This is another advantage of money market funds over physical assets.
If you are in money market funds, WATU WANAFIKIRIANGA UMESOTA. For instance, if you have secured Ksh. 10 million in bonds and another Ksh. 3 million in shares, fixed savings, or stocks, unakaa ni kama hauna kitu. However, you are assured of at least 8% to 14% return on investment annually on your Ksh. 13 million. If you are in other ventures generating active income, you can focus on them to address small monetary demands as you leave your investment to compound. If you have good disposable income every month, unajaza huko iongezeke. Bonds do not compound. Therefore, you may opt to roll over the bonds with interest after maturity. HAPO UMECHEZA KAMA BAZUU.
Now come to physical assets. If you deposit Ksh. one million to purchase an asset worth 2 million, you still have a Ksh. One million debt to pay with interest. However, people, especially poor people from villages who don’t understand the terms and conditions of loans and borrowing, WANAONA UKO NA PESA SANA. Kumbe wewe unang’ang’ana kumaliza deni.
A person with Ksh. 13 million invested in money market funds anaonekana ni kama hana kitu. Wewe na magari, plots, rentals, na mashamba inajitangaza tu uko na pesa yenye haiko hata. So, if poor robbers want to attack, they will not attack the one with 13 million in bonds, stocks, shares, and savings. They will attack the one with visible assets juu wanafikiria uko na pesa nyingi. For instance, watu watakuvunjia duka but hawawezi vunja central bank.
This post is for poor people who are trying to rise up. If you are a rich kid, wewe nunua kila kitu juu hata ukipoteza milllioni utaambia daddy akupee 2 million uende ununue sweets na chocolate.
If you have small income that only addresses your basic needs, I am sorry. This post is not for you. Wewe ndio wale tunaita MKENYA WA KAWAIDA.
by Giddy Akali
Good information but we should spread our fortunes far and wide. Concentrating on only one avenue may lead to regrets in future
my cousin invested a lot on the physical asset(plots and buildings). Now when it comes to raising 4 million to invest somewhere , I need 2 days to inform my money market representative of my demands. Now on the other hand, my cousins who has lots of physical assets has to find a buyer to sell an asset to raise 4m. At times its hard because its dependent on time taken to transfer title and all that. Mimi hucheka tu watu saana
Nichanueni kidogo…Does this mean that you can not roll-over your semi-annual interest on bonds even as you wait for maturity? It is my understanding that the power of compounding is what really leads to major gains on investments
Speak no more, see that portfolio.
Hapa haulali njaa for ever. All those are IFB meaning tax free, with around 12.6% p.a. = to around 16,500,000 per year.
Averagely 8,250,000 per 6 months
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Hii ni ya nani mkuu?
Bonds statement from cbk.
whose bond statements?
Wachana na mwenyewe:D:D
See how people invest huku nje. Some serious investments
Which fund do you use omwami?
Madison has the most competitive rate… as usual don’t put it all in one basket . Weka ingine hii bank ya uhuru
mteso niaje
Kuna so many ways unaweza kua birrionaire.