I’m looking for the best ways to invest some NT$ here in Taiwan. Let’s assume I have a minimum of NT$100k. I can invest either by myself (American) or through my partner (Taiwanese). I already have a Roth IRA and stocks in America, and I’ve set up a CD Ladder here in Taiwan. In addition, I have health/life+savings through my insurance company as well as a “savings program” through my insurance (pay X each month, get it all back + interest after 6 years).
However, I’m looking for other investment opportunities here in Taiwan that are relatively risk-free and have better payout, if any exist. The “savings programs” are great, but I don’t have ready access to my money and the interest is not that great. Same with savings accounts through banks: 1.1% interest isn’t doing much for me.
What is the best way to invest money in Taiwan that will actually help you make money through interest/dividends?
The most risk-free investment would probably be term deposits in USD, which should carry a higher interest than NTD savings. I think around 3% should be possible.
You should be able to get a higher return (but with more risk) if you buy corporate bonds. The riskier the company, the higher the interest payments.
Stocks are a bit of a gamble these days. In general index ETFs should have lower volatilty than individual stocks. If you’re adventurous and believe the stock market is overvalued, you can go for inverse ETFs, which rise as the market falls.
If I want to invest in American companies, I have to claim the Foreign Tax Credit, right? This is a bit of a gray area with me… American taxes, foreign earned income, untaxed income, etc. I don’t want to violate any tax laws that could come back to bite me in the ass down the road.