Do you remember the time when you were little and received a huge amount of money from any of your relatives as a gift for either achieving good grades or maybe something else? If you do, you must remember that as a child you usually have definite likes or dislikes and therefore you wanted to spend the money on buying your favorite toy or getting the new costume dress of your favorite character.

Well, things do not remain the same as you grow up and the same is the case when you have a huge amount of money when you are an adult. Imagine, you either cracked a really good deal or have saved the money over the time till you managed to save up one million dollars.


Now, you are not a child anymore which means you have a rather complicated set of priorities, resulting in making you extremely confused and unsure about how to spend the money. As an adult, mostly our priorities in such situations are to invest the money instead of spending it aimlessly.

But, when you come finally make a decision of investing one million dollars, you suddenly fall short of ways of doing it. There may be a hundred ways of making investments, but which will be safe and beneficial for you, is usually not easy to determine.

There are several things that one must consider before pondering over how to invest the one million dollars. We will cover those important things that need to be factored in before moving on to the ways of investment.

What are your financial objectives?

You cannot begin new things without establishing clear goals, and if you do so there are high possibilities of facing failure. And, when it comes to investing money and that too the mighty one million dollars, you must have at least an outline of what your financial goals are.

For example, if your goal is to save money for college funds of the future generation, then you can save those one million dollars for them that can cover the entire education of many children, grandchildren, or even great-grandchildren.

If you have a life aim of beginning your start-up or making an investment so the cash keeps rolling in, you can utilize the money there. In short, there are tons of ways the money could be spent but you need to have clear financial goals to make the right decision for using it.

When do you want to make use of the investment?

It is important to make a rough estimate of the timeframe you would be needing to get benefits from your investment. You are obviously not investing this huge amount just for the sake of investing only, but you rather want to make use of the return that you will be getting from whatever endeavor you put your money into.

Therefore, you must take the durability into account how long it will take till your investment starts rolling in.

If you are wanting to invest in something that will generate profit for your lifetime, you would want to look for means accordingly. If you want to access the money within only a few years, you must look for short-term schemes.

Hence, you can steer clear of facing any financial loss by making sure that you have established financial goals and know when you would need the invested money for them.

How much can you afford or endure to lose?

The third and last factor in the list of important factors to be considered is risk tolerance. This factor is basically about how much you can afford to lose the investment. If you can, your risk tolerance is high and if you cannot then your risk tolerance is low.

If you invest depending upon your risk tolerance, you would eliminate the factor of facing any dire consequences later in the future.

How to invest a million dollars?

Now that we have all the factors-to-be-considered out of the way let’s move on to that one million dollar question of how to invest 1 million dollars. The following are some of the ways through which you can make use of the money.

Private Lending

Private lending yields more benefits than you can ever imagine. You can earn a lot if you lend small portions of one million dollars to different individuals at the same time. This way, the mark up that you put on each given loan, can give you a huge profit.

Business Investment

The most common way of investing a considerable amount of money is starting a new business venture. That being said, you must be very careful while opting for this as 20% of small businesses go belling up in their first year, which is an alarming rate because the failure occurred in so initial stages of the business.

Nonetheless, 80% of the businesses do succeed which makes this investment a good option as well.

Investment In Real Estate

Probably, one of the safest investments there has to be is real estate investment. You can purchase multiple properties with one million dollars and can put each of them up for rent. This way, you will earn immensely in each month that will keep the cash coming in without you doing anything.

Stock Market Investment

The other most profitable investment can be a stock market investment. The wise way of investing stocks is not limiting your exposure to one industry instead of buying stocks in multiple different industries. That way, you greatly minimize the risk of facing huge loss as a loss in one industry can be compensated by other industries’ profit.

Other Ways of Investing

If you are settled for any of the above investment schemes, you can go for investing in bonds and crowdfunding. No matter how you invest the money, just remember to first evaluate each financial factor and be mindful of every single thing before you invest such a large sum of money.

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