Possessing an amount like 200k is a privilege for many. If you seem to have hold of this amount, don’t spend all of it. You need to learn what to do with 200k and how to invest 200k as quickly as possible. This is so because if you spend it right, you will be able to make more money without lifting a finger and get rich in no time.
But, where to invest 200k is the big question.
Best Places of Investing 200k for Income
1. Invest with Robo Advisers
A robo-advisor also referred to as a robo is a type of brokerage account that follows an automated process of investing. Robos work by charging a lower fee than conventional financial advisors as they invest your money, for example, finding the best way to invest 200k in pre-packaged portfolios tailored specially chosen, low fee ETFs (exchange-traded funds). Some robo advisors also provide easy access to other customized investment options for advanced investors like the ones searching for options for investing 200k for income.
2. Invest in Stocks
When wondering how to invest 200k, the most preferred option is stock market. Most personal financial advisors suggest that if a person is investing 200k for income, the best way to invest 200k is to invest between 40% to 50% their total amount in stocks and bonds. The risk level varies depending on the situation, but your advisor can guide you with where to invest 200k in low and mid risk stocks based on your goal for investment.
The stock market is the best way to invest 200k if you are planning to save some money for your retirement. You can also alternatively, invest in bonds, index funds and other securities available under the guidance of your broker.
3. Invest in Real Estate
If investing stock market seems intimidating, what to do with 200k becomes a challenging question for some.
Investing 200k for income, in this case it can also be pursued through the route of real estate.
So, how to invest 200k through Real estate?
Most personal financial advisors suggest that someone should invest between 10% to 15% of their total amount into real estate. The risk level with real estate can also vary but having a good personal financial advisor can become advantageous for investing 200k for income.
4. Invest in Cryptocurrency
Still confused about what to do with 200k or where to invest 200k?
The best way to invest 200k in the modern economy is cryptocurrency. Some of you might find it bewildering as no one would have thought for cryptocurrency boom like that in just a few years. Today, you can use cryptocurrencies like Bitcoin and Ethereum to make payments and run businesses. Soon an upsurge in Bitcoin ATMs is expected as well.
To invest in cryptocurrencies, you need to invest through an app that lets you select cryptocurrencies like Ethereum, Bitcoin or LiteCoin. These apps store your data safely until you are ready to trade or sell your crypto.
It is a smart way of investing for anyone who wants to venture away from the traditional investing options. Although, the market for crypto is somewhat new and erratic, you would need to be prepared for taking the risks involved before investing in cryptocurrency.
5. Invest in a Business
For centuries the answer to the question how to invest 200k has been investing in a business.
Buying a business is not everyone’s cup of tea. It involves more involvement in the money generation process and consists of a strategy- based approach to make money. The main reason this approach is so successful when it comes to investing money is that it allows the investors an opportunity to generate so much worth that it can flourish your bank accounts for generations to come.
As your business progresses into the market, you can even relax and plan strategies to further grow your business, while others run it. In fact, while you are planning ways to grow your business, you can reap the slow benefits of the fruit of your efforts.
The world of business is a great opportunity for those wanting to put in some hard-work while relishing the passive income that comes once the business reaches a certain height. It is also great for those who love to create something and then sell it for a higher rate for others to run the show.
6. Invest in Gold
Even before the trend for investing in businesses came to be know as one of the best ways to invest your money, Gold had was already the king of all time investment strategies. Many investors, in fact, suggest that investing in precious metals like Gold can be extremely beneficial to gain an edge over inflation. Investors are also suggested to invest in Gold during the downward economic trend. This is helps the investors gain huge profits as the value and prices of their investment increases with economy when things settle on the stock market front.
7. Open a Solo 401K
If you own any business or gain benefits from self-employment income, you can store aside huge sums of cash for your retirement through the use of Solo 401(k). This type of account allows investors to store more amount for their retirement fund than the 401(k)- account option. The Solo 401(k) account provides various tax benefits for those including the reduced tax bills in the year you contribute.
You can open a Solo 401(k) through any online brokerage firms. Some of the top most firms that provide legitimate options are Fidelity and Charles Schwab.
Investing in a Solo 401(k) is suitable for anyone who qualifies based on their self-employed income status.
Having 200k to investing indicates a fruitful start to your future but this also means that you have your work cut- out for you. Investing this amount is the most carefully thoughtful manner can ensure a life of blissful retirement. However, in case you find yourself in a fix about how to invest your 200k, you can always seek guidance from the industry experts to build the future of your dreams.