Good Afternoon 😃
How is your week going so far?
Friday letters are usually dedicated to taking questions from our community. Do you have a question for us?
Please feel free to
- send an e-mail to info@themoneyafrica.com; or
- send a DM to any of our social media channels, or
- simply fill out this form. Don’t worry; your responses are kept anonymous.
Question
What are mutual funds? Is it a good time to invest in them?
Answer
Mutual funds fall under the category of investments known as collective investment schemes. This means various investors pool funds together to be run by an asset manager.
There are different types of mutual funds, such as equity mutual funds, which are largely invested in stocks, and money market mutual funds, which are largely invested in short-term borrowings such as Treasury bills and commercial papers.
Is it a good time to invest in them? The unit price of a mutual fund moves up and down. What you can do is invest periodically. This is known as cost-averaging.
Question
How much of my income should go towards retirement savings?
Answer
In the United Kingdom, the total contribution is a minimum of 8% of earnings. Your employer pays 5%. The employee at least 3%.
In Nigeria, the minimum contribution under the Act is 18% (10% by your employer and 8% by the employee).
A more accurate way to prepare for retirement is to take your current cost of living and adjust for inflation by the time you intend to retire.
If your current cost of living is ₦200,000 and you intend to retire in, say, 30 years, by then your cost of living would be ₦5.9 million (using long-run inflation of 12% in Nigeria).
That is the figure you should work with. You can do the same in whatever country you are in.
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Don’t forget to:
- Join our community, if you want to smash your 2023 financial goals. It takes at least 30 days to build great habits that will last you a lifetime. So why not start now? There is a lot you can achieve.
- If you would like to document your financial journey in 2023, then our journal would be an excellent fit for you. It costs ₦7,500 (excluding delivery).
- Get a budget sheet to track your monthly expenses. Click here
- Get an investment tracker to be on top of all your investments. Click here
MoneyAfrica is a financial literacy platform. Our goal is to make everyone better with their finances.
We do this by engagements via our:
– social media handles
– platforms for paid community members (for adults and students)
– webinar sessions with corporate clients
Would you like to join any of the communities? Please click here
Would you like us to hold a webinar for your company’s staff? Please send an email to info@themoneyafrica.com
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We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
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Don’t forget to:
- Join our community, if you want to smash your 2023 financial goals. It takes at least 30 days to build great habits that will last you a lifetime. So why not start now? There is a lot you can achieve.
- If you would like to document your financial journey in 2023, then our journal would be an excellent fit for you. It costs ₦7,500 (excluding delivery).
- Get a budget sheet to track your monthly expenses. Click here
- Get an investment tracker to be on top of all your investments. Click here
MoneyAfrica is a financial literacy platform. Our goal is to make everyone better with their finances.
We do this by engagements via our:
– social media handles
– platforms for paid community members (for adults and students)
– webinar sessions with corporate clients
Would you like to join any of the communities? Please click here
Would you like us to hold a webinar for your company’s staff? Please send an email to info@themoneyafrica.com
