Business Invest Tech

5 Best Ways To Invest $100,000

Zach is pictured holding a stack of $100 bills to invest
[Updated February 2019]

After you have $100,000 or extra to take a position, it’s time to pay shut consideration to the place you set these funds.

With the inventory market at an all-time excessive, it’s sensible to play a bit protection. In any case, you don’t need to find yourself just like the Brazilian ex-billionaire who went from a internet value of $30 billion to damaging $1 billion in beneath a yr.

On the similar time, leaving your cash in a financial savings account isn’t an awesome concept. The important thing to wealth is making your cash be just right for you – and the earlier you can begin doing that, the higher off your funds can be.

So what are you to do? How are you going to maintain your hard-earned money comparatively protected, whereas nonetheless ensuring it grows?

I need to share with you my story of how I invested $100okay, and in addition share 5 different methods to take a position that may present a strong return whereas minimizing your draw back. From worldwide actual property to robo-advisors, listed here are a number of of probably the most safe methods to develop your wealth.

Simply keep in mind, all investments have a degree of danger related to them. Subsequently, do your analysis and/or speak to a monetary advisor when you might have questions. Though these methods are comparatively safer than randomly investing in shares, they will not be best for you – so do your personal due diligence!

From My Expertise, The Greatest Approach To Make investments $100okay Is To Buy Web sites

In 2018 I started investing in web sites that earn revenue from advertisements and affiliate commissions. Being in my early 20’s and dwelling in Southern California, the place the price of dwelling could be very excessive, I knew I needed to make some sensible investments early as a way to be within the place to buy a house ultimately. Since lots of my jobs throughout highschool and school have been within the cellular app improvement area, I used to be immersed in know-how all the time. As I used to be on the lookout for methods to generate revenue on-line, I discovered that many individuals personal web sites that have been making critical cash! With this in thoughts, I did analysis on how you can make revenue like this and located that I might purchase an already established, revenue incomes web site with out having to construct one from scratch.

So on January 1st 2018, I used Empire Flippers, an internet web site brokerage, to buy my first affiliate web site for $49,000. As an alternative of getting to spend the money and time to construct an internet site from nothing, I purchased one which had been established since 2014 and that was incomes about $1,800 per 30 days of passive revenue. With no web site programming or design expertise, I started to implement easy, however efficient methods to extend profitability. Here’s a video explaining precisely what I did. In 4 brief months I had almost doubled the month-to-month revenue WITHOUT growing the visitors or including a lot content material!

A profitability graph that is trending up

Now Get This…

Since my objective of buying an already established web site was to study the inside workings of those passive revenue turbines, I made a decision it was time to promote since profitability was up and I had discovered what I wanted to. In April or Might, I ended up promoting the web site for $75,000, a $26,000 improve! In the course of the 4 months, the web site earned a further $13,000 in affiliate commissions plus acquired hundreds of dollars value of merchandise to assessment (because it was a evaluate web site).

After doing the calculations, I earned a few 55.6% ROI in simply four months on this web site!

A screenshot of the Google Analytics dashboard

Even earlier than I started contemplating to promote the web site, I used to be on the hunt to buy one other one since I noticed the potential within the web site funding area. I bought one other web site in mid-2018, in a unique area of interest. I nonetheless personal this web site and see a few 26% ROI yearly. My objective is long run progress, to not promote it off.

Though the inventory market has been nice the final yr or two, I cannot beat the returns that my web site investments have been providing.  I’ve additionally began constructing web sites from the bottom up so as to add to my portfolio.

In 2018 I spent almost $100,000 in complete shopping for and making affiliate area of interest web sites because the returns have been implausible.

Listed here are some advantages of investing $100okay in web sites:

  1. You will have the eye of tons of or hundreds of individuals per day, consider the advertising potential on this
  2. You’ll be able to function an internet site from anyplace on the planet so long as you’ve got web
  3. In case you are related with a programmer you do not want any programming expertise your self, I’ve little or no
  4. There isn’t a cap to how a lot you can also make, your incomes is instantly proportional to how a lot work you set in
  5. There’s a big demand for web sites, so discovering a purchaser in your website is straightforward when you ever need to promote
  6. You by no means know, a bit of content material might go viral and alter your life endlessly

In case you are fascinated with web site investing, I recommend testing the Empire Flippers market, they promote web sites from $20,000 to over $1,000,000…one thing for each finances. Hop on a name with one of many companies analysts, they’re an incredible firm and I can’t advocate them sufficient. I do know of a number of personal fairness corporations that may handle an internet site funding for you, so if you wish to be completely palms off that is an choice.

E-mail me, [email protected], in case you have any questions on web site investing, I actually consider this can be a option to constructing long-term wealth. I’m presently on the hunt for a SaaS enterprise, that might be subsequent place I make investments $100okay.

Now onto the record of 5 extra “widespread” methods to take a position…

Make investments $100,000 in actual property

invest-in-real-estate

The primary 3 ways to take a position $100okay contain actual property. Upon getting $100,000 to take a position, actual property turns into a believable choice – each for rising and defending your wealth.

When finished intelligently, actual property is nearly all the time a protected funding – even when the market tanks. Offered you do your analysis and buy insurance coverage on the property, your draw back is considerably restricted.

Listed here are 3 ways to spend money on actual property:

1. Purchase a rental property in your house nation

You should purchase a rental property in most elements of the nation with $100,000. If you need one thing a bit pricier, cowl the downpayment and discover lenders to cowl the remaining.

Rental properties are an ideal funding as a result of a worthwhile rental will keep its worth no matter what occurs out there.

If the worth of houses rises, then your property turns into value extra. If the worth of houses drops, then individuals lease as an alternative of purchase – growing the rental revenue of your funding. So long as you discover a property with nice money movement, you’ll be able to take pleasure in a really regular progress in your wealth.

2. Spend money on worldwide actual property

A current funding group that I got here throughout, Actual Caribe, presently presents Dominican Republic properties on the market in a luxurious skyrise – for round $100,000 per unit.

With the potential of Eight-12% annual returns on a totally managed funding, that’s undoubtedly value looking at!

Though buying properties within the US usually takes a bit much less work, it’s turning into harder to seek out nice bargains.

In the meantime, different elements of the world are experiencing large progress – and incomes 10-15% annual returns out of your property funding isn’t unreasonable. Plus, with costs typically decrease than within the US, your $100,000 funding will go so much additional.

As a result of worldwide investing might be dangerous for foreigners, should you don’t know what you’re doing, solely make investments if in case you have somebody native to advocate for you and validate the funding.

To guard your funding, discover a credible regulation agency, professional People which are already working within the space, or an funding agency to work with (like these backing Actual Caribe). When you’ve gotten companions searching on your funding, it’s a lot simpler to sleep at night time.

Oh, and did I point out that worldwide actual property provides you a tax break once you journey?! That’s proper, you get to put in writing off your journey as a enterprise expense anytime you go to evaluation your property.

three. Spend money on actual property with fairness crowdfunding

If you wish to spend money on actual property with out having to cope with the complexities of managing the property your self, than fairness crowdfunding is a wonderful method to make investments. With fairness crowdfunding you lend cash to actual property builders for a strong revenue – incomes anyplace from Eight-15% in annual returns.

As a result of the loans are vetted by expert buyers and backed by the precise property, your funding is comparatively protected.

Personally, as a non-accredited investor (somebody incomes beneath $200okay a yr), I spend money on the Fundrise eREITs – which is open to all US residents. In the meantime, in case you are an accredited investor, then you possibly can achieve entry to a far wider vary of investments by exploring RealtyShares, EquityMultiple, and Patch of Land.

One other nice choice is AHPFund, which lets you achieve a gentle return (concentrating on 12%) by investing in mortgage notes. Not solely are you able to make respectable returns, however AHPFund is dedicated to serving to individuals keep of their houses. Personally, it’s certainly one of my favourite mission-driven companies — and you may study extra about them in my evaluation of AHPFund right here.

By investing in crowdfunded actual property, not solely do you earn wholesome returns, however you could have the power to profit the small enterprise house owners creating and managing these properties.

Make investments $100,000 within the inventory market

invest-100k-in-the-stock-market

Whereas actual property typically supplies probably the most secure type of investing, shares definitely shouldn’t be ignored. Though the market ebbs and flows, thus far it all the time goes again up.

Nevertheless, when the market is close to it’s peak, you’re left with a dilemma – whereas it might definitely hold going up, it has the possible risk of dropping by 10-20%.

How do you fight this? Listed here are two methods:  

four. Diversify your portfolio with a robo-advisor service

The important thing to secure returns within the inventory market is to diversify your portfolio throughout quite a lot of US shares, worldwide shares, and bonds. When you can try and develop this diversified portfolio by yourself, it should get costly quick.

The higher guess is to both purchase into an ETF by way of a standard inventory dealer like TradeKing, or use a robo-advisor that may automate your investments based mostly in your danger degree.

The preferred robo-advisor for top internet value buyers is Private Capital (when you have over $100,000 to take a position). Not solely does Private Capital let you make investments at a fraction of the price of many different funding providers, however additionally they present free consulting and advising.

For these with a decrease internet value, Betterment is one other implausible robo-advisor service (one I at present use) that permits you to inexpensively diversify your portfolio.

And the most recent child on the block is M1Finance, which gives most of the similar perks as Betterment, with fewer charges (I’ve simply began investing with this platform and love the way it works).

As soon as you’re investing $100,000 or extra, you don’t need to place the whole lot in a single inventory. Positive, it might improve your wealth a lot quicker, however it might additionally diminish it. Diversification is vital.

5. Purchase Blue Chip shares and write coated calls

Though you need to diversify most of your portfolio, if there are a number of particular corporations that you simply need to personal for the long-term, contemplate writing coated calls.

A coated name is like placing a renter in your funding property – whether or not the worth of the rental goes up or down, you become profitable! Once you write a coated name you’re giving somebody the choice to purchase your inventory at a selected worth by a selected date.

If the inventory goes means up, then the decision choice shall be activated and you’ll have to promote your shares at a reduced price (however you continue to generate profits). In the meantime, if the inventory stays flat or decreases in worth, then you definitely don’t need to promote your shares and also you make anyplace from $zero.50 – 5.00+ per share for promoting the choice.

To study extra about promoting choices take a look at the free tutorials on Born to Promote. In the meantime, if you wish to begin buying and selling shares and choices (akin to coated calls), I like to recommend creating an account with TradeKing – as they’ve the perfect mixture of worth and repair from the various providers I’ve explored.

Riskier other ways to take a position $100okay

Whereas the 5 funding methods above are in all probability the most secure methods to take a position $100,000 – they’re by no imply the one choices out there.

Some individuals favor to spend money on artwork, valuable medals, and quite a lot of different gadgets. Whereas a few of these are very dangerous and current a excessive probability of loss, listed here are a number of different areas the place you possibly can make investments for an honest, and comparatively secure, return.

6. Spend money on loans with peer-to-peer lending

Websites like Lending Membership supply anybody the chance to spend money on P2P (peer-to-peer) loans. When somebody must renovate their home, pay for a big buy, or refinance their bank card debt, they flip to Lending Membership.

Lending Membership, in flip, provides you and I the chance to take a position as little as $25 into these notes – incomes a mean annual return of round 9% after defaults (in line with their website – my returns have been nearer to three% annualized).

Whereas I don’t advocate putting all your capital in Lending Membership, it’s a nice various to conventional types of investing that is perhaps much less dangerous than the inventory market.

7. Spend money on digital currencies like Bitcoin

Bitcoin first made waves across the US when the foreign money climbed from about $1 per Bitcoin to over $1,200 per Bitcoin inside 12 months in 2014. Though the worth of Bitcoin has leveled out to round $500, it nonetheless fluctuates wildly and tends to shoot up when the financial system or political panorama seems to be grim.

As a result of the foreign money isn’t tied to any authorities, its worth doesn’t drop when a selected nation comes throughout exhausting occasions.

In all probability the riskiest funding on this record, and never one the place you need to place $100,000, if you wish to guess towards the US financial system, shopping for Bitcoin isn’t a nasty concept.

To purchase Bitcoin and discover companies that settle for it (increasingly each day) bounce over to Coinbase, the main Bitcoin trade. Obtain $10 of free Bitcoin together with your first change of $100 or extra.. 

Eight. Spend money on companies by way of fairness crowdfunding

It’s now authorized for anybody to spend money on small startups in trade for fairness. Discover the subsequent Fb or Google and your small funding might grow to be value 10x what you place into it.

In fact, with the chance of nice reward comes nice danger. Enterprise fairness crowdfunding can imply that you simply purchase right into a enterprise that by no means takes off – making your funding primarily nugatory.

Though not one of the simplest ways to take a position $100,000, should you diversify throughout 100 distinctive companies, it might grow to be worthwhile.

The present chief within the fairness crowdfunding world is WeFunder. I’ve invested in a number of corporations by way of WeFunder, and like it! They at present present a $10 waiver in your first funding.

9. Spend money on your personal enterprise

Mark Cuban says that one of the best funding is the one you make in your personal enterprise. His ideas are that putting your cash in shares/and so on signifies that your cash goes to develop another person’s enterprise as an alternative of your personal.

Since you in all probability don’t need to make investments $100,000 right into a enterprise until it’s doing very nicely, there are a selection of the way to start out a enterprise inexpensively.

You can begin a weblog for $2/month and probably flip it right into a $1 million per yr revenue stream. In the meantime you can begin your personal on-line retailer utilizing a website like Shopify.

Though I don’t advocate putting your whole wealth in a startup, if in case you have the time to spare, beginning your personal enterprise can develop into very worthwhile.

How would you make investments $100,000?

Whether or not you’re a monetary guru, school investor, or investing beginner, I might love to listen to your ideas on the place and the right way to make investments your cash.

The place did (or will) you set your first $100,000?

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