Are you looking for the best way to invest that $500k in your bank account?
Are you simply tired of waiting for your saved money to amass some certain wealth by just interest only?
Are you tired of being scammed by endless Investment models and looking to invest where your money is safe?
Well, If your answer to those questions is YES, this article has got you covered.
I deem it fit that if you’re still reading this article, you have certainly amassed some wealth for yourself.
What if I told you that; you could make so much more by not just INVESTING but investing safely and wisely?
Having $500k in your account does not guarantee financial security.
However, you must invest with caution.
Well, without further ado, let’s get to it already. The following are safe ways to invest your money safely in 2022.
15 Ways to Invest Your Money Safely and Wisely
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PAY OFF YOUR DEBTS
A Debt is a burden that compels a person – the debtor, to pay money or other agreed-upon value to the lender.
This might sound pretty bizarre, but paying off debt is one step to the millions of cash you deserve.
You simply have to pay off debts and, as a result, make profitable investments to compensate for the income lost.
If you rather continue amassing wealth without settling debts, they’ll surely come back to haunt your future finances. Therefore, I’d advise you to go ahead and pay off those debts before proceeding to make any Investments.
PORTFOLIO MANAGEMENT
A good portfolio should consist of various securities with the proper allocation of assets. It may include stocks, bonds, gold, ETFs, and mutual funds.
Your portfolio should contain a certain form of growth, particularly at your beginning stages. Later in life, the focus shifts from growth to actual income.
No matter your age, it is essential to diversify and rebalance your portfolio as your goals and risk tolerance continue to evolve.
Personal capital gives you that privilege. They help you improve returns by collecting information from your financial accounts using a free plannng tool. They also help you oversee your assets and set realistic goals for your money upon joining.
INVEST IN REAL ESTATE
Real estate investment involves buying, managing, and selling for a certain profit.
A person who actively or inactively invests in real estate is a real estate entrepreneur.
Sometimes, you might be required to develop, improve or renovate properties to make more money.
Real estate investing uses estate properties as an investment vehicle to gain profit.
You could invest your $500K in raw lands with Acretrader. Investing in land is a profitable venture because; land as a commodity is relatively scarce, and thus it would always be demanded.
Fundraise is an extremely easy-to-use app that allows you to access crowd-funded real estate so you can invest in them. Consider this option if you consistently want to rake in loads of cash.
INDEX FUNDS
According to Nerd Wallet, index funds are mutual funds whose holdings correspond to or track a certain market index.
When you invest in an index fund, your money is invested in all the companies that make up that index.
It offers you a multifarious portfolio compared to purchasing stocks individually.
According to bank rate, the following are the 5 most promising index funds to invest in;
- Vanguard S&P 500 ETF
- iShares Core S&P 500 ETF
- SPDR S&P 500 ETF Trust
- Schwab S&P 500 Index Fund
- ZERO Large Cap Index
Investing in index funds seems like investing in the stock market with few risks. The risks of investing are minimal compared to the returns.
INVEST IN AFFILIATE MARKETING
Affiliate marketing involves a process by which a person recommends digital or physical products of companies or persons to prospects and earns a commission for marketing and selling the product.
You can start by building a blog around the digital or physical products you wish to promote and sell.
Furthermore, you are required to build or at least have built a brand on social media accounts. By doing this, you will have access to a large audience.
The large audience you have now gained serves as your future leads. It is your job to convert such leads to positive prospects.
Most affiliate networks require you to pay a certain amount to be a part of or join their networks.
Even If you have less than $500k, a good following, little time on your hands, and a will to make a sustainable income, I’d certainly advise you to invest in this business model.
Affiliate products range from financial, real estate, and gaming to travel products. Select a niche and go for it! Cj affiliate could help you with this.
START A BUSINESS
The fastest route to becoming a millionaire at this age and time is to create your job. Nothing should stop you from launching your business.
Research your prospective business and potential customers, seek expert guidance, and create a viable business plan before starting.
Go out there and invest in a business venture that would yield profit. Perhaps a coffee shop or a Restaurant. Starting a business is an excellent way to invest and earn a constant income stream.
ALTERNATIVE ASSETS
Alternative investment involves any asset, excluding bonds, stocks, and cash. They include real assets and collectibles.
Generally, these assets refer to investments outside the regular asset classes commonly accessed by most investors. Thus there’s less competition in acquiring such assets.
To get started, you may consider investing in a company such as Yieldstreet. They offer a wide variety of alternative asset opportunities.
INVEST IN YOU
Another good use of your $500k is to invest in YOU.
That might seem crazy enough, but the best way to invest is to invest in your well-being. Perhaps you wish to embark on a vacation.
You might not spend the entire amount on yourself, but a good fraction of the amount would allow you to enjoy your life to the fullest.
DONATE TO CHARITY ORGANISATIONS
Several charity organizations require funds to keep them running, and you could consider spending your money for a good cause.
Imagine having the power to change the lives of so many, to make an impact that would last forever.
This, to me, is one of the best things you can do with $500k; it’s the most selfless act of kindness an individual could lend to the world.
INVEST IN TREASURY BONDS
Treasury bonds are the best investment for people seeking to preserve or invest cash temporarily, with low risks.
These are the best treasury bonds to invest in right now;
Treasury bills (T-bills) are short-term debt securities that mature in less than a year.
Treasury notes (T-notes): Intermediate-term debt securities mature in two to ten years.
Treasury bonds (T-bonds): Long-term debt securities that mature between 10 and 30 years.
Treasury Inflation-Protected Securities (TIPS): A treasury bond that is adjusted over time to keep up with inflation.
They can be purchased through a bank or broker. This is a relatively safe investment, as their values do not fluctuate as much as stock prices.
INVEST IN CRYPTOCURRENCY
Cryptocurrency, informally called crypto, is a virtual or digital currency that uses a cryptography algorithm to secure transactions.
Cryptocurrencies do not have a central issuing agency or regulating authority. Instead, they use a decentralized system to record transactions and issue new units.
Digital currencies may also be a form of long-term investment due to their high demand.
They have lower inflation risk in comparison to world currencies. Cryptocurrencies are almost immune to hyperinflation.
And, Yes, you can make fast money from cryptocurrency.
Block is the most straightforward and secure platform that offers you a fast way to grow wealth through crypto.
INVEST IN MUTUAL FUNDS
Another way to invest your $500,000 in the stock market is via mutual funds.
A mutual fund is a professionally managed investment fund that pools money from as many investors as possible to purchase securities.
Mutual funds are bought directly from the companies issuing shares. They offer the most comprehensive, easy, and flexible ways to create a diversified portfolio of investments.
It is indeed an attractive investment option for someone who has $500,000 to invest.
Sofi invest is an app that allows you to track and trade your money by investing in the above funds.
According to Investopedia, the top 5 most considerable mutual funds on the stock exchange are:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
Fidelity 500 Index Fund (FXAIX)
Vanguard Institutional Index Mutual Fund (VINIX)
Fidelity Government Cash Reserves (FDRXX)
Vanguard Federal Money Market Fund (VMFXX)
ANNUITIES
An annuity is an insurance stock that pays out income.
Annuities are insurance contracts. You pay a set amount of money today or over time in exchange for a constant stream of income in the future.
Annuities are suitable investments for people wanting a reliable income stream during their retirement.
INVEST IN BONDS
Bonds are debt securities. Borrowers issue bonds to raise money from investors willing to lend them money for a specific time. When you invest by buying bonds, you lend to the government, municipality, or corporations.
Now, you are advised to hold onto them until they mature at a particular time. You can then earn from the interest accumulated on the bonds.
Bonds are considered relatively safe investments, as their values do not fluctuate as much as stock prices.
DOWN PAYMENT ON A HOME
Another way to invest $500k is by making a down payment on a home of your choice.
Having a home to call your home could be one of the best investments you could make this year.
Perhaps you could buy a home with the cash you have in hand.
IN CONCLUSION
Indeed there are many ways to invest your money. However, the ways and strategies I’ve put before you are the safest.
You could leave that money in the bank or invest in something worthwhile.
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