What to do with 100k: The Experts’ View

Whether you really have received an unexpected 100k or you’d just like to fantasize about it, it’s worth figuring out how to put such a large sum to good use.

Among these 21 gems, you’re sure to find something that applies to your life.

1. Rental Properties and Swing Trading

Since we’re on my blog, it only seemed proper to start with myself here. First, I’d use a portion of it towards a downpayment on another condo (I already have a portfolio of rental properties).

2. Open a Brokerage Account with a Robo-Advisor

“If I received $100k in 2021, I would probably invest it in a brokerage account with a new robo-advisor. Currently, I use Schwab for all of my personal investing, but I’ve been wanting to give Betterment or M1 Finance a try as well. I’ve heard great things about both, and think Betterment could add some additional value because of their automatic tax-loss harvesting.” Kevin, Just Start Investing

3. Pay off debt or buy rental properties

“In general, how I would spend $100k would depend upon my current situation in life. My first priority would be to pay off any consumer and student loan debt. If I was early in my real estate career, I would use the money as down payments for two rental properties, such as a condo or townhouse. However, if I was done acquiring investment properties, then I would use the money to help off pay off the best performing one.” Jonathan Sanchez, Parent Portfolio

4. Invest in bonds and gold

“Since the current asset allocation in my portfolio is a bit more heavily weighted towards stocks than I’d like given my age and financial situation, I’d probably split it between gold and individual bonds I’d hold to maturity (maturity dates between 3 & 5 years from now, yields to maturity of at least 3% but still investment grade by one or both of S&P and Moody’s).” Susie Q, Financial IQ by Susie Q

5. Invest using dollar-cost averaging

“The challenge with investing a large sum of money is the risk that a market crash could occur. It is also hard to time the market. Although mathematically lump-sum investing has produced the best results, I would dollar cost average using my favorite platform M1 Finance. It has zero fees, automated investment with automatic rebalancing, pre-built asset allocations, and fractional shares.” John, Financial Freedom Countdown (FFC)

6. Pay off the mortgage and invest in index ETFs

“I’d take 50% to pay down the principals of my mortgage and invest the remaining 50%. I’d invest the majority into index ETFs, but I’d like to leave a small portion for individual stocks.” Bella Wanana (founder of website of the same name)

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