Empowering the Next Generation: Financial Literacy at Maharishi Institute

Empowering and educating our community is what EasyEquities is all about. Recently, we had the opportunity to share valuable insights on financial literacy with students from the Maharishi Invincibility Institute.

The Maharishi Invincibility Institute in South Africa is a non-profit organization that offers higher education to underprivileged students. It combines academic studies with self-development programs, including Transcendental Meditation, to empower students and foster societal improvement. The Institute has facilitated 21,000 job placements, achieved a 95% job placement rate, and supported 150,000 family members.

The session was led and championed by Nilan Morar, our VP of Trading Operations and head of our EasyGovBonds product, which allows investors to access South African government bonds at a fraction of the previous market entry requirements.

Key Takeaways

During the talk, Nilan covered a variety of topics, including trading and investing. He also emphasized the importance of emotions and perspective in investment decisions and highlighted the "100 minus your age" investment rule.

“The talk was an opportunity for us to contribute to South African financial literacy, equipping the future generation with the knowledge to navigate financial markets and sharing my personal experiences in the space,” Nilan explained.

The "100 Minus Your Age" Rule suggests subtracting your age from 100 to determine your stock allocation, with the remainder allocated to bonds or cash. While a simple guideline, it should be adjusted based on risk tolerance, market conditions, and retirement goals.

"This approach helps individuals balance risk and reward, promoting growth in early years while preserving capital and ensuring stable income as they age."

Yaakov Goldfein, who is the Principal Analyst at MII Capital, added, "We are so grateful to EasyEquities for all the work they have done to support Maharishi and the education of South African youth. Nilan is an investment hero who has enabled a generation of investors through EasyEquities. It was an honour to host him, and we hope to have him back for another talk soon!"

"I learned a lot from the lesson and was particularly intrigued by how Nilan emphasized the impact of emotions like fear and greed on trading decisions, as well as the importance of confidence in analysis. The stop-loss concept stood out as a crucial tool for managing emotional bias and maintaining discipline. We are especially grateful to EasyEquities for their support and commitment to our students' growth," added Praise Madzibire, Financial Markets Academy Administrator.

Access to financial assets like government bonds enables retail investors to implement investment strategies, such as the "100 Minus Your Age" rule discussed during the session. Government bonds are debt instruments issued by governments to raise funds, promising to repay the principal at a future date. These bonds offer a relatively stable investment option, especially for those looking to balance risk and preserve capital. In South Africa, government bonds typically pay interest, known as coupons, semi-annually. For example, the R186 bond has an annual coupon rate of 10.5%, distributed as 5.25% payments in June and December each year.

If you want to learn from Nilan, check out this course on pricing and liquidity, government bonds, and much more. Visit the free EasyEquities Academy for valuable resources and insights.