Jasz
VIP Contributor
In my last post, I gave you some reasons you should invest in US stocks this 2022 and why you shouldn't keep your money in the bank and a lot more. I'm not abandoning you now, I'm going to walk you further in achieving this.
Banks will never give you an interest rate higher than inflation. When you also consider the effect of devaluation on your money, you will know how much you are losing quickly. I WILL LIMIT THIS POST TO NIGERIANS.
Check this scenario, if you have let me say a million in a bank in Nigeria as at January 2021 (365 days ago) which is approximately 2500 dollars.
If you got a maximum interest rate of 10% from the bank (that's if the bank is kind enough). Fast forward to January 2022. It will be worth N1,100,000 and with this, you can't buy it. 2500 dollars in Nigeria today (2022). You can do the math. You will probably buy 1950 dollars, though your money grew but actually reduced in price.
Now you know why you should invest in index fund. Index fund is a fund tied to S&P 500 index. S&P 500 index is an index that monitors the 500 largest corporations in America by market cap. It has a 96 years history and it never failed all through this period, though there is always a risk involved in any investment.
If you have been getting 8 to 10% yield interest on your money every year till now, you will know your worth. In the last 10 years its interest rose from 10% to 15%. When you buy an index fund. These brokers invest your money in shares and stocks of companies listed in the S & P index. Which is one of the top rated agencies in the world.
The only problem is they have minimum investment requirements. Some range from 25,000 dollars to 10,000 dollars.
You can check my next post on Four Apps That Allow You Invest in the US Stock Market From Nigeria.
Banks will never give you an interest rate higher than inflation. When you also consider the effect of devaluation on your money, you will know how much you are losing quickly. I WILL LIMIT THIS POST TO NIGERIANS.
Check this scenario, if you have let me say a million in a bank in Nigeria as at January 2021 (365 days ago) which is approximately 2500 dollars.
If you got a maximum interest rate of 10% from the bank (that's if the bank is kind enough). Fast forward to January 2022. It will be worth N1,100,000 and with this, you can't buy it. 2500 dollars in Nigeria today (2022). You can do the math. You will probably buy 1950 dollars, though your money grew but actually reduced in price.
Now you know why you should invest in index fund. Index fund is a fund tied to S&P 500 index. S&P 500 index is an index that monitors the 500 largest corporations in America by market cap. It has a 96 years history and it never failed all through this period, though there is always a risk involved in any investment.
If you have been getting 8 to 10% yield interest on your money every year till now, you will know your worth. In the last 10 years its interest rose from 10% to 15%. When you buy an index fund. These brokers invest your money in shares and stocks of companies listed in the S & P index. Which is one of the top rated agencies in the world.
The only problem is they have minimum investment requirements. Some range from 25,000 dollars to 10,000 dollars.
You can check my next post on Four Apps That Allow You Invest in the US Stock Market From Nigeria.
