What are the best ways to invest 100 000 dollars? If you have $100,000 to invest it’s like an open door to many investment possibilities. Obviously best choice for you depends on your financial goals and hitherto investment experiences. When having 100000 to invest, with no experience, you might consider consulting financial and investment advisor or planner. However, recommendations from investment professionals might give you some ideas how to invest your money, but it’s also important to conduct research on your own into any possible investments. This way you’ll understand the possible profits as well as the risks. Try and study about investing in the markets and how it works.
Best ways to invest 100 000 dollars ideas
With that being said, you can invest 100000$ in the stock market or in bonds. Generally it is best to put part of your money in stock, bonds and money market funds. It makes sense to understand at least one other economy section and invest some money there e.g. in special assets such as metals, art or collectables.
A business opportunities like franchise can be also one of the best ways to invest 100 000 dollars. This involves investing in smaller part of larger company e.g. opening your own clothes store. Similar strategy is opening your own business from scratch. Mind that it’s required to check well the market before you start to find a business that has large potential for profit and growth.
Some investors might tell you that with 100000 dollars you would be able to enter the real estate market. However, it seems too little to think about it but if you live in an area where a rental property can be bought for 100 000 dollars or less, you might purchase such home with cash. You’ll get rent income and as the home increases in value the capital growth as well.
Some investors recommend having a balanced portfolio of broad-based index mutual funds consisting of bonds and stocks. In the Forbes interview, a billionaire John Paul DeJoria recommends a balanced portfolio of 25 % in blue chip stocks, 25 % in alternative energy companies, 25 percent in children’s education accounts, and 25 percent in precious metals. That’s a portfolio that every individual investor might set up. Simply open an online brokerage account and purchase exchange-traded funds – ETFs.
Here are the other best ways to invest 100 000 dollars mentioned by people on forums I looked through while writing this article:
“I’d recommend to invest half of the money in something low risk like CDs or mutual funds. Rest put in a diverse porfolio of stocks and fund your IRA. Never invest all the money you have in one particular stock. If you don’t have any idea what you’re doing with stocks that 100 thousand dollars could literally disappear within a day or two. Mutual funds are less risky than stocks, but you can also lose money in them.”
“Put 30% in moderate risk investment like Vanguard fund, or ETF. Put 40% in safe investment like a long term CD. Put the rest into solid blue chip stocks, with some high risk stuff like solar or financials.”
“Turning $100k into million dollars in the stock market can be done but it involves a great amount of risk. Best advice I can give you is to try the stock market with 10 – 20 % of your money and put the rest away letting it work for you over the next ten to twenty years, and then enjoy a large cash.”
“Buying stocks is not a baad idea but it requires more work to keep up with them. Remember to buy several different kinds of them to protect your investment. Many broker websites sell stocks and mutual funds charging $8 or under per trade. The majority of broker websites have good research tools and the popular ones are: E-trade, Fidelity, Scottrade, TD Ameritrade. You will need a minimum of $500 (some sites $2,000) to open a broker account.”
Summing up, there are many best ways to invest 100 000 dollars. However, remember that when investing the key is the education. Study all that you can get about the stock market and investing. Become an educated investor before making your first purchase.
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