A particular mentor once said, “cultivate the habit of always putting your money where it can grow”. No truer words have been said especially when it comes to investment.
I’d always wanted to have a diversified investment portfolio with different kinds of assets that interests me.
I believe a diversified investment does not only give you options for multiple revenue streams, but also significantly reduce your investment risk.
When I considered my diversified investment strategy, I wanted all the assets to be as liquid as they can be.
You know, nothing is certain in this world, and you want to get your money out as quickly as possible when things go awry.
Remember the sudden pandemic of 2020? That is one such uncertain situation.
So, I have constructed a 4-way portfolio investment strategy that helps me invest quickly and securely from Nigeria, with options for liquidation whenever I decide.
Let’s take a deep look at my strategy.
Foreign Dividend Stocks
Buying foreign dividend stocks is a great way to invest your money. There are many avenues for buying foreign dividend stocks from Nigeria, but I like to use no-commission platforms such as Passfolio.
The biggest highlight of a foreign dividend stock is that you will get periodic revenues from your investment via dividends.
The more diversified your stock portfolio and the higher your investment, the more you can get in dividends.
It’s not out of place for investors to live off of dividends from stocks they invested in. Imagine a situation where you receive a total dividend of $3,000 every three months from all your U.S. stock investment. You could possibly live off that comfortably in Nigeria.
Savings In Foreign Currency
If you haven’t yet started saving in foreign currency as a Nigerian, I urge you to kindly consider doing so.
Do you know that in 2015, $1 was approximately 200 Naira? Now, in just a little over 5 years, the value of the dollar against the Naira has more than doubled.
If you had all your savings in Naira for the last 5 years, then you would have lost over half the value of your savings to inflation; thanks to policies of the Nigerian government.
That is why I strongly believe in holding foreign currencies even if you are permanently resident in Nigeria.
The Naira is not just strong enough, and there are several economic pressures that will further affect the Naira in the coming years, unless there is positive government intervention.
So, the first step is to open a domiciliary account. It is like a foreign bank account that is domiciled in Nigeria. It could be in Dollars, Euros, or Pounds; but I recommend the U.S dollars.
If you want to open a domiciliary account in Nigeria without references or any hassles, please read my article on how to open a domiciliary account in just 5 minutes.
If you decide that you do not want to open a domiciliary account, then you can use any of the several fintech apps that enables you to save or invest in foreign currencies.
One of the best is Piggyvest, which allows you to convert your naira into dollars and save it with an interest rate of 7% to 10% per annum. I think that’s a good deal.
Now, to the volatile world of cryptocurrencies. One of the main reasons why I included a crypto index to my portfolio investment strategy is the increasing adoption.
In my opinion, adoption is everything. You can’t beat the crowd, especially if the crowd is globalized.
I believe a personally selected crypto index of Bitcoin and other high performing altcoins will do well over the long-term.
It is way better to leave your money in a crypto index than allow it to rot in a Naira savings account.
So, I highly recommend whipping out your binance app and start picking some cryptos that interest you. It’s definitely a long-term game, but I assure you that cryptocurrency is the future.
You can choose to be part of this global financial movement or remain in a local economy controlled by bourgeois.
Liquid Investment Savings
Finally, I believe no matter how hard you try, if you live in Nigeria, you would need some Naira to cover your daily or monthly expenses. So, you need some cash in Naira.
What I do is leave some Naira in a sort of liquid investment savings account that gives me an interest rate that is at least competitive compared to the prevailing inflation.
I think a 20% interest rate per annum on my savings is not bad.
And that is what I get with Branch investment. I keep all my Naira with Branch and then send tokens to my Nigerian debit card when I need to spend. Easy peasy right?
So, in essence, I have zero Naira in my personal and business Nigerian bank accounts.
When I need cash for little expenses here and there, I just make a free transfer from my Branch app. But when I need huge funds, I simply liquidate one of my portfolio. That is why I love to keep them as liquid as possible 🙂
However, the most impressive thing about this Branch investment savings is that transfers to any Nigerian bank is free and unlimited.
And no matter how much you spend, you will still get an interest on your balance that is prorated to 20% per annum.
Goodbye Inflation. Welcome Cashflow!
If you live in Nigeria, then you know the importance of being street-wise with your money. You have to be the same way with your investment.
Don’t stop looking for ways to make your money grow. Test different opportunities, improve your financial education, learn how different assets work, etc.
To successfully invest your money with good returns, you must be holistic about your approach and keep replicating successful investment strategies.
The more wins you are able to multiply, the more your investments will grow.