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How to Invest $150k (15 Best Methods for 2022)

By Forrest | Last Updated: March 4, 2022

If you have $150k to invest, you have a number of different options available to you. You could invest in stocks, bonds, real estate, or even start your own business.

It can be easy to get overwhelmed when trying to figure out where to invest your money. However, by breaking things down into smaller steps, you can make the process much less stressful and profitable.

In this post, I'll explore how to invest $150k, how much you can expect to grow your money, and much more. Let's get started!

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How to Invest $150k

Best Ways to Invest $150,000

Below are some of the top ways to invest $150k to grow your money. Remember to always consult an investment advisor before making any investment.

Invest in Index Funds

Index funds are a great choice to achieve a diversified portfolio with ease.

With index funds, you're investing in a basket of securities that track a particular market index. This means that you're not picking and choosing individual stocks, but rather investing in a broad market.

There are many different index funds to choose from, so it's important to do your research and find one that aligns with your investment goals. For example, if you're looking for a long-term investment, you might want to invest in a fund that tracks the S&P 500.

S&P 500 index funds have averaged returns of around 10% over the long term making it a solid investment option to generate passive income.

So, how do you get started investing in an index fund?

I recommend an investing app like Acorns. Acorns allows you to invest with as little as $5. You can invest in a variety of stock market investments like index funds, ETFs, individual stocks, and more.

As a bonus, you'll get $10 completely free when you create an account with the link below. That's right, free stock!

Acorns automatically rounds up your purchases and invests for you. Get started below!
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Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Invest in Crowdfunded Real Estate

Crowdfunded real estate can be an excellent way to invest $150,00 and keep your investment portfolio diversified.

As any experienced investor knows, you want to have your money spread out over many different asset classes. For example, investing some of your money in the stock market, some in real estate, and perhaps some in other investments like bonds or precious metals.

By using platforms like Fundrise, you can invest in real estate to make compound interest without the stress and headache of managing a property yourself.

Fundrise works by pooling money together from many different investors allowing you to invest in massive deals that you wouldn't have access to otherwise.

For example, they might invest in an apartment building that can cost millions. By investing on your own – this would be almost impossible. But with the help of other investors you can make the deal happen and profit from it.

Fundrise allows you to invest with just $500 making it a viable option for both new and experienced investors. Create your free account with the link below to get started!

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Invest in real estate stress-free with Fundrise. Join 150,000 happy customers building wealth today!
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Avg. Return
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Invest in Small Businesses with Mainvest

Invest in Small Businesses

Small businesses can be extremely profitable, but not everyone has the time to start a business.

Thanks to platforms like Mainvest, you don't have to. With Mainvest you can invest in small businesses across the country with as little as $100.

For example, there are plenty of restaurants, real estate offerings, and brewing companies you can invest in to make money.

They target 10% to 25% annual returns making it one of the more lucrative methods to make money. Create your free account below to get started!

With Mainvest you can invest in small businesses with as little as $100. It's completely free to join and there are no fees. Just pick the companies you want to invest in and watch your money grow. For a limited time, you'll get $10 free when you create a new account with the link below!
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Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Invest in Mutual Funds

Mutual funds can be another stock market investment option to invest $150k.

Mutual funds are a collection of stocks, bonds, and other securities that are managed by a professional fund manager. This means that you don't have to do any research or analysis to invest in a mutual fund – the manager will take care of that for you.

The downside to some mutual funds is that they typically have higher fees than other stock market investments because they are actively managed.

After fees, many mutual funds can make anywhere from 7% to over 15% depending on the fund and the year.

You can use a robo advisor like Acorns or M1 Finance to get started!

Invest in Commercial Real Estate

Another real estate investing option is commercial real estate like office buildings, strip malls, and other large real estate assets.

The best method to get started investing in commercial real estate is EquityMultiple. EquityMultiple offers the ability to invest in individual deals or a fund – whichever you prefer.

With returns averaging 17.4% – this is a great investment for anyone. Create your account below to get started!

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Rental Property

Purchase a Rental Property

Purchasing a rental property can be a lucrative way to invest $150k if you're willing to put in some work.

Rental properties can be a great investment because they can make money in several fashions. For example, you can make money from the monthly rent payments, the appreciation in the value of the property, and by cashing out any equity you've built up through mortgage payments.

Another source of income is rent appreciation. Assuming you have a fixed-rate mortgage, your mortgage payments will remain steady throughout the life of the loan. However, as your property increases in value, so can the amount you charge for rent.

For example, if your home is currently being rented for $1,200 per month, it's possible to raise the rent to $1,300 a month in a few years while your mortgage payment remains the same.

With this real estate investment, you'll need some money to get started but $150,000 is plenty. There are many rental properties you can purchase with that amount of money when getting started. You'll need at least 20% for a down payment to qualify for a mortgage.

If you want to purchase a rental property but don't feel like dealing with tenants, collecting payments, or doing other tasks, you can consider hiring a property manager to do this for you.

Hiring a property management company will typically cost around 10% of your property's monthly rent but it can be a good idea for many new real estate investors.

Invest in a High Yield Savings Account

If you're looking for a safe investment to grow your money, using a high yield savings account can be an easy way to make monthly income with low risk.

While your returns might be lackluster, this is one of the safest investments you can make with your money. These accounts are very similar to a money market account except you can withdraw your money whenever.

The amount you can make will depend on current market conditions and the bank you choose.

My favorite high yield savings account is through CIT Bank. You can start with just $100 and it's completely free to open.

Currently, you can earn up to 10 times the national average in interest – which can add up. Open your free CIT Bank account with the link below!

Say goodbye to .1% APRs and say hello to .4% APRs with a CIT Bank Savings Account. Open your account below to start growing your money!
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Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Invest in Dividend Stocks

While investing in individual stocks is riskier than other forms of investing, if done correctly it can be a great cash-flowing asset to make money.

Dividend stocks are stocks that pay out a portion of their profits to shareholders in the form of a dividend. For example, Coca Cola is a large, well-known dividend stock.

While there is always the risk that the company could go bankrupt, in many cases these companies have been around for decades and are very stable.

The key to investing in dividend stocks is to find companies that have a long history of paying out dividends and that are growing at a healthy rate.

You can invest in dividend stocks with Acorns. Don't forget to claim your free $10 here!

Check out these ways to make $500 a month in dividends!

Stock Market Investing for teens

Invest in ETFs

Exchange-traded funds (also known as ETFs) are a type of stock market investment that is similar to index funds or mutual funds.

ETFs have very low fees, which makes them a good investment option if you're looking to optimize your returns.

The amount of money you can make from this investment will vary depending on the ETF you choose but it's common to see returns ranging from 7% to 12% annually.

Invest in REITs

A REIT (or real estate investment trust) is another stock market investment if you want to invest money in real estate.

Real estate investment trusts are similar to ETFs and mutual funds in that they are very diverse assets.

REITs can contain many different real estate properties so that all of your money isn't invested in a single property.

You can invest in REITs through a traditional brokerage account like Acorns or M1 Finance.

Invest in Bonds

There are many different types of bonds you can invest in to make passive income.

Bonds are debt investments where you loan money to a company or government in return for interest payments.

The amount of money you can make from bonds will depend on the interest rate and the length of the loan.

One thing I like about bonds is that you can choose your risk level meaning if you have a low-risk tolerance you can choose lower-risk options. If you want to make more money or have a higher risk tolerance you can invest in riskier options.

Invest in Crypto to Build Wealth

Invest in Cryptocurrency

Not everyone believes that cryptocurrency is an investment, but it's difficult to argue with some people making fortunes from these digital currencies.

If you do choose to invest in crypto, remember to only invest what you can afford to lose. Because many of these currencies can fluctuate massively throughout the day, it's possible to lose money quickly if you're not careful.

My favorite platform to buy and sell crypto is Coinbase. With millions of users, they are a trusted exchange to invest in crypto offering all of the most popular coins. Open your free account below!

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Consider Art Investing

Investing in art can be a great way to make money, but it hasn't always been available to the public retail investor.

With the introduction of platforms like YieldStreet you can invest in art with little money instead of needing hundreds of thousands of dollars to get started.

Art is unique in that it can't be reproduced which makes it a valuable commodity.

The returns on art vary, but you can expect to make returns of 8% to 12% on art investments.

If you're ready to get started, create your YieldStreet account below!

 
YieldStreet is one of the best alternative investments to grow your money with an average return of 15%!
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Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Sell Website on Empire Flippers

Try Website Investing

There are many digital real estate assets that can produce massive income for your portfolio.

By purchasing a website, you can make passive income for years to come.

Websites and blogs can make money through a variety of methods. Some of the most common include display advertising and affiliate marketing.

You can browse for websites on brokerages like EmpireFlippers or Flippa to find an online business that suits your goals.

Take Advantage of Retirement Accounts

Using a retirement account like a 401k or IRA is a great way to invest money and get tax breaks in the process.

Using retirement accounts to invest your money offers the ability to grow your money tax-free or tax-deferred.

This can help to reduce your taxable income and future tax bill while saving money for your future.

Considerations Before Investing

If you have $150k to invest, you might be tempted to find the best investments to start making your money work for you.

But that's not always the best idea.

Before investing, you'll want to take a look at your debts, retirement savings, and if you have an emergency fund established.

If you have credit card debt or other high-interest debts like student loans, it's wise to pay these off before investing.

Similarly, if you have no money invested for your retirement, it's a good idea to build your savings for the future.

Finally, if you don't have an emergency fund, this should be a critical step before you invest your money.

Related Resources:

Monthly Return on $150,000 Investment

If you have $150k to invest, you might be wondering what kind of monthly returns you can make on your money.

Depending on the investments you choose, it's possible to safely earn anywhere from 7% to 12% on your money annually.

Monthly returns from your investment can amount to around 1% for strong investments or slightly less depending on your risk tolerance.

When you invest $150k, this would amount to $1,500 per month in returns and up to $15,000 annually.

What Can You Do with $150k Cash?

There are plenty of options to grow your money with $150k cash depending on your financial goals.

For example, if you want to make passive income from your money, investing in rental properties can be a smart investment.

I would recommend investing in the stock market with Acorns and investing in real estate with Fundrise with $150k cash. These methods have a strong risk-reward ratio offering robust returns without assuming a significant amount of risk.

Final Thoughts on How to Invest $150,000

There are plenty of strong investment options to reach your financial goals when investing $150k.

Between investing in the stock market, real estate, or bonds – growing your money is a matter of getting started.

I recommend opening a brokerage account with Acorns to start investing in the stock market and using Fundrise to grow your money in real estate. So, what are you waiting for? It's time to start making money while you sleep.

It's always wise to consult a financial advisor before making any investment.

Forrest is a personal finance, entrepreneurship, and investing enthusiast dedicated to helping others obtain life long wealth. He owns several different blogs and is also passionate about health and fitness.