Building Wealth via Equity Funds

Hey folks, good evening and welcome to another money space with me calu Ada. Apologies for the voice if the voice is kind of croaky recovering.

From a cold.

So we're gonna try our best today to get through it. But thank you guys for being here today. We're gonna talk about building wealth, building weld using equity funds right, and I advertise this as a space for the very very young below forty. You guys are gonn understand why I use that title and why I'm looking for that demographic as we go along, but everyone can join in and we're gonna take our time today. I've got tons

So we've got time.

Also, the space is going to be recorded, so it's recorded on Twitter, but obviously I have a podcast, so I'm doing this cross recording also on my podcast, So once the space is over, you can go to the podcast. The way I see it is going to be recorded there also on YouTube, so if you're on YouTube as well, it will also be recorded on YouTube and YouTube of because of course has the great visuals, right, so that way you can sort of follow as.

Well on YouTube.

So we've got those three should we say, three ways that you're going to have to get us recorded after and I think they're all going to be fantastic for you guys to follow what we're done.

So we'll just going to start. It's like I said, it's going to be.

I want it to be more of like a I Was the world, like a masterclass style presentation. Right, want to take our time and walk you guys, slide by slide what we're trying to say, what we're trying to complicate, so you guys get exactly you get the letter that I want to communicate today, right. So I'm going to

So let's just start off.

The title is called the Rip Van Winkle Portfolio. I E.

Who is Rip van Winkle?

If you know this this this is a guy that essentially went to sleep for twenty years and woke up after twenty years. He did nothing. He just woke up after twenty years and essentially he was away. Twenty years had gone past. So the way I'm looking at this is that if you had to invest money for twenty years without touching it, without doing anything at all, what sort.

Of portfolio build?

Which is what we're going to talk about to that's always said the guys that are below forty because below forty implies that you have a long compounding period. Investing is all about compounding. That's the secret source of investing. They don't tell you. Albert Einstein said compound interest is the eighth wond of the world. What he means is the compounding of interest. We're on Buffett is worth billions

They lose the money.

They lose money not because they didn't invest, is because they didn't compound the returns from the investing.

So compounding is a secret source of investing.

And this rick by Miracle Possiblity is talking about how can you compound? Because once you learn how to compound. You then learn, of course, how to generate wealth. It's as simple as that. So our next slide we are now talking around how is weld built. If you're on Twitter, just flow the slides on Twitter on YouTube.

I'm shure them as I speak.

Right, So we'll have this great infographic here on how to build wealth. And this is the same in any country, for any demographic, for anybody.

This is exactly how wealth is built.

In Nigeria, in the US, in Russia, North Korea, wealth.

Is built this exact same way.

If you look at a diagram, you see a big circle called arn, which means you've got to earn money.

As you've got to earn money.

You can't invest or become wealthy if you don't end money.

Let's use a bad example.

Even when you steal money quote unquote, that's end money.

You've got to get money, right.

If you're a pirate and you are earning goal from robbing other ships, that's ending money. If you're an entrepreneur in enter you walk some pays your salary, you're earning money, and you consider those two little boxes dead.

You've got to spending money. You've got the saving money.

That's where The problem is because when you earn money, money earning is not welt. You've got to spend. Your spending is you've got to eat right, so you've got to eat, and after eating you've got to then invest right. But that's where we run into the problem. That's where we have most of the spinancial courses teaching you how to spend and how to save right, and of course

Rate, but he just started later. Look at the middle chat.

If you start investing at eight twenty five, you're gonna get a hundred seventy thousand. So if you do two thousand nira, that's one point seven million. Again, if you wait till you are thirty five, you'd only get eighty two thousand nira. It's the math, guys. The math how we calculate inflation and how calculate compound interest is based on time, not the interest rate. The interest rates of seven percent is not the issue. The real issue is

Start, that's going to be the kicker for you.

So it's why if you're below forty, and I told you guys to come to this space, if you're below forty, you will have an advantage. You're build an advantage because if you start today already you have a you are going to make more money. Don't look at the I, ROB, you are good to make. Look at the return of investment, your ROI. It's going to be more than the same person investing the same amount of money but started later than you. It's just that simple, guys, It's just that simple.

The slide and they heard a bit later, but I was able to correct that.

So again we're on YouTube and we're also on on so we can see the slides.

Yeah, perfect, guys, I can see the slide. Fantastic.

So let's go back to the picture to slides dia aground one point four again from my book. Let's talk about your money. Look at these two brothers, and this is a great example. Brother A started to invest when he was twenty one, twenty one. He only invested two thousand Nira, two thousand dollars. He only invested for ten years. Only for ten years, so two thousand dollars every year for ten years, the same interest rate eight percent compounded

You can try it yourself.

If you double the investment of brother B to four thousand, he still wouldn't meet Brother A.

Why brother is monies are investing for him longer.

Because this is com pounding longer, he's getting more money.

So an early start is the circuit source.

That's why the Space today was saying, if you are younger, you want to join in because when you join in earlier and you invest earlier, your returns, your principle has.

More time to compound.

It's as simple as that. Right again, I'm during this point down again with a different slide. This is again showing you the same thing who showed you able to be. Look at the graphs. Who has got the highest funds. The guy that's there to invest it by age twenty five, he gets the most funds. It's not the guy that's there to invest at age thirty five. That's the guy you see in brown. It's not the guy that's there to invest at a thirty five and any the same interest rate.

That's the guy in purple.

The largest returns, the largest ROI is from the investor that starts early, same interest rates. But when you start early, you make more body because your principal colledpounds more. If you go to the bank and the bank ts you're going to compound your interests annually, quarterly, monthly.

When they compound monthly, you get more money.

The same interest rates compounded daily or monthly would earn more than the same interested compounded annually. That's the beauty of mathematics and compoundings. That's why Albert Einstein called it the eighth one of the world. It's also the reverse. If you borrow money at compounded interest, then your wealth is degraded faster than someone that does not borrow money.

So it's also the flip side as well.

But when you start to invest earlier, you have an in built in advantage because you are going to make more money because of the bird of compounding. So I hope I've drilled that insufficiently into you. Guys to say, hey, whatever you're doing. You can say I don't have money. You can say I want to wait till I get money. You can say I want to wait till I marry.

You have to start to invest as soon as possible.

Somebody is asking me, I'm forty five, I want to invest. Yes, you can invest, but you've lost a bit of the compounding advantage. You can still invest, you can raise your principle, right, but you've lost a bit of that companent advantage. That's a point. But you don't stop investing. So now let's know to the next part of this presentation. How before you invest? You know, we have know what kind of investor you are and why are we asking you to

Am I interested in the cost of investing?

Yes? So I go to passive income or an active mutual fund. I'm gonna explain what passive income, what index funding, and what an active mutual fund means.

Don't worry about that. But this is trying to show you that you should.

Invest according to your own peculiar objective. If you do not have the time or the knowledge to invest, then of course an index fund is gonna be your best friend. You don't have the time, you don't have the knowledge, but you have the means to invest, and index funds works best for you. But you have the knowledge, you have the time, You're gonna havefort to take your own risk. Sure, go on by your individual stocks. So there's no right or wrong answer in investing. Index foe are not better

On your own. That's the question you want to ask yourself.

And if you get that answer, it then takes you to where we are taking you to today, which is going to be we want you to look at index funding, equity index funding as your path way to get wealth. The greatest investor, at least in my lifetime, and I would even argue in the lifetime of modern investing, he says, a guy called mister Warren Buffett. So when somebody is this good in investing, we have to listen to what he says, right, I just to get his scent on

Fund and ten percent in cash. That's what he's saying.

So of course, basically listen to what he's saying, should recopy it, but at least let's listen to what he has said. Right, That's what war on Buffet is that it didn't say go and buy hedge funds. It is say going and buy crypto. This is what he's saying we should do with our funds, which is very very trusting to note.

Right, So now what is an index fund? Because one both is the same.

Buy an SMP five hundred phone, which is like an index phone. So what is an index phone? An index one? Essentially it is like a basket. Right, You you go to them, you go to the to the market, You take a basket and you buy all the things you like. You put tomatos yam, you put everything in the market in that basket.

Then you buy the basket.

So you say, hey, you put your tomato here, put your meat, put your fish, put your everything in the basket. That index phone is tracking everything in the market. So when you buy the index foone, you are buying whatever the index font has already bought.

So in the in the example give you said buy the S and P.

Five hundred, which means that once you buy that index fund that attracts the S and P five hundred, you have bought a fractional share of five hundred of the largest companies by market capelation in America.

Simple to look.

At that slide, investing index fods might not be all that exciting, then it says, that's the point. It gives you broad exposure to the market to assets. I will ensure your wealth crews over time. So when you buy the index number, you are buying everything into one basket. Number one, you are buying everything which little amount of money. If you can imagine you go to mile twelve, you want to buy tomato, fish, yam to metal, engine oil, rice,

That's what an index fund is.

You are buying the basket that contains all those assets already. So because you are buying them, it reduces your cost of buying it automatically diversifies what you are holding, and you are buying it cheaper, so you will not beat the market. So when you buy the index funds, right, you're not going to say the index fone cannot do ten percent and the market is doing five percent.

It does in the work that way. You are going to be.

In line with the market because the market is doing twenty percent, and you own every stock in the market, so you also do twenty percent. Get the point, So that's why you should go to because you don't have the time, the knowledge of the expertise like mister Warren Buffett to start buying individual stocks.

So you want to.

Buy the index because the index then shows you it gives you exposure to all those funds at a very very cheap price. So I hear some folks that askib last week as well, what's the difference between a mutual fund and an ETF that because you hear me say, sometimes buy the ETF, but they go so niger they see mostly neutral funds.

What's the difference in the mutual fund and ETF?

So remember the index phone can buy the mutual fund can buy the index fund. The ETF can buy the index front. No difference there. They can both buy the index phone. But what's the difference between the ETF and mutual fund? Really they are the same, Really are the same. The key difference is that the ETF means exchange traded fund. What means you can buy and sell the ETF during the trading day. So if you buy it also stock

But if you buy an.

ETF Nigeria thirty during the day, you can buy and sell those stocks during the day.

That's the key difference.

The rest is going to be a bit trust deed and how they are managed actively. Yes, those are all differences, but that's the key difference with the mutual fund and the ETA In America, ETF also have tax advantages that make it more attractive that mutual funds.

So ETFs are the growing ass a class in America.

In Nigeria not so the ETF market that is very very limited of volume. So we have ETFs, but I noticed that the volume of trade in the ETFs place Niger is very very low. And most mutual funds in Niger that call themselves ecutive funds have a huge experience to.

Also fixed income.

So some difference is there, right, But I prefer et has got the tax considerations. But in Nigeria you're gonna have mostly mutual funds that buy the index. So again keep that in mind as well. None of it's not a huge difference. It's not going to change what we're doing today. Right, It's just going to give you the appae to say, hey, I want to buy equities through this field or I want to buy active true field.

Again.

This just it's like just just to confirm what we're talking about. Again, the mutual funds can invest in the index and also the ETFs can also invest in the index, So anywhere you want to go, you are still going to get that exposure to diversification at a lower cost.

That's what we're going to today.

Diversification at the lower cost that compounds.

That's the secret source today.

Diversification at the lower cost that compounds. That's what I do today. And guys, I'll be done pretty soon. I'll give you guys the theory of what I'm talking about. And if you guys, guys have questions, just go ahead and request to speak and I'll add you know other problem. Just I just at everyone, and then once we're done, we have the visuals, then we can ask that question. Like I said, I'm here all day, no rush, I'm going from a call, so I'm gonna just stay indoors

Every year you make what the market has made. There's no risk if the.

Market crashes, you crash. The market goes up. He goes up, so one guy, and he put a bet. He puts a bet, mister Warren Buffett says, I bet you. He tell I bet with the investment community that over a ten year period, let's put money in an index phone. You guys, go put money in your hedgephone. He says, I will make more money.

I not.

I the index fund will make more money than the hedge phones. Hedgephones are the death cradle a cream of investing that they did Nobel prize guys in in finance, the guys that have to braise the the knowledge. So if you want to really know who is the ten pound going and the room investing, it's gonna get a

Who do you guys think want this comption?

We're gonna find out at the end, and it's gonna be very interesting who won. Right, But that's the bet that were Buffett was so sure of himself he said, listen, I'm not gonna tell you what I'm not gonna be sure of. I'm gonna put my money put down where it is to the price money was two point two million dollars. Guys, it's not like better. I'll buy you be a two point two million dollar bet and who

Right.

So now let's now come into the what I call the number side of the equation. I think I've tried to make the case in the earlier part of the pot. Listen, you want to start early, number one, Number two, you want to start early, but you want to invest in an index fund, and that index phone can be tracked through an ATF or.

A mutual fund.

That's what I tried to make I tried to expect you guys so far. So number one, we want to start early. Number two we want to compound. Number three, we want to invest an index phone and that index pone can be an ATF or mutual phone.

Okay, but what do we buy in this index one?

Can? What should we buy?

Well?

To know what you want to buy, you want to look at what has made money before. Abby. Remember, in investing, we say past performance is not a guarantee of future profits. So full disclosure, I've said that. But we want to see what has happened in the past to guide us perhaps or to give us a sense of history. So let's go and look at what has happened in the past. Right now, we hear stocks that down, boards, gold is up and all that. There's a nice chat that shows the retorts over five years.

I can do the work for twenty years or more. It's all going to be the same story.

If you look over five year period, the asset class that has beaten inflation and has delivered the highest return, the asset class is going to be US stocks, And in this chart, there isn't VTI, there'sn't atfs to capture the asset class. So there isn't VTI, which is about forty five hundred of the largest talks in America. Just America is all right, has been the most consistent for further, over a five year period has been inflation, which infliction

Over the years, it hasn't done that well.

Stocks this seventeen percent, seventeen percent, twenty two percent over three years. So even though today you see US talks are down, over a long period, over the trend, if you go back to nineteen twenty eight, you're going to get the great crash, You're going to get the gold for you're going to get the recessions. But over time, that particular asset class has delivered returns that have bitten

You're going to get the same answer hearing year old.

Right, So it gives us a bit of history that this asset class tends to do very, very well. Remember what's the type of our postition? They rip Van Winkle portfolio? What can we invest in that if we go to sleep, I e. If we call poud, we can't make body. We don't want what I'm going to invest in today, I make moaning tomorrow. That's not compounding. Remember we talked about compounding is a secret sauce. But I did say it. Mister Warrew Buffett said it. Lots of folks have said it.

Inflation was also negative.

Right, Bonds were the king because that was when we had the market crash, so nobody wanted to take risks and everyone ran to bonds. From forty two to sixty eight, stocks did fourteen percent inplicire dd three percent. Since ninety seventy seven, stocks did two point nine inflicire day six point four, So in stocks did not bit inflation. Seventy eight to ninety nine stock did seventeen percent inplicient did four point seven two thousand. Stock did not bait inflation

You can see the.

Same for many many countries or many indexes. You can see the same. Why this whilch, particularly if you just buy something, it allows you to beat inflation.

It's very hard to find that an inficion is the enemy.

If there was no inflation, we won't bother to save, will beorrow to invest a made We'll just leave a body in our pillows and spend what we have saved. It's because of inflation that we invest. Because if you take a million dira and you don't invest it, it becomes five in ten years. So you have to invest, to take a risk to grow. That word belout I

Do this day?

You said that I can just take body, just do this, stay and forget about it. I would advise that I will say, try to understand what you're doing. But because you are asking, yes, there's a simple way to invest that you can capture the compartner. I'm talking about, capture the risk and put in the portfolio. I call it my the Rip Van Winkle Portfolio against in my book.

Right. And if you look at what we've done here, there are four there.

Any investment you make is not going to be what we call a fixed return or variable return. Any investment, if you buy bitcoin, it's variable. If you buy property is fixed. Any return you make is not going to be fixed or variable. Bonds are fixed because the returns they'll tell you we're going to pay you ten percent every year. That's fixed return. Property and equity is. Stocks are not fixed because they can't tell you what I'm

So it's what we've done here.

Will tell you that there are only four investments you can bike on Earth and you've you've covered every investment class of just four one on that variable income equity vt I vt I v deals based Vanguard vagats are the largest brokerage house of the world. So when you see me using Vanguard is because they have the cheap expense ratio. You are going to buy the exact same

They're not payin US, so it's Vangard VTI.

That's US talks about forty five NRED the best US talks. Do you see that vx US is Vanguard International Stocks minus the US, So you've got to trustes there for equities vt I v x U S So either buying the US or you're not buying the US simple, But on that variable then you come to instead that you're buying to BND which is US issued fixed income, or you are not buying US. It should fix on who is going to be bnd X four options for you. So if you're a younger person, there's this rue weed

I can do ten.

International mister Wan Buffett said, do ninety ten. You can do seventy, you can do eighty. It's giving you an ankle. I can come to bonds and say, okay, US is very very safe. I'll do out of my ten to plar boards. I'll do two percent US boards I do attached to the boards head of story. By end of story, you have captured your variable. You have captured your fixed There's no other investment that it's not captured in this four boxes.

If Tesla issued chares VT, I will buy it.

If a new comedy comes a Taiwan that is issuing chips, vx US will buy it. You don't have to buy anything in the pay DVDs vx US or collect or DVDs.

I give it to you.

You don't have to do anything. That's why it's called the rip. But wical portfol You can set this portfolio up. I'll go to sleep. Just tell them reinvest by dividends. That's it checked the market have to do anything. Just buy the stocks and go god sleep. You can say, okay, v x US is buy and I'm gonna buy my Nigerian a location in vx U.

That's the international portfolio Minors vt I.

Very very simple. It's not hard to do, guys, very very simple. But what most you do. You have to start early so you compound. You buy into an equity fund. That's the trick. Start early, so you compound, you buy into an ecuitive fund because the ecutive phons we've shown you over time averagely is being inflation. It's a very very simple concept to grab, guys, and once you grab it, it doesn't leave you alone, doesn't leave you.

What is this?

So this one we can we can skip this for now. Let's let's not do well too much. This is just the vt I. V O or VEO is just talking about five hundred stocks. Why VTI is talking about four thousand, five hundred stocks. So if you want to be more concentrated, you do VOR. If you want to be broader, you do vt I. Yeah. So again it's always asking what CALU, what is this vt I is? Let's let's talk about vo or who who are the stocks?

This VT A view?

I think I've give you a I'll give you especially already if you buy the vt I or the view Or, you are buying the top stocks by market cap, by returns that are listed. So look at the let let's look at what bixed of video VIEO is just the top five hundred.

This is what mister war Buffett was asking you to buy.

Said, put in cash, I e the US boards two ninety percent in and it's an an S and P index for this is what I was talking about.

So v o O is.

Mirroring the starts are poor five hundred index. So that's VIEO. What in VIEO? If I buy one video share, I'm buying VideA. I'm buying Apple, I'm buying Microsoft, I'm buying Amazon. I'm buying Alphabet that's Google. I'm buying Broadcom. I'm buying Facebook, I'm buying Tesla, And I'm also buying mister Warren Buffett's company by John buying this one stock, this one stock or this one.

E TF Yes, I see your question. Can I buy this in Nigeria?

Yes?

You can go to your second proved app search for video. Oh you don't have VEO, search for v vt I. You might not if you're if you're training from the UK. They don't call it vo oh and vt I. They will call it something else, but it's the same thing. Look for what is mirroring the S and P five hundred. That's what you're looking for. What is mirroring the S and P five They might not call it v O O or vt I after the America, save in Nigera for vo oh and vt I, it will pop up. Yeah.

Look at cal wise is there? So all these apps are.

Pretty sure calo Wise, Cali, Babu, they would have all this vio vt I all that they would have it on those apps. They don't have it. Ask them to get it because it's not a hard time to get for you, right, So they don't have it. Ask them that you want it. That's one guy or to do to get it. And you want them to get Vigo Vigo for you so you can invest in view. Don't get it for you. Don't get it for you, right,

I tried to find out. I tried to buy research.

I said, and I told this, what what folds do we have out there? I have one hundred billion, there's no fifty billion, there's not. This is a growing market in Nigeria market, this mutual Ford equity market that has just equities.

It's a growing market. Not a lot of firms have this.

But I didn't find some that were there that have assets on the bikements more than ten billion. Yeah, and I listed them. There are many of them. I listed justice few. There's start BIK, There's Chapel Hill. Chapel Hill has a Paramount equity Ford, Start Bulk has Dijint equity, Ford AARM has the Aggressive Group.

For these are all equity.

For as you can see that was they have to do with seventy percent their food investment to equity, so minimum they have to do is percent to equities. The expense ratio I put them there for you. Again, they're buying almost.

The same thing. They're buying almost the same thing.

So the exposition there there's three point zero to two point two. So you have to choose which way you want to buy because they are buying the same thing. I prefer you go for the cheapest. But again it's not multiple do three and two. But hey, the best back there is the EDGX all share and the NGX thirty. So again, when you are buying, I didn't see a pure play index food in Nigeria for equities. What that means that I didn't see it for that just mirrors

I want you guys start from the top that walk your way down.

So again it's not it's not exhaustive, but just the words that I found out a bit large, right, So let's come back to I ask you guys earlier that who do you take word that competition between with the world buffet and the guys that said that the Hedgeford guys are said could invest trade.

So in effect, this is the better.

I against being passive and the bet against being active. Index folds are well called passive. You buy them, you invest them, you go to sleep. Hedge foods are traders. They are buy this, they are hedget days. They are doing that to make a profit. Like God and Gecko, who want the bet mister war Buffett, want the bet?

What does that mean?

That means if you guys listening today, take money, buy an index food that is going to invest in equities, US equities, Nigian equities. Are you leave that ford in Loae, you go to sleep for teny years, you are going to make more money than they're gonna doing. Buy sell, buy cell by cell? Why fees? When you buy and sell, you're paying fees? Phase disrupt your compounding phase, disrupt your compounder.

Because one point two? Like that, like that like that for ten years.

So I thought that experiment and mister worrel Buffet, world, what it misses this?

If you start early, you.

Start to compound, you reinvest your dividends, you will make a higher return and investment. I saw that starts later and it's having to trade to catch up with you. Because you know this, you have no reason not to start early. Boys and girls listening to me, you have no reason not to start early. So see I'm never little retired right myself. And when I started to invest the first stock I bought in my life was first back. It wasn't called first back. It was called standard Bag.

I watch. Your broker tells you.

Just start what I'm saying today. If you're a if you're a twenty five year old guy in university on your phone or your mobile phone by Tesla from a bar in Nira. There's no excuse. All these people are doing trading crypto that's not traded. You can't trade with less than one hundred thousand dollars. You're wasting your time.

Sorry.

If I bed card not be called, take that body invested. You look like a quote un quote food today. Leave it, Alad, just take that Moody buy index for leaveing a load. Focus on your schooling. When you leave schooling, look back at that portfolio. You'll be shocked what you have. I'm giving you by experience, not theuring. When I got married, I sold by portfolio in first bag. That's how I paid for the entire wedding. I tried to calculate the retors admit of fast back. I couldn't do it, so

I'll take it.

I guess I've got time and I'll take every question. Let's start from prosage prostage. How are you doing?

Welcome to the to the space busy. Thank you for everything you do for us. I had a poestion on earlier what you have already answered it.

I wanted to ask questions on af equity based moon.

You already cleaned.

Mine doubts, So no question, thank you, Okay, fantastic.

Yeah, So every stock broker, what I posted here is the apps. But if you go to say afe first, you go to Auto Stevens, you go to Berristep, you go to any trader.

They have their.

Own stopparkey website, so you can easily just get those words. There are the apps itself. That's what I'm posting it the apps itself? Right? J Or lion Ker, How are you doing, sir? J Or Lionka. Can you speak? If you can't speak, Let's go to eph Rex Trading eph Rets. How are you doing mission? Oh? I am fine? How about I've been.

Very well so types of being here today? What's your question? It's been a pleasure.

My question is like, is you managed to mention how you started and.

The healities when we did not when we did not have even interne connection of food in Nigeria and my and I wanted to see it.

Did you solely invest.

In nine Jam store? Because I heard you see that was what paid for your wedding then, so you were doing mischarges of Nigeria. And as for US stocks outside Ania, oh, it was basically.

Yeah.

So back then you could not buy foreign stocks.

You couldn't It wasn't possible to buy forestock because remember I write even today you need a Social Security.

Number to buy a forest stock.

So what the niger do get? What the American company is called? This company called the name is gives me? The name gives me what they've done that they've allowed the Nigerian apps to take to open accounts in Nigeria. But then those when when those when you place your order, it goes to that broker in America that Broken America executes for you. That's why you can do it today. You still need the social to have an account in America.

So back then it wasn't possible to buy foreign stocks.

I bought only Nigerian stocks, not because I couldn't, but I don't know where you can buy foreign stocks. I bought First Bank. I think I bought Nestle a few of them, but that was really First Bank. And I did like I said, I bought this stock before I got to university. So it's the money I got from when you go for Christmas and they spray your money, so they spread my dad money and I picked the money from the ground and my friends that also give you money, and I had five and a NERRW That's

And I get it. I'm not calling you out. When you are younger, you have that incision.

But if you understand how wealth is created that whatever you invest today you will make more money tomorrow, it helps you. My dad had to say this in Ebo is conk Ebo, So I'm ever gonna try to repeat it on it in my break Twitter. Never even try and gang guy buy buy your tardy buy Chi. Sorry. What he was trying to say was this, if you do, if you if you show off today, what will you show off tomorrow? So again, as I'm talking to the young Poele Nigeria today, you've got to be very very

How that answers you?

Yeah?

Yeah, yeah, yeah, you're doing a lot.

And see if this is my ideas?

And how comely people that have been seemed like early two.

Thousand eighty, two thousand and five, I.

Always he who heard them.

Complaining about Ninetian stocks.

You know, he would say that lost monitor to the sub stocks.

They lost, they lost money. That tells you they were trading. So you know, I used to see the apps. I see this this this comment somebody posted I think a long time ago his father got hit a bank share and he went to the stock market after twenty years and he got them his father as shares. And when he saw the shares, he related as his father had middlely twiteters on narra and was it was it was treading on Twitter and I re replied to the guy,

Then you get stuck. All right, let's get but but but thank you, I have a couple of quescents, go for it.

Okay, I think two thousand and since there my dad only shared anyway, so that was yeah, I had forced experience but shares.

But I don't know what happened at that time.

He actually both applied for a number of shares.

But after some time they refunded by some of his money and they said they are located some for him. Then I didn't understand what actually happened, but they couldn't give him the number of shares he had advocated he had applied for, and so he later had just a couple of shares with them. They have the pain dividen but have no keeping up on eat. Okay, untie, I think some real Last year I just started buying my

I think that was last year.

Actually I actually spent the money, but how would have invested?

But I don't. I'm just y like I just bought from the two bank, not through store broker, and they paid me dividends.

One of the bank paid linked into to my CAM because I have an account to it, and they paid the dividends.

Into the account of it.

Then the other one they as before I can somewhere, So I registered the storebroker from mer Trade and I gave it to them and they regularized it in and they also paid me dividend to my accouncil. How would I have reinvested those dividends that I was paid back into the share?

There was one question I know that to hold up, hold up answer the first question. So that's that's a great question. How can you reinvest your dividends? There are many ways, So if you are buying shares abroad, If your buying shares abroad, the usually have what they call a d R I P their dividends Reinvestment program. So if you buy shares a BROADERCT like I'll share the apps now on YouTube all the apps events are broad ask them do I have do you have a DRIP? If they have a.

Sign on for it, so you can reinvest your dividends. Now, if you buy shares and.

There's no dr ip, what you simply want is to open up a savings account. Open up a savings account. When you get dividends, put in your savings account, and then you buy your shares or you get the physical share, you take it to your broker. You can just give them the dividends right there, and then the booker can receive your dividends check and buy. In Nigeria, now they will actually open the bank account right so you go to your bank account once that bank account should not

When you buy the same shares, you are compounding.

If you don't buy the same shares, you are compounding but the portfolio but not the share itself. But if you buy the equity phone, you are compounding. So that's how you do it.

Okay, don't understand what I think from what you're saying, because it's just my first experience album. Experience album, I don't know much about it, so I actually lit smiling normal sailing account to it.

So you're like, that's fine, what's that. What's the next question?

Okay?

The next one is I have been buying shares from Marit because album nude and bamble.

But that bamble. What I have been doing it is just saving what what what's the question?

You said?

What's the question? Okay?

The malitrader will be buying some shares, like some majorian shares, like and I'm just I can assess one that there is left in and I'll just use it too bad, So I like those ones are buying. It's also like the same public offer that they do. Said from the Bamboo from the merritrade app.

I don't understand the question of asking if you.

Like I've been buying from hold on, hold on. If you are buying a share from a from a broker, it's not the public offer. It's it's not a public offer because you're buying from the market. The broker is the market guy. You only buy public offers from the company selling, so the company will tell you we're selling true Meristem. But if you're buying day to day from Mary Stream or true bamboo. It's no longer a public offer. I never answered that question. Yeah, so is there?

Can you true lights on the different speak in buying from buying this public offer or buying is the big difference between buying from public off or buying damage from.

Your Not really, but you only buy a public offer once. So when Dangote Cements sold the shares, he's sold true public offer for the first time. After then the money goes to Dangote. After then you are now buying from brokers, buy from myself or from somebody else on the market, not from Dangote anymore. Dangote will sell his shares to the public. You buy from Diangote, the shares go to the public. Following that, you don't buy from the market,

Hey, I wanted to first of all talk about my stock in Nigeria.

I got I got that ip O Union backed iph in two thousand and five.

Yeah, for about.

Twenty might I got a hold on speaking kid you go ahead.

Yeah, so I got the ip HO for in two thousand and five way bouts of twenty niner for Union Bank, and now I can't even look at it any longer.

But you know that's that. The second the main thing I wanted to find out from you is which would you rather do.

Buying, you know, stucking up about the stocks here, or going for a life insurance.

The reason why I'm asking about that is if you decide to sell, we'll pay a whole lot of taxes on that, right, And from what I understand, I think I can say more if I'm doing a life insurance.

Like so. So no, no, you're totally okay, that's that's totally off. So look at it this way, right, Life insurance is not an investment. I'm to stay right away up. When I ask people to do a financial plan, life insurance is the SECONDTENTENT acts them to do before they invest.

But life insurance is not quote unquote an investment.

It's a special kind of asset where you can put in one narrre today and you get a million immediately.

You use life insurance to protect a loss of income.

So if I have a dependent, I buy life insurance because if I go away, my dependents get that those funds to pay for the education or to cover the more. But I cannot compare life insurance with investing in state bonds or stocks or property.

No, they have different uses. My life insurance does not compound.

I'm buying a fixed sum sum assured, maybe five million or whatever. It stays at that amount. My equities, my bonds, my property can compound. I can buy property legos and it goes up to twenty million in a year. Life should don't do that. But there are two different things. I use life insurance to protect income for my dependence. I can tie my life insurance to my trust to pay my dependence, pay education, pay my mortgage.

Buy I can only do that with with stocks and shares.

As to pay taxes, you have to sell at least one hundred and fifteen million or so to even pay tax on the capital gains when you do your binance selling. But what I said, we're not talking about buinance selling. We're talking about buying, accumulating and compounding for the next ten years at least. So the buyers and guys at the Guys Invester were on bothect defeated. This is what I'm saying the the guy he defeated, but he said, listen, if you're if you are trading and you are buying,

Copy him. Now.

Does it mean that tomorrow, if you get excess money you can trade. No, it is that have this portfolio, your long term portfolio. If you now have loose money, open up a trading portfolio and start to trade. Not problem, but start with this one. Start with this triangle broad based portfolio of your long term savings, then built from them.

Does that make sense?

Yeah? Yeah, I get that.

Excellent, fantastic. Let's get who defy scholar defie?

How you don't.

Find some Yes?

Okay, So in question, I have this weak immuni stock explaining.

So I wanted to know if I'm I.

Go to Boom and I open our accounts and I buy something like your own the it, how is.

It investing going to work like the did if I have.

To perform the action on any specially and I'm supposed to do tay.

That's a great question. So ask them, ask them about that.

Ask them how do I reinvest If I get a dividends, will they pay me in dollars?

Will they pay me in naira?

Ask them. Whatever they answer, that will be your next point. Right they said, oh, they're going to pay to your bank account, okay, tell them? Can I talk you automatically back to buy more view? If you say no, then do what I said. Get dividends, putting an account end of the quarter, write a new check and give them to buy more.

So it depends on how they are set up.

The ones I use that are offshore. I just stayed drip. I never I've never got my dividends check ever if they have, if they paid dividends, I always reinvest it because if I get didens, I won't buy. I'm very very bad with I've just go and buy right, but leave it there. So the same way with you. If you can have a diffident investment, do that. If they don't have it, then do this manual way. Receive dividends and then invest in them. So ask them if you can ask them, now, let me know and I'll tell

Yes, sir, Yes, sir, just able to what you mentioned.

Something about dividending the pact time that diffidends And I'm not going to put upon you, but I think you said dividends are not going.

To be mm hmmmmm. You're right.

I said that if you buy a collective investment scheme, the dividends returns to you and not taxable their tax exem So, if you buy a mutual phone and ATF a money market phone, and they pay you a dividend from that fund, you will not pay a tax on that that they paid to you. That's why I said it. So I think he dropped up blast. Yeah, that's what I said. So let me allsread you tube questions right.

You pay the baby the contract face for be the model. You take that check.

You're putting the era rot rot rot era for the baby. That's a completord one. Even if you can't do this, there are many other apps that allow like this. There's some acorns. With acorns, you can invest for the baby and you can buy shares immediately for the baby legally in the baby's name, the baby's Socialtificate number.

But let's say you don't live in America, you want do that in Nigeria.

Go to your stomach and say, I want to put up a constant account or an account by a child, and I want to invest shares the child or the or.

The lord the child in the others.

I agree, open up a trustee account. I buy shares the baby's name, you know, the trustee to be given to the baby or to the child when there is a certain age. There are many ways to do this. Just ask your banker, or your broker or your lawyer. They'll show you how you can build well. The best way to build well for a young person is to buy equities for that young person. I'm talking about forty year old. I think I should.

I should.

I share this liight with you guys where I said, if you wait, you lose body. If you snoose it invested, you lose. If you snoose it.

Invested, you lose. And I give you guys the numbers. The numbers are there.

If you have the same two hundred mira and you invest when you are aged twenty, you make you make to attend night house on the same time, if you wait till you are thirty five, you make only eighty two eighty two thousand, so you only make thirty four percent if you wait for fifty years.

So that's how you ask that to the them about how can one invest?

True?

Vagad is a company, So Vagat it sells it ETFs at mutual foods. There are many copies that also offer faget is like the stock broker right, it's like it's like IBT six, like many sters like Afrige. So you look for that company that has very very cheap expense ratio. Then you buy your ETFs or mutual folds through there.

The issue is the same thing they're selling to you, so use the cheaper.

World to buy it. Okay, how can we start? And this is an app? Yes, they're all on an app ap showing you the apps. So start tomorrow. Go to your broker, go to your backer and ask them to start. Yeah, is there a website? Is that?

Yes?

Go there and start start don't You can find this out just ask Google or grog how can I buy equity? Index fought in Nigeria to tell you to tell you can I invest in the US, EAT and Niger without having the US account.

Yes, you can use those apps.

We've just been showed Cowie Wise, Bamboo Shaker, you can open an account in Nigeria to invest in a US.

ATF That's what we just explained to you.

Yes you can. How do I manage fees for those apps? You can't manage to fece this what they ask you to pay that you're going to pay unless you have a better way of doing it. If your child has a social section, you can go direct to America and open an account. It's cheaper. But if you don't have a structuring number, then you have to buy the apps. Let's get your get better. You'll get better, hiding your get better. I can't hear yourself. You're speaking, I can't hear you.

Let's get a black child, black child, go ahead, black child.

Fine, thank you for the lessons. I just have a quick question between the dividends paying stock and non dividends into yeah, and how they can.

Impact on our portfolio.

Yeah, good question. I think it's a great question. So let me put this way right.

I personally, I personally do not like stock that don't pay dividends. I personally but the way Americans think is this.

Americans will say, why should we give you a dividend when we have a better use for the money. So Tesla does not pay dividend because test would say that they have a better use for that money than giving it to you. They can make cash cheaper, which caused cost of cars to go down, which makes you invest on more money. Microstoff didn't pay dividence for a very very long time, so all these tech companies don't pay dividends.

That's their thinking. But I personally like dividends. But I did see a chat words where they compared dividends paid.

ETFs to non DIM that paid ETFs and DIM then't paid ETFs or stocks in that ETF had a higher retort investment than non paid dividend ETF. So I look at it as as by insurance policy, if I buy a stock and the share price falls, at least I got a dividend. Rabbi, is that god dividend because the share price is quote unquote doesn't mean much.

It just means how much back it was to sell to you.

But I get divided as real money, cash money to be I can use that money, I can reinvest, I can even retire with that money. Remember, the whole goal of investor is to build your passive echo. The reason why why do we want to do today is we want to build passive income. There is no point having that investment that does not pay you passive echo. What's the point of having shares of a copy in America where you have tied your body down, but you get

Right? Okay?

Will that ever change? Will that change? It would never change, I'll be okay. What about the price of bees or the price of bees go up or down?

Does it change?

Yes? Yes? Okay, So the value of bees is the same, it stays constant a bee, yes, But the price of bas goes up and down a bee yes. So your question to me is you're asking me when can I know that bees is overpriced or on the price that be that's true. So the way you notice you have to calculate the value what we call the intrinsic value of beats. What I asked you, why do you buy? You said to eat because giving you protein and carbohydrates. What's the value of protein and carbohydrates to you? If

Will you buy?

Can have fair enough? You will buy because the price the price of beans is below the intrinsic value of beans, so it's under priced. So as a trader, you want to calculate the intrinsic value of beans. Once you get that number, you then want to put the price target and say, once this price falls below the intrinsic value, I buy. Same way, if it goes a bo the intrinsic value to a percentage that I have predetermined, I sell.

Are you ready to speak now?

Mister G, I've called you twice, going to take you off, king kV ng, kV NG. Where can I buy the book? If you want to buy my book, It's only on Amazon for now. I do apologize. It's only going to be on Amazon for now. We know I have it run in Nigeria. We did three three roles, all sold out, but just on Amazon for now. Yep, go ahead, sir, I can hear you.

I have a.

Question.

I've been twing them and you asked a quxchange for like I'll say, please, now just tell you that money.

He's we don't come back against to buy land the property. There's a complition. Why is that?

I'm into this strike market sounds I said, I'm wasting my time.

I don't get the question.

Help us. So you you you buy stocks and then you take the profit and you buy landed property. But what's your question? I didn't get this question. It was since about waitiness time. I didn't get a question. Really good, okay, k v Angie, kV Angie, go ahead on how so on YouTube openness asking how do I manage fees in these apps? Like I said, those fees are a bit high, but remember you're paying you're buying in naira to buy

Oh jeez.

Yeah, So because having difficulties starting up, let me go to dms and really a few d ms there. I want to ask INMUTURE if all mutual funds pay dividends like VO no the DeFi you want to make sure you find out if they pay.

They will tell you they pay.

There's a particular ETF called v y M v y MI that is solely for dividends. So if you I a Groat mutual fund that just invested in it, sometimes they don't pay didn't because they are focusing on Groat not value, right, So make sure you look at the prospect. They will to tell you when they paid dividends last. So if you're a diviidend guy, make sure you read the prospective. But v OO, VT, I VT, all those big ones all pay you a dividends that is correct?

Now, do I have an email address you want to write to?

Yes, my first and last name at gmail. That's right there. Yeah, So you know.

Ten years ago? Was it ten years ago? I think it was five years ago?

On this same space on Twitter, I think I found a telegram group and I told the guys to go out and buy VTI. The telegram group is called invest twenty thirty. Yeah, and they've all bought VTI. So yesterday I asked them at what price did you guys buy VTI? I know the price they bought, but I want them to see their profit that they have made on just buying VTI and holding.

So this thing is, it's not a hard concept to get guys.

Like I said, I'm giving you.

Yeah.

So when we bought it in twenty twenty two, that's what we said the Telegram Group. Twenty twenty two, VTI was one hundred and sixty seven dollars, won sixty seven dollars. Today Vita is about two hundred and forty. So all the guys that basically did what I'm telling to do now made a one hundred percent return on their cap, on their principal in dollars. One hundred percent return. It's not magic, i''s nothing new. You buy an ascid that's going to go up in price and you just leave

Right, So I answer that question for you? How can I get your book of answer that question?

Telegram stock, you're extremely green. If you are green, you've got to do a lot of reading. You've got to do a lot of reading. The sound is going, Oh my god, I'm so sorry, guys. I think the sound went off on Twitter. So you two guys are hearing me so, like I was saying, on on on, I'm so sorry about that, guys. I think the sound went off. Yeah, two term my kick us off very soon. I think two tim kick us off very soon. It's looking that

You will not lose money. It's difficult for you.

To lose money in an index fund, very very difficult, unless the entire economy because you dian or so many where everything is gone.

Do you go lose that money? You know?

How you doing?

I love it's ahead?

Are you? I hope you can hear me better and please go ahead to the question. Yeah, go ahead, Yes, how are you doing?

Sir?

Yeah, I'm good? Yeah, other homos, thank you for.

Because if I listening to you the same program like yeah, and I've three of those things that I am right, I.

Want to appreciate you really appreciate thank you because I'm love here and grow up blest and.

I would yeah, they would center down, you know, fromformers.

And to ches. So now I want to diverse to univers.

Rau from my young stock, buy a reserve so you know, don't learn.

I think I treat you if you can't remember when we're getting you with shard all about distinct that time.

I was talking about.

Yeah, I don't know if you remember, Yes, I don't know.

I tried to don't fish to ecutumatic investments instead of arrest and store ten.

So I'm trying to learn more about it now.

But I'm trying to keep to your madri right.

So this did she I galimation and I tried to fall on their animation.

I'm ready about that too, But then again I was thinking about, you know what, I.

Have large capitalctice.

Part of that argues, so I'm changing that.

What about it.

Like outcomes only get release of.

All the new something that just getting listed on stop action. Whether if I'm in the stock when you are a very bad h you strictly advised this RETI view and as avel things I just want to.

Know because I don't I want to start with depanding for the boring talk.

I was in the.

Stock, I don't know.

We have the new listed stop we have now amounts whether you know where, Yes, I have that cogret thousand like I used to project with the amount of of stock on those new really and new stage stock in US.

So look at for advances, Yeah, look at it this way, right, So look look at the point I'm making what's an index fund.

An index fund is you go to the market today, you want to you want to buy things.

You don't have enough money. There's rice, there's yem, there's there's oil, there's chicken, there's tourky, there's pepper, there's maggie.

You don't have going to buy all those things.

So what do you do?

You say, Okay, I'm going to have a basket.

Give me five nire rice, give me a five turkey, give me a five another oil. You buy five five five into that basket. Then you take that basket home and you do gelo fries. You don't buy a bag of rice, you don't buy it enough oil, just buy you know, you're just buying small, small, small, into that bag of rice. Once you buy that bag of rice, you take it home. So do that basket you go my ideal jel of fries. That's what the index fund is. When you buy the index fund, you have automatically bought

So do that first.

Understand the market first. Then tomorrow you can say I now know more about the market. I can work by individual stocks. You follow what I'm saying, Start off with the index first, then do the individual because that's why mister Warren Buffett, the richest guide and the guy we're all respect and investing, that's what he has access to do. Not because we should follow him blindly, but he has shown us that if you do it that way, you beat trading. That's what he's saying. So do it that way.

Yeah, makes sense, okay, Enno.

Question, Let's get cost mass c os MS building a brand in finance market that helps individuals understand the retailers psychology and how to navigate costomers.

You've got the floor, please go ahead, Okay, thank you, I can sir, okay, thank you for the opportunity.

Like you're doing great.

I ha been following you since twenty twenty two, twenty twenty three.

Who'st in space with let media and dec You have been a blessing to me and dog, so two individuals who is putting what your teaching in the industries that's about asking custom but is just the compliments your geneer. What you're doing in this space is very fantastic. Is your space that I can't are knowing about Facebook stock when it was trading around the one hundred dollars, but currently I think around sis area and the system which

So it just a compliment what you're doing. It just is not only talking, but you are improving lives.

And I'm one of them that you help in the industry, which I invested the LA and I'm seeing the returance both Clean's Back or It's they're just companies in America.

When we are treating below under the pot's go and check them.

Now Clean's Back is trading a fifty eight dollars one is ten dollars of pots that we are treated as an appoint five both because of the knowledge and got from your space ie research and that got them earlier, which they're in my portfolio and bambook which they are you the a lot of returns that is imaginable. So I'm so happy for your space and then following you back to back and dog so.

You're doing a great job in the industry.

Thank you and God bless you. Thanks.

I appreciate the comments. Really do The best way you can support me is to also let me give you a challenge, right, maybe buy a book and give someone for free. Get one of my books and give someone for free so they can read and also try to catch. Most of the stuff I say here is in the book. I have a passion to educate about for the show literature, so I want you to do that for me. That would be a good way for you to to support me.

That is correct.

VT s a X is how it is usually called sometimes as the index phone. VT s X is the index phone. On the ETF side. It should be called the s M P five and all that. Yes, J.

Collins, uh so, yeah, that's the index phone to be. That's the index phone.

But all the other ETFs track that index. The index is just the what where, It's just the comdition of all those stocks. Right. Then you can have an ETF that will track and say I'm going to replicate that index. Once you buy my ETF, you are buying the index. That's exactly what you're doing. So you can buy the V O H D VT. I. Let's say you want to buy all the stocks on earth quote unquote the good ones. Right, I want to buy all the good stocks on Earth. When I is US, Nigeria, and America.

Just buy VT. That's Google VT.

That's all the stocks South Korea, Nigeria, Nigel, Niger is there above South Korea, America, China, Japan, and Canada's all going to be in that VT. Nigeria used to have an ETF that it was called the m CI ms CI Nigeria and ETFs where you could buy that particular ETF anywhere.

In the world, and then of course you are buying the Nigeria and stock back.

But they stopped it. That was under from our president because we went the dollar was tight. They didn't want that people would buy. People want to sell, they can't get dollar, so they stopped it. So if if the economy improves and we get more dollar circulation, perhaps they will restart it. If they restarted, most of you guys can just buy that ETF and it replicates what's happening in Nigeria as well. So that's one on our hopes. I can get that going. If it was MSCI that

Average and then you just skip buying, and then people like.

Something flashes like something very very interesting, then go inside for it, buy it, and then it's paused and then they'll.

Come back again and start all over again.

What is the thing about about the human mind that really, really it's our imagination of lets people just stay on one very proven strategy by and let it just go. You have you have a lot of experience, but a lot of people. Can you just help me understand to me, that's a great question. You know in the Bible that this story in the Bible about I forget the guy's name. He was the guy, he was a cat, not the god. And he went to Elisha. I don't want to kill my Bible studies. Year.

The general went to Elisha and said, I.

Have leprosy, and I want you to cure my leprosy even today with a leprosy if ever, very contigious disease. You know, if you have it, it's bad. You know. It was a lepard. And when he went to the to the to the quote and quote to the sage, he says, says, go take a bad seven times. End of story. What a story about. This is a simple thing to do. It wasn't that the river would cure him about his fate in listening to someone that knows

Three thousand. I've studied again on this space in.

Twenty twenty, twenty twenty five years ago or six years ago, right, we had this exact same space. Well, we've told folks to go buy VT. I never recommend, but I said this, if you are young, go buy VT. I've got this. It's an equity phone. You're invested in America. Some people did it, somepled doing the guess I did. Today.

Are on a telegram group.

I'm not.

They're there.

They're gonna come out, and they're there. They ad made one hundred percent return what they did in trade. The entire group is buy dollar cost average, don't sell, don't do anything. Just buy it, leave it alone. Rip Van winkle Port for the what people don't do. People want something sexy. I want to buy crypto binary assets that I take a loan and I buy it and then hopefully it gets to ten percent and I sell that.

The principles. What are the principles?

Start early, compound, reinvest your dividends. Start early compound, reinvest your dividends.

That's it.

There's nothing else to invest in. Start early, compound, reinvest your dividiate. That's it. The rich average day because they have compounding, their compound their investments. What's the company? The company sells goods and does retained earnings, right, they compound them. Tax laws tell a company if you make a profit, but you use funds to make that profit will allow you not to pay tax on it, so they have an advantage in builds to compound profits, so the value

So when US comment is telling you don't trade, but we have day traders.

So it's always a very very good obsertion and your braver but that we want to do the complicated.

When the simple is right in front of us, and I've given you the pathway.

If you're in Nigeria today, go and open up a retirement savings account. Why rc Why not bag account?

Because RSA has tax advantages.

Wants to open that account, take money from your paycheck, putting that RAS because the ARRS does automatic compounding for you. Invest in front one of fund two that has a high equity composition. Leave that RSA alone. Contribute monthly, Just leave it alone. When you retire, you're going to have more money than you're putting. Someone's want to say, what about inflation, Yes, there's going to be a big inflation because the RSA but stocks have beating arrases. RSSA has

If you don't train when you're young, you can't train today.

You can't get nine women pregnant and have a baby in one month. You have to have the baby born in nine months. So you can't say I want to increase a number of women and have to dib in one month. Doesn't work that way.

You you know what I mean. Thanks to be appreciate that.

Let's get cheat school.

Don't be handing myna to honor.

You're good.

I mean, if I have more space, I could chicken again. Just going, ok, just go.

Yeah. I do want to say thank.

You for everything you've been doing for all of us on diste that I.

Will be I will follow you for a very long time. But I am a need to question.

I want to ask, and you need to be confused regarding and US stock dividends.

US talk that face dividends.

Like we that were on inside the US.

I think we have.

Changed that, patients.

Yeah that so do you still like you still advice to buy dividends face stock or just normal stocks?

Now I'm asking you to buy the index, not even the stocks itself. Just buy the index and then reinvest the index. Yeah, okay, because I hear what you just saying. If you if you if you don't, if you're the US person, they will give you this w W eight abey is you W eight A B?

Yeah?

Yeah, I do W eights. But when you paid. Okay, it doesn't work down.

Okay, that's fine, But just buy the index because the returns on that index.

It's one of the tax that they're taxing your dividends.

What if so reinvest the dividend, reinvest the dividends, the portfolioself is growing. The portfolio itself is growing because when you reinvest the dividends, your average cost falls. So if you buy the portolo for one hundred dollars because you are reinvesting dividends, your average cost is going down even with the tax, even with the tax. Makes sense, sir, Yeah, yeah, thank you.

I appreciate you, sir, to big want to come back?

Yeah, I really want to. I want to dive in a little bit deeper. You know, I read a book a couple of time. You've said about five kis to your fellows around me as well. But does this book when I asked on on YouTube by Jail Collins the Simple Part of the.

World, and he really discussed about.

Building an asset, multiplying your armor expenses by twenty five and pulling out about four percent, supposing that the asset performs roughly about seven percent per year, and then three percent it's kind of for inflation. You pull out four percent, Can you break that down for us since you're talking about you in wealth in really practical terms, so that we're not just talking about buying BTI and then just keep Then at.

What point do you start really enjoying it?

And we're talking about someone who is like forty years now and we're starting out and you trying to build something until retirement to the five x your expenses within out four percent?

Also, can you bring it down for us in a very simple way?

Okay, So that four percent is this is a colclash. I using America to say that when you have your portfolio, you can survive with withdrawing four percent a year. It's like a rule of time to say that whatever portfolio you have, if you withdraw four percent, you can survive

You see how they are worried about it. They are anticitive.

Copul are four percent from your portfolio keeps you going in your retirement. So walk back as a twenty five year old. When you start working, you have very very low income, very very low income, so you can't invest. That's when you take on debt. There are students to invest. But let me start again when you are younger. When you start working, you don't have any income potential. You just there to work. You have no income. You are expected to then take on debt to build your assets.

You have built up that equity. Then you can sell the.

House or take a heelock on the house and then leave off the income from that house. Same thing with equity. When you are starting off, you have no money to invest. Visit bassone that has worked longer than you. Your income is low, your salary is low. So the only way you can actually build an asset is to buy today and allow the process of time and then discus and the DCEA when you're making your monthly payment into a

You can't pay your four percent.

But down the line, those assets genen rates enough passive income to pay your expenses. If you are working today and you do a calculation and you have no passive income today and you're about to retire, I know the word to use for your in big trouble. Your salary is not. The important element is the passive income you have built. If your salary stops today, where else would we get money from? You have a house that pays you rent? Do you have stock that pay you dividend?

Word?

Without that passive income, you're in big trouble. That's the point to But that's your question of asking. If you look at it that way, passive active four percent, it sues to make sense.

All we're doing today is to show you how to get passive income. That's it.

If you don't get passing income, you're in big trouble. And passing income is you have a house. It pays you rent or it avoids you paying rent. So if you have a house, you live in that house, you're not paying rent. Fantastic, that's also passive income because money is staying in your pocket. But if you don't have a house, your pain rent and you are retiring, you're in big trouble because your expenses would never stop, but

You and I know to be the way we build homes in Nigeria is that we go and buy virgin.

Land in a swamp. You know how we'll build house Nigeria. We don't have a mortgage. So if I live in Ekeja, I'll go and buy land in one swamp, hoping that in fifteen years they will build the road people will start to move over there.

Then I sell one plot, I fence it.

I do foundation in one year next to the game probation, I do fence, I do decing I do. That's how we build homes here is the exact same thing, that same principle of buying an asset in the future then taking our active salary to build that home up. Because when we retire in twenty years that swamp we bought, it's not a big area. When that has grew up. In Legos, Legos stopped at mobile the mobile exit. That's

Can I ask a follow question today? Yeah, good things stay another four percent?

Now, if the idea is to pull out a four percent and so I want need per year every year, will that four percent come from the dividend or would you have.

To sell off some stocks?

No?

What nomer the four pers American number.

What they are saying is that when you have walked and built your portfolio, you've now retired.

There's no more active income.

You've now ret so you have a portfolio, maybe your property, your are, your your your your socialistic, the payments, maybe your IRA. They are saying that what youdraw from that portfolio that four percent to to to pay all your expense and keep you alive. That's what they are saying that when you do four percent, it allows you to survive on that PORTFOLI, you can do it. You can do fifty if you have more and more money and

We don't in Africa.

So you've got to build a portfolio that covers your income post work. Man. Nagians don't buy health insurance, but they need it when you stop working. We don't do nh Giants. We think it's a government that's taking our money. But you need nhhians because when if you get sick in Nija and you are seventy who's going to pay if you don't have kids in America. That's that's what really happens. If you are sick, they semony, they take care of you.

But if you don't have kids in America, who is gonna pay for you? If you're seventy.

Tout? How that helps? If you are African, they we're changing a bit in Africa right now. There's hardly a family today in Africa, just in Nigeria that does not have a cousin or brother abroad. Those kids that went abroad, when they went abroad, if they went as a single person abroad, they still remember you.

In Africa.

When they have kids, they're going to forget about you. Their kids are going to be interested in sendingmoney to my man Godzi. In Nigeria, they're not good to be because they have their whole life there. So you're going to see that going forward, there's going to be a change in the demo graphics of Nigeria. We have a lot of old people in America and I want to come back to Nigeria, but have no means to come back. What I mean no means, there's no security, there's no medica,

Don't come back to Nigeria.

If you have the means, if you can, if you know your state governor, you know your local guy, and you can build a village for retorneyes. You can put the hospital there, put the golf course, put the leak. You will make more money from those retirees than from fack. Because the cost of medical care in America. Manage medical care in America, you guys know this about from five

If they called to Nigeria, you offer them a Bungalo.

Nurse on duty, twenty four hours doctor or call twenty four hours. Golf costs, lake security, walking paths, exercise Dolly. Would you can do all this at less than tabial error in Ira but they're being paid eight dollars. If you can create that chac of community Nigeria, Wow, you're gonna have lots of retirests coming back to Nigera because their dollar would last them twice what lasted in America. But in Nigeria you don't have them nos of call.

So it's the medicaid. They get it deep the what's it called?

They get it great medical care in Africa from medical doctors, from notices that they can't afford in America Nigeria. How much is their food? How much is there is their power?

How much?

So if state can do this, builders, you can build a skyscraper or you can do the bundleog a skill and these guys will come in from America. They will come here, they will live, they want to they want to die here and you can bury them in a nice cemetery.

And you are getting f d I like crazy because the next day you're going to have that.

The American RETAbet hopes will have to come to Nigeria and build RETAbet hopes Nigeria where they will send people here at half or what at the price. That's a that's a big bills of if anyone has listened. If you can't build that, people will come because over here it's expensive. It's expensive. If you build Africa Nigeria ware it's safe. Quote off the price. Go look at the old people. What do they what do they need? Because that care.

That's it all right, guys, we're gonna go very soon.

Guys. I see I saw have regoed s c HD y s s THD is in ETF that is high dividends. So yes, that's other good word s c HD. Remember you got to invest based on your objective. If you want dividends, go out do that, but start with the build a triangle. At the base of the triangle, build your VTR, your VT v O O. Then start to walk your way up as Okay, I want dividends, I

Most of all this tuff, guys, is in my book.

I always plug my book because it's there, and I wrote that book with Nigeria in mind. So it's the same teachings that you see a jail Collins talk about, but within Nigerian perspective, and I use Nigerian example. There's a whole chapter there where I analyze close to twenty equity fund. I'll tell you if you want to buy, if you want dividends, buy this equity fund. If you want this one, look at this one. Three ets not

In the book. It's all in the book.

Trying to get the book, get for yourself, get us a gift, send out to someone. It's only available on Amazon for now. I think you bless someone. Wmen, right, guys, so fantastic. It's been a great session, especially I wanted my only My only regret is I didn't get a lot of females coming in to ask questions. I don't know how we will have to do a special space only for the females. I know how I'm going to use to beg them to come. But we definitely got

This is why I wanted wanted to come to the space and essentially here with this.

And they don't take you home because I know if I speak to one woman, I speaking to many women. So I didn't want you guys to do this. And if you're listening, I'm going to give you an offer. If you guys organize or said you're talking about a guest speaker, I'll come.

I will charge you. As long as as it's a women group, I'll come.

I won't charge you.

All right, fantastic, guys, Thank you so much for listen night.

I appreciate you guys. I hope I'll see you guys here next week. We're gonna come again next week on Souday seven pm. What I've got time, what we again talking about on that issue till then I'll let you guys go. If you guys have the time to in again this night, we're gonna do Monday morning matters will be We're talking about a topical issue affected the economy. For the whole week, we try to do that on

You guys have a good one, take yourselves and we'll see bye.

Thank you ver, thank you, You're welcome.