Want to know how to invest 100k dollars and make it 1,000,000 dollars in few years time? Investing 100k dollar is easy. All you need to do is proper education. Otherwise, your 100k dollars will turn into 1 cent. Investing $100,000 will require you few days to think where to invest it. Other people think deeply how and where to invest their money especially if they will invest lump sum like 100,000 dollars. But don’t waste your time. You will see great results in investing 100k if you invest it early.
There are many people who read personal finance, most of them are interested to know how to invest money. They are not interested in just “saving”. Would you let your 100k sleep or make them grow?
Many readers of this blog knows how to invest 100k dollars. If you are one of those beginners who wants to invest $100,000, then this article is for you. Whether your one hundred thousand dollars are inherited money, winnings from the lottery or your lifetime savings, you need to invest your 100k to make a million. The word is “invest”. Other fancy name for “growing your money”, “use your money to make more money”. In this case, you will use 100k dollars to make ten times or hundred times of 100k dollars.
Make $1,000,000 by Investing 100K Dollars
I know you are familiar with the rule of 72. Your 100k dollars will doubled after 5 years. And that is if you will invest your 100k dollars in an investment instruments that earns 14.4 percent per year. Take a look at the picture (figure 1.1). If you will invest 100k dollars in 20 years that earns 14.4 percent interest rate per year, your 100k dollars will turn into $1,400,000 ( see image to be exact).
Source: Compound Interest Calculator Courtesy of FreeMatchCalculator.Com
How to Invest 100k Dollars?
Maybe you asked, how can I make 14.4 percent interest rate for my 100k dollars? The average earned interest for your investment is 8%. I just make some calculations to turn one hundred thousand dollars into million dollar. Your money will double after 9 years (for 8% interest) and you will turn your 100k dollars into 1,000,000 dollars after 30 years.
I know you can’t wait that longer. Investing money is not a game of luck. It’s a game of patience. If you want to build wealth using your 100k dollars, practice patience.
Where to Invest 100k Dollars?
There are many different types of investment vehicle. Just choose one or two of them that can help you achieve your investment goal. Investing in stocks can help you earn 8% or more per year while other’s are below 8%.
- Stock Market
- Mutual Funds
- Savings Bonds
- Real Estate
- Start Your Own Business
Allocate Your 100k Dollars Properly
Distribute your 100k dollars. Use asset allocation strategy. Don’t guess. Use asset allocation guide. Familiarize the different types of investments. But if you want great results, focus only on two or three vehicle. You don’t have to put all your 100k in different investments. A friend of mine invest lump sum in the stock market. He did very well with his 100k. He carefully select the stocks to buy and then wait and get the profits.
Invest 100k depending on your age and risk tolerance. If you are a 35 year old guy. You can afford high risk because you are still young. Maybe 50% high risk, 30% medium and 20% low risk types of investments.
Tips and Warnings
Invest only what you can afford to lose. Invest your money carefully. 100,000 dollars is a serious money. Asset allocation is effective to minimize losses.Consult with a registered investment advisor not online forums or blogs like this if you want a great advice on how and where to invest your 100k.
Maybe other readers wants to know how to invest 100k dollars per year. Just invest per month or save money per day. How much money is required to have a total investment of 100k? Invest $8,333 per month or save $277 everyday and invest your savings monthly.
Now you know how to invest 100k dollars and make a million. Can you afford to take high risks? High risk like stocks can possibly help you earned 14.4% interest rate per year. If you can’t afford to take high risk, then, practice patience by allocating your 100k dollars and turn it into a million dollar.