I find this article very informative.
Samuel Abisai, should invest the money in government bonds for Sh1 million monthly earnings.
Johnson Nderi, a corporate finance manager at ABC Capital, said Mr Abisai need only invest Sh15 million every month for half a year to pocket the projected income.
Assuming he pays 30 per cent of the prize money as tax, Mr Abisai would be left with Sh164 million, said Mr Nderi.
So, if he put in Sh90 million — which is equal to Sh15 million a month — after six months he would earn the interest. Bonds pay out profits twice a year, the investment professional explained.
If Mr Abisai does that, the expert said, then he should remain with about Sh74 million, which he can spend in whichever way he wants.
Investing 90 million to get one million per month seems like a very bad investment to me, considering that bonds typically have negligible capital gains if any. Real estate beats bonds any day, unless you are a wizard…I dont think Abisai is a wizard in bond trading.
With 90 mil, he can invest in a flat impee hiyo 1 mil per month…and unlike the bond, flat ina-appreciate, so he is building equity in the process. Also, returns za flats ni monthly, not semiannually ama annually, so anazi-compound haraka than msee wa bond. Akipata the first 1 million kwa rent ya January, by Dec atakuwa na another mil from that cash…or say 500k…unlike msee atapewa 12mil Dec. Msee wa flats akiokota his 12th million Dec, msee wa bonds atakuwa na 12 mil flat, msee wa flats atakuwa na way over 12 mil juu pesa haijakuwa idle…maybe 16mil-20mil
These are not investments aimed at recovery or pocket money. He should just store the wealth in a stable investments that pays out enough to allow him set up more stuff. Hii fikira ya ati investments must pay capital and salary at end month ni peasantry. 150 million should be grown. Even if he invests property, it remains his even with little profits but some growth.
120% a year. Damn…even warren buffet is not churning that much. I am assuming this is before you loose all your capital halafu uambiwe sometimes it works sometimes not. :D:D
I said it once before and will say at again. He should just put 95% of his net earnings on a 364 day treasury bill so that at least he get’s to relax and his money returns a small profit as he takes a full year sabbatical to decide what he wants to do with his life
Easy and simple investment and ur rich for life.I.like that.
Tafuta plot kiambu rd arnd 80m then sink the rest on 3blocks of apartments and ur home and dry.
Exactly. He should invest 85% in property for cashflow, both commercial and residential. 8% of the cash in his primary residence aishi some quality life, the remainder zikuwe savings na raha zake kama gari, trips etc. He can then take on risky businesses with the rent from his properties…that way hata biashara zikifilisika bado hatawahi sota since he will have some millions rolling in as rent.
