HOW TO GET HELP FOR YOUR RETIREMENT PORTFOLIO

One of the most popular Nigerian Capital Market promoters and eventually the most beneficial investment facilitator, was over heard telling one of his client some times during the heat season of the capital market price crashed that the faith and successful investors employed in building fat portfolio is hundred times more deeper than those deployed by a believer to make heaven.

What an irony, but to be candid with the notable investment analyst there is no better way to counsel an investor building a retirement portfolio on stock that is endangered by market fall.

One of the most difficult advices any Pension Consultant can give to a client using today economic indices will be difficult suggesting to client this period to anchor their Retirement Option on Stock Investment.


But in all, it is still very glaring that the capital market over a longer period have always proven to be the most reliable source of wealth creation to retirees.

But looking into other investment windows I can say that there are three key major drivers to a mans wealth as a retiree includes what he earn?, how he spend his pay-packet or take home? And what he keeps and plan for his old age.

While some even believe that maximizing ones earning power is unarguably the most important driver to wealth, the more cash you have coming into your pocket the more chances you have in deploying it.

As the nation economy is in red, with the inflation rate going at nautical miles eroding into the sweat of investors it is advice that the only place or the wisest thing to do now is to seek wise counsel from men who had a deep knowledge of the market.

In a moment like this the only person capable of giving the right advice and the best person whom I can only take his advice for investment decision is the only man who I know has lost money in such session of the market once bitten twice shy, once a connoisseur is always a connoisseur.

So taking the wise counsel of one of the world acclaimed investment writer with deep understanding of market fluctuations, Michael Sincere in his book “101 Investment Lesson From Wizard of the Wall Street” wrote that it is very hard getting competent, experienced, and objective financial advisor that will create investment plan that will sooth your purpose.

Michael Sincere was a scion of the first generations of Wall Street Stockbroker, a company where he eventually worked and garners the experience he has been sharing with savvy investors through his book.


In finding solution,from notable market experts on the misfortune that hits him when he lost all his investment during a market recession.

Among his findings from the secrets of the pro’s on how to play a bullish and the winning strategies for winning in a bearish season where the lessons he packaged in the bestselling book.

For any investors who want to run with the bull without losing their shirts, must remember that when you get informed financially you’ll be deformed. don’t forget the FOUR unbeatable suggestions on how to get help in a receding economy also made by Michael Sincere which includes:

[1] Hiring or engaging an investment advisor.

[2] Enlist or Join an investment Club.

[3]Practice by making paper trading.

[4]Attend classes of financial seminars.

This is the most appropriate moment for clever investors to adjust their portfolio to reflect the circumstances around the market from one style to the other rigidity and panic will not help.

Patience has so many rewards slow and steady brings out the stars and discipline is the first rule of the game in a depress economy.

Remember that if past performance is not a guarantee of future result, investing in Stock involves risky and the market is more volatile than other forms of investment always be very careful that you have a thorough understanding of the investment objectives, risks, management fees, charges and the expenses before investing.

INVESTOR SENDS POLICE AFTER STOCKBROKER

Personnel of Integrated Capital Services Limited (ICSL), a financial solution company which also provides stock broking services, have been engaged in a running battle with an investor who is determined to collect promised returns on a N50million investment the company had persuaded him to invest in the stock market. 

ICSL had persuaded the Chief Executive Officer of Tamstel Nigeria Limited to invest the N50million in its stock market focused product, aptly named I-QUITY RANGE INVESTMENT in July 2007. ICSL had given the investor the assurance of a minimum guaranteed return of 100 percent which would amount to a return of N100million at the end of a 12-month period, the agreed tenor of the investment.

Apparently emboldened by the general optimism of that period when the Nigerian stock market was unabashedly bullish, ICSL further offered to a N50million margin line facility to Tamstel with a guaranteed minimum return of 75 percent (net of interest charge). This would amount N37.5million profit to Tamstel at the 12 months maturity of the tenor of the investment.

 

The expectations of the total N137.5million (inclusive of initial investment) return to Tamstel by ICSL could not effected when at the expiration of the investment tenor in September 2008, ICSL could only give excuses for its inability to pay up on schedule.

  

Tamstel insisted, through a letter or payment demand to ICSL, that it could not accept the excuses offered for its refusal to pay its N50million equity participation and the documented returns promised it since the management of the investment portfolio was at its (ICSL) sole discretion without recourse in any way or manner to Tamstel. The client investor, according to the letter of payment demand, alleged that it believed that ICSL made huge and stupendous returns from investing the money in the stock market and specifically accused ICSL of scamming it in what looks like a 419 scheme.  

 

After several disappointing responses to its call for payment, the client investor invited the Police Special anti-fraud Unit (SFU) into the matter. After several stakeouts, the men of the SFU arrested and detained senior management staff of the firm. A schedule of repayment was agreed with the police at SFU.

 

Mr. Adeniyi Elumaro, Managing Director of ICSL confirmed that Tamstel, indeed, invested in ICSL with the promise of returns on the investment but this could not be realized because the stock market witnessed price slides for the most part of this year.

 

“It’s true that Tamstel invested N50million in the stock market through us and we also provided the company a margin line facility, but at maturity of the tenor we could not live up to the promise of returns we made to Tamstel because the stock market turned bearish dashing all our expectations. Though we explained the reasons we could not pay the promised return they refused to understand and thereafter brought in the police who arrested my staff. But we have been able to resolve the matter at the police station.” Mr. Elumaro said.

STOCK MARKET REBOUND…WACTH OUT BEFORE YOU INVEST

The excitement returned to the Nigerian stock market last week when in two days in a roll the market recorded gains that had become foreign to a market that seems to be determined for a southern movement since March this year. For the first time in several weeks, the protracted decline in the measurement of performances of the market moved northward to the delight of investors and all of a sudden the scenario changed from a market saturated with stocks to one characterised by scarcity of stocks as investors desperate bids to buy certain shares were rebuffed by unavailability. Market analysts observed that volume of shares on offer dropped significantly, suggesting a possible retraction from selling, as investors hope for further price appreciation and the bid to purchase shares took an upturn indicating a possible restoration of investors’ confidence.

 

Some more perspective market watchers argued that the market is not yet an all comer affair. Those that offered to speak with FORTUNE & CLASS Weekly said they strongly believe that the market can for now be described as the players market…a market dominated by institutional investors and stock brokers. Private investigations conducted indicated that most small to medium investors wishing to join in the share buying fray so as to profit from the rock bottom prices of many of the now highly undervalued stocks were left in the lurch with bids unfulfilled.

 

Latest news in the market informed that the new momentum driving the market may not be unconnected with the early bird initiative of some commercial banks that have quickly exploited the opportunities offered about the extension of tenor for credit facilities for margin trading and the 360 days elongation of the Central Bank of Nigeria’s expanded discount window.

 

The CBN’s new policy on discount window liberalises access to funds by commercial banks and also extends the repayment tenor of funds borrowed from the CBN through the discount window.

 

A market source confided that some of these early starter banks had provided funds for the purpose of shares purchase to stockbrokers, of course with a proviso for the preferences of shares to be purchased.

This, according to FORTUNE & CLASS source influenced the sudden liquidity position of the market. In light of this, another market player has suggested that small to medium size investors should be very careful not to get their fingers burnt in the supposed reawakening of the market.

 

I can tell you that great opportunities are on offer in the market right now with otherwise fundamentally strong stocks been priced at low price. But as the market seemingly embarked on a rebound, small to medium size investors should be wary of falling into a regretful pit. I want to suggest that investors take note of the following: Nobody is sure at the moment if the market has completely bottomed out. As things stand, institutional investors are engaged in what is called fishing the bottom market and i can tell you that this is an herculean task, because the upturn following a decline is often short lived and results in a continued price decline and hence a loss of capital for investors that purchased stocks during a misperceived or fake market bottom.

 

“Besides, nobody can tell for certain that the market will not revert to the bearish swing again as a result of speculators taking profit from the marginal capital appreciation enjoyed by some of the stocks that gained last week. And no one is sure that a small time investor will get his order for shares purchase effected by his or her stockbroker.”