Surviving Tough Times Webinar

Surviving Tough Times Webinar:
Introduction.

Surviving Tough Times Webinar:
Economic Outlook.

Surviving Tough Times Webinar:
COVID and your financial health.

Surviving Tough Times Webinar:
A walk into the future.

Surviving Tough Times Webinar:
Questions and Answers.

Questions and Answers

Please do you have a platform or package where an individual could create/invest in foreign currencies? Yes. We have several of them. Please reach out to us with the details at the end of this document so that we can establish which of them will be the most suitable for your objectives.

Is mutual funds same as money market- Money Market Fund is one type of mutual fund. There are different types and are all created for specific goals.

What are the available options for investing in foreign stock markets? We would advise Telecommunications/Information technology, Agriculture and Healthcare at the moment.  

With all the forex fluctuations in Nigeria, what will be the justification for anyone to invest in Nigeria if the person’s future opex will be domiciled in foreign currency?- We advise that you maintain your savings in FX if you have obligations in FX

What’s the guarantee of trust, of a Trust Fund especially in Nigeria where integrity/credibility is low- A trust is a safe instrument when professionally executed. It is advisable that you only deal with credible institutions with professional Trust advisors. To learn more click here .

How is data privacy going to be handled on the WIT platform? Is there anonymity in how ARM intends to handle this data? All information provided is treated in line with our Privacy Policy (https://www.armpension.com/policies/privacy-policy/) and in compliance with the requirements of the General Data Protection Regulation

What are the returns on your mutual fund dollar investments? Our projection is between 7 and 10% per annum. Currently at 8.5%

Do you think it is advisable to buy the dollar and keep instead of having savings in Naira? We will advise you to invest in dollars if you have obligations to meet in dollars and if you want to hedge the naira with a long-term view only.   

How do we move a pension account to another PFA, what are the steps required? We thank you for expressing interest in joining us. Kindly provide us with your details using this link. You can also send an email to wit@armpension.com or reach out to: olushola.adekunle@armpension.com, 08032308506

Is naira investment advisable at this point? Or one should strictly invest in dollars or Eurobonds? We advise that you invest in dollars if you either have obligations in dollars or are looking to hedge the naira with a long-term view.

In the retirement planning process, what are some of the questions that help one gather data about oneself apart from checking one’s risk profile? There is a broad range of questions to be answered while putting up a comprehensive retirement plan. It is comprehensive because even non-financial items like your health are also taken into consideration. However, basic questions would be about what you own or owe at the moment, what are your sources of income and how much do you spend, recurring and capital expenses, what are your goals broken down into short, medium and long term, do you have an estate plan? etc. All these are covered during a discussion with your dedicated RM once you are ready to set up a plan

Do you consider taking a loan to invest in property at this time a wise idea? Yes. It is if the loan will increase your assets. You can consider using your NHF for this purpose. It’s cheap and convenient.

Please what is the process for a fund manager to be assigned a customer?  What is the % paid to ARM for fund management? This varies. It depends on the kind of service we are offering. Let’s have a one on one session with you. The contact details are at the end of this document.

How do I check my risk profile? You can make use of the WIT platform (wit.armpension.com). There is a part of the process that assesses your risk profile and gives a recommendation in the report, but we advise a more comprehensive analysis which our Financial Advisors can help you with

Can one invest in long-term shares at this distressing time? Yes. It depends on your goal. Quite a number of shares are discounted at this time so it’s a good time to buy.

Please how do you invest and save for the future when Naira is 500 to the dollar? We advise that you invest in dollars if you have obligations in dollars or look to hedge the Naira but this must have a long term view.

Why is it difficult for ARM to do a direct debit of the money market contributions? This is not difficult for ARM to achieve. It is usually a challenge from the bank that requires your attention.  We are looking at setting up a desk to specifically manage this process with the banks in the coming weeks.

Please explain the voluntary contribution again, what interest rate is to be enjoyed? The Voluntary Contribution is an extra amount of money one voluntarily contributes (in addition) to the already existing compulsory monthly pension contribution. This can be done monthly, quarterly or annually. It is deducted directly from the source with a standing instruction on your payroll. Voluntary Contribution enjoys the same return on investment as RSA depending on the Fund Type you belong to. Voluntary Contribution can serve as a target saving mechanism and also increase pension benefit at retirement. To get started, send an email to wit@armpension.com

At what age can one access his Pension?  Access to the RSA will only be allowed upon retirement. If an employee retires at the age of 50 years or more he/she can have immediate access to the RSA. Whereas an employee who retires/resigns under the age of 50 years in accordance with the terms and conditions of employment will not access the RSA until after four months of such retirement/termination if he/she does not secure another employment.

How do I change to ARM? We thank you for expressing interest in joining us. You can send an email to wit@armpension.com or reach out to us using our contacts at the end of this document  

Is it not reasonable to allow people to access their voluntary savings at this time? At the moment, we do not have any directive from the National Pension Commission regarding a change in the AVC guidelines to allow withdrawal at this time.  

You mentioned that there are a lot of distress sales going on now due to the circumstance -COVID-19. Is it ideal to buy properties, furniture, car etc at this time? It all depends on how it ties into your goal.

What savings options do you have to save for my children’s university education? Can we get a link to that? Yes. Let’s discuss the school, country and currency. Please reach out to the contact details at the end of this document.

We presently have our pension with Stanbic IBTC, can we still maintain a similar account with ARM? We thank you for expressing interest in joining us. Kindly send an email to wit@armpension.com or reach out to us via our contact at the end of this document.

Lately, there have been reports that the Nigerian Government is making a conscious effort to access these pension funds. Is this right? Is there a law prohibiting government in its cronies from access these funds? Your funds are very safe and backed by law. The government is currently not able to access pension funds for any projects unless deemed fit by the Pension fund administrator. While there has been a lot of discussion about this in the media, for it to be possible, it would mean it is backed by law (not at the moment). That said, the industry is very active in engaging with the government and will continue to do so.

Talking about helping to manage accounts and been linked to an account officer, what about those that don’t have accounts with ARM? We have our team of Relationship Managers and Financial Advisors, who are more than ready to assist you regarding any assistance you may require. Simply reach out to us via any of the contacts at the end of this document.

Is there a provision within the Pension Act to move part of my pension contribution from my current pension fund manager to another manager. How soon can those who have lost their job during this COVID era access their pension fund contribution? In line with the Pension Reform Act 2014, an employee can only maintain one pension account in a lifetime. A contributor can have access to 25% of pension contribution 4 months after exiting from an employer if age is less than 50  

How can one transfer his pension account from one institution to another? We thank you for expressing interest in joining us. Kindly send an email to wit@armpension.com or reach out to us via our contact at the end of this document.  

Can you share a contact to engage further after this session? Please find the contact details at the end of this Document.

Considering the Time value of money and the rate of inflation in Nigeria which is double digits year on year. Is it advisable to save Naira currency when the long term the purchasing power of the naira may have lost 40% of its value? You are absolutely right that the inflation rate has stayed stubbornly high over the last 10-15 years, so in essence, your purchasing power has diminished.  We would advise depending on your risk profile, having a diversified portfolio. Some questions that come to time are i,e. do you have dollar

liabilities?  Given the risk of a devaluation, having some exposure to dollar investments would not be a bad idea. There are Dollar mutual funds that give you the opportunity to invest your dollars with minimal risks.

What is your view on the potential for further devaluation of the naira and what strategies could one deploy to protect his/her investments in such a situation? There are many factors that may influence a further devaluation (oil prices, Nigeria’s production, foreign portfolio inflow/outflows). That said, risks still remain that an additional devaluation may happen, especially if oil prices stay below $30b/b for an extended period. Introducing dollar investments (either cash or dollar mutual funds) into your portfolio if you are only invested in Naira assets would be a first step. A better comprehensive plan can be discussed with one of our financial advisors.

What are the documents required to collect the 25% under the Pension Reform Act? 1. Application Letter for withdrawal 2. Letter of acceptance of exit from employment from employer. 3. passport photograph taken against a white background. 4. Withdrawal Form (to be provided by ARM Pension) 5. Birth Certificate Valid means of ID (Government Approved IDs) 6. Valid means of ID (Government Approved IDs) 7. Bank Account Details to be credited. To make a withdrawal from the pension account, Data Recapture must have been completed with your PFA.

At the stage of retirement, can your firm help to plan with the pension income? Yes, our team would

discuss all the options available with you and help you take advantage of any that is applicable to you

Can I transfer my stock from another company to ARM securities? Yes. You can transfer your stocks to us

from another Company. Please contact the details at the end of this document for the steps required.

Can I buy foreign stocks through ARM? Yes. You can through our ARM Stocktrade app  

Can you throw more light on this your product, “Payday Investor” and what are its benefits?

Payday Investor is an app that helps you set targeted savings goals with your debit card and invested in ARM Money Market  Fund – https://www.paydayinvestor.ng/

Can you open an online stock account without a stockbroker? Yes. You can use ARM Stocktrade at www.armstocktrade.com

What will it take to move from one pension scheme to another? At ARM Pension we are happy to receive prospective clients to join the family, we have come up with a portal which we are currently adopting to take details of prospects; that way we are able to follow up with you when the window is opened. All you need to do now is to ensure you complete the Data Recapture exercise

With the way the dollar is fluctuating, is it advisable to withdraw from my dollar bank account and invest in dollars? It is very much advisable to invest your dollars at least to earn some returns compared to your bank account where you are possibly earning next to nothing.

How can we reach an account partner with respect to moving to ARM from another pension scheme? We thank you for expressing interest in joining us. Kindly provide us with your details using this link or send an email to wit@armpension.com or reach out to the contacts provided at the end of this document.

Please what’s the link for the online data recapture? The link is https://datarecapture.armpension.com/

How do I consolidate the Savings done for my Son at ARM Life Plc? Risk Type: Education Plan (IEDUPL)? Please reach out to us through the contact details at the end of this document.

How do I make my funds in ARM Trustee work more for me?  Currently, it is only invested in Money Market? This depends on your goals as earlier mentioned. Please reach out to us through the details at the end of this document and let’s discuss further.

Can I re-invest funds from my ARM Discovery Funds account into the dollar bonds? Yes. You can transfer your savings from any of the funds into any other fund type.

Since we have different FX rates, what dollar rate will the dollar bond investment be pegged? This will be decided by CBN

Do you handle Will services?  Yes. We do. Kindly reach out to us through the contact at the end of this document.

To invest do I have to be an account holder? Do drop a number we can each for further classification- You don’t have to be an account holder to invest. Please reach out to us on our contact details at the end of this document.

Still on Dollar funds. Is the principal sum and interest guaranteed? That is what the Fund Manager intends to achieve. The fund is structured for a 90-day holding period.

Do I need to have my pension account with ARM to run a dollar mutual fund? No. You don’t need to have a Pension account with ARM to operate a dollar mutual fund.

Since China appears like the next world power, is there any mutual fund for the Chinese Yeun like you have for the dollar? If not, what do you advise in this regard? There is no mutual fund in the Chinese currency in Nigeria at the moment.

What about the Aggressive fund? As the name implies it invest mostly in equities and it is advisable for investors with long term goals such as children education, retirement etc. It provides diversified holdings in stocks.

With respect to the dollar mutual fund, must we have a domiciliary account? Yes. CBN only allows E- Transfer.

How can I reactivate my old account? The account is automatically reactivated once you pay money into it.

What is the current interest rate for your Money Market Fund ? Effective yield as at May 14th is 5.8%

t happens when someone losses or leaves his job?
Is the person able to access his contributions, if yes, how much? Access to the RSA will only be allowed upon retirement. If an employee retires at the age of 50 years or more he/she can have immediate access to the RSA. Whereas an employee who retires/resigns under the age of 50 years in accordance with the terms and conditions of employment will not access the RSA until after four months of such retirement/termination if he/she does not secure another employment and would be entitled to withdraw only 25% of his RSA balance

If you have your RSA account with another operator, kindly explain the process to move to ARM- We thank you for expressing interest in joining us. Please reach out to us through our contact details at the end of this document.

Please throw more light on the emergency funds? It is set up specifically to manage your emergencies which are rare occurrences and hedge the disruptions of your other goals. It should be in an account that protects your capital and pay good returns like the Money Market Fund. It should be in an account that does permit the use of debit cards to avoid impulse withdrawals like the Money Market Fund. It should be in an account that will grant you access in a minimum period of 24 hours, again, like the Money Market Fund. It should be worth 3 to 6 months of your living expenses at all time and it can be saved up gradually.

Can you explain more details on Tripple Plan as one of your ARM products? It’s an endowment plan that pays a % of the life cover (benefit) periodically i.e. every 2years for a 6years plan. The total life benefit is also paid at maturity