100 million dollars is a lot of money and planning to invest this amount of money means you have lots of investment opportunities. Diversification is key when it comes to investing a big amount of money. So, if you are planning to invest 100 million dollars then you can consider investing in private lending, real estate, business investment, stock market, cryptocurrency, real estate investment trusts, bonds, ETFs, etc.
Jump To A Section
- 1 What To Consider Before Investing 100 Million Dollars?
- 2 10 Great Ways To Invest 100 Million Dollars In 2022
- 2.1 1. Private Lending
- 2.2 2. Real Estate Investment
- 2.3 3. Investing In Business
- 2.4 4. Invest In The Stock Market
- 2.5 5. Real Estate Investment Trusts (REITs)
- 2.6 6. Exchange Traded Funds (ETFs)
- 2.7 7. Bonds
- 2.8 8. Invest In Cryptocurrency
- 2.9 9. Invest In Gold
- 2.10 10. Savings Accounts With High-Interest Rates
- 3 Final Thoughts
What To Consider Before Investing 100 Million Dollars?
Investing 100 million dollars requires patience because you can’t invest 100 million dollars overnight. Moreover, you also need an investment plan based on your personal financial goals. If you don’t have a clear business plan or goal in mind then you will find it very difficult to invest such a big amount of money. Therefore, ask yourself what you want to accomplish financially.
After creating your financial goal, you have to determine a timeline to achieve that business goal. You have to decide how long you plan on holding an investment. For example, if you are investing for retirement, you’ll want to look at long-term options, depending on your age. So, if you have to access your invested money within the next five years then you should choose a short-term investment strategy.
Risk tolerance is another key factor to consider before investing 100 million dollars. If you can’t afford to lose your investment then your risk tolerance is low. If you are not affected financially by losing your investment, your risk tolerance is. The more your risk tolerance is, the more financial risk you can take!
10 Great Ways To Invest 100 Million Dollars In 2022
Where you should invest your money is totally a personal decision but some profitable investment options of 2022 are –
1. Private Lending
2. Real Estate Investment
3. Investing in Business
4. Invest in the Stock Market
5. Real Estate Investment Trusts (REITs)
6. Exchange-Traded Funds (ETFs)
8. Invest in Cryptocurrency
9. Invest in Gold
10. Savings Accounts with High-Interest Rates
1. Private Lending
The first way to invest 100 million dollars is through private lending. For example, you can lend money to people with interest rates and income a handsome amount of money. This is what banks do. You can invest one-third of your 100 million dollars to private lending at 9%, you’d earn $90,000 per year. Moreover, you can also invest in private lending companies. There are many private lending companies available where you can invest your money like –
2. Best Egg
Investing money through a private lending company is a safe option because there is no hassle of paperwork for you. You don’t have to worry about forming a company or filing taxes. All will be taken care of by the company itself.
2. Real Estate Investment
The real estate sector is blooming in 2022 so it is a great sector to invest your 100 million dollars. You can purchase real estate investment properties and a proper investment can return you as much as a 9% return from the cash flow annually. Let’s say you bought 100 properties averaging $100,000 each, and rent them for $1,000/month. So, your net return for 5 years would be $12,00000. Moreover, if the price of homes increases by 3% annually, you’d gain an additional $150,0000 in equity. There are many options available when it comes to real estate investment. For example –
1. Rental Properties
2. Flipping Houses
4. Real Estate Investment Groups
5. Real Estate Limited Partnerships
6. Real Estate Mutual Funds
3. Investing In Business
If you have a large amount of money like 100 million dollars then you can take those million dollars and invest it in a great business idea. Investing in a business is a risky option because you can lose all your investment if you invest in the wrong business. According to a recent statistic, 50% of new businesses fail during the first 5 years. This is why you have to be very careful if your friends and family members come to you asking for your financial support in their business idea. However, if you could manage to make the business large enough that others can operate it then you will be able to enjoy a passive income stream for life. You can consider buying finance or local business or you can try and buy enjoy a passive income stream for life.
4. Invest In The Stock Market
According to many investment experts, if you have a large amount of money then the stock investment would be a great option. Moreover, stock investment is also good for long-term investment. You can invest 40-50% of your total capital. You have the option to invest in stocks, bonds, index funds, and any other type of securities with a brokerage account. But you should understand that stock market investment has some risk involved. Therefore, if you are a beginner investor then you can take professional help before investing in stocks. In order to invest in stocks, you have to open a brokerage account. With the help of a brokerage, you can easily invest in bonds, stocks, index funds, and other securities.
5. Real Estate Investment Trusts (REITs)
The popularity of Real Estate Investment Trusts is growing rapidly and if you have 100 million dollars to invest then you can consider this investment option. REITs allow people to invest in real estate, without buying a rental property! Here you can invest money and buy bigger real estate projects and own equity in the project as a whole. This is the simplest way to get into the real estate business without having to fork over a ton of cash. However, before investing in REITs you have to understand that if you invest in Real Estate Investment Trusts then you won’t have control over your money and where the money is going.
6. Exchange Traded Funds (ETFs)
ETFs stand for Exchange Traded Funds and it allows the investors to purchase a number of different stocks, instead of stocks tied to just one company. This is also an excellent investment option because it provides portfolio diversification and helps minimize risk. If you invest in various companies of different sectors then you’ll be less impacted when one market drops. You can take advantage of growing markets in one sector and offset losses in other sectors.
If you are looking for the safest investment option for your 100 million dollars then you can consider investing in U.S. Government Bonds. These bonds are backed by U.S. Government so there is no risk of losing your investment. If you invest in bonds then you will receive income via interest. The only problem with investing in bonds is the return is very limited. The maximum interest rate of US bonds is 3%. So, investing a small amount of money in bonds is a safe option and it will diversify your portfolio.
8. Invest In Cryptocurrency
Cryptocurrency is the hottest investment sector right now and many investors want to invest in cryptocurrencies. The use of cryptocurrency is increasing every day, so does the demand and price of various cryptocurrencies. For example, you can use cryptocurrency, like Bitcoin, to make payments at more places than ever before. Moreover, lots of Bitcoin ATMs are popping up internationally. So, the rapid growth of Bitcoin and other cryptocurrencies has made it a huge investment sector. According to many crypto experts, a single Bitcoin might be worth $200,000 or more within years. And the best part of cryptocurrency is anyone can invest any amount at any time. There is no restriction about how much money you can invest in cryptocurrency. So, if you have 100 million dollars then you should invest at least 20% to 30% of your capital in cryptocurrency.
9. Invest In Gold
Investing in gold is another safest option when it comes to large capital like 100 million dollars. Gold is a precious metal and the demand and price of gold are increasing day by day. If you have 100 million dollars then you can invest 10/15 million dollars and buy gold and store them. If you have large capital to invest but are worried about market turmoil then investing in gold will be the best option for you.
10. Savings Accounts With High-Interest Rates
According to lots of investment experts, if you have large capital then investing in a savings account that offers a higher interest rate is a great way to gain profit. This is a very safe investment option because you only have to choose an account type and then save money. However, while choosing an account you should consider –
1. Minimum deposit requirement
2. Annual percentage rates
3. Minimum balance
4. Withdrawal options
If you have a long-term investment plan then a high-interest rate savings account can gain you a large profit. In fact, it can be a great personal asset when you need quick money.
There are many ways you can make money with money. However, before investing money make sure you use caution because if things go wrong then you can lose all your money. Finally, never invest money in anything that you don’t understand to avoid potential risks!
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.