Learning how to invest is easy. But, knowing how to invest millions of dollars is a different story. Today, let us find out the best way to put millions of dollars into profitable investing strategy. I know this question is not easy to answer. But, for me it is worthwhile answering since it is related to investing.
Who knows, the reader of this post might get millions of dollars someday due to lottery winnings, inherited money or a great wealth fortune. We all know making the first million is the hardest, and making more millions of dollars is easy as long as you found the right and proven formula and keep using that formula.
How to Earn Millions of Dollars
First and foremost, not all readers of Investment Total.com are multi-millionaires. Most readers are from United States and Canada according to my blog stats. But, now, whether you are a millionaire or just an average income earner, let this post become useful to you in the near future. Of course when you have millions of dollars to invest.
Before we answer the question “how to invest millions of dollars“, let us find out how to earn your first million dollars. The figure $1,000,000.00 is amazing. Everyone is dreaming of about this amount of money. Everyone wants to have that wonderful 7-digit cash.
Here are the step by step guide on how to earn your first million. The idea is not from gambling or playing the lottery or even getting from the parents or to anybody else. The idea is to earn it by yourself.
- Think about your passion and interest.
- Think about a product that is related to your interest.
- Sell products and make money.
- Think how many products sales you need to earn your first million.
- Determine when do you want to earn your first millions of dollars.
If you are making a profit of $100 per sale, how many products you need to sell to earn million? You need to sell 10,000 products. Right? What if you want to make million dollars in one year? You need to earn $2,740 per day. Or just sell 28 pieces of products every day. Make sense?
How to Invest Millions of Dollars Safely
It takes time to earn $1,000,000.00. If you are willing to do whatever it takes, you can get anything what you want in life. Earning millions of dollars is not a big deal to other people. They know secret of multiplying their money. Actually they started nothing. They just know how to earn one dollar and turn that one dollar into $10, into $100, into $1,000, into $10,000, into $100,000 until thy make one million dollars.
What I am talking about turning $1 into $10, $100, or even millions of dollars is the effect of compound interest.
If you have one million dollars today, let us know how to invest them safely. There are actually different types of investment that you can try to put your million. But, sad to say some people are not familiar about the process on how to invest money safely. Check this simple list to avoid getting scammed and lose your millions.
- Do you invest in a legitimate investment firms accredit by SEC (Securities and Exchange Commission)?
- Did you check your broker or finance agent at FINRA Broker Check?
- Have you ever talked to Certified Financial Planner?
- Did you consult with the Registered Investment Advisor?
Those four questions can help you analyze whether you are investing your millions of dollars safely or not. In investing, there is government agency that governs the investment firms or any financial institutions. You can check the official website of SEC Securities and Exchange Commissions if the broker or investment firms is registered. Also, you can use FINRA broker check. Followed the link given above and find out how to use FINRA Broker Check online.
The advice of a CFP Certified Financial Planner and RIA Registered Investment Advisor will help you decide when and where to invest millions of dollars. So, consider hiring CFP or RIA when investing millions.
How to Invest Millions of Dollars (Check List)
Find time to answer the following important questions related to investing to avoid investing mistakes. Before you invest millions of dollars, asked yourself the following;
- What is your investing goal? – Ask yourself, why do you invest millions of dollars anyway? For capital growth or passive income and just want to invest and live off to the interest it can earn.
- What is your investment horizon? Until when do you want to invest your millions? 5 years, 10 years, or 20 years?
- How much percentage of your total income should be invested? If your income is $10,000,000, should you invest 20% of it or just 10% of it? Or are you willing to invest all your millions?
- Define Your Age and Risk Tolerance – of course, the younger you are the high risk you can take. But as a rule of thumb, just subtract 100 in your age. Example, if you are 45 right now, you should invest 55% of your investment funds. So, if you have five million dollars to invest, you should invest 2.75M in a high risk types of investment. The other funds should invest in a low to moderate risk types of investments.
Those are just some point of views on how to invest millions of dollars. I hope you liked this investing advice. Who knows few months later you will become a millionaire. And if you have no idea where to put your millions, just visit this page again.
Therefore, we should consider asset allocation whether we invest small amount or large sum of money. Asset allocation is a strategy to diversify your investment. No one wants to lose large amount of money. But, every investors are dreaming to have a perfect and balanced investment portfolio that generates passive income.
Tips and Warnings
Here are the other tips and things to avoid when investing millions of dollars.
- Do not ignore checking the investment firms if they are registered with SEC.
- Make use of FINRA Broker Check
- Consider Hiring a CFP and registered Investment Advisor. Yes, it will cost you some pennies, but millions is bigger than the service charge or fees of these experts.
- Don’t be in a hurry. Take time to learn and talk to experts. Analyze the risks and manage the risk, too.
- Investing without knowledge is a big mistake.
- Earning your first million is hard. Don’t lose your first million because of wrong investing decision.
- Don’t ignore bonds, they can help you earn on the long term. Stocks and bonds are best friends. Take advantage of mutual funds if you want to diversify your millions of dollars easily.
- Your strategies in investing 10 million dollars, 20, 30 million dollars or even 50 million dollars should be different. The bigger amount you invest, the more time you should spend in analyzing where and when to invest and divest. I don’t want to emphasize “asset allocation”. I know you are familiar with it. If your goal is make billions, then use the power of compound interest. Adjust your investment horizon and take more high risk, but, only the risks you can afford.
- Hint: I observed some multi-millionaires bought real estate properties and buy business franchises. This means, you should not only focus on paper assets. Take a look at this asset allocation strategy, there is a portion on paper assets, real estate and business ownership.
- There are two types of investors, the Do-It- Yourself investor and the Do-It-For-Me investor, I think the second type applies to an investor who wants to invest millions of dollars. There are investment firms that can manage your money properly. Besides, relying to investment experts will help you minimize the risks.
Actually, an individual who already have millions of dollars are already skillful in investing. So, this post is common to them. Maybe some of the point of views here are useful. They have greater ideas than me, because they are a multi-millionaires and I am just a personal finance and investment blogger who dream to become a multi-millionaire, too. They can’t acquired millions of dollars if they are not investing. That’s why, this post is for lottery winners or those people who got instant inherited wealth.
Now you know how to invest millions of dollars. Let me know what you think about this useful guide. From time to time, Investment Total.com will publish new useful and awesome article like this. So, stay tuned to learn more about investing in stock market, mutual funds, bonds, real estate, forex and business ownership. Thank you for spending your time reading this guide about the best way to invest millions of dollars safely. Do not forget to leave a comment and share this post with your friends.