Skip to content

Category: ARM Trustees

  1. Home
  2. ARM Trustees

A question of investing in dollars

Dear Financial Experts,

I hear that when there’s an economic downturn due to pandemics like the current Covid-19 surge, it is wise to consider diversifying investments. I want to know if I should go ahead and invest in dollars.

Thank you.

Jane Umenna from PH

Financial experts’ response

Dear Jane,

Thank you for writing to us with your enquiry. In response to your question, yes, investors can hedge their capital from downside risks of a possible naira devaluation by investing in dollars.

It also affords you as an investor the benefits of diversified portfolio whilst meeting any future dollar-denominated obligations.

One such investment vehicle which trades in dollar-denominated funds is the ARM Eurobond Fund. You can also trade in dollar-denominated stocks via ARM Stocktrade.

Please reach out to our Financial Experts today via [email protected] or 0700 225 5276 for further inquiries or  Click Here if you prefer for us to get in touch.

Myths and Truth About Will Writing

Myths and Truth About Will Writing

Myth: I’m too young to write a Will

Fact: The legal age to write a Will is 18 years and above. Once an individual satisfies the age criteria and has the required mental capacity (must be of sound mind), he or she is eligible to write a Will.

Myth: Will is for the rich guys

Fact: Having a Will is not dependent on one’s net worth. Individuals with modest size of assets or even one asset can also have their Wills drafted.

Asides giving instructions on how one’s assets should be distributed among beneficiaries, a Will can also be used for other purposes such as appointing a guardian for children who are minors; and can also be used as an inventory for one’s assets.

Myth: Writing a Will is expensive

Fact: The cost of getting a Will drafted could vary across Will drafting service providers. However, ARM Trustees took into consideration the diverse financial capacities of individuals based on social stratification and carefully tailored its Will drafting services to suit different individuals.

Myth: Writing a Will is too cumbersome

Fact: Writing a Will is not as cumbersome if the necessary guidance and support is provided by a competent Will drafting service provider.

Myth: Writing a will means I will die soon

Fact: The reality is that human mortality is an unpredictable eventuality which may occur at any time. Putting one’s affairs in order as soon as one starts acquiring assets is the right thing to do as it works in the best interest of the person writing a Will (the Testator) and his beneficiaries.

Myth: My family will look forward to my death if I write a Will

Fact: A Will should be kept confidential and private. It is advised that only trusted individuals who have a role to play in the process such as the executors, the witnesses and the Testator’s lawyer and/or Will Drafting Service provider should be aware of it. This reduces the possibility of any untoward development from occurring as could be the case where more persons are in the know.

 

 

 

The post Myths and Truth About Will Writing appeared first on Realising Ambitions.

5 ways to maintain mental sanity during a pandemic

When there’s a pandemic or during periods of uncertainty, it is natural for the human mind to go haywire with fearful thoughts that affect the mental capacity negatively.

We are living in such times at the moment with the emergence of the Corona Virus which has disrupted our way of life and forced us all to adapt to the new normal. It is, however, critical that one maintains mental sanity amidst the current circumstances in order to navigate life and be mentally prepared for life after the pandemic.

Here below are five ways that will help:

1.

Because doing these will add to not just mental, but physical strain to your body.

2.

Don’t get inundated with news from every available source to avoid confusion and lack of focus.

3.

Staying active also helps clear your head and gives you clarity.

4.

There’s a lot of false information circulating via social media as well as undue pressure regarding various life issues. Take a breather from all of that every once in a while.

5.

Reach out to the ones you love, providing the needed support as well as receiving it. That love keeps you going in spite of what may be happening around you.

Never forget that to function to your optimal in every facet of your life and realise your greatest ambitions, you need mental clarity and sanity – and it is your duty to claim that for yourself.

Stay safe out there!

How to deal with a pay cut during this pandemic

How to deal with a pay cut during this pandemic – Realising Ambitions

One of the devastating effects of the COVID-19 pandemic on individuals has been the sudden reduced income, pay cut or layoffs by organizations seeking to lower costs and stay afloat.

If you suddenly find yourself taking home less than you’re used to, these tips will help you find a balance. Likewise, if you’re among the lucky few who won’t have a reduced income, using these tips to stay cautious with your spending will help you easily navigate the potential high cost of living brought about by the pandemic.

Create a monthly expense list

The first step is to create a new expense list based on your new salary. When building your new expense list, ensure to list the needs and wants in separate columns. This helps you to identify areas that you can cut back on more easily.

Slash spending

Try cutting your clothing, entertainment, and food spending by 10% across board. Making these types of cuts enables you to find the money that you need without heavily cutting back in any one area. One way to categorize where you can cut back is to try less expensive alternatives to some of your traditional spending habits.

It helps to work with a budget number in mind. Let’s say you have an income shortfall of N50,000 per month. Knowing this number gives you an idea of the exact amount you need to trim from your budget and also helps you prioritize your expenses.

Identify ways to save on necessities

You may want to consider scaling back on your cable TV bouquet to a cheaper option, reducing your internet cost and petrol usage for your generator. Although the savings may not be huge by cutting back on only one area, the combination may be enough to help you save money. Look into finding more affordable car insurance and find less expensive alternative shopping centers for your groceries.

Don’t cut your savings

Take a look at your financial goals and find a way to continue to save money. If you make a direct debit when you’re paid, it will be easier to keep saving because now when you’re dealing with an emergency is when you need to have savings to rely on.

Develop yourself

While you utilize the above-mentioned suggestions, consider:

  • Keeping up with certifications so that you can easily find another job

  • Exploring alternative income streams

  • Learning a skill that will position you for the future

Final words: It takes discipline to handle a pay cut because you may have gotten accustomed to certain lifestyle expectations. It is, however, important to know that this is a phase that will eventually pass, and your ability to effectively manage your finances now will help you manage it better when things stabilize and your earning power improves again.

5 types of people since easing of lockdown

The Covid-19 situation has brought about a new normal that not many have been able to adapt to. The past few weeks have seen residents of major Nigerian cities like Lagos, FCT Abuja and Ogun on total lockdown to enable the Federal Government to contain the risk of spreading the virus; while other cities observed partial lockdown.

While on lockdown, many acclimatized to doing remote work while a host of others found ways to pass the time while growing themselves through books and online courses. Parents also have to figure out online education for their kids and businesses begin to find a way to work around the situation

And just when it felt like there was no end in sight to the lockdown, the Federal government eased the lockdown allowing minimal movement while enforcing the use of face masks, hand sanitizers, washing of hands and social distancing.

Here’s how different people welcomed it:

  1. The ones who raced out of the house like they’ve been in prison despite not having any reason to go out.

FREEDOM!!!

2. The ones who grudgingly returned to work after enjoying the freedom of not having to wake up so early.

Oh well, back to it!

3. The ones who defy the social distancing warning and go to pull and push at the banks.

If I perish, I perish.

4. The ones who are not ready to take chances.

They peep at those going out from their windows.

5. The ones who go out armed with their hand sanitizers and covered from head to toe avoiding every human contact.

Because everyone is a suspect.

———

Whichever category you fall under, we encourage you to make sure to observe every NCDC recommended safety measures and stay home if you don’t absolutely have to go out.

Don’t forget to stay safe out there when you head out. Corona Virus is real.

Protect yourself, protect others.

#StaySafe

Investment options in the midst of Covid-19

Hello Financial Experts,

What are the investment options available given the current Covid-19 pandemic?

Jude. A from Kano

Hello Jude,

In periods of heightened uncertainties, we recommend that investors remain cautions and position themselves to take advantage of investment opportunities in sectors with good fundamentals and growth prospects. Investors who currently have exposure to the equities market with a long-term investment  horizon must not feel pressured  to exit the market or worry about loss in their portfolios as a result of the decline in the equities market, however, they should expect significant upside as market conditions improve.

Please find below the following channels for investment opportunities below:

  • ARM’s Money Market Fund – An open-ended mutual fund with a highly liquid and low-risk profile that invests in high quality, short term Money Market Instruments;
  • ARM Eurobond Mutual Fund – A US dollar-denominated mutual fund that is authorized to invest in Eurobonds floated by the Federal Government of Nigeria and highly rated Nigerian corporates;
  • Eurobond investments– ARM Investment Managers offer investors access to invest directly in domestically issued Eurobonds; and
  • ARM Stocktrade– ARM’s proprietary mobile trading platform that provides access to trade domestic and international equities listed on the largest stock exchanges in the world.

How Offshore Stocks Are Doing

We hope you are keeping safe during this pandemic and observing all the safety procedures listed by the World Health Organization (WHO) and various public health authorities.

The coronavirus pandemic is taking a toll on the global economy and stock markets. While most companies’ shares are experiencing a dip, there are a handful of resilient stocks that are navigating this turbulent period better than others. here

As an investor, we hope you will take advantage of investing in these stocks. We also want to draw your attention to diversifying your portfolio by investing in offshore stocks. Here are some interesting names weathering the covid19 storm:

The online streaming giant, Netflix, has historically proven to be a formidable stock that can stand any tidal wave that may be putting some other giants on their knees. Recently, Netflix reported first-quarter earnings last week that showed a surge in demand for the service. The company reported that 15.7 million new customers signed up in the first three months of the year. This figure is higher than the 7 million users they projected for the year 2020. However, the impressive growth in subscription did not translate to an impressive bottom line owing to other charges that pressured profits. That said, Netflix stock has gained 30% so far this year.

In the same light, Microsoft reportedly recorded significant increase in the use of their services. As more people continue to work remotely, active users of the Microsoft Teams is said to have increased from 10 million last year to 44 million earlier in the month.Microsoft is expected to release result for the last quarter this week. The stock has gained 10% so far this year.

Like Microsoft, Zoom has become a household name since the pandemic started. Zoom’s stock has increased from $68 at the start of the year to $168 per share. Demand for Zoom is high during this new pandemic and it is a great add to your portfolio.

As the quest to find vaccines to the coronavirus pandemic increases, Gilead Sciences Inc, is one of the companies leading the trail. The pharmaceutical company is reputable for making HIV treatment drugs, and Ebola Virus vaccine, Remdesivir. The company’s stock has gained ~22% so far in 2020

These are only a few and we hope you will take advantage of these offshore stocks to diversify your investment portfolio. Start here

Download ARM Stocktrade App today and start trading both local and foreign stocks

What You Need to Know About InCap Solution

What You Need to Know About InCap Solution

What is The Incap Solution

The Incap Solution is a service which helps one plan for the “in-between” situations where temporary or permanent incapacitation prevents him/her from making personal medical or financial decisions. Incap Solutions employ the use of Medical and Financial Power of Attorney.

Why opt for the Incap Solution?

  • It gives one the advantage of having a trustworthy person or institution to take charge of financial and medical decisions in the event of an unexpected occurrence.
  • It ensures seamless continuance of one’s affairs in the event of incapacitation.
  • It helps prevent any form of loss that would otherwise be incurred as a result of one’s incapacitation.
  • It helps mitigate the risk of conflict between family members or employees.
  • It ensures that one is able to regain control of his/her assets upon recovery.
  • It provides the benefit of a clear-cut decision making by the Agent on behalf of the incapacitated person.

 How does the Incap Solution work:

  1. After completing the form, please return to ARM Trustees Limited.
  2. Your documents will be prepared for execution.
  • Afterwards, you’ll be required to sign your documents and return to ARM Trustees for Notarization, stamping or registration as may be necessary.

Download the Incap Solutions form here ARM Trustees – Medical & Financial Power of Attorney

The post What You Need to Know About InCap Solution appeared first on Realising Ambitions.

To keep dollars in cash or not?

Hello Financial Experts,

Since this pandemic and lock-down started, my wife and I have been advised by friends to hold on to the cash we have at hand especially dollars. Do you advise us to keep our dollars in cash?

Thanks.

Michael from Lagos

Dear Michael,

We won’t advise you to keep dollars in cash because you’ll be losing income that you could have earned if that cash was invested.

We encourage you to invest instead in dollar-denominated funds such as Eurobond Funds to protect against downside risk (devaluation of the naira).

In dire economic situations like we have today, we advise investors to take on a risk-off approach by investing in safe haven assets such as Money market funds and Government securities with some degree of cash to fund anticipated liabilities. The current economic climate faced in Nigeria has found several investors seeking to lower their exposure to the naira relative to the US dollar as the nation braces for increased currency uncertainty.

We hope we’ve been of help at this time.

Thank you.