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5 Ways to Invest 100k | How To Grow My Money | Personal Finance Tips - YouTube
Channel: MoneyGist
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As a kid, my friends and I would
fantasize about the Richard Pryor movie
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Brewster's Millions. In this movie Richard Pryor's character has to spend 30
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million dollars in 30 days without
having anything left at all. My friends
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and I would argue about what we would do
with that kind of money
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and think of different ways that we
could squander 30 million bucks then
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eventually decide it's easier
to just keep the money and run. So let's
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play a similar game but with a slightly
different set of rules. First off instead
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of squandering our money we're gonna
find ways to make it grow second instead
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of 30 days we'll increase the time frame
to one year finally we'll change the
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amount it's quite easy to invest 30
million dollars but what if you only had
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100,000 there if you can successfully
invest a hundred thousand naira 30
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million in your account won't be a
problem
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wink and at the end of this video
recording I'll be sharing some details
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of the executive investments
I make personally and how you can get
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started today so stay tuned so the first
we invested $100,000 is in mutual funds
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specifically money market funds a mutual
fund basically it's a type of investment
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where an investment company pulls
together money from different people to
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invest in various things with a money
market fund the company invest this
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money in money market instruments like
government bonds and Treasury bills to
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put it in a different way you and a
bunch of other people are basically
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loaning the government and other big
corporations money at very good rates so
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white money market funds and not the
other gazillion types of mutual funds
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for one the investment is relatively
safe because usually your principal
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that's the money you're investing
remains intact even if the interest
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rates fluctuate look at it this way
you're basically learning the government
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money right so so long as the country
remains intact
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your funds are safe number two the entry
requirements are pretty low you can
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start with as Louis
Vox mm air if you have to invest
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directly in government bonds or Treasury
bills
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you'd need nothing less than a
millionaire number three you can easily
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access your funds like an actual money
market instruments where you can just
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liquidate me to a to an investment cycle
you can always top your investments in
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money markets funds and we throw your
money at any time with no impact on the
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principle that you've invested only the
interest would be affected who all will
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be so charged number four the returns
are usually good in the past five years
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on average I've made about fourteen
percent return on my investments and
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money market funds in Nigeria and this
is not accounting for the fact that we
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had a recession in 2016 when the rates
dropped below seven percent this 14
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percent is still higher than the average
inflation at the same time frame
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definitely better than what you'd get in
all the investment options in a similar
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category looking at your savings
accounts one of the advantage of this
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type of investment is that you really
don't need to learn anything you just
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deposit your money with the investment
company and wait for your monthly
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returns what I do personally is acts
like company to roll over my investments
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each month with interest
this way benefit from compound interest
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to make it even juicier you could
increase your contribution every month
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as well and then you co have at the end
of the my friend a niala put out a video
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a couple of weeks ago where he explained
money market funds in detail and he also
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gave links to a number of companies that
offer the service in Nigeria I'll put a
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link to his video in the description and
you can check it out and I also
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mentioned the company that I use that
I've used since 2014 at the end of this
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video so the second we invest a hundred
thousand original life insurance
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voluntary pension contributions I'm
going to group this two together for the
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same reason they both help to reduce
your tax burden for joining we start
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with the pension contributions the
Nigerian income tax law was last amended
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to encourage salary earners to plan for
long term by law your employer must eat
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up 8% of your basic salary and also
contribute another 10% towards your
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pensions this 8% is deducted from my
salary goes on taxed and is invested by
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a pension fund administrator ahead of
you in retirement from paid employment
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however you have the option of
increasing the amount that you
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contribute to your pensions and whatever
increments you add to your pensions will
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also go on tax another part of your
salary that is also exempt from tax is
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whatever premium you pay on your life
insurance policy
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unlike the pension contribution however
it's not deducted from source you need
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to make the payments first and then
rethink the taxes after so why is this a
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good investment
consider the fact that the average
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personal income tax in Nigeria is 24%
you can take it as a 24 percent return
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or whatever you contribute toward your
pension and this is before the pension
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fund administrator begins investing the
pensions over your entire working career
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so in the long run your additional
pension contribution each month turns
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into a significant amount look at it
this way if instead of making the
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additional pension contribution you had
the money in the savings account the
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money in the savings account will have
first been taxed by 24% you don't
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experience this with your pension
contribution on taxed it is invested
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over a long period of time and then the
returns do make a lot of sense if the
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life insurance came the particular sum
of money is guaranteed to be paid to
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your beneficiaries if anything were to
happen to you within a specified period
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of time after that period of time
usually get your contribution back the
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benefit however is that each he'll make
the premium payments for life insurance
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you can reclaim a portion of the tax
that was paid on the insurance premium
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at current income tax rates that's
actually been a good return on your
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investment to increase your pension
contribution you only need to inform
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your empire and they will increase the
monthly pension contribution deducted
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from your salary be sure however to
check with your pension fund
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administrator as you confirm that this
has been implemented to get started with
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your life insurance policy talk to an
insurance broker I'll let you know the
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insurance company I usually turn in the
video however make sure that it is a
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life insurance policy that you get and
not any other type of savings policing
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the downsides of this investment options
however is that it's for the long term
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and you don't have access to the
contribution or the 24 percent returns
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in the short term you can't access your
pension until you're 50 years old
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well you've been without a paid job for
at least four months and for life
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insurance you must have contributed the
premium payments for at least a full
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year
you can however access up to 50% of your
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voluntary pension contribution after two
years with the benefit of the twenty
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four percent tax exemption
now whatever interest might have a crew
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that period the interest of civic tax
the bill narrow matrix has a very
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detailed article on how tax exceptions
are calculated in Nigeria and I'll link
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to this in the description the article
also provides a sample template they can
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use to calculate how much tax you the
pain if you decide to increase your
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pension contribution option 3 is my
favorite investment vehicle and my first
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love a paper sets are concerned and
that's interesting the stock markets 20
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shares now he gets a bit more
interesting with as low as $50,000 in
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the brokerage account you can easily
start investing in the stock market if
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you know what to look out for you can
grow the value of that $50,000
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significantly beside the fact that the
value of your investments or appreciated
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a tiny also receive regular dividend
payments if you buy into the right
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companies however I must warn you
unlike the first two investment options
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where you don't really need to learn
anything new you can't get your fingers
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points investing in shares if you don't
know what you're doing or if you just
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speculatin and I knew people that I've
lost to write millionaire and shares I
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know people who have actually gone into
depth they board money and went to debt
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speculating on on the stock market so
you really need to know what you're
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doing where stocks are concerned I'll
put on a separate video on investing in
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the stock market how to select the right
companies so look out for that in the
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coming weeks I'll also tell you which
stock repair fees for the past ten years
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at the end of this video
my fourth investment vehicle
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in Nigeria and is often considered
controversial this is crowdfunding it's
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similar to a mutual fund and that you
basically join mean other people to
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contribute towards an investment the
difference here is that the investment
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is not money to pay a financial
institution or government body instead
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you're investing directly with a company
doing the business obviously this is a
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more risky approach as the business it's
usually not an established one that's
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why they need the funds and often they
have a higher risk of failure there is
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also the risk that the company
investment is an outright scum or a
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Ponzi scheme how put out a separate
video on how to identify his can return
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on the upside though the returns are
usually much higher than the investment
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options I mentioned earlier with the
interest rates ranging from 20 to 40
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percent per annum with this type of
investment I usually test with a small
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amount that I can risk losing all
together before I go all in usually
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those who helps if the investment is
insured or affiliated with a more
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established organization in some way
remember always do your due diligence
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and try to understand how the business
makes profit and what will ensure that
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it's sustainable in the future our
nation or particular crowdfunding
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investments that have been active with
this is January 2017 later on on this
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video so my last thing this medical
channel is going to be wait for a
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mortgage savings are car loans however I
recently started my journey into
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property developments in Nigeria and
looking at the cost estimates I'm having
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everything so if I'm to grow a hundred
thousand there in one year I would start
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a business full disclosure and yet to
starts this investment option per person
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but I stumbled on a Twitter post about
this I'll link below and you'll be
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surprised at the number of businesses
that you could start with just a hundred
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thousand there my favorites include
certain of the quote constant a cleaning
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service and digital marketing in general
I'll make a video about this sometime in
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the future hopefully when I've started
one of them when I can share my own
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personal experiences however always keep
this in mind a business like any
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investment is only profitable when you
income exceeds your expenses it seems
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obvious but you need to always do the
math and keep your costs low also
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remember that cost includes your time
because that's time that you could
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easily spend on other things so your
goal should be to structure the business
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such that you an owner and not an
employee in other words you shouldn't
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always have to be there for the business
to earn otherwise you didn't set up a
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business you bought yourself a job
finally as promised I'll be sharing
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details of the companies that invest
with and how you can get started today
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before I continue please note that this
is not a sponsored video and I'm not
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being paid by anyone to talk about these
companies and basically recommending
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with
over the years in the hope step you will
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find it just as useful for your own
investments so let's start up for money
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market funds have used air and
investment manager since 2014 and I'm
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quite happy with the service the return
of us incredible as the way in 2017 I
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mean then the bigger as high as it in
the same time that's ridiculous but the
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returns are still imposing inflation
rates this is what I use as my default
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form of savings every month the funds
remain quite accessible under its
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supersede any other savings account that
I'm aware of for insurance I use new job
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benefits life assures and while they had
their challenges it's easy to keep track
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of your contribution and I've been able
to clean my tax rebates consistently
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every year since 2014 when I started my
pension fund administrator is stomach a
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participation managers they've have a
pretty decent website that makes it
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quite easy to keep track of your
employer contributions and your
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volunteer contribution separately my
stockbroker has lead Securities and
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Investments while I choose what stocks
that I am investing they are quite
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responsive and they execute my buying
and selling decisions very promptly they
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also have an online portal that works
well for most of it I'm unable to even
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make same date which is an sills from
crowd is an organization that I am that
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invests in agriculture in Nigeria
through crowdfunding I started investing
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with them in 2017 and I've received my
returns consistently since the best
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thing about them is that their fans are
insured so if anything goes wrong with
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the crops your phones remain secure my
first investment with them was actually
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with two metal firms and they actually
had some challenges with a Tomatoes died
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here but I still got hit my not just the
amount that I invested but the promised
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interest as well so that's it my five
favorite ways to invest and grow your
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money
if this video has been useful to you in
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any way please do two things for them
share it with two people that you
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believe need it and also click on
subscribe for more videos like this have
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a lovely day and remember it's not the
size of the picture it's how you use it
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