How to Invest $100,000 (Pt. 2)
4. Index funds.
With index funds, you buy the whole basket of stocks in a specific index. You get what the index returns, minus a small fee -- but keep in mind that Buffett didn't make his billions by buying an index fund.
Online investment managing service like Betterment is a fantastic option for the do-it-yourself crowd. Betterment grew from zero to
Note: While Betterment is a so-called robo-advisor, which gives online investment advice, it is no substitute for a flesh-and-blood advisor. It can't for instance, counsel you on how to set up an estate or how much insurance to buy. And in a market panic, it can't talk you out of doing something foolish. But Betterment is a good way to track your investments.
You can quickly adjust how much money you have invested in funds versus a basket of bonds. Want to lower your volatility? Invest more in bonds.
Betterment end of year results
5. Peer-to-peer lending. Growing in popularity, peer-to-peer lending is a relatively new form of investment where individuals lend money to each other for a profit.
Two companies offering peer-to-peer lending are
If you're looking to invest directly into the lives of others, this is a great way to do so.
6. Real estate. One great stock market alternative is real estate. There are so many things you can do with real estate, but you want to do your research before you start sinking cash into it.
For example, you could buy a nice house in the suburbs for around
7. Your education. Another great alternative is investing in you. You heard me right: you. Investing in yourself -- learning a new skill or attending college -- can pay huge dividends. Personal finance blogger
As you can see, there are so many ways to invest your
However you choose to invest, make sure your money is working for you -- your wallet will thank you for it.
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