• Monday, July 15, 2024
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Where to invest that $100,000

Navigating government policy changes: Safeguarding your investments in an ever-changing landscape

Though $100,000 is a large sum to some Nigerians, but many had plans on what to do with it when Osaretin Victor Asemota, popular tech founder and venture capitalist, asked on X what they’ll do with it .

“If you had $100,000 unencumbered and in savings in your domiciliary account, what would you do with it in Nigeria,” his tweet reads.

The tweet generated several comments on how they’ll do with the amount ranging from business enterprise to investment tools.

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BusinessDay asked some investment experts where they’d invest $100,000 many of which gave detailed insight of how to diversify the fund for tangible gains.

Osaretin Victor Asemota had earlier made a tweet on how to invest a $100,000 saying “If you have made over $100k in Nigeria or Ghana and it is free, my advice is to open an offshore banking account with Stanbic or Barclays first. They will give you advice on how to do the rest depending on how wealthy you are. Stanchart is now also doing that.”

Offshore banking is simply another name for opening a bank account outside of your home country. It may be more challenging to open an offshore bank account than a domestic bank account because you may need to prove you have a minimum amount of money or a business relationship with the bank’s country.

Stanbic IBTC offers offshore banking with a minimum account opening balance of 3000 USD, 2000 GBP, 2000 EUR or 2000 AUD. Some of its perks are Free International Visa debit card for each currency, No account maintenance fees, Access to loans for property purchase in the United Kingdom for investment purposes, and Investment opportunities in structured products.

Barclays International Bank has a minimum of £100,000 to open an International Banking Account, You’ll need to apply for an International Banking Account before you’re able to invest with as most of their Investment products have a minimum threshold of £250,000, however, we do offer some investment options that do not require ongoing advice. These types of investments have a lower minimum threshold of £100,000

Sola Adesakin, a certified personal finance coach said in the context of the current financial landscape and with a keen intent to optimize her investment portfolio she will consider a distinct asset allocation strategy.

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Firstly, I plan to direct about 20 percent ($20,000) of the available capital into a fixed income fund. This move is to provide my portfolio with a stable foundation, leveraging the benefits of consistent returns and counterbalance to more volatile investment avenues.

I intend to allocate roughly 10 percent ($10,000) into a blend of equities and commodities. My focus here is to tap into sectors with promising long-term trajectories and to mitigate the risk of currency devaluation and inflationary pressures.

She said for the remaining funds, real estate emerges as the most compelling avenue. “Given the tangible nature of this asset class, coupled with its potential for capital appreciation and rental yields, I’m exploring various options. These range from direct property investments, to diversifying into Real Estate Investment Trusts (REITs), and acquiring a fixer-upper property is quite appealing with opportunity to add value through renovations and subsequently capitalize on the potential upside either via rental income or a profitable sale.

Unlike Adesakin, Olumide Adesina, a financial market analyst at Quantum Economics, is putting all of his $100,000 in one investment basket.

“I will stash all them into 10 year US Treasury bonds and let the yields reward my patience till price appreciate it tenor expires,” Adesina said.

The US ten- years Treasury bonds yields rose to 4.94 percent on Thursday, It had touched as high as 4.98 percent earlier in the session, trading at levels last seen in 2007.

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Damilare Akinlotan an investment and equities analyst for Risevest, and financial analyst at Krypton Venture Studio also mentioned that factoring in the present econo,ic clime he will put the $100,000 into Options, fixed income assets, real estate and alternative asset.

“Easily I have three major tools. – Options (Stocks, Indices, ETFs) – Real Estate (REITs, Properties, Mortgages) – Alternative investment (PE, VC, Syndicate Funds, CrowdSAFES) – Fixed Income (Treasury Securities and bonds) with a ratio of : 40 percent into Options, 10 percent to fixed income assets, 30 percent in real estate and 20 percent in alternative investments.