credits called go of one hundred percent guarantee. Right, So
Speaker 14: when you get your credit card, just like Carlos said,
Speaker 14: it goes on side calls. So look at the date
Speaker 14: when your statement will be generated. So look at the
Speaker 14: date they will generate your statements.
Speaker 8: It's always there.
Speaker 14: If you log in, you go on the app, you
Speaker 14: will see it, right or if you don't know, ask
Speaker 14: them pay back.
Speaker 8: Your credit card three days to that date. It will normally.
Speaker 14: Show you your credit to be your your statement to
Speaker 14: be generated next month of February lesson. For instance, whatever
Speaker 14: you've spent a back on the seventh, I guarantee you
Speaker 14: the next month your credit score will shoot up.
Speaker 8: This works for me in Europe. It works for me
Speaker 8: in the US, just.
Speaker 14: To put it out there for your children. You can
Speaker 14: add your child, even if it's one year old, to
Speaker 14: your credit card. Make the personal authorities user build your
Speaker 14: credit score. By the time they are eighteen, there will
Speaker 14: be well positioned to go into the market.
Speaker 8: Can let me just go and go ahead?
Speaker 14: Absolute and I have a whole lot of things that
Speaker 14: answer just to people hash back.
Speaker 1: Let me let me clarify. Bit, Let me clify a
Speaker 1: bit is it so? Number one? If if you add
Speaker 1: your child, if the child is not so? The credit
Speaker 1: cards have a call authorized user you. Let's say your
Speaker 1: child was to travel to Europe. Americans will take their
Speaker 1: child to the bank and say, give him a credit card,
Speaker 1: my own credit card. Give the child and then added child.
Speaker 1: Ask the bank. Some authorizesers do not reflect your credit
Speaker 1: just to give the child emergency card because leaving you
Speaker 1: you go to school, so you might not reflect. To
Speaker 1: make sure you ask the bank will he get the
Speaker 1: credit It's just an additional card. To make sure you ask.
Speaker 1: It's not automatic that if you add the child, he
Speaker 1: gets the credit. Care Some will say yes, if you
Speaker 1: add this child to the credit care to your credit card.
Speaker 1: I mean if you use a card, the child gets credit.
Speaker 1: Some will, some will not. Make sure you find out
Speaker 1: it's not automatic.
Speaker 14: Yeah, but go ahead your yes, yeah yeah, yeah, the clarification,
Speaker 14: but building the credits for with that paying three days
Speaker 14: to your statement. It works, Ondred present anybody that tries
Speaker 14: it does Worcalo. A question to you is I want
Speaker 14: you to talk about the risk associated with eye in
Speaker 14: commercial papers in Nigeria. And if you think it's on
Speaker 14: the high side, where else will you will? Will you
Speaker 14: put your money apart from stock markets?
Speaker 1: Well, I want to.
Speaker 14: I want to hear your view the risks associated with
Speaker 14: commercial papers with nager.
Speaker 1: So let's define what the commercial of your parents. Right.
Speaker 1: So if I go to the bank and I want
Speaker 1: to invest with the bank, I give the bank my money.
Speaker 1: The bank will give me what we allus fixed deposit. Right,
Speaker 1: So I'm lending money to the bank. I give one
Speaker 1: to the bank. The bank gives me a guarantee that
Speaker 1: they will give me back. And in Nigeria didn't guarantee.
Speaker 1: It's five million, right, five million, So the bank gives
Speaker 1: me a guarantee that they will pay me back. What
Speaker 1: does the bank do with my five million? They give
Speaker 1: you to thegether I wanted want to the money from.
Speaker 1: So there's a borrower, there's there's me, there's the bank.
Speaker 1: When I go to the bank, I give the bank
Speaker 1: my money. The bank guarantees me. But the bank gives
Speaker 1: my money to the to the ultimate borrowers. So I'm
Speaker 1: sleeping happy because the bank is guarantee me nds against
Speaker 1: the bank. I'm okay with a commercial paper. The borrower
Speaker 1: is coming directly to me. So you see, I see,
Speaker 1: I've seen Dangot paper. I've seen empty and control. They
Speaker 1: are saying, calu borrowers the money directly. Don't go to
Speaker 1: the bank. Want to borrow the money directly from you.
Speaker 1: So I'm giving my money to Dangote or empty. And
Speaker 1: also what's the return for me? They pay me higher
Speaker 1: than the bank. So commercial paper is just like a
Speaker 1: higher ending fixed deposit instrument, but it carries a higher
Speaker 1: risk because there's no guarantee on that right, there's no
Speaker 1: bank guarantee, there's no n D I C. It's now
Speaker 1: an issue guarantee. Wait, miss if Dangote says hey, Carlus
Speaker 1: borrow went to Dangote. If empty and says hey KLi
Speaker 1: Breman and borm went too empty, and but maybe other
Speaker 1: guys I don't that're not as popular as Dangote or empty,
Speaker 1: and that if you borrow the money, you are boring
Speaker 1: them based on the issuer name, they might pay you more,
Speaker 1: but they have no guarantee. So it's just the way
Speaker 1: of you raising your return on a fixed income instrument.
Speaker 1: That's basically what the CP is. So if you can
Speaker 1: bear that higher issuer risk, it gives you a way
Speaker 1: to end more money on a fixed deposit.
Speaker 14: Yeah, okay, thank you, Yeah, yeah, makes sense, thank you,
Speaker 14: because because what I was asking is if you do
Speaker 14: if you look at most of the cps coming out,
Speaker 14: it goes from you know, eighteen percent of to thirty
Speaker 14: one percent, right, so thirty one become can be a
Speaker 14: bit tempting.
Speaker 8: But have if I've sat down with a few of
Speaker 8: my friends that.
Speaker 14: We've we've been pondering by like, what's the risk these
Speaker 14: guys are not well known in those the man just
Speaker 14: starting I don't want the name names, but it's been
Speaker 14: on the street, imper I've seen it.
Speaker 8: Or what was the risk associated with going in there?
Speaker 14: You know, if it's the faults, what what would be
Speaker 14: your next line of action?
Speaker 1: Basically there's no line of action. That's the whole idea
Speaker 1: of the CP. If you if you learn money to
Speaker 1: to add to someone and the guy does not pay
Speaker 1: you back, that's to a corporate we have all called
Speaker 1: the corporate ladder for repayments. Usually the creditors are lined
Speaker 1: up right, so they will tell you are subordinated subordinated debts,
Speaker 1: which means that who do they pay first? They pay
Speaker 1: bond holders first, they pay CP's first. Things like that.
Speaker 1: If you read the actual prospectus of the CIP, they
Speaker 1: will tell you where you stand. So if you want
Speaker 1: to really get if you really want to get into
Speaker 1: the weeds of it, right, you have to go in
Speaker 1: and say where do we where are we on that ladder?
Speaker 1: When do we get paid? If the bank fails. This
Speaker 1: is not a bank anymore, it's not with a CPR,
Speaker 1: it's not a company. If a company fails, the losses
Speaker 1: that they pay creditors first. But according to a ship
Speaker 1: to a ladder, bond holders get paid first. Bond means
Speaker 1: that they issue the bond. I believe cps are after
Speaker 1: bonds before they go to equity holders. So the answer
Speaker 1: is that's your only that's your only way you can
Speaker 1: go to them.
Speaker 14: You have to go.
Speaker 1: Usually in America, when the bank or a company fails,
Speaker 1: there's a bankruptcy. You go to the bankruptcy court and
Speaker 1: you file that you have a claim on the assets.
Speaker 1: Then the bankruptcy court is say, okay, when we pay,
Speaker 1: these guys will go to that ladder and pay you.
Speaker 1: In Nigia, I'm not sure how it's done. You can
Speaker 1: also in Ningeria assue and say you have a claim
Speaker 1: on these assets. So like if it's a debenture, you
Speaker 1: have a claim on the generator or the building that
Speaker 1: used to issue that loan. If you don't have any claim,
Speaker 1: you might too. You might hire a lawyer to go
Speaker 1: and grab something legally from the company because you blend
Speaker 1: them money. You want to establish the only you and
Speaker 1: then you go after them. That's are going to be
Speaker 1: your options. Really, But if you read the CP you
Speaker 1: would see where it's stated where you stand. You know,
Speaker 1: that's why you always see sub is what has happened
Speaker 1: for now sub or de neated debt. You know where
Speaker 1: you stand in the in the graveyard or or sh
Speaker 1: say of that company. So if you have a lot
Speaker 1: of money, then you really want to be really a pandemic. Yes,
Speaker 1: you can actually actually like to tell you where we
Speaker 1: if this company goes down, where do we stand intern
Speaker 1: of the payments? Yeah?
Speaker 2: Just concludfully. Thank you.
Speaker 14: Actually you something something new have learned from you today
Speaker 14: is that pecond order? You know who goes first after
Speaker 14: the bond? Do we have CP coming forward or any
Speaker 14: other person? Yeah, that's a good insight. Now do you
Speaker 14: think the guys that that act as vehicles when it
Speaker 14: comes to marketing the CP?
Speaker 8: Do they have any rule or responsibility?
Speaker 14: For instance, Danglata is not going to commut and sell
Speaker 14: his CP to people by himself. Danglade is gonna go
Speaker 14: to the IBTC and other houses those houses. Do they
Speaker 14: have any responsibility in this or are they just simply vehicle?
Speaker 14: They're marketting on our platform, you're on your own.
Speaker 1: Remember, if you invest in an entity, you are buying
Speaker 1: the stock of that entity or the paper of that entity.
Speaker 1: It's called issue a risk, not market risk, issuer risk.
Speaker 1: So your risk is with the issuer. Of course, for marketing,
Speaker 1: for management, you can get angry with your broker, but
Speaker 1: you carry lead to your broker. If the guy came
Speaker 1: to the market and sold you something he believed at
Speaker 1: that time was real, and he had no no, he
Speaker 1: had no way to determine what the company was saying
Speaker 1: was not real. So you are the word is issue risk.
Speaker 1: The issuer of the instruments is who you hold the
Speaker 1: risk with. It's who you are basically beholding to, right,
Speaker 1: not the guy that sold it to you. Of course,
Speaker 1: you see in when you have all this companies film
Speaker 1: in America, they go after the issuer. They go after
Speaker 1: the bankers as well. They will say, hey, what did
Speaker 1: what did you do? You you sold the bond that
Speaker 1: was trash. You called it the f world, but you
Speaker 1: still sold it. That is the criminal part of the company.
Speaker 1: Knew that the company that the product they were selling
Speaker 1: was bad, but they sold it to you. That's the
Speaker 1: criminal element. But usually if it's not just if it's
Speaker 1: just a normal bond that was sold to you and
Speaker 1: I sold you a bond and a company field, you
Speaker 1: really can come to me and say, hey, you sold
Speaker 1: me that bond. I mean, you can come to me
Speaker 1: and get angry with me. But I basically sold you
Speaker 1: that bond based on the information that I got, which
Speaker 1: I believed was true from the issue the bond. So
Speaker 1: That's how I put it. Ultimately, is the issue that
Speaker 1: you have been hold yet that you are own two?
Speaker 8: Yeah, okay, sweet, thank you, Thanks appreciate that.
Speaker 1: You appreciate that. Let's see, we've got a mannel here,
Speaker 1: talk log. Let me go back to DMS. The DM
Speaker 1: is asking carlu I think we've talked about this a lot.
Speaker 1: Let me asking how can I borrow? If I'm a
Speaker 1: business guy, a SME guy, what kind of bank clauan
Speaker 1: should I get? Again, I'm not just re emphasized, guys,
Speaker 1: you don't want to borrow money. Hold up, just hold up.
Speaker 1: You don't want to borrow money to start a business
Speaker 1: from a bank. You don't. You do equity. You do
Speaker 1: your own savings number one. Number two, you do family
Speaker 1: and friends number two. Number three, you do equity. There
Speaker 1: are many ways you can get financing without borrowing, right.
Speaker 1: You can do owner you can do supplier finance, you
Speaker 1: can do that of finance. You can do factoring. But
Speaker 1: you don't go to the bank to borrow money to
Speaker 1: start a business. That's going to be a guaranteed way
Speaker 1: to roll down your cash and then get the trouble
Speaker 1: a man.
Speaker 8: Go ahead, all right, sir, I'm bounding my hear about something.
Speaker 15: I work for the federal government and I just like
Speaker 15: wanted to do for a way to get like a side.
Speaker 15: So I wanted to use my salary account to get
Speaker 15: the loan from the bank, then play back for my
Speaker 15: salary account that's in the same Uber business whenever I
Speaker 15: don't even that's a good idea. And also I want
Speaker 15: to know what time used this program so that I
Speaker 15: can maticate this with its terms about the connel.
Speaker 1: Yeah, so last question. First, we always here seven thirty
Speaker 1: on Sundays. We used to be here by it, but
Speaker 1: there's daylight seven time, so for now we're doing seven
Speaker 1: thirty two. We organized daylight saving time, so it's seven
Speaker 1: thirty every Sunday. I just answered you for your your
Speaker 1: first question. I would not borrow money from a bank
Speaker 1: to start any business. And I explain why. When you
Speaker 1: borrow money from a bank, you are paying a fixed cost.
Speaker 1: Irrespective of what happens, there are ways you have to
Speaker 1: look for a way to get that asset without paying
Speaker 1: the fixed costs. Initially, it's not going to be it's
Speaker 1: too much for you. You are paying salary, you are
Speaker 1: paying diesel. They're also going to pay a bank, So
Speaker 1: banks don't play. If you borrow money, you have to
Speaker 1: pay with a bank. So again I would suggest you
Speaker 1: always look for a way that you can start that
Speaker 1: business with doubt borrowing from the bank. Banks are working capital.
Speaker 1: Let's say you need you have a credit card now
Speaker 1: that from issue by the bank. You want to buy
Speaker 1: gas fuel for your car to run for that day. Perfect,
Speaker 1: you can borrow from the bank, swipe your card, buy
Speaker 1: a field because you're going to get money back from
Speaker 1: your commuters and pay back the bank. So walking after
Speaker 1: a very very short But if you borrow money to
Speaker 1: buy that that, that car or whatever, then you are
Speaker 1: paying back all alone and all that and it's very
Speaker 1: high in Nigeria. Again I'm being specific to Nigeria. Maybe
Speaker 1: I actually clarify that if rates were four percent five percent,
Speaker 1: of course you can. You can go to a bank
Speaker 1: and borrow at four five percent for five years, buy
Speaker 1: an asset and go on. But they're not four five
Speaker 1: percent in Nigeria. If you go to a bank, you
Speaker 1: work in the bank, and if the banker told you
Speaker 1: it's anywhere from twenty percent. So if you borrow twenty
Speaker 1: five percent in four years, you've paid back the principle
Speaker 1: your depreciation is four years or five years on that car.
Speaker 1: So I said, you want to look at what I'm saying.
Speaker 1: If you buy a car with twenty five percent, in
Speaker 1: four years, the car is worth zero dollars. And in
Speaker 1: four years if you've paid the bank back, the exact
Speaker 1: principle used to buy the car makes no sense, bro.
Speaker 1: So if you look for on that way, that's what
Speaker 1: I'll say, look for on that way to fund the
Speaker 1: car in Nigeria especially, and the same for all SMEs
Speaker 1: you you you simply can't have a business where every
Speaker 1: month you have the fixed twenty five percent cash that
Speaker 1: must leave your business. It's not gonna be as a startup.
Speaker 1: You are paying twenty five percent fixed. That's bank loan
Speaker 1: leaving your business bank loan and it's just the interest.
Speaker 1: So be careful of one, just one show way of
Speaker 1: crashing your business right once showing perfect guys. Yeah, a
Speaker 1: lot of questions, guys, will spend two hours here, we'll
Speaker 1: start to wind down. Appreciate you guys. I'm just gonna
Speaker 1: read the truth d and just make sure I've not
Speaker 1: missed anyone. I think I've answered all the main themes
Speaker 1: that we came up with. We've talked about debts, how
Speaker 1: to get out of debts, We've talked about starting your business,
Speaker 1: and we even died the mortgages. I've given you guys
Speaker 1: that link. If you go on Google, just google my name,
Speaker 1: Carlo Ajia and Nira Metrics how to buy a house
Speaker 1: in Tilly six months. I gave you the step by step.
Speaker 1: You know, lots of things that go into this buying
Speaker 1: a house matter. So one is asking me a very
Speaker 1: great question. I thought everybody will asked, carlu why should
Speaker 1: I buy a house? Why can't I sen be a rent?
Speaker 1: Great question, Pracilia, great question. So I asaid from saying
Speaker 1: that you have to live somewhere. If you're living in
Speaker 1: a rental apartment, you're gonna pay rent. If you live
Speaker 1: in a home that you own, you're gonna pay mortgage.
Speaker 1: You have to live somewhere, and where you live has
Speaker 1: a cost. You are never going to be without a cost.
Speaker 1: So it's gonna be wherever you live. Do your calculation
Speaker 1: and say, because they have all these calculators abroad enough Nigeria,
Speaker 1: where you can't put in should I rent or should
Speaker 1: I buy? If you put that in, it will tell you. Yes,
Speaker 1: if you rent and if you buy, this is a
Speaker 1: number you will give you. But remember the point I'm
Speaker 1: making it because you are still going to pay. If
Speaker 1: you pay rent, there's no equity build up. If you
Speaker 1: have a mortgage, there's equity build up. Even if you
Speaker 1: leave the home tomorrow and you sell, at least you
Speaker 1: can keep some part of the equity because you're going
Speaker 1: to sell at the current price, but the equity is yours.
Speaker 1: You pay back the bank, you go with the market pricing.
Speaker 1: So it does prove that that's the first that's the
Speaker 1: first advantage you do get from that. I'm just having
Speaker 1: that retin rent and equity. Number two. Remember that the
Speaker 1: if you look at wealth in America, and I'm sure
Speaker 1: wealth and nature the same thing, the wealthier folks are
Speaker 1: always have at the folks that always have home ownership.
Speaker 1: Caucasians have the what's the word now, white folks, Caucasians
Speaker 1: and all that they have higher homeownership than say the
Speaker 1: minority folks. There's the reason for that because when you
Speaker 1: have home home ownership, that's an asset, especially the worst
Speaker 1: that you can monetize. In Nigeria, we do not have
Speaker 1: those frameworks whereby if I have a house in Suliary,
Speaker 1: I can get cash from that house. Now just will
Speaker 1: give you a loan, which is not good because if
Speaker 1: you have a loan then you are paid back interest.
Speaker 1: But in America, I know if you have a house
Speaker 1: in su Leary, you can go to a bank's assuming
Speaker 1: American America house Nigeria, if I have a house in
Speaker 1: suh Lary or in Omarha or in Slager, I can
Speaker 1: go to the bank and take a line of credit
Speaker 1: on the value of the house, not a loan. A
Speaker 1: line of credit Wich means that the loan is available
Speaker 1: for me, but I don't pay interesting. I use it.
Speaker 1: So imagine what that does for me. If I have
Speaker 1: a house in omar here, I bought the house for
Speaker 1: one million, the house is now worth fifteen million. That
Speaker 1: means I have equity of a buvery forty nine million.
Speaker 1: I can go to the bank. The bank will give
Speaker 1: me a line of creditive twenty million. I'm not paying
Speaker 1: interest too, It's just a line is there should I
Speaker 1: need it? That loan usually is about from ten years
Speaker 1: to twenty years, right, ten to twenty years. So as
Speaker 1: you mean I want to do business, I'll start an
Speaker 1: esmate business I can take from my land of credit
Speaker 1: aside the business. As when my kids want to go
Speaker 1: to school abroad, I can borrow from my land of
Speaker 1: credit and same to school abroad. You see what point
Speaker 1: I'm making. You have that access to a long term
Speaker 1: funding that others don't have if they don't have a home. Clearly,
Speaker 1: of course, the home is based on a loan to value,
Speaker 1: but it's still the same thing. You're going to have
Speaker 1: an asset that you can monetize. And America, the pathway
Speaker 1: to be in middle class is true home ownership. So
Speaker 1: there are many things that are for plus buying a
Speaker 1: home and maintain that are just for you paying rent.
Speaker 1: If you're gonna say, in America for two years, yeah rent,
Speaker 1: that's fine, You've got there for two years. But if
Speaker 1: you want to stay there in the West for a
Speaker 1: long period of time, why don't you buy a home.
Speaker 1: At least buy the home. You're still going to pay
Speaker 1: that rental mortgage. Start to pay that, you know, build
Speaker 1: up equity and see what happens if you have to
Speaker 1: go sell the house. But they're gonna say for two years,
Speaker 1: three years you want to go to school, sure, rent,
Speaker 1: So that's the reason why I was emsizes are buying
Speaker 1: a home. I wrote an article a long time ago.
Speaker 1: I tried to shade out where I dimensioned the home
Speaker 1: ownership in America. Two demographics. You know already doing the
Speaker 1: June teens. I think where we're talking about. If you
Speaker 1: really want to make minorities in America have economic power,
Speaker 1: you've got to go back and change the how they
Speaker 1: can buy homes. I tell you what, if you google
Speaker 1: red lining, most of you know what red line. Red
Speaker 1: lining is. The back then when we had when blacks
Speaker 1: were not like economically active, and when we had the racism,
Speaker 1: before we had civil rights, you could not buy a home.
Speaker 1: Let's say you were in Legos. They will say if
Speaker 1: you are if you are black, you could not buy
Speaker 1: a home in certain years of Legos. You couldn't buy
Speaker 1: a home in a Catcher in Lucky in VII if
Speaker 1: they would redline you red lining so you could not
Speaker 1: buy a home if you are black in certain neighborhoods
Speaker 1: in America. Why didn't they did that? Because if they
Speaker 1: keep you all in one area and it's a black area,
Speaker 1: there have no appreciating value. Even if it does, it's
Speaker 1: just there. Right. But if you can come to quote
Speaker 1: unquote as Sokor and buy a house as a black person,
Speaker 1: then you have entered the economic Latin America. It's automatic
Speaker 1: for you. So even the white racist folks back then,
Speaker 1: not everyone. The racist folks back then understood the power
Speaker 1: of mortgages that if you want to keep a minority
Speaker 1: class down, you prevent them from buying a mortgage. It's
Speaker 1: called redlining. So look at this, sways one is saying
Speaker 1: that I will not give you this thing because I
Speaker 1: give If I give it to you, you it'd be
Speaker 1: good for you. Now you can get that thing I
Speaker 1: don't want to get. It doesn't make any sense, does it, right?
Speaker 1: It does. Know, if they didn't believe that blacks owning
Speaker 1: homes would be good, there will be no redlining right America.
Speaker 1: It's illegal. It's illegal to even think about doing that.
Speaker 1: Say someone is black, you say I'm not going to
Speaker 1: give you a loan, or you can't buy a loan here.
Speaker 1: You're gonna get into a lot of trouble if you
Speaker 1: do that. Because when you buy a home, especially in
Speaker 1: the worst it's your part way to be in middle class. Right,
Speaker 1: That's basically it. And it's the same in America and Canada.
Speaker 1: In Europe, it's your pathway to middle classes. It's the safer,
Speaker 1: slowest way to get to the middle class because you
Speaker 1: buy a home, just buy inflation. The home value is
Speaker 1: going to keep on going up just by inflation. But
Speaker 1: your costs are fixed, right, So that's the hack. You
Speaker 1: have a thirty year mortgage that is fixed, but the
Speaker 1: home value is going up. So that's just the hack
Speaker 1: for you. So don't sleep on that, all right. So
Speaker 1: we're talking about credit cards. Not a lot of credit
Speaker 1: cards in Nigeria, but I know there are one or
Speaker 1: two if you're able to get them. To get them,
Speaker 1: I don't know. The credit cad nager are mostly for
Speaker 1: the upper income folks in Nigeria. I wish we would
Speaker 1: have credit cards that are going to be more for
Speaker 1: the lower income folks in Nigeria. So the students can
Speaker 1: get a credit card and they can at least use it,
Speaker 1: you know, I mean put five five and living on
Speaker 1: a credit card for a student, they will pay it
Speaker 1: back because they will. Now they do jobs, most of
Speaker 1: them have a job, but they really get into a
Speaker 1: lot of trouble. Sometimes they have no to eat. So
Speaker 1: responsible credit usage teaching that to us students when they're
Speaker 1: very very young. Give them access to capital. True, that
Speaker 1: might be a good way to start off. I mean
Speaker 1: not twenty percent interest rate, but very very low. So
Speaker 1: we learn how to use credits. You know, it's credit
Speaker 1: is the force multiplier. It's not bad, it's just a
Speaker 1: force multiplier. The chief have I the chief the chef
Speaker 1: in a budget. Sorry about that? Just on your hands,
Speaker 1: sure if you've got the floor.
Speaker 16: All right, Okay, good evening, Good evening. Thank you so
Speaker 16: much for everything you've said this evening. So I just
Speaker 16: want to say something so I'm new to when it
Speaker 16: comes to investing, and like I've been following your your
Speaker 16: podcast recently, like for the past two weeks now, So
Speaker 16: about the debt, you know, credit card stuff in Nigeria. Yeah,
Speaker 16: you know, I think most of these things you've said
Speaker 16: there's not really applicable to us here in Nigeria. So
Speaker 16: as a young guy who is just starting life and all,
Speaker 16: you know, there's a lot of.
Speaker 8: There's a lot of investments, there's a.
Speaker 2: Lot of stocks, shares, moretial phone and a lot of
Speaker 2: things happening right now in Nigeria.
Speaker 16: And so I I there was one of your podcasts,
Speaker 16: we said something about mutual phone and one of these
Speaker 16: speakers said something that when you're trying to when you're
Speaker 16: not sure of what you want to go into for
Speaker 16: the meantime, you can just put your money in a
Speaker 16: mutual fund while waiting to explore the stock and the shares.
Speaker 16: So sorry, I just want to say something briefly. I
Speaker 16: saw something on one of these fintech app I don't
Speaker 16: want to mention the brand, so they were advertising stock
Speaker 16: and bond and I saw, you know, a lot of
Speaker 16: people recently are hyping some of the Nigerian stock on
Speaker 16: this fintech app, like some oil company.
Speaker 11: And I saw some.
Speaker 2: Some company performing better than even.
Speaker 16: Some of these popular brand popular oil company, you know,
Speaker 16: like a palm oil company is doing better.
Speaker 2: And I'm like, okay, So so I was actually.
Speaker 16: Thinking, you know, buying nine Gian stock outside this popular.
Speaker 2: Popular stock, you.
Speaker 16: Know, buying those other brands that are not popular, like
Speaker 16: you know these companies that produce palm oil that your
Speaker 16: stocks are doing very well. Is it advisable to buy
Speaker 16: such or to put one money into search?
Speaker 1: I can answer that question, like I said, I can.
Speaker 1: I can't tell you what to do, right I can't
Speaker 1: tell you to go buy this or by that, or
Speaker 1: we're doing this educational. So but see, I've always given
Speaker 1: you there's a step by step process you have to
Speaker 1: take before you invest. Step by step process you can
Speaker 1: just you You just can't start to invest. You have
Speaker 1: to have a plan, Like if you're going to if
Speaker 1: you're driving from here to you have to check your tires,
Speaker 1: you have to build gas in the car. Then you drive.
Speaker 1: You just can't wake up, get into your car and drive.
Speaker 1: So the very very first thing you have to do,
Speaker 1: the very first thing you have to do, is you
Speaker 1: want to ask yourself why are you invest in? That's
Speaker 1: easy for you. Am I investing for long term? Am
Speaker 1: I investing to save my rent money so I can
Speaker 1: have more money to pay next year? Those questions determine
Speaker 1: how you should invest. So you have to know why
Speaker 1: you are investing. Are you in long term? Short term risky?
Speaker 1: What's your risk profile? Get that one. Understand why you
Speaker 1: are an investor and the type of investor you are.
Speaker 1: That's the first thing you want to do. Then, like
Speaker 1: I've said, before you even invest in coble, want cobble,
Speaker 1: you want to build an emergency fund what's an emergency
Speaker 1: fund is going to be three to six months of
Speaker 1: your necessary expenditures what be called your non discretionary expenditures,
Speaker 1: which means that what are your non discretionaries things that
Speaker 1: you must do or spend more on even if you
Speaker 1: have no money, like what number one, food, number two,
Speaker 1: medical number three, rent. You have to pay these things
Speaker 1: even if you don't have any money. So if your
Speaker 1: total non discretionary expenses comes about five thousand, at least
Speaker 1: have five thousand in an account near cash or near
Speaker 1: cash before you invest. I would say, have fifteen thousand.
Speaker 1: But if you want to have five tons to start with, okay,
Speaker 1: but you must have a magicy fund before you invest
Speaker 1: in cobble. You must have that before invest the coble.
Speaker 1: What's the next thing? Insurance, especially if you are married
Speaker 1: or you have a dependent. You can't invest until you
Speaker 1: have insurance. What insurance There's not like life insurance. There's
Speaker 1: insurance from loss of income. So if you have a
Speaker 1: wife or you have kids, you want to go buy
Speaker 1: life insurance for you start to invest very important because
Speaker 1: when it happens to you, then of course those guys
Speaker 1: or the insurance commits will pay and that can take
Speaker 1: care of your your dependence you've left behind. So let's
Speaker 1: say you've got your Majesty fund and you have dependence.
Speaker 1: If you don't have dependence, you don't need life insurance.
Speaker 1: Who's gonna what are you gonna pay to? So just
Speaker 1: have your medicy fund life insurance. Then you can then
Speaker 1: say you want to invest Now, if you want to invest,
Speaker 1: I like top down investing. What means I go top
Speaker 1: and I say what's top? The earth is top? What's next?
Speaker 1: The continents there are North America, South America, Asia, Africa.
Speaker 1: Do you want to invest in Africa? If you want
Speaker 1: to invest in Africa? Okay, what continent in Africa? Let's
Speaker 1: say Nigeria. Okay, Nigeria. What sector in Nigeria? You start
Speaker 1: from this sector? Why am I going to because I
Speaker 1: don't have the money to buy the individual company's talks.
Speaker 1: Nigeria has about rough figure and there are three hundred
Speaker 1: listed securities. America has more than five thousand, So how
Speaker 1: can you choose which ones are good? Right? But if
Speaker 1: you buy the fund, either you buy the mutual fund
Speaker 1: you need trust or the ETA that is tracking the index,
Speaker 1: then you bought everything Nigeria, right, So if buy that
Speaker 1: one you've not bought Nigeria, then inside that Nigeria you
Speaker 1: can just okay, what sectors you even focus on? Should
Speaker 1: I buy food? Okay? With with company food, there's Bua,
Speaker 1: there's Aumo, there is this. Then you not have to
Speaker 1: go individual, but you are coming top down Nigeria food
Speaker 1: there with particular food company. As your income increases, because
Speaker 1: if you take your income, I want to chat to
Speaker 1: buy in the store. You don't buy a lot, you
Speaker 1: won't buy enough, so you're gonna spread your beds so
Speaker 1: thin that they need to make. One hundred percent on
Speaker 1: one narrow is to narr. One hundred percent on one
Speaker 1: narror is too narrow. But ten percent on the million
Speaker 1: is one million, one point one million. Look at it
Speaker 1: that way. Two narror and thousand. It's the same percentage,
Speaker 1: but look at it that way. So you want to
Speaker 1: start do take those steps first, right and most importantly,
Speaker 1: you've got to really start it before you invest. Don't
Speaker 1: don't like I heard you saying. People are saying this,
Speaker 1: people are saying that, what do you say? Like you know,
Speaker 1: go on YouTube, put that company in there to give
Speaker 1: you lots of information about the company. Tell you lott
Speaker 1: this stuff you're you're listening today, you're picking up a
Speaker 1: few stuff. Excellent. You're learning how to invest in, learning
Speaker 1: a few words. Keep on doing that. You've got to
Speaker 1: understand investing before you put a couple down. There's the
Speaker 1: point I'm making, right, don't do don't invest without knowing
Speaker 1: understanding why you're putting money with. If you do that way,
Speaker 1: it's going to work out for you. Right. But you've
Speaker 1: got to know why you're investment before you invest. So
Speaker 1: you can't say should I buy this or should I
Speaker 1: buy that? Does it meet your objectives? That should be
Speaker 1: the word for you. Is it going to pay you dividends?
Speaker 1: Will the share price rise on hundred percent tomorrow? That's
Speaker 1: what you want to ask and you know that from
Speaker 1: knowing your objective. If your objective is to make income,
Speaker 1: if you are older, that's your objective. If your income,
Speaker 1: if your objective is to grow, grow, grow, grow grow
Speaker 1: because you're younger. Good. Do you want to find out
Speaker 1: at those companies that you want to buy that? Not sure?
Speaker 1: If I help you, sir? Did I help out a bit? Yes?
Speaker 1: Thank you so much, Thank you so much, sir. Yeah.
Speaker 1: I reaction to you guys all right, guys two hours
Speaker 1: answered to me. I think I'm going to call it
Speaker 1: a day unless anyone has any last thing to say.
Speaker 1: DM guys, I bridged you guys have searched. True, I'm
Speaker 1: looking for any unique question there. Most of you are
Speaker 1: asking the same questions. I preached the questions, but I
Speaker 1: think I've answered most of them. This one as oh,
Speaker 1: this is good. So it's asking about pension although your
Speaker 1: questions know what you're asking. Let me rephrase your question.
Speaker 1: It's asking about I don't have any savings, I say
Speaker 1: to my PFA. Is that enough? Yes, good question. So
Speaker 1: most folks in Nigeria do not have any savings apart
Speaker 1: from what's ordered by the government. So most folks this
Speaker 1: retirement sives account in their That's where they say them,
Speaker 1: when the retirement saves account. That is a very very
Speaker 1: good way to invest. Why Number one, your investments are
Speaker 1: growing tax free? Tax free. What means if you put
Speaker 1: a nyr in that account, the government will not collect
Speaker 1: taxes on that one narra till you take it out,
Speaker 1: so it's growing tax free. It's compounded. Number two, so
Speaker 1: you always say a compounded on the compounded This is
Speaker 1: a compounded savings account. Your RSSAY is a compounded savings
Speaker 1: tax deferred accounts. You can't get that anywhere. There is
Speaker 1: no other investment in AGLA is compounded deferred and tax free.
Speaker 1: I think maybe insurance. But insurance doesn't take money from
Speaker 1: you every month. Okay, it does, so let's see what's
Speaker 1: a dependent on insurance and your RSSA. Insurance growth is
Speaker 1: not I don't know if the income growth is tax deferred.
Speaker 1: I think it is. But with the RSSAY you can
Speaker 1: invest literally two amounts. It's based off your salary. Yeah,
Speaker 1: that's the difference. When insurance, you are the one pain.
Speaker 1: With your RSSAY, you pay your company is pain. So
Speaker 1: if you do arrass, your company's pain is ten percent
Speaker 1: of your basic housing transport if you do your so
Speaker 1: if you're doing insurance, you are the one pain. But
Speaker 1: it's a tax deferred compounded savings accounts you can't get
Speaker 1: anywhere in Nigeria. This dis tratings. So you put on
Speaker 1: into your RSSA and you save and it's good for you.
Speaker 1: The question is not asking that is this enough? I
Speaker 1: think the answer is no, it's not enough because when
Speaker 1: you invest in an RSSAY, remember it's just you're just
Speaker 1: investing your basic housing and your transport. You have to
Speaker 1: do a calculation. If you go to your to a
Speaker 1: good funcial advisor or to a banker, you ask him,
Speaker 1: I want to retire in X amount of years. I
Speaker 1: want to have X amount of money when I retire.
Speaker 1: How much should I save? He will give you an answer.
Speaker 1: It's just called present value calculation. He will take out
Speaker 1: to this calculator. He will press some buttons, he will
Speaker 1: do a few assumptions. He will give you an answer.
Speaker 1: It's called present value of an annuity. He can If
Speaker 1: he can't do it, you should be he shouldn't do it.
Speaker 1: Do that for you a banker, a stockbroker, the present
Speaker 1: value of an annuity. So what you don't want is
Speaker 1: you not? You now come back and your company. You say, today,
Speaker 1: I'm saving ten thousand Era every month in my RSS,
Speaker 1: but when I do my calculation, I should be saving
Speaker 1: fifty thousand a month in my arresses. So what you
Speaker 1: do you do an additional for lunchy contribution, because we
Speaker 1: do that calculation. If you want to save to get
Speaker 1: fifty million ERA in ten years, if you do a
Speaker 1: present value back to today, it might translate to you
Speaker 1: paying fifty thousand narra today you do that calculation, your
Speaker 1: an additional vundure contribution. You saving your RSC. Yes, you
Speaker 1: can do your RSC. You can mirror your RC and
Speaker 1: save somewhere else. But you want to increase your investment.
Speaker 1: Your most important savings is your retirement account, not your
Speaker 1: kid's schooling account, not your mortgage. Your most important investment account.
Speaker 1: It's your mortgage, it's your retirement account. Why, as you
Speaker 1: get older, you can no longer work, so you have
Speaker 1: a limited time to make money. Doesn't matter if you
Speaker 1: have a brain that is functional, you can't work. You're
Speaker 1: going to get older. So because you're going to get older,
Speaker 1: everybody here has a terminal time that will work with
Speaker 1: means we only have a fixed amount of time we
Speaker 1: can save and invest. Everybody here we're going to have
Speaker 1: a fixed time that we can save an invest. So
Speaker 1: if we know that to be true, then want to
Speaker 1: make sure that we are maximizing that time. Remember, you
Speaker 1: have to first of all end the money. They have
Speaker 1: to save the money, they have to invest the money,
Speaker 1: all in the same time period. We have maybe twenty
Speaker 1: five fifty years. That's say we have fifty years. You
Speaker 1: have to end the money that fifty years. Sometimes they're
Speaker 1: going to end the money, but you don't save it,
Speaker 1: so it's gone away to the wind. So you've got
Speaker 1: to end that money, then save that money, then invest
Speaker 1: that money for those fifty years. So first start where
Speaker 1: we're at zero. Some start at ten, some start at
Speaker 1: forty five. But you must do all these three. If
Speaker 1: you don't do all this three, you'll be destitute. I'm
Speaker 1: just saying, because you would have no money when you
Speaker 1: are at retirement. So you have to end, save, invest
Speaker 1: and the time is fixed. You can't increase how long
Speaker 1: you're gonna live yet. So if you notice your most
Speaker 1: important investment, it's your retirement account. That's it. Your retirement account.
Speaker 1: Before you train your kids, before you pay for your house.
Speaker 1: You pay yourself first by saving into your retirematam's account,
Speaker 1: so you are there and not a burden on anyone
Speaker 1: when you get older. If you're in America, there are
Speaker 1: lots of things you have to do long term savings
Speaker 1: because you know there when you get older, they put
Speaker 1: you in an old people's home. But if you have money,
Speaker 1: you can pay for someone to come to your house
Speaker 1: and take care of you. So you have to start
Speaker 1: to save for long term care. Very important. It's not
Speaker 1: medical care. This is long term care. So you're in
Speaker 1: your house, so when it's come to your house, take
Speaker 1: care of you or your kids might not be there,
Speaker 1: your kids might travel, might not be there. So this
Speaker 1: is in America. You did you know when in Nigeria,
Speaker 1: we know worry about long term care because we have community,
Speaker 1: we have welfare in your village. So I'm going to
Speaker 1: take care of you. In America, you know, we just
Speaker 1: jack back to America all the jackbad that people are
Speaker 1: only get to sixty seventy, Your kids are not going
Speaker 1: to be at home. Who will take care of you?
Speaker 1: If you are married? Fantastic? But what if you're not married,
Speaker 1: or what if both of you are old? You need
Speaker 1: to have long term care, so you pay for that one.
Speaker 1: So now means have to save in your health savings
Speaker 1: account to pay for that long term care. This American
Speaker 1: I'm doing to write Naijerz is different, different, but entirely
Speaker 1: Najams will do welfare if you are old. Yeah, but
Speaker 1: if you're Americans started to think of yourself in sixty
Speaker 1: seventy years and say where would you be at when
Speaker 1: you're old? How would you fund your retirement? Very very
Speaker 1: important conversation. You do it very very dispassionately. You go
Speaker 1: to your guy, he'll give you numbers. You start to save.
Speaker 1: So that's the most important savings accounts. Don't don't sleep
Speaker 1: on it. Don't sleep on it if you haven't. If
Speaker 1: you don't have an IRA, if you're an American, you
Speaker 1: don't have an iran, you don't have an individual retirement account,
Speaker 1: you should be deported. What the heck are you doing
Speaker 1: there in America without an individual retirement account? What are
Speaker 1: you doing? And we have the same version of iras
Speaker 1: in Canada, and I believe also in the UK. All
Speaker 1: it means is that you have an account individual that
Speaker 1: you can save towards your retirement, your individual retirement account.
Speaker 1: It is so good that the US government to restrict
Speaker 1: you from how much you can put in your ERA,
Speaker 1: so they won't let you put on a seven thousand.
Speaker 1: When the government is saying we won't let you save,
Speaker 1: you know it's good. You know it's good, So you
Speaker 1: want to save. Their rules about iras, you can't see
Speaker 1: if you're any lot and all that kind of stuff.
Speaker 1: But overall, you should be saving in your company for
Speaker 1: one k plan. If you work for a company, find
Speaker 1: out from them what is my match? What is the match?
Speaker 1: If the match is three percent, please save minimum three
Speaker 1: percent minimum. Then open up an ERA. I like ROTH. Google.
Speaker 1: This is what I'm saying, rot Ira google them save there.
Speaker 1: Niger don't have ROTH, We don't have ERA, but we
Speaker 1: have Retirement Service account. You must make sure don't don't
Speaker 1: say government is bad, going to corrupt that story. Save
Speaker 1: in your retire SIMS account because no other accounts in
Speaker 1: Nigeria gives you tax deferred, tax deferred, so you know
Speaker 1: you're not gonna pay tax on the groot of that investment.
Speaker 1: You're not gonna pay tax because of that investment. Compounded
Speaker 1: returns what means that if you put a narror today,
Speaker 1: they pay you interest of tankoble. Next year they invest
Speaker 1: one tenble on your behalf. You don't have to do anything.
Speaker 1: It's compounded tax. The Fed Insurance does it. I think
Speaker 1: nhi is does it. But this is your arrests. You
Speaker 1: want to do it as well. Right, very important? All right, folks,
Speaker 1: are I've got a Cosmos Cosmos exchange.
Speaker 2: What's up?
Speaker 1: Yeah, Cosmos, what's happening?
Speaker 17: Okay, be even mister, I'm sorry. Yeah, I'm sorry, happy
Speaker 17: to be in your space. I'm follow you since since
Speaker 17: two twit and T two yeah and one person again,
Speaker 17: mister toyb is in UK and dog so I love
Speaker 17: your program with the Lumida. I'm following your people because
Speaker 17: the value you people are giving to the community. So
Speaker 17: it's so it's say in the mirrors, I'm so happy.
Speaker 17: So just a compliments. I'm so opportuned you accepted my
Speaker 17: March to Day since twenty twenty two. I'm so happy today.
Speaker 17: The value is encouraging. Al I'm also invested in the
Speaker 17: in the in the stock issue, using bamboo and having
Speaker 17: some knowledge and what you are giving out both Spifi
Speaker 17: Fund and a lot of tech companies there over the
Speaker 17: years they have given a good Also, I'm so happy
Speaker 17: with the knowledge and information you are sharing with all
Speaker 17: the media and everyone in this because section is so encouraging.
Speaker 17: Thanks and rememberance, Thank.
Speaker 1: You, appreciate you, Thanks for thanking. I appreciate you so much.
Speaker 1: That guys, I don't want to be very modest right
Speaker 1: the job I do. People come, it's not telling you,
Speaker 1: they pay me. I tell them. So I'm doing this
Speaker 1: really for Nigerians. So if you notice my space, it's
Speaker 1: you guys, you know. So please don't take it for
Speaker 1: granted because I'm giving to you for free and I'm
Speaker 1: asking questions for free this. I learnd this stuff and
Speaker 1: I'm giving it to you. It's not for free. People
Speaker 1: will pay and I give it to you, So don't
Speaker 1: take it for granted. I'm not trying to be I
Speaker 1: talk like this cold because I want you to learn
Speaker 1: it right, So please what I say is best practice.
Speaker 1: Plan your retirement and save. Invest. This is just best practice, right.
Speaker 1: You've got to invest. You don't want to be a burden.
Speaker 1: The world is changing. When we grew up, we took
Speaker 1: here for our parents. When you grew up, your kids
Speaker 1: might not be there for you. Your retirement plan is
Speaker 1: no longer your kids. You've got to plan yourself right.
Speaker 1: If you live in a big house, You've got to
Speaker 1: ask yourself it's five rooms your kids you build? That
Speaker 1: help because your kids going to be there. Your kids
Speaker 1: are not going to come back and live in the house.
Speaker 1: They won't. They have their own plans. So start to
Speaker 1: ask yourself, how can we monetize that big house in gire?
Speaker 1: Where can we go to live things like that. So
Speaker 1: start to think about think do it now, because in
Speaker 1: twenty years time, there's going to be a huge demographic shift,
Speaker 1: not just in America, also in Nigeria. Many things we
Speaker 1: don't do in Nigeria today you will start to see
Speaker 1: them in twenty years time. You're going to see old
Speaker 1: people's homes are going to spring up in Nigeria. Old
Speaker 1: people's homes. Lots of folks that are in America, in Canada,
Speaker 1: in the UK will want to come back to Nigeria
Speaker 1: when they are seventy, when they are eighty, they want
Speaker 1: to come back. They will, and they need to a
Speaker 1: place that is safe, that they have all those facilities
Speaker 1: that I enjoyed in the UK, but don't just live
Speaker 1: in Nigeria. So if you're an entrepreneur, you live outside Legos,
Speaker 1: you can literally start to build estates targeted at the
Speaker 1: returning Jamar people. It's going to start to happen pretty soon.
Speaker 1: It's going to have to happen even right now. Lots
Speaker 1: of putter even America on the comeback, but they don't
Speaker 1: want to go a because it's not safe, they don't
Speaker 1: have a nurse and all that. But it might say
Speaker 1: if you had an estate where how much how much
Speaker 1: is a nurse and don't mean to be it, don't
Speaker 1: mean to be rude, but how much does the nurse?
Speaker 1: And in Nigeria, so you have an esset where you
Speaker 1: have each home has a nurse. Then the esset has
Speaker 1: got a doctor on site, has at on site, has
Speaker 1: old people's gym on site. How security is, has a wall,
Speaker 1: you have more port or whatever there and then you
Speaker 1: have Charlie's, you have organic food, you have entertainment, the
Speaker 1: same thing we have in America where you have those
Speaker 1: old people's home, but you have in Nigeria. Do you
Speaker 1: know you can charge each home? You can charge those homes,
Speaker 1: each home there in dollars five thousand dollars. People will
Speaker 1: pay to come back home to Nigeria and live there
Speaker 1: and doesn't have been legos or in any built up area.
Speaker 1: You can do it in those It makes more balley
Speaker 1: in those towns because they're coming back to go back
Speaker 1: to the quote unquote rural life. So you say insecurity,
Speaker 1: if you have a compact with it with the town people,
Speaker 1: and you see, listen, we're going to bring these people
Speaker 1: into this place. No kid, not paying, no whatever, you're
Speaker 1: gonna get a share of the revenues. People will come
Speaker 1: in Ecuador. Ecuador use to the US dollar. Lots of
Speaker 1: Americans go to Ecuador and retire in Ecuador. They just
Speaker 1: live there because it's lower cost of living. Because if
Speaker 1: you end social security in America, it's two thousand dollars
Speaker 1: in America is nothing in Ecuador, in Costa Rica, in Mexico,
Speaker 1: it's a lot of money. The average social secreity benefits
Speaker 1: is going to be about three thousand dollars a month.
Speaker 1: So if you live in America, the government when you
Speaker 1: retire would pay you three ten dollars. This is just
Speaker 1: on social security alone. Why would I live here if
Speaker 1: I have to pay rent at a thousand ira thousand
Speaker 1: dollars a month. A thousand dollars a month is how
Speaker 1: much in Nira if you build a flat, even if
Speaker 1: it's a flat, and you put old people there that
Speaker 1: want to come out to Nigeria and you protect them.
Speaker 1: They have medical care, they're eating the the all those
Speaker 1: traditional food you take that we boss every week to
Speaker 1: go the same thing you do here. People will pay.
Speaker 1: People will pay, and you make a lot of money,
Speaker 1: and that town will make a lot of revenues from
Speaker 1: justice in Flox. The same way pole live in Nigeria.
Speaker 1: Go to the jackpar It's going to be the exact
Speaker 1: same thing. You're gonna see. Lots of folks want to
Speaker 1: come back, but they are gonna come back because it's
Speaker 1: not safe. There's no medical care, there's no nine one one,
Speaker 1: there is not all that stuff. So you create a
Speaker 1: little village somewhere at Belkutar, somewhere off Umaria, somewhere off Nasarawa.
Speaker 1: People will come back because they want to come back there.
Speaker 1: They want to live there. You are just seen the
Speaker 1: jack Bar. You're just the that's in December, but you
Speaker 1: have eleven months. The same way those guys come back
Speaker 1: for December because they want to enjoy Nigeria. It's the
Speaker 1: same way they guys that have retired want to come
Speaker 1: back to Nigeria and live here and move around. They
Speaker 1: just want to come against it's not safe and there's
Speaker 1: no medicare. You you go, you you have a hopblo
Speaker 1: in Nigeri. You say, okay, we're going to use this
Speaker 1: hospital as Medicare and Medicare approved or Medicaid approved or whatever.
Speaker 1: If you go to the hospital, you can share America
Speaker 1: records on that hip hop with the hobble in America,
Speaker 1: things like that. You've got to get you know, innovative
Speaker 1: and creative. There lots of Americans that work in America,
Speaker 1: that working, lot of Nigers in America that can help
Speaker 1: you pass this laws. Texas, Atlanta, then Baku. They don't
Speaker 1: stay there, don't come back home. But you've got to
Speaker 1: have a plan. And if you can do the loone,
Speaker 1: talk to your state government. That's that's that's remediances. They
Speaker 1: will pay this money diagon to the state government for
Speaker 1: a safe place they can go to. That is fantastic living.
Speaker 1: The weather is beautiful, they can live here. They think
Speaker 1: they're pan Wie and their planetium. That's what needs to happen.
Speaker 1: So that demographics is going to create opportunities in Nigeria
Speaker 1: going forward. And if not, just not ready, they'll go
Speaker 1: to Ghana and Togo and live in Ghana and Togo
Speaker 1: at least in West Africa. So don't assume almost happened.
Speaker 1: So that's a good business plan for noone that's interested.
Speaker 1: You've got to go and plan. You know, there are
Speaker 1: folks over there, get in touch with them. Getting branded
Speaker 1: name girl, this medical stuff, put it together. People will come.
Speaker 1: It is dollars waiting for you right there. Dollar in
Speaker 1: flo but you are spending in Naira. It's not the repressal.
Speaker 1: They will pay you in dollars, but all the costure
Speaker 1: are giving them is in Nira. They're not spending Nira.
Speaker 1: Right is in Naira. But you are any dollars in
Speaker 1: your villager. They want to go to the they don't
Speaker 1: want to live in legals. Don't live in your village
Speaker 1: because that's what they're coming back for. But it has
Speaker 1: to be safe. They've got to have medical care. They
Speaker 1: have cast your life. If you do that, you are
Speaker 1: on something. All right, folks, let's call it thanks for
Speaker 1: hanging out with me, all true God about two hours
Speaker 1: and for the five minutes already and at thank you
Speaker 1: guys for doing that. Let's go make a good year.
Speaker 1: Don't forget to get the book. I wrote the book. Right,
Speaker 1: Let's talk about your money. Great book, lots of pictures.
Speaker 1: Everything we'll talk about on this space in that book.
Speaker 1: Everything credit, debt, investing, crypto mortgages, real estates, planning out
Speaker 1: your your your target, savings, planned education. Everything is there,
Speaker 1: even love and money. How to take talk about money
Speaker 1: when you are dating, mind and all that. So it's
Speaker 1: a great book to have to read. It's not chapter
Speaker 1: to chapter, it's not it's not covered to cover. It's
Speaker 1: chapter by chapter with means you can read. You just
Speaker 1: talk market and understand you have to read the whole book.
Speaker 1: But it's a good book to reference from. Is written
Speaker 1: with the Nigerian region, Nigian mindset. So I tried to
Speaker 1: use most of the international things that we do, but
Speaker 1: make it Nigerian so you can also follow. So I
Speaker 1: will say get it is available on Amazon anywhere you
Speaker 1: are just Amazon and Nigers or Roving Heights, but amso
Speaker 1: it's going to be your best bet to get that book.
Speaker 2: Right.
Speaker 1: Folks on Donald's did you want to do you want?
Speaker 1: You have to follow up? Or Johanna for c S
Speaker 1: did you follow up? Sorry? Was the name? What the
Speaker 1: name of the book? What's the name of the book.
Speaker 1: Let's talk about your money. It's right there on my DP.
Speaker 1: Let's talk about your money. You see it right there?
Speaker 1: Pin twit? Yeah, let's talk about your money. All right? Okay,
Speaker 1: thank you, you're welcome.
Speaker 2: Thank you.
Speaker 17: What I want to know about the book, Yeah, yeah,
Speaker 17: I've seen it in your pink.
Speaker 1: Actually all right, perfect, all right, folks, have a good one.
Speaker 1: What's nice hanging out with you guys. Will be here
Speaker 1: again same time next Sunday, seven thirty pm West African time.
Speaker 1: You guys have a great day, Thanks so much and
Speaker 1: by