If you got $100,000 burning a hole in your pocket, you can spend lavishly on material goods or a trip, try your luck at a casino, or do online sports betting. Or you can invest the cash.
24/7 Wall St. created a list of 20 of the most common investment types as well as explanations of common successful investment strategies based on the report How to Invest $100,000, produced by financial technology company SmartAsset.
Before you do any investing, take some time to figure out what kind of investor you are and the level of your risk tolerance. This will help determine the kinds of investments you make and which services or companies you utilize. It also might be a good idea to retain the services of a financial advisor before you take the plunge to investing.
There are many options available to you if you are looking to invest $100,000 – mutual funds, exchange traded funds, index funds, to name a few. Investing in real estate and its related funds has been part of many investors’ strategies as well. To help minimize risk, investors should consider strategies such as dollar-cost averaging, in which you invest a fixed amount of money at regular intervals, or other strategies. (These are cities where investors are buying up the most real estate.)
Investors also should look into employer-affiliated investment options such as 401(k) plans as well as individual retirement accounts. (Here is what it costs to retire comfortably in every state.)
Those looking for more safe havens for their money should keep in mind certificates of deposit, money market savings accounts, and high-interest savings accounts.
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A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.