1. Welcome to the Connect
e-Business fair 2016!

2. Your Money

3. Content Background What’s Important to Startups 1ST Fact & 2ND Facts
Quick Question
Saving Long Term with PAL Pensions
What Should Be Important to Startups
Conclusion

4. BACKGROUND
SMEs in Nigeria constitute more than 90% of Nigerian businesses, their contribution to the nation’s GDP is below 1%. This is as compared to 39% in India
FG has supported SME funding over the years – for instance, the CBN approved the investment of N500 billion to be issued by the Bank of Industry (BOI) with effect from May 2010.
The key issues affecting the SMEs in Nigeria can be grouped into four namely;
Structure
Poor funding
Low managerial skills
Access to modern technology
The main obstacles to funding include:
Lack of satisfactory business plans, accounting and other information;
Inadequate collateral
Identity

5. THE MAIN ISSUES PROCRASTINATION SELF ACTUALIZATION
SELF ESTEEM-Recognition, Respect
BELONGING-Friends, Family, Spouse, Lover
SAFETY –Security, Freedom from Fear
PHYSIOLOGICAL – Food, Water, Shalter
NO.1
Alignment of Needs
NO.2
I will start Next Month
PROCRASTINATION

6. QUICK QUESTIONS.. Will you always be this young ?
How much time do you have to Invest man-hours into your business?
Want to still maintain your life style in retirement?
Do you plan to be in active business until you are 65?
Did you know that you have the advantage of time to plan towards a better retirement?
Did you know you can start a savings (Pension) plan that can be accessed at anytime?

7. PHASES OF RETIRMENT PLANNING?
Education, vocational training; Start life
Save for house, pay school fees; provision for family
Save for retirement
20’s
30’s
40’s
50’s
60’s
70’s
80’s
90’s
Retirement Saving
Retirement Spending
To begin, we’re all aware that most people’s working years are spent focused on accumulating money – first to make ends meet and pay for necessities, and then later putting away anything extra for retirement. You also know that the earlier your start saving for retirement, the better. Certainly, many retirement savings vehicles rely on tax-deferred growth – which means that the longer your money has time to accumulate without being subject to taxes, the more it can potentially grow.
Most of us are in the “saving for retirement” phase, and depending on where we are in life and how much “extra” money we have, we’re doing a better or worse job of it. But if I were to ask you what the “spending phase” of your retirement will be like, and what it will be like to actually live in retirement, how many of you have thought that far ahead? Not many, I’d imagine. And that’s not atypical. But how you structure your “spending phase” will impact how you live in retirement.
Before we begin discussing your retirement financing options, I’d like you to envision what you’d like your retirement to be. We’ve already asked a number of pre-retirees what they think their retirements will look like. And we’ve gotten two distinct, and unrealistic, answers:
Some people envisioned a lottery retirement – that they’d come into a lot of money and and retire with the rich in a fantasy land.
Others – the more pessimistic group – thought they were doomed. They envisioned sharp declines in their assets, the loss of their home, and a life of counting every penny.
Thankfully for group two and sadly for group one, neither of these visions is a particularly realistic one.
The truth is – retirement can look a lot like today. To make this happen, most financial planners believe that people will need 70 to 80% of their pre-retirement income to live comfortably in retirement. We believe that with common sense and pre- and post-retirement planning, your quality of life can continue throughout retirement, as long as you’re clear and realistic about what you want, and how you’re going to finance it.
SMRU # CV (07/05)

8. Savings & Long Term Investment Plan
Anything 5 years and over is considered to be long term
Thus, has more risk tolerance and better returns
Long term investment options include
Asset managers - index funds, mutual funds or bond funds.
Quality stocks - historically the average return of stock market investments, over many years, has been positive
Pensions – Tax Free (VC)
Money Market
Real Assets/Alternatives
Asset Class
Weight
Stocks
10%
Bonds
50%
Mutual Funds 5%
Pension
15%
Real Assets
Money Market
Proposed Asset Allocation Structure

9. SETTING FINANCIAL TARGET
Assumptions:
8% interest rate
366 Basis Period
Monthly/Quarterly/Semi Annual/Annual
INVESTMENT OPTIONS
AVC
Money Market
Tbill
Bonds
Cooperatives
Others

10. FUTURE VALUES OF DIFFERENT AMOUNTS OF MONTHLY SAVINGS AT NET RETURN OF 12% OVER 25 YEARS
3,000
5,000
10,000
15,000
20,000 1
40,565.00
67,609.50
135,219.00
202,828.51
270,438.01 2
81,331.00
405,657.01
540,876.01 3
121,697.00
608,485.52
811,314.02 4
162,262.00
1,081,752.03 5
202,828.00
338,047.51
676,095.02
1,014,142.53
1,352,190.04 6
243,394.00
1,216,971.03
1,622,628.04 7
283,959.00
473,266.51
946,533.03
1,419,799.54
1,893,066.05 8
324,525.00
2,163,504.06 9
365,091.00
1,825,456.55
2,433,942.07 10
405,657.00
2,028,285.05
2,704,380.07 11
446,222.00
743,704.52
1,487,409.04
2,231,113.56
2,974,818.08 12
486,788.00
3,245,256.09 13
527,354.00
878,923.52
1,757,847.05
2,636,770.57
3,515,694.09 14
567,919.00
2,839,599.08
3,786,132.10 15
608,485.00
3,042,427.58
4,056,570.11 16
649,051.00
4,327,008.12 17
689,616.00
1,149,361.53
2,298,723.06
3,448,084.59
4,597,446.12 18
730,182.00
3,650,913.10
4,867,884.13 19
770,748.00
1,284,580.53
2,569,161.07
3,853,741.60
5,138,322.14 20
811,314.00
5,408,760.14 21
851,879.00
4,259,398.61
5,679,198.15 22
892,445.00
4,462,227.12
5,949,636.16 23
933,011.00
1,555,018.54
3,110,037.08
4,665,055.62
6,220,074.17 24
973,576.00
6,490,512.17 25
1,014,142.00
1,690,237.55
3,380,475.09
5,070,712.64
6,760,950.18

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