Having a hundred thousand on hand is something that many Americans can only dream of, and so you don’t want to squander it by losing it all to a series of poor decisions (or one really bad one). To make the most out of your savings, take a moment to peruse these key investing strategies for when you have 100K+ saved. For expert financial advice before you get the ball rolling, schedule a complimentary consultation with Maggi Tax!
When finding the right investment for you, you need to consider your short-term and long-term plans as well as your risk tolerance. Once you have your baseline fleshed out, it’ll be easier to move forward in choosing a solid investment strategy like the ones listed below:
1. Save With Your Retirement In Mind
$100,000 can make a huge difference in your retirement, and it’s one of the easiest solutions to investing in your future. When done right, a substantial retirement fund contribution can help you cut down on what is taxed. With that amount, you could look into converting your funds into an IRA for a more tax-friendly account. Consulting with a financial advisor can help you figure out if a traditional IRA or a Roth IRA is best for you.
2. Capitalize On Stock Market Opportunities
If you’re looking to turn a profit sooner than later, the stock market can be a very promising platform for your extra funds. Depending on how much you’re willing to risk, you could look into liquid stocks for quick profits with higher stakes. Or, you could find non-liquid stocks and bonds that can act as a more stable but prolonged source of passive income. If you’re unfamiliar with the stock market, you’ll definitely want a crash course and expert financial advice before diving right in.
3. Use This Chance To Pay Down Debt
In today’s age of rising inflation and higher interest rates, one of the smartest investments that you can make with your $100,000 is to pay off all of your debts. Being debt-free will save you much more in interest in the long run and in a way, it’ll almost be as if you are making a profit by cutting off that financial burden.
4. Establish Or Enhance Your Emergency Fund
Sometimes, the best investment is to safeguard what you already have. By that, we mean hanging onto your extra funds as emergency cash should worse come to worst. If you can help it, keeping 6 months’ worth of living expenses tucked away could potentially save your life in countless ways. Just keep in mind that a regular savings account that generates interest can be taxed like income, so you may want to discuss with your trusted financial advisor regarding best practices for reducing the taxable amount.
5. Venture On A Small Business Journey
Another way to put your $100K to good use is to start a business. We don’t need to tell you that starting a business (let alone running it) is a ton of work, and so this option should be reserved for the truly ambitious and dedicated. But if you are willing to put in the time and effort, this can be a viable way to turn your saved cash into a new source of income! Consult a professional to ensure that you’re not investing more than you need to for your business needs.
Consult With Maggi Tax For Smart Investment Decisions
There are so many opportunities to be had with $100,000 or more in savings, and we know how to suggest the best options for you! Call Maggi Tax today at (727) 799-1701 to schedule a consultation and discover how to handle your cash in a way that is tax-friendly and has the potential to bring in a profit.