Profitable Strategies for Investing One Million Dollars
The options are countless if you have one million dollars to invest. This article discusses some of the most profitable strategies an investor could adopt for investing one million dollars. Seeking professional advice is always recommended before dealing with such a bulk amount of cash. Do not try to rush your decision. Do extensive research about the numerous investment options, both online and offline.
Debts
If you get your hands on one million dollars, the most logical thing to do would be to pay off all your debts. One million dollars would be enough to pay off all your high-interest debts. Eliminating high-interest debts will help you to establish a strong foundation for your further investments. Maxing out your retirement savings would ensure a financially stable retirement life for you.
Investing In Stock
Investing in the stock market is a quite popular choice. Make sure that your investments have the potential for great returns with guaranteed minimum risks on the amount you have invested.
Online savings accounts and Certificate of Deposits (CDs) are considered to be the most secure options for investments. For easily accessing the money you have invested, choosing a savings account is advised. However, the advantage of choosing Certificate Deposits (CDs) is that they tend to give a slightly higher interest rate than an online savings account. The clients are often advised by financial advisors to explore online savings that offer competitive rates.
Angel Investor
As an investor, if you are willing to take some risks, you could choose to become an angel investor. These investors are individuals who invest in growing start-ups in their early stages. Although you reap huge profits if the company succeeds, there is a risk of losing every last dollar if the company fails. Angel investors usually invest around $10,000 – $100,000. You could either choose to invest all of your money in a single start-up or allocate your investments across several start-ups.
Investing in Real Estate
Investing in real estate is another option that could be considered when you have one million dollars. The latest innovations in technology and the internet have encouraged investors to get into real estate. Some start-ups enable the investors to be involved in real estate without having to deal with the troubles of being a landlord.
Annuity
Another option that an investor can choose is an annuity. There are different types of annuities. A fixed annuity is one of the most common types of investment that you can choose. Annuities can be a complex concept to understand. Annuities provide you with a payment every month, in exchange for a bulk of cash you pay. An annuity can be defined as a type of contract that you sign with an insurance company.
Business
Peer-to-peer lending is yet another opportunity that you can invest, ensuring you high returns. There are some platforms such as Prosper and Lending Club that can help you to set up a peer-to-peer lending business. If you are close to your retirement age, make sure you have saved up enough before investing.
