5 ways to get your budget on track
4 important things 2020 taught us
Get free professional advice from an experts
3 Smart Ways to Give Your Child/Ward The Best Education
Imagine the smile on the face of your child, looking directly at you, and wearing that beautiful school graduation gown- That look is priceless! One of the ultimate goals of most parents is to give their children/wards the best of education. The best education to an extent adds the icing on the cake to the parenting career. Sadly factors such as rising school fees, inflation, and general economic situation of a country always pose as obstacles to this great plan that parents have for their children.
Despite these factors, it is still possible to give your children the best education if well planned. We have listed 3 smarts ways every parent can plan for their children’s education, to guarantee them seeing their children in the beautiful graduation gown.
-
Start early
Planning for your child’s education is a long-term financial goal. The best time to start planning for your child’s future needs is when he or she is born. Assuming your child will go to the University at the age of 18, you will have nearly two decades to create the right-sized fund for your child’s need. The effect of compounded growth will allow you to achieve this goal with small, monthly contributions.
-
Diligently choose the right school
Children will mostly likely spend more time in school than at home, parents should be diligent when choosing a school for their children/ward.
The type of school a child/ward goes will have a great impact in the life of the child/ward. Before you settle for a school, you should consider the vision, mission and culture of the school to see if it they align with what you want for your child. You also need to fact check from people associated with that school, such as parents who already have their children enrolled in that school to hear what they have to say about the school
-
Set up an EduTrust
An edutrust is a legal agreement where money is put aside for the sole purpose of educating the children, irrespective of whatever, untold events the future holds. It is aimed at assisting parents and guardians in securing uninterrupted education for their child(ren) or ward(s).
As a parent, this trust enables you to provide for the education of named beneficiaries. The standard, level of education is determined by you, subject to adequacy of funds in the Trust account. The Trust can comprise of a lifestyle component to provide for other needs of beneficiaries such as vacations, excursions, school trips etc.
We will love to celebrate you and your kids as they graduate from their dream schools. Get started on making that graduation smile a reality today by setting up an education trust for your child here
What affects what you receive at retirement
Get free professional advice from an experts
The thing with this weather
The gods must be angry… or maybe the one in charge of rains must be. Otherwise I fail to understand how the sky has refused to exercise restraint in the amount of downpour that has turned some parts of Lagos into a mini ocean.
As I wait in the frustrating Lagos traffic which is usually worse when it rains, I watched the torrents hit the ground and create a splash. First, it started with drops barely wetting the ground, and then the thunder roared and lightening flashed before the rain poured uncontrollably causing streams of water to emerge.
With nowhere to go until the rain was satisfied with its torment, I hit the brakes and let my mind wander to the past and then back to the present to paint scenarios about the future.
I have had a rough past living barely from hand to mouth before a celebrity bought my footwear, posted something about it on her Instagram page and suddenly my small business took off. With a very comfortable present, now the clothier for many celebrities, I wonder how the future will be.
I make most of my shoes myself and I put in time and money to deliver the best. I can do this because I’m strong and young. Will I be able to do this when I’m 55? Or will I even want to be doing this at that age? How about working just for the fun of it at 55 because I already have a stash somewhere to cater to my needs?
“That sounds like a good plan right?” I ask myself and nod in agreement before whipping out my phone and going to Google to check the best way to do this since I don’t work for a big organization with a pension plan. Out pops ARM Pension Micro Pension Plan – the best retirement plan for every worker. My eyes open wide as excitement courses through me. I long-press to open a new tab but a loud honk sounds and I look up to see that the still traffic had started moving.
I put away my phone but not before bookmarking the page. I’ll take a good look when I get home and who knows, just like the drops of rain, I might start pooling my own stream of retirement stash little by little. For now, let me concentrate on conquering this intimidating traffic.
The Micro Pension Plan is for every self-employed, skilled worker, freelancer or small business. Click here to learn more about the Micro Pension Plan and download the ARM Engage app from Google Store or Apple store for easier access with RSA registration and more.
Choose your story
Press enter to begin your search
The year 2020 will forever be in everyone’s memory as the year that the corona virus pandemic caused a shift in paradigms and re-defined the norm as we know it. It can also be remembered as the year you decided to look the storm in the eye and reach for your biggest goals.
It comes down to the story you wish to tell of 2020. While tales of woe seem to be predictable for this year, how about standing out with telling tales of taking strides towards achieving your goals? One way to kick-start this great story is by religiously investing towards your dreams. Check out an array of investment options.
You can count on our 26 years of investment management knowledge and expertise in the global financial market to help you manage your funds rigorously to ensure competitive returns on your investment.
Get started by accessing your Wealth Planner to easily manage, monitor and fund your investment or download the ARM Engage app from Google Play store or Apple store to utilize the unique NUBAN account feature to fund your investment.
Got questions? Please feel free to get in touch with us via [email protected] or 0700 CALL ARM. If you prefer for us to get in touch with you, please click here.
How to deal with a pay cut during this pandemic
Press enter to begin your search
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:
- 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
Covid-19: Impact on the Financial Market
The events of the past quarter compounded by the global CoronaVirus (COVID-19) crisis and its massive impact on financial markets in the short to medium term brings a feeling of déjà vu. To reduce the spread of the virus, nations have restricted trade, travel, and in extreme cases closed their borders. Amidst all this, an oil price war between Saudi Arabia and Russia has pushed the price of crude oil below $35 per barrel.
These two factors have had an adverse impact on global economies; with governments around the world including the Nigerian government, responding with the introduction of stimulus packages to keep their economies from slipping into recession.
Despite any negative sentiments attached to current events, it is worthy of note that markets have a good record of overcoming global economic shocks as seen below:
- In early 2003, a similar pandemic called “the Severe Acute Respiratory Syndrome” or (SARS) broke out in China and was not fully contained until eight months after the initial outbreak. However, the Chinese economy recovered and recorded a GDP growth of 10% in Q3 2003.
- In 2015, Nigeria, like other global economies faced an economic crisis. The equity market declined 17% as global oil prices plunged to below $40 per barrel. However, investors who took a longer-term view during the crisis have fared better as markets have recovered from their lows.
The key takeaways:
- The markets have a very good record of recovering from economic shocks.
- We cannot time the market by consistently calling the bottom or the top, but we benefit most when we systematically invest over the long term. Market downturns provoke extreme reactions – sell late in a bear market or too early when the market turns – and this is not any different.
Way Forward for investors
From our experience, our conclusion is that it remains profitable to invest in financial markets with a long-term view.
The graph below shows the performance of the Nigerian Stock Exchange (NSE) All Share Index from 2010 to date. Whilst the asset class has under-performed over short periods, we caution investors not to write off this asset class as the volatility creates opportunities for strong positive performance over the long-term. Investors have also profited by applying rigorous research in stock selection and by maintaining a disciplined investment process. Similarly, investing in fixed income securities over the medium term has provided a good hedge against inflation as the Federal Government securities over the last 5 years delivered average annual returns of 19%, well in excess of inflation.
For investors with an above average risk appetite, there are opportunities in specific sectors of the economy such as Telecoms, where companies earning capacity will not be significantly impacted by current events, and Consumer Goods where there are companies that have the ability to withstand market shocks. Furthermore, asset prices have declined significantly to record low levels, creating compelling entry prices as new year lows are redefined. Dividend yields remain attractive across a number of companies that have maintained strong fundamentals. (e.g. Tier-1 banking names such Zenith Bank and Guaranty Trust Bank).
For investors with lower risk appetite, we would advise on a re-allocation from risky assets to money market- based investments (such ARM Money Market Fund) because of their potential for steady and competitive returns in the short term.
Final words
Although we should expect substantial market volatility in the short term, investors who are able to maintain discipline and take a longer-term horizon to investing would make it through the down cycle to enjoy the benefits of an inevitable rebound.
Our customer experience team is available to guide you through appropriate investment decisions suitable to your need. We remain focused on navigating the market environment, with the aim to keep your investment on track toward reaching your long-term investment goals.
Please maintain all the rules of safety in this period, we wish you good health.
6 Life-saving Tips for Harmattan
Yaay! It’s January, that time of the year that always comes with the joy of giving, bright lights, shiny presents, and loads of food. It is also a time that comes with cold, dry winds, haziness and a lot of dust. Harmattan is coming and these are six life-saving tips to help you stay productive and healthy regardless of the season.
WOOL FOR THE WIN
It is always cold during harmattan and to protect yourself from the cold, you should wear more wool-based cloths as against cotton which is common and mostly suitable for other seasons.
BUILD YOUR IMMUNE SYSTEM THIS SEASON
It is necessary to eat a healthy and balanced diet to help your body fight against diseases that might occur as a result of the weather condition. A proper diet containing protein, carbohydrates, a bit of fat and vitamins, helps to make the immune system stronger to better fight infections. Hydrate regularly by taking lots of water during this dry season.
BODY CARE
To avoid excessive dryness of the skin and hair, bathe with moisture retaining soaps and thereafter regularly apply moisturizing creams, oils or lotions. Hand creams should also be used intermittently during the day and at bedtime.
Protect your lips with lip balms, gloss or chap sticks to avoid lip cracks, peeling and dryness. Also moisturize your lips at night time for a complete save from cracks.
Also avoid burning refuse and bushes this period. The fire could become uncontrollable and result in the loss of lives and valuable properties.
HOME CARE
Your home and its surroundings should be made as clean and as dust-free as possible. Doors and windows should always be shut to avoid letting in dust and harmful bugs. Inflammable objects like petrol, gas, wood and alcohol should also be put away and preventive measures taken to avoid fire outbreaks as this season makes it easy for intense fire accidents.
Also avoid burning refuse and bushes this period. The fire could become uncontrollable and result in the loss of lives and valuable properties.
GOOD HEALTH IS GOOD LIFE
Excessive exposure to the cold and dryness that comes with this weather can increase the risk of illnesses like pneumonia, arthritis and rheumatism. This season also causes catarrh, sore throat, sneezing and the possibility of cough so it is best to curtail exposure to the dry winds and dust. The eyes should be washed with clean water and sunshades used to protect them from particles. Asthma patients should also make sure to have their inhalers close at all times.
DRIVE FOR THE WEATHER
Driving this harmattan season calls for care. Be it in the morning or at night, it is important to see and be seen. It is typically foggy in the mornings, ensure your fog lights (if your car doesn’t have these, use low beam lights) are on. Also remember not to drive fast to stay safe on the road.
These are basic tips for protecting yourself and your loved ones from the adverse effects of this weather condition. Can you imagine the other natural forces you could also protect them from with a Protection Plan?
At ARM LIFE, we do more than just protect you; we make sure you can access life assurance benefits while you are alive.