What Your Investment Says About You

What is that one thing you are unable to do without once you come in contact with money? Some are big spenders. They can’t help buying that luxury car, shoe or gadget. Others just like to live a ‘larger than life’ lifestyle; go to the latest hangouts, travel on exotic vacations, or buy drinks ‘on the house’. Just as no two people’s personalities are the same, our approach to money and how we manage it aren't the same. 

According to Zig Ziglar, "Rich people have small TVs and big libraries, and poor people have small libraries and big TVs." What he simply means is that the order of priority between these two classes displays their personalities. The rich will buy books and educate themselves by reading books on wealth generation and how to develop and increase their wealth. Thus, living frugally for some years with an outlook to the future, while the poor will live for the moment on self-gratification with no restraint or outlook.

For many people, what their investment says about them reflects their personality. To invest in a business, you actually need to believe in it. Believe that it will be there for the long haul, believe in its brand, financial strength and many more. According to Warren Buffet, he says “Invest for 2050 and Beyond.” The idea is that the companies you invest in shouldn’t just be good for the next year or two. They should be well-run companies with solid foundations that can continue competing in their industries for decades. They should also be adaptive enough to respond to changes in the industry. Giving a business your hard-earned money makes no sense if you do not believe in it.

Your risk appetite also comes into question. Though all investors seek capital growth, some investors play it safe with their money. While others who are classed as growth investors overlook a shaky balance sheet or high share price as long as the company in question has the potential to record upbeat earnings growth. As such, growth investors are often risk-takers.

Your ability to be patient, have self-control and believe in the power of saving tells a lot about you. Waiting to spend money along with waiting for investments to grow, will yield great outcomes. In fact, investing, over a long period of time allows your investments to compound exponentially.

One way to invest in yourself over a long period of time is through Deferred Annuity. A Deferred Annuity is a contract with an insurance company that promises to pay the buyer a regular income or a lump sum of money at some date in the future. It’s a saving that ensures you have a nest egg for your retirement when you invest a portion of your salary into it. This not only guarantees that you’ll be saving for the future, but that you won’t be spending all your income. It guarantees that you will not be dependent or a burden on your family; rather, your children and grandchildren will know your access to them does not come with any strings attached.

This is where Sanlam Nigeria comes in.

Our products come with Wealth Bonus so no matter your personality, you receive a reward with mitigated risks. Your premium pays for your insurance and we will contribute an additional amount, with every premium. This means that the same quality solutions that help you prepare financially, now create extra wealth for you. So, the more you invest in yourself, the more we invest in you.

Our Personal Retirement Plan, a Deferred Annuity, and SavingsPlus policies are great investment plans that help you create wealth. Our SavingsPlus Plan is designed to support disciplined savings and ensure steady returns throughout the policy duration. This plan has an in-built wealth that accelerates the growth in your savings at maturity.  Additionally, it comes with free insurance coverage of NGN1 million to take care of your loved ones in case of an unfortunate event (death and total permanent disability).

Our Personal Retirement Plan is a plan that works for you once you retire. It ensures that you are in control of your life even during your golden years. It is a simple, hassle-free plan that helps you create your own pension pot and live your retirement how you want it. This policy has an in-built wealth investment vehicle for your retirement savings that enables you to decide how you get to manage your savings to ensure that the funds you have is able to support you throughout your retirement years.

With these products in mind, here are several tips to consider before you invest:

Be Patient: It is much better to wait for opportunities to arise than to chase investments that aren’t quite as good as you want them to be. “The stock market is a device for transferring money from the impatient to the patient,” according to Buffett. Wait patiently and you will be able to choose the juiciest pickings.

Have Cash Ready When an Opportunity Arrives: Along with patience, always be prepared. When a once-in-a-decade investment opportunity arises, investors need to be ready to pounce on it. This means making large, strategic investments rather than small, timid ones. As an Investor, you can prepare for these opportunities by keeping a stockpile of cash, particularly during times when the market is doing well.

Don’t Lose Money: Buffet offers two rules for investing: “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” What this simply means is that you should always ensure your loss is minimized. Investors should first ensure that an investment has limited downside risk, and only then look at its potential gains.

Use Debt Carefully and Limit What You Borrow: Too much debt limits your chance to save money and become financially wealthy. Every naira you put towards interest payments is one naira that is not invested and growing your wealth. Just like money invested, compounds, and grows for the future. Borrowed money compounds and increases the initial price paid for an item.

A great advantage of hinging your bet on Sanlam Nigeria is that our products come with an in-built wealth with the extra bonus of providing you with a financial advisor at no cost. The financial advisor will walk you through the journey of your policy until maturity to ensure you make the most of what you've saved and invested.

So, what is that dream that you have neglected on your bucket list? Our SavingsPlus and Personal Retirement Plan are just right for you to make up for it. Choose Sanlam Nigeria today. Get our SavingsPlus and Personal Retirement Plan right now with comfort with our Sanlam Nigeria App.