What if you have an investment that pays you every month or any such intervals? For me, that would be the ideal definition of money working for you. It is what a secured income plan represents.
Let me try to explain further. Say, for example, you invest in a debt or equity security with a directive to produce cash flows while preserving capital.
A secured income plan provides a steady income stream as dividend and interest payments. It is great for retired persons who no longer have a good source of income. Pensioners can also invest in this.
Most times, investment is in lower-risk securities, and this includes fixed-income instruments, preferred shares, and dividend stocks.
In a country like Nigeria with all the economic fluctuation and inflation, this income plan could be the best fit for pensioners or aged parents who depend on their children for their monthly upkeep. The children could invest money on behalf of the parents to avoid the monthly hassle of sending money to the parents.
Sometimes, it feels good for one to make their own money. Senior citizens are not left out of this inherent need. Investing in a secured income plan gives that rush of blood and excitement. It makes them feel the independence we all crave.
The secured income plan allows for liquidation before maturity as long as pre-liquidation fees are charged on interest. This means that your money is available to you anytime, and it is not tied down until the maturity period is reached.
The minimum amount you can invest is N100,000, and it has no maximum limit.
For a secured income plan, the minimum tenure is 3 months and a maximum of 1 year and is renewable. The interest rate is fixed and the investment amount can be rolled over.
A lot can be said about a secured income plan. The best that can be said is about its benefits. I imagine my investment working as a side hustle for me. I can get paid every month from my investment while doing my regular job.
It makes a lot of financial sense. It offers different options, especially when the idea of black tax comes into play.