In a recent Financial Times article, a curious fact popped up: there are now more exchange-traded funds (ETFs) — 4,370 of them — than individual stocks listed on U.S. exchanges (about 4,172).
That’s wild when you think about it.
Replicate that across global markets, and investing starts to feel like you’re standing in a Lagos traffic jam, staring at ten different routes but not knowing which one will actually move. With thousands of stocks, bonds, and funds to pick from — and every “expert” throwing around intimidating words like alpha, beta, or volatility index — it’s no wonder so many people quietly step back and stick their money in a savings account.
But investing doesn’t have to feel like rocket science. What if we just… simplified it? At its core, investing is about one thing: getting cash to flow back to you. That’s it. Whether it’s a dividend from a company’s profit or interest from a government bond, it’s all money flowing in your direction. Once you understand that, the whole game changes.
The real problem isn’t the market — it’s us. Humans panic when prices drop, get greedy when they rise, and often buy or sell at exactly the wrong time. We’re emotional creatures trying to survive in a logical system.
The traditional advice has always been “buy and hold.” Sounds noble, right? But let’s be honest — it’s hard to “hold” when your portfolio looks like it’s on life support. It’s like being told to stand still while an angry okada rider is speeding toward you.
So, what’s the smarter move?
It’s to stop fighting human nature. Instead, let’s build investment strategies that work with our psychology — not against it. Let’s design cashflows that make us feel safe, calm, and in control. When done right, investing stops being a stressful gamble and starts feeling like the reliable profit of an ice block seller on a sunny Lagos afternoon.
Here’s how it works for different kinds of investors.
1. The Investor Who Fears Losses
The Problem:
If you’re the type who checks your account, sees a 5% drop, and instantly feels your stomach twist, you’re not alone. The fear of losing money is primal — it triggers the same panic you’d feel seeing smoke in your kitchen.
The Simple Fix: Build a Safety Net.
Just like you insure your car or a container shipment coming through Apapa port, you can “insure” your portfolio. That means setting up strategies that protect your investments from catastrophic losses.
You can use part of your gains to create a floor — a level below which your portfolio won’t fall. Think of it as shock absorbers for your financial journey.
The Result:
You still get two kinds of cashflows — one from your investments and another from your peace of mind. That second one, the “cashflow of calm,” is priceless. It helps you sleep better and stay invested longer, which ironically is what leads to better returns anyway.
2. The Impatient Investor (“Show Me the Money Now”)
The Problem:
Some people can’t stand waiting a full year for a dividend. The silence drives them mad. They want regular proof that their plan is working — a little “thank you” from their portfolio every few weeks.
The Simple Fix: Create a Steady Drip of Income.
You can structure your investments to pay you more frequently — quarterly, or even monthly. For instance, bond ladders (where different bonds mature at staggered times) can ensure a predictable, rhythmic flow of income.
The Result:
Each payment becomes like a soft tap on the shoulder saying, “Relax, you’re on track.” It transforms the marathon of investing into a series of shorter, achievable walks — from one bus stop to the next. Every deposit is tangible proof that your strategy works.
3. The Investor Who Hates Surprises (“I Don’t Want to Hear Stories”)
The Problem:
For some, uncertainty is unbearable. It’s not the risk they hate — it’s the not knowing. Watching the market swing feels like watching a Nollywood drama where you can’t tell who’s the villain anymore.
The Simple Fix: Define the Rules of the Game.
You can design a “defined outcome” portfolio where both potential gains and losses are clearly spelled out upfront. Maybe it’s structured so you get 90% of the market’s growth but are protected from the first 10% of losses.
The Result:
You’re no longer guessing. You know the rules. You’re buying a ticket that says exactly what ride you’re on. That sense of clarity and control can calm even the most anxious investor’s nerves — and keeps them steady through market storms.
4. The Retiree Who Can’t Stand “Spending Savings”
The Problem:
Many retirees struggle to shift from saving mode to spending mode. Selling investments to fund living expenses feels like eating your seed yam — emotionally wrong, even if it’s logical.
The Simple Fix: Reframe the Income.
Instead of “selling assets,” think of it as a Portfolio Paycheque. A well-managed “total return” portfolio can automatically sell a tiny percentage of holdings each quarter — providing a steady income stream without the emotional weight of “spending savings.”
The Result:
Psychologically, it feels different. You’re not eating into your future; you’re drawing a well-deserved salary from years of discipline. It’s steady, dignified, and sustainable — much like earning rent from a Lekki duplex without ever lifting a paintbrush.
The Takeaway: Invest for the Human, Not Just the Numbers
Investing isn’t just about charts or market timing — it’s about human behavior. When you design cashflows that soothe our deepest fears — losing money, waiting too long, facing uncertainty, or running out — you build more than wealth. You build resilience.
And that, ultimately, is the truest return on investment: the freedom to close your laptop, share a meal with family, and live with the quiet confidence that your financial plan is working for you. Because sure, a cashflow is a cashflow — but the right one? That’s peace of mind.
