What is the best investment for $200 000?
What is the best investment for $200 000?
If you found a way to invest $200,000 and could leave it to earn a 6\% return for 20 years, you’d have $641,427.09 after two decades of growth….
- Invest in the Stock Market. Suggested Allocation: 40\% to 50\%
- Invest in Real Estate.
- Invest in Cryptocurrency.
- Buy a Business.
- Invest in Gold.
- Open a Solo 401(k)
What should I do with $200000?
What to Do With Your $200,000 Inheritance
- Find a financial advisor to manage your investments.
- Invest in the stock market yourself through an online brokerage.
- Put it in a high-yield savings account.
- Max out your retirement accounts.
Is a 10\% rate of return on investment good enough?
Sure, you could count on a 10\% rate of return if you want to feel great about your future financial security, but you likely won’t be getting an accurate picture of your investing potential. That, my friend, would lead to undersaving.
How much would it cost to cash out a $200k investment?
If you did somehow average 10\% annual returns after 20 years of investing, you could cash out with $1,345,500. That’s your original $200,000 investment more than six-fold.
How do you determine the amount of money you need to invest?
Amount of money that you have available to invest initially. Amount that you plan to add to the principal every month, or a negative number for the amount that you plan to withdraw every month. Length of time, in years, that you plan to save. Your estimated annual interest rate.
How much money will you have after 20 years of investing?
As you can see, investing in the stock market more than doubled your original investment. When it comes time to cash out, you’ll have a total $438,224. Keep in mind that this method is on the lower end of average. If you did somehow average 10\% annual returns after 20 years of investing, you could cash out with $1,345,500.