Pension assets hit N5.8trn,…As value of RSA now N3,882.58trn says PenCom DG-By Isaac Anumihe

Director General of National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, yesterday disclosed that  the value of pension assets as at July 2016, stood at N5.8 trillion while the portfolio value of Retirement Savings Account (RSA) is N3,882.58 billion.
The DG who spoke through the Head, Investment Supervision Department of PenCom, Mr. Ehimeme Ohioma, at a forum organised by  Finance Correspondents Association of Nigeria (FICAN)  in Abuja, also revealed that the average monthly inflow of new contributions is N41 billion while the annual inflow of contributions is N492 billion.
Anohu-Amazu stated that the pension assets are the largest and only viable pool of long term capital in most economies, stressing that the pension fund investment in infrastructure remains a reasonable proposition given the good asset/liability match, as infrastructure projects are long term investments that match the long duration of pension liabilities.
She cited Ghana, Kenya, South Africa, India and Brazil where pension funds have effectively been deployed for  infrastructure investment.
According to her,  the Federal Government intends to use 20 per cent (N98.40 billion) of the N492 billion for housing, among other propositions.
“Nigeria has a large infrastructure deficit in all key sectors, largely due to population growth, demographic change and urbanisation, which have driven increased demand for infrastructure in Nigeria. In 2016, the national budget significantly increased the allocation to capital expenditure, by up to 26.2 per cent  of the budget, which amounted to N1.59 trillion. The Ministry of Finance (MoF) estimates an annual infrastructure need of N7.3 trillion.
Consequently, only 22 per cent  of the MoF’s estimated annual need for infrastructure can be accommodated by the 2016 budget. The regulation on investment of Pension Fund Assets issued by the National Pension Commission allows for investment in Alternative Asset Classes like infrastructure ‘bonds’ and ‘funds’, private equity funds, real estate/housing development.
Alternative assets are the only investment class with guaranteed returns, which are consistently above inflation rates,” she noted.
She said that Nigeria’s current infrastructure situation places it at a competitive disadvantage globally whereas the current stock of infrastructure is inadequate to support the present and future socio-economic needs of the country, including the current imperative to diversify the economy away from oil in the shortest possible time.
“Availability of long term financing is a critical factor; it is clear that private finance is needed to supplement government’s constrained financial resources. Pension funds are a potential source of private financing to help fund infrastructure in Nigeria.  The minimum requirements/criteria for pension fund investments in infrastructure, as stipulated in the Investment Regulation is very robust and provides adequate safeguard for pension fund assets,” she explained.
However, she warned that the proposed infrastructure projects should  generate cash-flows to repay itself over time and bid/concession processes must be open and transparent.
According to her, investment in infrastructure is a “win-win” for Nigeria and its citizens, adding that if well applied, would  improve the standard of living of citizens, create and sustain employment, promote entrepreneurship, enhance returns on pension fund investments and  increase the pool of pension savings available for economic development.

Culled from Sun

4 Types of Relationships That Are Bad for Your Money-Sheiresa Ngo

Good financial habits are necessary if you want to build wealth. However, it can be hard to stay on the wealth road if you spend time with the wrong crowd. If you’re trying to improve your financial situation, you’ll want to make sure you have the right people around you. If you’re not careful, your associates could influence you to make some very bad money decisions. Here are four types of relationships that are bad for your money.

1. The broke friend

Broke man | Source: iStock

Do you have a friend who always seems to be in a financial bind? When you ask about his day are you usually met with a heart-wrenching story of his never-ending financial woes? It’s not unusual to fall on hard times every now and then, but it can get annoying when you keep encountering that one friend who seems to be perpetually broke. It’s OK to help out, but if your friend is starting to make a habit of asking for money, it’s time to re-evaluate your friendship. Is he your friend because he genuinely likes and supports you, or is your friend merely looking for a handout?

2. The gold digger

Woman taking money | Source: iStock

Does your significant other often expect you to pay for everything? Don’t let love blind you to a possible gold digger (and yes, we know that person could be a man or a woman). If you seem to be the only one opening up your wallet, it’s a sign your partner may primarily be with you for financial support. Pay close attention to how your partner acts during times when you don’t have a lot of cash to spare. Does your partner become cold and distant or are you met with compassion and support?

3. The irresponsible family member

Money in a wallet | Source: iStock

Watch out for the family member who is constantly asking to “borrow” money. If you decide to give some of your hard-earned cash, just know beforehand that you may never get it back. Also make sure that you can actually afford to give the money in the first place. It’s not selfish to take care of your own financial needs first; it’s smart. Our advice when it comes to lending money: don’t. However, if you feel that you must lend, make sure you have enough in savings to cover your own expenses.

4. The big-spending spouse

Couple shopping | Source: iStock

Being in a relationship with a shopaholic is not fun. Your days and nights will likely be filled with arguments about money, email alerts about overdrawn bank accounts, and plenty of tears. If your partner has poor financial management skills, you’ll need to nip this in the bud before things get out of control.  A spendthrift spouse could put you in a tight spot in the event you were to make a significant financial purchase, such as a home. Organizations such as Shopaholics Anonymous and Debtors Anonymous are two good places for your partner to seek help.

Culled from Money & Career Cheat Sheet

8 desirable changes to retirement laws -AnnaRappaport

Editor’s note: Anna Rappaport is president of a Chicago-based retirement consulting firm bearing her name and chair of the Society of Actuaries Committee on Post-Retirement Needs and Risks. Here are eight changes Rappaport argues should be made to U.S. retirement laws.

1. Remove barriers and offer safe harbors for continued work during retirement including rehire by former employers. Related policy issues include bona fide termination of employment, wage and hour rules, maybe age discrimination, and phased retirement. As an actuary, I am very aware of changing demographics and longer life spans, and feel that facilitating longer employment is very important.
2. Adjust retirement ages as longevity improves and regularly update retirement ages. Index both Social Security and private plan required normal retirement ages (ERISA) or at least increase them. Don’t forget to update disability benefits as retirement ages are adjusted.
3. Offer a menu of default distribution options to be available to defined contribution plans. A menu of default distribution options including lifetime income alternatives would encourage more support for regular income in retirement.
4. Support lifetime income and also enable use of defined contribution funds for risk protection. Change defined contribution regulatory structure so that 401(k) funds could be a retirement risk protection account, and after retirement, balances could be used to purchase a variety of risk protection options, either through the plan or through employer offerings on a cost-effective basis. Some of the choices should include lifetime income with survivor protection, with or without inflation protection, supplemental health insurance, and long-term care benefits.
5. Unify regulation where there are multiple entities and laws affecting the same area or where not possible provide “road maps” to enable users to understand multiple regulations. Think about long term disability regulation as an example. Insurance contracts are regulated by state insurance departments and benefit plans by Federal agencies under ERISA. The Americans with Disabilities Act regulates discrimination in employment and the EEOC also enters the picture. The Social Security Administration deals with both disability and retirement benefits. Some disability is connected to worker’s compensation. It is particularly important that regulations support each other and are not inconsistent where there are multiple agencies or where there is a mix of state and federal regulations.
6. Simplify/amend retirement plan regulatory structure to enable new retirement plan design models that allow for more risk sharing. For example, new plan design models have been adopted in the Netherlands and New Brunswick, Canada. These designs provide for a combination of risk pooling and risk sharing that provides for sustainable retirement plans that are expected to do a better job for both individuals and plan sponsors.
7. Support long-term and balanced planning through public education and safe harbors for employer-sponsored education and guidance. Focus on longer-term thinking. Emphasize expected life spans and their variability. Emphasize importance of understanding multiple options and trade-offs. Balance messages about investments, leisure, and working in retirement with messages about risk, long life, and the need for retirement income.
8. Change the terminology about retirement ages. While it does not seem practical to get an entirely new term, it is suggested that the terms “normal” and “early” retirement are not helpful in 2016. Social Security would be a logical place to introduce such a change and start changing the “signals”.
Culled from MarketWatch

More millennials are giving back to the 'Bank of Mom and Dad'

Millennials just getting used to "adulting" may have a new responsibility to worry about: providing financial support to a parent.

Most of the time it's cash flowing in the opposite direction. A little more than a third of adults ages 21 to 45 get financial support from a parent, with help most often received on cellphone service, food, utilities and insurance, according to a recent survey from financial planning group Society for Grownups.

A Pew study released this spring found that for the first time in more than 130 years, adults age 18 to 34 are more likely to be living in their parents' home than with a spouse or partner in their own household.

But some young workers are taking on sandwich generation responsibilities early. It's a trend that's only starting to gather steam, said Catherine Collinson, president of the Transamerica Center for Retirement Studies.

"We see that many, many Americans who are retired now have relatively little in savings, to make their savings last a lifetime," Collinson said. "The natural fallback for a savings shortfall will be family members, and likely, adult children."

"That tidal wave isn't quite here yet," she said.

Already, 19 percent of millennials are a "financial supporter" of a parent, to the tune of an average $18,250 annually, according to a 2015 TD Ameritrade report. In a new Transamerica survey , 14 percent of millennials cited supporting parents as a current financial priority — double the rate of Generation X workers.

That Society of Grownups survey estimated that 17 percent of respondents are providing financial support to their parents, and 14 percent expect to begin doing so within a year.

Worries about that support have popped up in the data, too. In a recent Schwab survey , 1 in 10 millennials said "taking care of aging parents" is a concern that keeps them up at night, while 40 percent of respondents in a Wells Fargo report said caring for children or aging parents has made their own long-range financial planning more challenging.

"Your pie of take-home pay is 100 percent," said Manisha Thakor, a certified financial planner and the director of wealth strategies for women at The BAM Alliance. "Obviously if you're taking a sliver out of that for your parents, something has got to give."

Here's how to plan if you anticipate helping out your parents sooner, or later:

"For every parent and every adult child it's really important to be having these conversations," Collinson said.

It's better to know in advance that a parent may need or expect financial help, than be suddenly called on to help when his or her retirement savings are depleted or a financial emergency strikes, she said. That helps you assess what kind of help — financial and otherwise — that you can provide without jeopardizing your own financial aims like retirement or putting your kids through college.

Frank discussions may also alleviate adult children's concerns. Half of millennials say it's at least somewhat likely they will provide support to retired parents, the Wells Fargo report found, but only a quarter of boomers said they thought it at least somewhat likely they would need their children's help.

If parents' finances are on shaky ground, it may behoove adult children to help them plan around some of the big retirement decisions, said Thakor. In particular, optimizing Social Security claiming strategies can make a big difference, she said.

Life insurance is something to consider once you have people who would be financially harmed by your passing. Usually, that's a spouse or dependent children, but it could also be a parent you're supporting or who would be left holding the bag on co-signed loans , said Thakor.

Providing financial support to a parent often comes at a time of big financial decisions for adult children, like buying a home and starting a family, said Nondini Naqui, president and chief executive of Society of Grownups.

"This is exactly the time they're feeling the squeeze the most," she said.

Consider how to prioritize your different goals in conjunction with your expected timeline to providing parent help, Naqui said. An imminent need may require forgoing discretionary expenses like a planned vacation; expecting to help 10 years down the line could be a good prompt to focus now on boosting retirement savings and paying off student debt.

Culled from CNBC

How one couple saved $1 million in 4 years to retire by age 43- Kathleen Elkins

Source: Mr. and Mrs. 1500

Mr. and Mrs. 1500

In 2013, "Mr. and Mrs. 1500" — the pseudonym of soon-to-be early retirees Carl and Mindy — decided to get serious about their savings goals.
"I was having this horrific day at work," 42-year-old computer programmer Carl told Farnoosh Torabi on an episode of her podcast. "I was 38 at the time, and I'm like, 'There's no way I can do this until I'm 62 or 65 or whatever age people normally retire at."

Inspired by the idea of retiring early, the husband-wife duo with two kids vowed to build a portfolio of $1 million and no debt by February 2017. This would allow them to retire in 1,500 days at the ripe age of 43.
They achieved the $1 million mark ahead of schedule — in April 2016 — and now aim to reach $1.12 million by February, at which point they'll officially retire.
The good news is, anyone can do the same — and you don't have to be an investment banker raking in millions. All it takes is "smart decisions along with intelligent saving and investing," they write on their blog.

Here's a look at exactly how Carl and Mindy are making early retirement a reality:

They figured out exactly how much money they needed to retire comfortably.

The couple started by analyzing their spending habits. "My wife and I wrote all of our expenses in a book," Carl explains on their blog. "Every time we returned from shopping or paid a bill, we logged it."
Based on their logs, they determined they could live on $24,000 a year. To be safe, they added a $6,000 cushion and bumped that estimate up to $30,000 a year.
Using the "4 percent rule" — the slightly controversial rule of thumb used to help you determine the amount you can withdraw from your retirement savings each year without running out — they came up with their magic number.
"Based on the 4% rule, I need about $800,000 to retire with no debt," Carl wrote on the blog in 2013. "However, I'd like very much to be able to help my children through college, so I'm going to bump the number up to $1,000,000."
They committed to putting $2,000 a month toward their investments, which stood at $570,000 when they started, in order to build their portfolio up to $1 million in 1,500 days.
To be sure, they had a big head start. They'd spent years building their up their portfolio by maxing out his 401(k) account, flipping houses, and saving a good amount of their income. Carl noted that his programming job paid well, but did not share specifics.
You can read more about their initial financial standing and calculations on their blog.

Source: Mr. and Mrs. 1500

Mr. and Mrs. 1500

They tracked their expenses and cut their spending.

Once they settled on contributing at least $2,000 a month, the couple immediately looked for ways to cut their costs. It's a good starting point for anyone, they told Torabi. It's "something you can do immediately."
They also recommend recording each and every expense, which will allow you to see exactly how much money you're spending and where there's room to save.
"You'll be surprised," they say. "We started doing this and were like, 'Wow, we spent that much on groceries? What were we thinking?' After you do that, evaluate every one of those line items and see how you can cut those down."

They downsized.

Shortly after making the decision to retire early, the couple sold their 5,000-square-foot lake house in Wisconsin and bought a 1,400-square-foot fixer upper in Colorado. It meant a significantly smaller mortgage. Plus, "those extra 3,500-square-feet added absolutely nothing to my happiness," Carl adds.
They also note that their location in Colorado is a big part of the reason they're able to retire in their 40s with a million-dollar portfolio: "If you lived in San Francisco or Manhattan, I don't think you'd be able to do it, but we live in a very low-cost area in Colorado. … Life is pretty cheap here, and we can get by on about $2,000 a month."

This woman is traveling the world for a living  

They focused on increasing their income.

Next, the couple focused on earning more. Carl's main side gig is blogging, but he also fixes up homes and writes smart phone apps. Mindy, who was previously a stay-at-home mom, landed her current job as a writer for a real estate investing website through their blog. They both plan to continue working on the side in retirement.
They also made smart investments, including buying the $176,000 fixer upper home that they estimate is now worth over $400,000. Another major investment vehicle for Carl and Mindy is the stock market. Although they don't recommend picking individual stocks — which is much riskier than investing in low-cost index funds — they did have success buying shares of Facebook.
"I don't endorse it and it's not my new methodology, but I bought 2,000 shares at Facebook at about $30 a share and now it's like $120 a share," Carl told Torabi. "I'm an index-fund guy now."
Whether you choose to invest in real estate or the stock market, or neither, the point is that focusing on increasing earnings is just as important as saving. Increasing income isn't always as easy as cutting costs, but most people don't work more than 40 hours a week, they said on Torabi's podcast. They said you can drive for Uber or Lyft and rent out a spare room through Airbnb to increase your income.

They changed their mindset about money.

"I learned that you don't need a lot of money," Mindy told Torabi. "My quality of life has not changed since we became laser-focused on cutting out our expenses. I don't need the cable TV. ... I don't need a super-expensive phone plan."
"I don't miss all this stuff because it didn't really add to my life," she said.

Culled cnbc money

5 Best Jobs for Retirees in 2016 Sheiresa Ngo

Retirement | Source: iStock

If you’re nearing retirement but can’t see yourself completely leaving the workforce, whether due to financial necessity or to keep boredom at bay, there are plenty of jobs to consider for your second act. Work doesn’t have to come to a complete stop unless you want it to. There are many opportunities for you to make the most of your retirement while earning an income and making a difference in people’s lives.

If you’re considering the idea of a part-time job after you exit the workforce, you’re not alone. Roughly 54% of older workers (those 60 years of age and older), said they plan to work after retirement, according to CareerBuilder’s 2015 annual retirement survey. This is an increase from 45% the year before.
Career expert Nancy Collamer said work after retirement can be a good time to reinvent your career. “Whether out of necessity, desire, or a combination of the two, it is clear that millions of boomers will soon be looking for ways to reinvent their careers without a traditional 9-to-5 job. We will work during a phase known as semi-retirement—the stage that occurs after the big full-time job ends and before full retirement sets in,” said Collamer in Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement.
This time around, you can choose work you enjoy and work on your own terms. Here are some work options that are fun, flexible, and pay the bills.

1. National park worker

Angels Landing in Zion National Park|Source: iStock

Why not see some of the most beautiful parks in the world while making a few quick bucks? If you’re looking for a slower pace and a serene environment, consider taking on a job at one of America’s breathtaking national parks. There are several jobs to choose from, including management, grounds maintenance, food services, and retail. The median salary for a national park service employee is $54,000 annually, according to career site PayScale.

2. Adjunct professor

Teacher and student | Angela Weiss/Getty Images

Put your years of experience to use by teaching an introductory class in your field. Don’t let your level of education hold you back. If you didn’t earn a Ph.D., have no worries. Depending on the area of study, a Ph.D. isn’t always necessary to teach on the college level. Many adjunct professors hold a master’s degree. The median annual salary for an adjunct professor is roughly $31,000. However, PayScale notes that the salaries in big cities like New York and Miami pay bigger bucks. New York adjunct professors, for example, can earn an average of $88,000 a year.

3. Consultant

Businessman | Source: iStock

If you’d rather work on short-term projects instead of staying with one company, consulting may be just right for you. The first place you can go to seek project-based work is your current employer. If you haven’t left the workforce yet, or if you left a while ago but still have contacts at the company, ask if your employer would like to hire you on a freelance basis. This may be the best option since the managers are familiar with you and already know the quality of your work. There are many types of consultants, and the pay will depend on your industry in location. However, the average consultant salary is roughly $92,564 a year, according to career site Glassdoor.

4. Child care worker

Kids eating sandwiches at a party | Source: iStock

If you enjoy being around children, you may want to look into working in the child care field. You could start by offering to take care of your neighbor’s children. You may even consider working at a day care center or starting your own home-based family day care center. The average salary for a child care worker is $9.12 an hour.

5. Freelance writer

Writer | Source: Thinkstock

Working as a freelance writer can give you the freedom to work from home while earning an income. Freelance writers can set their own hours and don’t have to worry about the stress of commuting to the office every day. You can find freelance jobs through word-of-mouth referrals as well as job boards dedicated to freelance writing jobs. The average salary for a freelance writer is about $28.50 per hour.

Culled from Money & Career Cheat Sheet