Thanks you for such detailed analysis. Pesrsonally i would not take such loan and below are my reasons: As you said treasury bond interest is paid after 6 months therefore you need money to pay loan interest for next six months and if you delay there will be penalty involved. Second you need to be member of sacco to get such low interest. Third there are fees related to loan processing which will reduce on money you will earn. Unless the bond is giving 18% and above i would never take loan of 14% to buy bond of the same interest rate. Thank you for sharing.
@investingwithlawrence try to understand how BANKS MAKE HUGE PROFITS FROM YOUR SAVINGS same ideas of playing with your money in the savings account , true you need 6months upfront for the loan but the idea above is the final gain , there was bond of 16% FOR DEC and for those with loan capacity try to see for 4M plus the second yrs play with MMF for your bond interest= additional gain remember @ the end of5yrs you get back the 2M or 4m you invested , @ the end you will have more gain of above 30%
It depends on who is investing. If I can afford to borrow and invest 3 million in bonds, and be able to pay from my pocket for 5 years without depending on coupon interest, then it is good.. BUT, for that jobless man, it could be wise to take the 3 million, invest one million in bonds and then take 2 million to start a another business that requires active involvement, like uber, to make more returns.
Compounding interest can lead to significantly greater gains. For example, if you start with KES 0 and save KES 46,000 every month at 14.5% interest for 5 years, you could accumulate KES 4+ million. You can verify this using a compound interest calculator. Instead of the loan repayments, why not automate a deduction of the same amount?
The money being deducted to pay loan,the 46000 if you put in a money market fund earning you an interest of 10 % You will have 4 million at the end of 5 years
I have a question? U get paid interest every six months and at the end of the 5years does it end like that or do u get ur money back the initial capital u loaned the government .that will be double the money u put in
@@ivyoyori yes I have worked with banks and this is similar example they do with your money you give them on your savings account , people needs to be enlightened given that nowadays a lot of information is out there , in this example you need to have upfront 6MONTHS LOAN REPAYEMENTS and you are ready to make money , remember @ the end The BONDS will pay the 2M you invested
Interesting food for thought , but i guess one has to be working to pay that monthly loan for a sacco for the 5yrs this is a good delay gratification 😅😅
I think you did not understand the video. The amount to be invested is 2Million, but the government gives you a discount of 41k. The investment value is still 2Million but you spent less hence the reason she presented it as a gain in the calculations
A loan is a bad idea to begin with. It is better to work with what you have earned and can afford to loose. Any investment you make should be something you can control. So personally I would never take a loan to invest in anything. I would never take a loan, period.
Somebody told me never use the money you saved to do business or invest or buy anything. Acha pesa yako ikae mahali iko. Use other people money to make money.
Your passion is unparalleled. The education is priceless. Keep'em coming!
Ivy will go to heaven directly. Thank you for always enlightening us on Finances.
Investing 46,336/= per month in MMF @14% interest p.a. is more interesting. Check the maths. Continue doing the lord's work. Kudos.
Thanks you for such detailed analysis. Pesrsonally i would not take such loan and below are my reasons: As you said treasury bond interest is paid after 6 months therefore you need money to pay loan interest for next six months and if you delay there will be penalty involved.
Second you need to be member of sacco to get such low interest.
Third there are fees related to loan processing which will reduce on money you will earn.
Unless the bond is giving 18% and above i would never take loan of 14% to buy bond of the same interest rate.
Thank you for sharing.
@investingwithlawrence try to understand how BANKS MAKE HUGE PROFITS FROM YOUR SAVINGS same ideas of playing with your money in the savings account , true you need 6months upfront for the loan but the idea above is the final gain , there was bond of 16% FOR DEC and for those with loan capacity try to see for 4M plus the second yrs play with MMF for your bond interest= additional gain remember @ the end of5yrs you get back the 2M or 4m you invested , @ the end you will have more gain of above 30%
Ivy I like you. You actually produce something worth-while. You won me over.
It depends on who is investing. If I can afford to borrow and invest 3 million in bonds, and be able to pay from my pocket for 5 years without depending on coupon interest, then it is good.. BUT, for that jobless man, it could be wise to take the 3 million, invest one million in bonds and then take 2 million to start a another business that requires active involvement, like uber, to make more returns.
Compounding interest can lead to significantly greater gains. For example, if you start with KES 0 and save KES 46,000 every month at 14.5% interest for 5 years, you could accumulate KES 4+ million. You can verify this using a compound interest calculator. Instead of the loan repayments, why not automate a deduction of the same amount?
Indeed.
I cant think of an investment that can give 14.5% with a dollar cost averaging strategy. Give an example
Im new in this. Finally i now im understanding how this really works.. Thanks
Glad it was helpful!
Butiful work Ivy.....keep going .....
But da returns will b higher coz most saccos are @ less than 13% p.a....
❤❤nice one
The money being deducted to pay loan,the 46000 if you put in a money market fund earning you an interest of 10 %
You will have 4 million at the end of 5 years
I like your different perspective
Wise, intelligent Ivy. Keep it up. Am really getting informed.
Most welcome David
I have a question? U get paid interest every six months and at the end of the 5years does it end like that or do u get ur money back the initial capital u loaned the government .that will be double the money u put in
You get back the money , the 2 Million at the end of the 5yrs. In the meantime, you just earn interest every 6 months as you wait
@@ivyoyori yes I have worked with banks and this is similar example they do with your money you give them on your savings account , people needs to be enlightened given that nowadays a lot of information is out there , in this example you need to have upfront 6MONTHS LOAN REPAYEMENTS and you are ready to make money , remember @ the end The BONDS will pay the 2M you invested
Interesting food for thought , but i guess one has to be working to pay that monthly loan for a sacco for the 5yrs this is a good delay gratification 😅😅
If you're made for business, (coz running a business is really hard work) it's more viable to start one.
very informative videos.good job.can you do one on REITs
Coming up next week
Mrs ivy now Ziidi is out and functioning well
To me nime invest and it's working well
So prepare us a video ilianza today around 4.00 am
Thanks for the update Kasjewa.
Will do a video on that.
Have checked the Saf app and it's not open on my side. I guess they are rolling it out slowly.
When do you think the next IFB will be auctioned ?
You're doing an exemplary work girl❤
Mahali tu nafeel umekosea ni hapo kwa total gain. You only add the 41k if you had 2m. But we are using 1.9m. So just work with 1.2m as interest.
I think you did not understand the video. The amount to be invested is 2Million, but the government gives you a discount of 41k. The investment value is still 2Million but you spent less hence the reason she presented it as a gain in the calculations
Coupons ploughback to mmf for the next 5yrs, remember it's twice in a year
Do you offer one on one sessions...I think one is necessary
Yes I do Ken. Kes 2,000 Kindly use this link 🔗paystack.shop/ivy-oyori
Most Sacco Will give you loan at 12%
Respectfully loan is a no for me.
What don't you like about loans Lucy?
Loans is the best way to ruin your financial future
Not worth it at all!
6k monthly??
What would be your alternative investment? One that brings in more than the 6k monthly?
@@ivyoyori Yes, maybe a business.
Not worth It low risk low reward
A loan is a bad idea to begin with. It is better to work with what you have earned and can afford to loose. Any investment you make should be something you can control. So personally I would never take a loan to invest in anything. I would never take a loan, period.
It will depend by your view of the loan...
The wealthiest make their money by borrowing ( that is loans....
Yes agreed. And what happens when they default?🤔🤔🤔They end up worse than they were.
Somebody told me never use the money you saved to do business or invest or buy anything. Acha pesa yako ikae mahali iko. Use other people money to make money.
Yes if you want to die of stress please do that.😂😂😂😂😂Who ever gave you that advise, is he living a happy life?🤔🤔🤔🤔
At the end of day it's all about risking and consider your risk appetite first.
For me this idea is best ❤