Vol 4 No. 18 Sept 29, 2009

Hope Eno

How To Create A Personal Window For Your Future Through Investment Planning




lot of people have made millions trading in stocks or doing one form of

until you have listed what you want to expend the money on, because discipline is the key word for investment. If you have not written it down, don’t take action on it. In planning to use part of your salary for investment, first write out what your salary or income is and then outline all your expenditure. When you are through with this, the rest is for investment. If the remnant is too small, introduce a savings plan that will lead to investment plan. Building Your Financial Life Put a plan in place to building your financial life. This plan should include: 1. The number of years you want to use. 2. The pace at which you want to gomove. 3. The sacrifice you want to make. 4. The stress you are willing to go through. 5. The luxury you want to forego. 6. The inconveniences you are willing to encounter. 7. Themoney you want to put in. 8. From where these money is going to be coming from. 9. How much of it do you have, how much percentage are you going to use. 10. The responsibility you are carrying presently, the ones you are going to carry in future. 11. All the

needs to set a financial goal. A young man that has a future plan to own a house of his own or buy a car of his own must at the same time think of how to finance this future ambition, hence, the need for setting financial plan for executing ones life goal and ambition. It is this financial plan that will lead you into achieving your investment goals. Achieving any goal in life will always lead you into setting up a financial plan that will help you in accomplishing such goal. Any plan in life that does not require financial investment, may as well be termed as a non achievable plan. You need to feed a systemwith input in order to be able to get an output, and it is whatever you feed in that will determine the kind of output you will get. In the case of investment, it comes with a multiplication factor especially when you have the right information. M y G o a l S e t t i n g Questions (1) What do I want to achieve in life? (2) What are the steps I need to take to achieve these goals? (3) Why is it that money is not coming into my hands? Is it because I an not prepared for it? Remember, when preparations and plans of actions are put in place money will definitely come. Financial Preparation for Investment 1. How much do you need? 2. What do you want to use themoney for? Itemize. 3. What are the things you are putting in place to use this money effectively? Steps To Take Draw a scale of preference with respect to money utility and have a priority list. Invest in your preparation by creating time to plan, let investment plans be foremost in your mind. Let your thinking on money be a drive for you to do work on how to get it. Apart from thinking of ways of getting money, also reduce your meditations on ways to spend your earned money and increase your thinking on ways to invest themoney. Staying on your investment thought will definitely give birth to investment plans and such plans put on ground will definitely yield results if they were properly drawn. Always think of what to do to attract finances into your life through investment and not how to spend what you have earned. Implementing Investment plans If you have not developed the strategy, don’t take up the responsibility; the need for planning. Don’t take money from the bank


business or the other. But they have failed woefully when its comes to multiplying their investment and building up a reserve for their future. Most don’t even know where else to invest their hard- earned or easy-gotten money nor are they able to determine an immediate investment to grow their money, hence they become poor again after sometime. What a dilemma! The small and medium class money investors and savers are going to suffer more from the current trend as their money will depreciate against current value and crash against future value: no thanks to the current biting cost of living. In fact, a lot of people with money now will become poor even though they are rich now (traders, businessmen, workers, etc) as you can only be rich when the profit you make from your primary source of income is multiplying in another instrument above the current cost of living or inflation. Yes, it cannot all end in the negative. When there is a need, there is always a solution, financial planning must always take; center stage if you really need to take your personal finance to another level. Not putting every money you earn into a planning system is like making all effort to clear a full hectare of land and planting your entire seed on the plantation for a great harvest but refusing to weed or maintain the land. You will be extremely lucky to even get back your seed from the land. You must set an investment goal for every money you receive, no matter how small. Setting Investment Goals To set an investment goal or target, you should look at your future (long term life) ambition first. Once this is set in place, you are home and dry. If you want to build a house, you want to invest in a building project etc. To be effective in using this part of this article, you must make sure have a pen and paper by your side because after now your life is going to change. Also you need to create a good spiritual atmosphere so that the Lord Almighty will guide your decisions on your goals. Now, after setting the investment goals, i.e what you want to put your resources into, there is another goal which runs hand-in-hand with the main goal, this is the financial goal. The financial goal is very important because it is the major ingredient that will enhance the fulfillment of your investment goal. A church member that has the ambition of becoming a pastor in future will have to find a way of getting money to attend a bible school or pay the price for such vision, and to find this money he



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How To Recover Your Wealth From The Stock Market

HE market is really deep and recovery for those still waiting seems to be getting into a limbo. History has it that all T markets go through their seasons, but the Nigerian market has defied all seasons and all normal principles of economic recession with hidden wealth. While the international communities were battling with product sales and consumer drought that crashed the profitability of a lot of foreign companies leading to many factories closing down, our quoted companies including banks were still paying dividends and declaring bonuses for shareholders with daring investors taking marginal profits. No, not all investors, only the fearless and newbies. A lot of people who had had their fingers burnt in the past just took a dive in the opposite direction forgetting that unlike the foreign economies whose companies were down and not making any profit nor paying dividends but only bonus to key directors that would revamp the company, the Nigerian quoted companies still had their fundamentals right. Even banks and insurance stocks believed to be most hit by the recession are still paying back investors. This market has fluctuated in a way that has given investors who had hitherto lost money in the market, as a result of the meltdown, a chance to recover if they can really take the risk, especially with fundamentally reliable stocks that can boost your portfolio returns at this crucial time of the market season. Here is a question I received from a stock investor: ‘Hello Mr Eno, thanks for your encouraging write-up in SuccessDigest, they have really given me strength to continue my investment, I invested in shares up to the tune of N1.7million; now it has reduced to N300,000 because of the meltdown. What do I do?’Kayode fromLagos. My dear, I think you are quite lucky, because I’m aware of some guys who borrowed from banks in millions. One of them borrowed to the tune of N1.5 million and mortgaged it with his own N1.5 million, that is a total investment of N3 million in the market. When the market went into a meltdown, he lost the entire N1.5 million and was still owing the bank hidden charges and interest, that is he lost the whole units of shares that he bought with nothing left of his N1.5 million. This is what happened to a lot of folks who borrowed from the banks to invest. For you Kayode, however, since you did not follow the above ‘greedy-without- knowledge-investment-strategy’, it is only the value of shares you bought that dropped, your unit held is still intact and if the market revamps again, you stand a chance of recovering your money and even more if you can turn it into a long term investment. Now for those who are never going to giving up and who can stand the risk of a short term investment which has made some investors money already, even in this period, check the graph above. Recovery Strategies For Profit Funny enough, it is in a market like this that recovery is possible, because some stocks have afforded us the opportunity of profit more than

For Questions And Issues on stock investment and training call or text 08023982600 hopeeno@sadcnigeria.org The stage is now set for the creation of new millionaires. We have seen that those we are believing are millionaires are nothing but debtors. This is our chance to become the genuine millionaires that we have always desired to be – Risk and Position Takers. once within six months. For example, the GlaxoSmithKline Plc stock dipped into the meltdown in January, 2009 with a buy price of about N10.00 only for it to cross the N20 mark five months later in May 2009 with a whopping 100% profit for investors. It went back into a dip in June, 2009, with a buy price of less than N15.00. Of course, a lot of people were dead afraid just as they are now with the banking stocks (with their tails between their legs). The same GlaxoSmithKline, after this dip, went to cross the N20.00 mark for a second time with over 50% profit for investors. What a market! While a lot of people are scared to invest because of dwindling stock prices, others are silently taking profits. Now for those who want to recover their wealth like Kayode, if you had put a million from your usual source of cash or fresh funds into the market, because the stocks are available right now and cheaply, forgetting or turning the units bought initially into long term, your one million would have yielded another one million trading on the Glaxo stock and trading on it for the second time with your entire turnover of two million at 50% profit would have yielded another one million giving you a full recovery of two million naira with N300,000 extra! But this cannot happen if you do not take the right position in the right stock at the right time. For example, you cannot take position in Glaxo right now because this is selling time, that would have made sense in January or June. But there are other stocks with their buy time still very hot now; investment is still a risk meant only for those who can take it. More Recovery Strategies Recalling our last advise on the NAHCO stock, assuming I bought 100,000 units of NAHCO in its hay days in 2007/2008 at N30 and it has crashed to near a N10 and my worth is now about N1million. I don’t need to sell, because I have been advised on this page to turn it into long term investment and start afresh. I will then take advantage of the edition where we discussed 10 Stocks To Buy Now For 100% Profit In 2009 and buy 100,000 units of NAHCO at N7.50 totaling N750,000 and sell at N12 in less than 20 days, making a turnover of N1.2million. I would have made a profit of N450,000, reducing my pain and still going into other stocks that are recommended for another short term profit in no time. If you are consistent with the information being dished out, you can still recover your N2 million lost while still havingmy long term investment intact. Period! It is much easier to make a fortune in down market – Donald Trump

things you have to forego to increase your c h a n c e s o f b u i l d i n g comfortably. Money will a l w a y s r e s p o n d t o those who are prepared to use it rightly Climb That F i n a n c i a l Ladder Investment is not a tree that just sprouts up overnight. You gradually build it up. First lay a solid foundation

Remember, when preparations and plans of actions are put in place money will definitely come. Always think of what to do to attract finances into your life through investment and not how to spend what you have earned. Money will always respond to those who are prepared to use it rightly.

by getting informed enough on your area of interest or you will never maximize your potentials in that area. Having a good job today is not a guaranteed safety factor for your future financial freedom. The only ladder to climb and reach your life’ goal in finances is investment. Your professional career becomes very boring without investment. Investment keeps you going even when you are retrenched from your career. Remember that consistency in saving gives you a substantial or a sizeable investment capital to make life less stressful in the future.

Read Sanni Akindipe on this page next week

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