{"id":21308,"date":"2024-02-09T17:21:09","date_gmt":"2024-02-09T17:21:09","guid":{"rendered":"https:\/\/www.webmonkey.com\/how-to-invest-200k-9-realistic-methods-to-try\/"},"modified":"2024-07-16T18:47:43","modified_gmt":"2024-07-16T18:47:43","slug":"how-to-invest-200k","status":"publish","type":"post","link":"https:\/\/www.webmonkey.com\/how-to-invest-200k\/","title":{"rendered":"How To Invest 200k – 9 Realistic Methods To Try"},"content":{"rendered":"

I talk about how to create passive income a lot on WebMonkey.<\/p>\n

In fact, I'd say trying out new passive income ideas<\/a> is one of the main reasons I even started WebMonkey in the first place.<\/p>\n

And when it comes to creating new income streams for yourself and building wealth, investing is certainly one of the most common strategies out there.<\/p>\n

But if you have a large lump sum to invest to create income<\/a>, it can be difficult to know exactly where to start.<\/p>\n

So in this post, I'm covering some of the best ways to invest 200k<\/strong>.<\/p>\n

If you're wondering how to invest $200,000 and want to explore several opportunities, this is definitely the post for you.<\/p>\n

Let's get to it.<\/p>\n

The Best Ways To Invest 200K<\/strong><\/h2>\n

One quick note before jumping into the different ways to invest 200k.<\/p>\n

You should always consider your financial goals, risk tolerance, and how passive you want different investment ideas to be before proceeding.<\/p>\n

Additionally, note that I'm not a certified financial planner and that you can always talk with a financial planner or wealth advisor to get more tailored advice for your specific situation.<\/p>\n

With these notes in mind, let's dive into different options for how to invest $200,000.<\/p>\n

1. Real Estate<\/strong><\/h3>\n

One common strategy for investing $200,000 is to invest with real estate investing platforms<\/strong>.<\/p>\n

With these platforms, you can buy shares in income-generating real estate properties and then earn income through dividend payments and from your shares appreciating.<\/p>\n

Typically, real estate investment companies companies invest in multi-family homes or commercial real estate to generate rental income.<\/p>\n

Overall, the entire process is pretty similar to investing in real estate investment trusts (REITs), although there are plenty of these companies on the market these days.<\/p>\n

One popular player in the space is\u00a0Fundrise<\/strong><\/a>, and this platform lets you invest starting with just $10.<\/p>\n

\"invest-with-fundrise\"<\/strong>Fundrise invests in a variety of properties that generate income and pays shareholders with quarterly dividends.<\/p>\n

Historically, Fundrise returns about 8% per year<\/strong>. You pay 1% in management fees, which is fairly standard in the world of real estate crowdfunding.<\/p>\n

Fundrise can have higher-performing years however, and in 2021, the platform returned 22.99% on average for investors.<\/p>\n

But the nice thing about Fundrise is you only need $10 to start investing, so it doesn't have to make up your complete $200,000 investing strategy.<\/p>\n

Ultimately, companies like Fundrise provide an easier way to add real estate to your portfolio, so it had to make the cut for this list of ways to invest 200,000 dollars.<\/p>\n

Learn more about investing with Fundrise!<\/strong><\/a><\/p>\n

Disclaimer: This is an endorsement in partnership with Fundrise. We earn a commission from partner links. All opinions are my own.<\/em><\/p>\n

2. Dividend Stocks<\/strong><\/h3>\n

Another common strategy for investing 200k is to invest in dividend-paying stocks.<\/p>\n

Plenty of financial independence retire early (FIRE) advocates enjoy this strategy, and the idea is to invest in companies and ETFs that pay you a regular quarterly or annual dividend.<\/p>\n

You can then reinvest your dividend income back into additional shares or potentially use the income to help cover annual living expenses.<\/p>\n

This is also where the power of time and compound interest can really work some magic<\/strong>.<\/p>\n

For example, take a look at this dividend income calculator from Market Beat<\/a>:<\/p>\n

\"Dividend<\/p>\n

It shows how investing $200,000 into dividend stocks with a 5% annual dividend yield can generate $1.6 million and $82,000 in annual dividend income after 20 years.<\/p>\n

Granted, this calculator assumes a few figures<\/strong>:<\/p>\n