How To Invest 100K To Make $1 Million in 10 Best Ways

What would you do if you have $100k in your hands? You might want to start a retirement fund or a savings account for future large-scale purchases. Either way, you would surely be interested to know how to invest 100k to make $1 million.

It is possible to eventually hit the 1-million mark and be a millionaire by considering smart, time-honored financial strategies to increase your capital. 

Let’s explore varied ways of investing your $100,000 to make $1 million by doing a self-assessment first and looking at some platforms to help you invest. Let’s do this!

How to Invest $100K to Make $1 Million – Growth Investments 

1. Growth Stocks

Growth stocks are investments in the company for which you get a return in the form of dividend payments every time the company makes a profit. The profit generated is then invested again in the company with high chances of success in the future. 

Growth stocks are usually with companies that are new to the market or haven’t reached their maturity stage yet. For example, Lululemon is a company that provides its investors with growth stocks and has record revenues generated in the past few years. 

A great way to get started with growth stocks is to find companies that offer free stocks when you sign up with their platform. Everyone likes free stuff, right? In that way, you’ll already have a portfolio to start with and different platforms to invest your $100K. 

ExchangeBonusRequirementsSign Up
Public Logo StockUp to $3,000 in Free Stock when you use this linkMust use our linkGet FREE Crypto!
Bux Logo Stock1 Free Share (up to $200 value)Must use our link and make a deposit – Europe OnlyGet FREE Crypto!
SoFi Logo Stock$25 in Free StockMust deposit at least $100Get FREE Crypto - Android

Get FREE Crypto - iOs

2. Index Funds

Index funds are a low-risk way of investing your money in the stock market. 

They are a bit different from mutual funds as they invest in a specific list of securities that include stocks of S&P 500-listed companies. 

Warren Buffet, a legendary investor, says that index funds are a haven for savings for later life. He further suggests that you should buy all S&P 500 companies at low costs offered by the index fund

Here are some different index funds to check out:

With $100k, you can easily buy a well-diversified index fund. The stock market grows at around 7% to 10% annually, so reaching $1 million would take around 35 years to reach the $1 million mark. 

The process is slow, but the risk of loss is quite low compared to other investment options.

3. Mutual Funds

Investment advisors manage mutual funds, which work similarly to index funds, but the portfolio does not specifically target S&P 500-listed companies. These funds are managed by professional money managers, who allocate the assets to make capital income or gains for investors. 

The portfolio is maintained and structured according to the objectives stated in the prospectus. 

If you have a $100k budget for investing, you can easily buy a mutual fund from the top schemes or arrangements. 

Keep in mind the investing fees in these funds are higher than in index funds. 

4. Exchange-Traded Funds (ETFs)

ETFs are the most recommended funds by financial advisors because of their low cost and balanced portfolio. You can buy ETFs from the stock market through a traditional brokerage or retirement account. 

In addition, ETFs are considered low-risk investments, just like index funds, but one advantage of buying ETFs is that you can trade them at any time of the day. 

On the other hand, you can only trade index funds at the end of the trading day. 

5. Non-Fungible Tokens (NFTs) 

NFTs are individual tokens that contain some valuable information inside them. Their value depends upon the market and how much people demand the particular token. 

Just like any other art, they can be easily bought or sold. What makes them unique is data verification. The token or art you have cannot be copied by any other person. 

Also, the transfer of ownership is flawless, making it easy for you to buy and sell NFTs at the right time to generate quick profits.

The downside of investing in NFTs is that not all marketplaces accept payments in fiat currencies, so you will have to use Ethereum to buy them.

6. Cryptocurrencies

Cryptocurrencies have high risks, but many people have made a fortune with them in recent years. If you want to convert your $100k into $1 million quickly, try investing in cryptos. 

Before you invest, we highly recommend you study how cryptocurrencies work

Start learning the basics, and then move on to learning crypto charts. Once you gain enough knowledge about different digital currencies, you can predict their trends. 

Be careful with cryptocurrency, as they fluctuate heavily. Avoid investing more than 5% to 10% of your capital in cryptocurrencies.

Coinbase, Binance, and Crypto.com are among the best crypto exchanges you can start trading.

To get free cryptocurrencies, sign up on these crypto exchanges and start investing in cryptocurrencies:

ExchangeBonusRequirementsSign Up
Crypto.Com Logo Stock$25 in Crypto.com Coin (CRO)Must use our link, open account with referral code usmefwh2jp, and stake CROGet FREE Crypto!
SoFi Logo Stock$5 in Free CryptocurrencyMust use our link and open SoFi Invest Android or SoFi Invest iOs account, then redeem a $5 bonus to a new SoFi Crypto accountGet FREE Crypto - Android

Get FREE Crypto - iOs
Celsius Logo Stock$50 in Free BitcoinMust use our link and deposit at least $400 of crypto within 30 daysGet FREE Crypto!
Nexo Logo Stock$25 in Free BitcoinMust use our link and buy at least $100 of crypto within 30 daysGet FREE Crypto!
Gemini Logo Stock$10 in Free BitcoinMust use our link and buy at least $100 of crypto within 30 daysGet FREE Crypto!
Coinbase Logo Stock$10 in Free BitcoinMust use our link and buy at least $100 of crypto within 30 daysGet FREE Crypto!

How to Invest $100K to Make $1 Million – Income Investments

7. Bonds

Bonds are one of the safest ways to invest. 

There are several types of bonds that you can invest in based on your risk tolerance. The bonds that are safer to invest in do not offer high returns. 

There is no risk of losing your principal if you invest in government bonds. Still, some risks, such as interest rates and inflation, can cause the return rate to decrease drastically. 

Other bonds with higher yields are corporate bonds, but they come with a much higher risk. 

8. Peer-to-Peer Lending

Peer-to-peer lending is the simplest way of making money without working. All you need to do is to lend your money to peers and let them do the work. You can get regular payments with interest on your income until the whole balance is cleared. 

The risk involved in this type of investment depends upon the borrower’s credit score. The returns on P2P lending can allow you to make around 10% profit annually. 

However, if you want high-yield offers, you will have to rely on low-credit score borrowers. 

9. Real Estate Investing

Investing in real estate can sometimes take a lot of work to understand. In this ever-growing world, even real estate investment techniques have evolved. 

You can invest in real estate without completely owning the asset. Real Estate Investment Trusts (REITs), which are traded much like mutual or index funds, are companies that own and finance income-producing properties. They generate income streams for investors but offer little capital appreciation.

If you want to be on the safer side, we recommend investing in REITs. But, if you can afford to take some risk, $100k can easily buy you a property to generate profit in the long term. 

You can also buy more expensive properties by using crowdfunding or joint ventures.

10. Start a New Business 

Starting a new business with $100k is risky, but if it succeeds, there is nothing better. Succeeding with a new business requires motivation and desire, which helps the person set goals and plan to achieve them. 

Before investing, make sure that you have a business model, good information about your target market, and the financial and legal aspects of starting a business. 

In addition, the product or service you have chosen for your business must solve a societal problem or fulfill a need, which is the main reason behind the success of every major brand in the market. 

Examples of businesses to start are:

Things To Do and Consider Before Investing $100K

What Kind of Investor Are You?

The first and most important thing you need to consider before investing your $100k is what kind of investor you are. 

There are 3 types of investors. First are the ones who like to take help from robo-advisors. Many firms provide them for a low cost to manage your portfolio. 

The second type of investor likes to depend on their financial advisors. Financial advisors can be expensive, but they reduce the overall risk. 

Lastly, some investors like reading market trends and making their portfolios personally.

Some of the investment options that you may try are:

  • M1 Finance. A stock and ETF brokerage, M1 Finance lets you invest for as low as $100. Read our full M1 Finance review and learn the services that it provides.
  • Peer-to-peer lending.  If you’re located in the U.S., Fundrise is the place to start. You only need $10 to set up your portfolio. Fundrise lets you invest in private commercial and residential properties to build up your passive income portfolio. Read the full Fundrise review for more details.
  • Crowdfunding real estate. Open an account for EstateGuru if you want to invest in real estate. Here is our full EstateGuru review for more information.
  • DEGIRO. A brokerage firm like M1 Finance, DEGIRO is based in Europe. For more information, read our full DEGIRO review and start investing.
  • Mintos. This app is a peer-to-peer lending platform. Use this link for a 1% cash back in the first 90 days. Check out our complete Mintos review here.

How Much Risk Can You Take?

Man Investing MSN computer working stock market
Image Credit: iwatchwater/Depositphotos.

Similar to the types of investors, the risk-taking ability also varies from person to person. Analyze your investing technique and determine if you are an aggressive, moderate, or conservative risk taker. 

No matter how much risk is involved while investing, ensure you have it all calculated.

Do You Have Control Over Your Emotions?

Some people go under high depression and stress if they lose their hard-earned money in investments. We advise such people to invest more in income investments where the risk of loss is low. 

What Is Your Time Frame?

The time frame is the length of time you can keep an investment. It is one of the keys to successful investing, as you need to set a specific time to expect desired returns. 

The actual returns are not always equal to the expected returns, but getting a value close to it is a step in the right direction.

Frequently Asked Questions (FAQs) – How To Invest 100K To Make $1 Million

How Much Should I Invest Monthly to Become a Millionaire?

Experts suggest investing $1,500 a month is a good amount to become a millionaire. Correctly investing such an amount will allow you to become a millionaire in less than 20 years.

Is It Hard to Make $1 Million?

Making your first $1 million is the hardest; however, the journey ahead is much easier once you achieve that. 

It also depends on where you start. Even if you begin with $500,000 in assets, it takes a 100% return to reach $1 million.

What Can You Do With $100K?

With $100k, you can either buy all the luxury items you want in the world or turn the money into 1 million by investing it in the right place. 

Examples of doing this include investing in the stock market, peer-to-peer lending, real estate investing, or starting a new business. 

How Can I Invest $100k?

The best way to spend your $100k is to invest it in one or more than one of the following investments:

  • Growth stocks
  • Index funds
  • Mutual funds
  • ETFs
  • NFTs
  • Cryptocurrencies
  • Bonds
  • Peer-to-peer lending
  • Real estate investing
  • Dividend stocks

What Is the Best Investment Right Now? 

Some of the best investments are: 

  • Non-fungible tokens (NFTs)
  • Cryptocurrencies
  • Real-estate Investing
  • Stocks 

Conclusion – How To Invest 100K To Make $1 Million 

While there is no secret formula for turning your $100K into $1 million, consider the investment options listed here. 

However, don’t get your hopes high that you will do that quickly. You may or may not seek the help of financial advisors, but either way, be prepared to take risks inherent in investing. 

Being self-aware and well-informed about your financial goals and the investment market will give you a good head start. A smart investment strategy and patience will help you realize your $1M goal. 

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