The following is my
answer to a Quora question: “I have $100,000 in my bank
account. What should I invest my money
in for high dividends?”
As some have mentioned before, a reasonable option
would be to invest in a mutual fund or collective investment scheme. This allows you to diversify your investment
at minimal cost. If you want high dividends, then have a greater
weightage towards equities, and focus on high growth counters such as
technology, and renewables, and growth areas such as East Asia, the Greater
China region or Southwest Asia. If you
have a taste for somewhere exotic, East Africa - Kenya, Rwanda, Tanzania,
Madagascar - is projected to be the next big are due to their stability,
progressive governance, relatively low corruption and wealth of natural
resources.
Investing in dividends in one thing. Keeping most of what you earned is another
issue. Many places have a capital gains
tax. Either invest in countries that do
not have it, such as Singapore, or invest through a vehicle you control. It does not cost much to set up a trust or
company, so that you can mitigate your tax liability.
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