So, ever wondered on how to invest 200k?
You’ve somehow got a hold of around $200,000 all of a sudden, or maybe you’ve been saving this amount up over a long time, and you’re looking for something to do with it.
Rather than let your money sit in a savings account where it will accumulate a minuscule amount of interest over several years, there are plenty of ways you could be investing it to boost your savings even further!
In this guide, we’re taking a look at some of the best things you could invest 200k into to multiply your money.
Table of contents
Short Term vs Long Term
The first thing that you need to decide is whether you want to invest your money for the short term or the long term.
If you have an extremely tight budget and can only afford to save for a few months, then you should probably go for the short-term investment options.
On the other hand, if you have more money but still want to see a return on your investment, then you’ll likely benefit from going for the longer-term investments.
It’s also important to note that you shouldn’t try to predict which one will give you the most bang for your buck.
You should instead choose what option feels right to you as an individual.
Here are some short term investment options:
Stocks are generally considered to be one of the safest forms of investment, and they’re also very easy to understand.
When you buy stocks, you own part of a company. You may not know exactly how much you own, but you always know that you own it, and you get dividends when the company makes profits.
2) Mutual Funds
Mutual funds are like a collection of different stocks that you can purchase together.
They allow you to diversify your portfolio so that you don’t put all of your eggs in one basket.
Bonds are essentially loans between countries or companies. When you buy bonds, you’re lending the government or company the money, and they pay you back with interest.
Alternatively, here are some examples of long term investments:
Property has historically been a great way to make money. It’s simple – you buy a property, rent it out, and keep any extra money made above the monthly costs.
These two precious metals are similar because both are valuable (and rare), but gold is usually seen as being a better value.
However, if you prefer silver, that’s fine too.
The main difference is that while gold is typically bought by investors, silver is often purchased by businesses who use it in manufacturing products.
Businesses are another great way to earn passive income. There are many different types of business – from franchises to small businesses.
However, the easiest ones to set up are those that involve selling physical goods.
Examples include drop shipping, online shops, and wholesaling.
4) Online Businesses
Finally, you might consider starting an online business. These aren’t quite as safe as traditional offline businesses, but they can still be worth a look.
There are lots of different ways to start an online business, including affiliate marketing, blogging, eCommerce, and MLM.
Investing in Cryptocurrencies
Cryptocurrencies such as Bitcoin are yet another form of investing 200k or more.
However, there are some key differences between cryptocurrencies and regular currencies.
For example, unlike fiat currency (givernmenet issued currency), cryptocurrencies aren’t backed by any central bank or government.
Instead, they’re created through complex algorithms and distributed ledgers.
Additionally, cryptocurrencies are decentralized – meaning that no single person controls them.
This means that they’re less vulnerable to inflation than fiat currencies.
In fact, since their inception, most cryptocurrencies have lost over 90% of their original value.
That said, this doesn’t mean that you shouldn’t invest in cryptocurrencies!
Instead, it’s important to do your research before investing in cryptocurrencies.
For example, you should only invest what you can afford to lose. Additionally, never invest more than you can afford to lose on a permanent basis.
However, in general, cryptocurrency is only something you should invest in if you really know what you’re doing.
People have been known to make great fortunes by investing smartly but plenty have also lost just as much by making bad investments or just getting unlucky.
How to Invest in Cryptocurrency
If you want to get started investing in cryptocurrencies, the best way to get started is to check out a crypto exchange website like Coinbase.
While this site is good at helping beginner investors get started, there are plenty of others just like it online.
These exchange websites are the best way to buy and sell your preferred cryptocurrency.
However, before you buy the first thing you see on the exchange site, you should do plenty of research first and find something that you believe to be a steady investment.
This involves buying a cryptocurrency while its price is at a low point and before it is expected to rise.
Once you’ve decided what to invest in and found a good exchange site, simply use Paypal or a debit or credit card to buy some and wait for the perfect time to sell it.
Investing in Real Estate
A great way to invest your 200k.
On the whole, this investment is considered one of the safest options around and it has been for decades.
Real estate has traditionally been used to provide shelter and stable sources of income.
As a result, it’s become a popular choice among retirees looking to build wealth.
It’s also a good option for people who want to diversify their portfolio.
After all, real estate tends to produce reliable returns which makes it a great choice for long-term savings.
It’s also relatively easy to get started with real estate. You don’t need to go through years of education or training to get into the industry.
All you need is a down payment (which could come from personal savings or a loan), land, and construction materials.
The best part? If you choose wisely, then real estate can help you generate a steady stream of passive income.
The Bottom Line
As you can see, there are several different ways to create wealth and to invest 200k.
While each of these methods requires time and effort, they’ll pay off handsomely in the end.
If you’re willing to put in the work, then you can easily turn your passion into profit.
Just remember to keep things simple when choosing your first source of income.
Frequently Asked Questions
Value of $200,000 In Five Years: $203,931
If you took your entire $200,000 and put it into an online brokerage, here’s what you’d get in return after no extra contributions and a 4% rate of return: After 1 year: $8,000. After 10 years: $96,049. After 20 years: $238,224.
This is a difficult question since it depends on several factors, including your lifestyle and where you live. However, generally, $200,000 per year is a good income for retirement.