Thread by @FinPlanKaluAja1

Remember that story? Where two builders built homes....one on sand, the other one rock...

Let's talk about it. .

First point...BOTH built homes.

Both were wealth enough to build a home...

Both invested
Both Saved

Second point.....

The winds and storm came to BOTH.

Irrespective of the investment, the winds of inflation, volatility, government regulations affected both investments similarly

The difference was how each investment reacted to the winds of inflation, volatility and Government regulations.

If an investor built his retirement saving on Nigerian Treasury Bill paying double digit "risk free returns before 2020, that was an investment on sand

If an investor bought Nigerian Eurobonds paying a $ yield of 6% before 2020

That was sn investment built on a rock...

My fear today is for pensioners earning an annuity or fixed income, with a fall in long term "risk free" rates to below 10% ....and inflation about 12.5%....how do they get a safe real return on their fixed income?

They saved
They invested

The winds are here

I also harbour a mild fear for current contributiors to RSA..

Over 70% of RSA assets are in FGN Fixed income paying currently less than 10%.

However unlike pensioners, current contributors can get ready for the coming winds.

Remember, the winds will come to ALL

If you are a correny contributor do this

1. What's your annual income and expenses

2. Post retirement, assume your expenses will fall by 30% to 50% will your post retirement income meet that?

3. If yes, we thank the Lord
4. If no...next tweet

5. Work with an adviser to increase your post retirement returns to generate income to cover at least 50% of post retirement expenses .

A sure way to also do this is reduce housing expenses buy planning to own your own home.

Remember, the issue is not Savings or Investing but that the winds....when ...not if....when.. they come will not wash away our Investments

Remember, the winds will come...

Fortune Favors The Prepared