Investing $300,000 can be stressful. With so many options it can be easy to become overwhelmed and face analysis paralysis.
But it doesn't have to be!
If you want to invest $300,000 without having to worry about losing it all, you're in the right place.
With this sum of money, you can reach your goal and grow a portfolio over 7-figures with time.
In this post, I'll explore how to invest $300k, the monthly return on $300,000, and more. Let's get started!
Best Ways to Invest $300k
Invest $300,000 in Index Funds
Index funds are a great way to invest $300k because they are diversified and have low fees.
Investing in index funds can give you exposure to a basket of stocks without having to pick and choose individual investments.
The returns on index funds can be stronger than many other investments. It's common to see returns of around 7% to 10% annually.
So what does a 7% return amount to? If you invested $300k in index funds that return 7% annually, after 20 years your balance would amount to over $1.16 million!
Many famous investors utilize index funds in their investment portfolios. For example, billionaire investor Warren Buffett stated that “for most people, the best thing is to do is owning the S&P 500 index fund.”
If you're looking to invest your $300,000, index funds should definitely be on your radar.
To invest in index funds, you can use an app like Acorns to invest your money easily. As a bonus, you'll get $10 completely free with the link below!
Not sure which index funds to invest your money? Check out the video below for help!
Invest in Rental Properties with Arrived
Rental properties are some of the most common investments for wide range of investors, but there's one problem – they can be a pain to manage.
That's where Arrived Homes comes into play. Instead of having to manage properties yourself, they do it for you!
Another huge bonus of this platform is that you can start investing with just $100, and it's open to both accredited and non-accredited investors.
You can choose the exact properties you want to invest in, which is a great way to see exactly what you're investing in.
They charge a flat rate 1% fee, which is less than many other real estate platforms.
Returns can range depending on the investment you make, but some properties have generated returns over 100% returns since inception!
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$100 minimum investment so anyone can get started
- Access to individual properties so you can pick and choose which properties to fund
- Quarterly payouts depending on your properties performance
- Open to both accredited and non accredited investors
- Minimal 1% management fee
- Some offerings are funded quickly
Invest in Crowdfunded Real Estate with Realty Mogul
Real estate is a great option to invest $300k to earn money passively. And it's a tangible asset, meaning there is a physical property backing your money which can feel nice when the economy is in a downswing.
There are many different types of real estate investing each with their own benefits and drawbacks.
One of my favorite methods is crowdfunded real estate with platforms like Realty Mogul.
With this type of real estate investing, you'll gain access to investments you wouldn't normally have access to without millions and millions of dollars to invest.
It works by pooling money through many different investors to make large investments like apartment buildings and other multi-family real estate assets. You'll then own a portion of the entire property and earn income through dividends that are paid out to investors.
They manage the properties themselves so you don't have to worry about maintaining a property or dealing with tenants. Additionally, the team in the background uses their experience to find the best of the best deals that are going to make you money. This means you don't have to spend time analyzing deals even if you did happen to have millions and millions of dollars. It's less work for you – who can say no to that?
The income you can generate from this investment varies depending on the location and type of property, but it's not uncommon to earn 10% to 15%.
- Easy diversification across many properties and asset classes
- Open to both accredited and non accredited investors
- Strong team that does great due diligence
- Higher minimum investment of $5,000
- 1% – 1.25% management fee
If you want to invest your money safely, Realty Mogul is a great option to consider. Create your free account below!
Invest in Exchange-Traded Funds
Exchange-traded funds are similar to index funds, but they can give you more exposure to different asset classes.
For example, if you want to invest in technology stocks, you could invest in an ETF that focuses solely on technology stocks.
ETFs can be a great way to invest in specific sectors or regions that you are interested in.
Your returns can be similar to index funds and other stock market investments averaging around 7% to 10% annually.
Just like with index funds, you can use Acorns or M1 Finance to invest in exchange-traded funds.
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Invest in Cryptocurrencies
Cryptocurrencies seem to be all the rage right now. With returns that can be upwards of 1000%, it's easy to see why.
While cryptocurrencies are a high-risk investment, the potential rewards can be great. It's best to stick with coins that have the largest usability and are the most popular as these tend to be more stable than others.
While I certainly wouldn't invest all $300k into cryptocurrency, finance experts recommend investing up to 5% of your portfolio in crypt assets.
I recommend using a platform like Binance to buy and sell all of the most popular cryptocurrencies.
Invest in Small Businesses
Small businesses can bring large profits. But unfortunately for many investors, you don't have the time to spend creating and growing a business.
That's where Mainvest comes into play. With this simple platform, you can invest in a variety of small businesses with as little as $100. You can invest in almost any business ranging from restaurants and breweries to bakeries and other establishments.
You can expect to earn anywhere from 10% to over 25% with this investment, making it a great way to grow your compound interest.
Create your free account with the link below to get started!
Invest in Commercial Real Estate
Because you have $300,000 to invest, you're in a unique position that will open up a lot of opportunities for you that you may not otherwise be capable of investing in.
Commercial real estate is a prime example.
By using a platform like EquityMultiple or Streitwise, you can invest in commercial real estate with as little as $5,000.
So, what's the difference between commercial and residential real estate when it comes to investing?
There are a few advantages you might want to consider.
First, when compared to residential investments, commercial real estate is typically much less volatile.
This is because commercial properties tend to have longer term lease agreements than residential properties, which means that they're less susceptible to changes in the market.
Second, commercial real estate can provide you with a steadier stream of income.
This is because commercial tenants are usually businesses that have a consistent need for the space, as opposed to individuals who may move more frequently.
Finally, with commercial real estate, the tenants have a vested interest in keeping the property well-maintained and looking its best because they want to attract customers to their businesses.
This can lead to lower maintenance and repair costs for you as the owner.
If you're looking for a more stable investment with a potential for higher returns, commercial real estate may be a good option for you.
Create your EquityMultiple account below to get started!
If you're not an accredited investor, you can check out Streitwise. This is another great commercial real estate investing platform you can use to invest $300k and earn a healthy return.
Invest in REITs
REITs, also known as real estate investment trusts are a great way to invest in the real estate market.
They work by allowing you to purchase shares of a company that owns or operates income-producing real estate.
This can be a great option if you want to invest in the real estate market but don't have the time or resources to do it yourself.
Returns on REITs can be around 10% to 12%. You can purchase them through an app like Acorns or M1 Finance.
Grow Your Money with a High Yield Savings Account
If you have $300k cash and you aren't sure what to do with it, your first choice should be to open a high yield savings account to store your money safely.
While the returns are nothing special, this is a safe way to make a little money while keeping your money in the bank.
My favorite account is through CIT Bank. With this bank account you can earn over 10 times the national average in interest.
Invest in Bonds
Bonds can be a great way to invest $300k because they can be lower risk and provide some much needed stability to your portfolio.
Bonds are essentially loans that are given to a government or company at a fixed interest rate that is paid out to you.
As for returns, it's all about how much risk you're willing to take.
For example, government bonds tend to be the safest investments but will have a much lower interest rate. In turn, corporate bonds can have a much stronger interest rate, but they can also come with more risk.
You can mix your bond portfolio depending on how much risk you want to take on. If you're interested in bond investing, this guide does a great job of explaining how to get started or check out the video below!
Invest in Mutual Funds
Another popular stock market investment is mutual funds.
Mutual funds are a collection of different stocks and/or bonds that are managed by a professional.
The great thing about mutual funds is that they offer instant diversification. This means that you will be investing in many different stocks instead of just a few.
The main drawback to mutual funds is that because they are actively managed, they tend to have much higher fees that can offset any potential difference in returns.
Invest in Peer to Peer Lending
Peer-to-peer lending can be an excellent investment option to diversify your portfolio and earn some extra money.
With this investment, you can loan money to others in exchange for a fixed interest rate return on your money.
With this investment, you can choose how much risk you want to take on, as well as how much interest you want to earn.
Lending money to someone less creditworthy will result in a higher interest rate, but also a higher risk of default.
On the other hand, lending money to someone more creditworthy might result in a lower interest rate, but also a lower risk of default.
Thus, you can tailor your peer-to-peer lending investment to fit your own personal risk tolerance and investment goals.
There are plenty of peer-to-peer lending platforms out there, but my favorites include Lending Club and Peerform.
Invest in Art
Art investing can be an excellent method to add some diversity to your investment portfolio while also obtaining strong returns.
Investing in art hasn't always been a mainstream investment option until recently. Previously, you would need millions to purchase famous pieces of art. But thanks to platforms like YieldStreet you can invest in art with much less.
The big advantage with this investment is that it helps to diversify your assets so you don't keep all of your eggs in one basket.
Get started with YieldStreet below!
Invest in Digital Assets
Digital assets like an online business can be a great way to invest $300k for the future.
Online businesses can be purchased for less than $5,000 so you'll have more than enough money to get started with this investment.
Investing in an asset like a business can be a great way for individual investors to diversify their income.
Try Dividend Investing
While I don't recommend using dividend stocks as your only investment, they can be a great addition to your portfolio to earn passive income.
There are many companies that pay dividends, and these dividends can be a great way to increase your overall returns.
Dividend stocks can produce a consistent income that is perfect for retirement savings.
Whether you want to make $500 a month in dividends or $100 a month in dividends, it's a great investment that produces routine income.
Have you claimed your free $10 to invest with from Acorns? Click here to get started!
Invest in Growth Stocks
Another way to get paid from your money is by investing in growth stocks.
When you buy shares of growth stocks, you're hoping that the company will grow at a faster rate than the overall market.
Growth stocks can be a little riskier than other types of investments, but they can also produce the highest returns.
Some examples of growth stocks include companies like Apple, Amazon, or Lululemon.
These stocks don't pay high dividends, but they have the potential to generate large gains over time.
Invest in Precious Metals
Another safe investment for your cash are precious metals like gold, silver, or platinum.
These metals are a great way to protect your money from inflation and they are a tangible asset that stores value well.
The disadvantage to investing in precious metals is that the prices can be very volatile and it can be difficult to sell them when you need to.
This can be a smart way to diverge some of your cash into another asset so you don’t put all of your eggs in one basket.
Invest in Retirement Accounts
While retirement accounts aren't necessarily a specific investment, they can be a superb way to build wealth and save money for retirement.
Retirement accounts like a 401k or IRA are a great option to invest in the stock market for later in life.
With these accounts, you can often get tax breaks for investing, which can make them even more attractive.
If your company offers a 401k, you should definitely consider contributing to it if they offer a company match. This is essentially free money invested for you that can add up over time.
Just be sure to consider the taxes and penalties you can face if you withdraw from these accounts too early.
How to Invest $300,000 in Real Estate
If you want to invest $300k in real estate, there are plenty of options to make more money and grow your net worth.
Because you have a decent amount of money to invest, I would recommend purchasing a rental property that you can rent out and collect monthly payments for the house or using a platform like Realty Mogul.
Rental properties can be a great idea to reach financial success when managed correctly. You'll want to pay attention to your local real estate market to understand what areas are poised for growth and which areas to avoid.
Another option is to invest in commercial real estate with EquityMultiple. This platform requires more money to be invested but with $300k to invest this won't be an issue. With EquityMultiple you can easily invest in commercial real estate to grow your money.
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Monthly Return on $300k Investment
Investing $300k can yield great monthly returns depending on the investments you choose.
It's also important to remember that monthly returns are different than annual returns.
If you invest $300k and earn a 10% return, this would amount to $30,000 annually or $2,500 in monthly returns.
If you invest $300,000 and earn a 5% return, your monthly income would amount to $1,250.
It's also important to think about how inflation will affect your returns. In the US, the Federal Reserve has a target inflation rate of 2% each year. This means that every year one dollar will be worth 2% less. If inflation is higher, your returns might be worth less.
Final Thoughts on How to Invest $300k
There are a plethora of ways to invest money, but when you have $300,000 to invest you'll want to be sure you're making the best investment so you don't lose money.
Between the stock market, real estate, and a mix of bonds, you can find a great investment option to fit your needs.
Just be sure you're doing your research and not investing in something blindly!
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