How to Invest $100K in Cash and Grow Your Wealth

Having $100,000 can jumpstart your plans for long-term wealth if you invest it in the right places.

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For many people, having money to invest can be the biggest hurdle when it comes to adding to your income and generating wealth. However, if you’ve already got money set aside for investments, the next biggest question is: where do I invest it?

If you’re faced with this dilemma and have $100K or $50k to invest at your disposal, you’ve come to the right place. 

This guide includes several opportunities you can take advantage of to turn that $100,000 and double it in the next few years. The best part is that you don’t have to choose just one investment.

Instead, you should consider diversifying your investments to make the most of your resources. By diversifying, you can potentially reduce the volatility of your portfolio and increase your chances of achieving your long-term investment goals.

When you invest $100,000 into several opportunities at once, you can also begin to see which investments are bringing in the highest returns. You may even decide to switch up your strategy at that point and double down on your investment efforts. It all depends on what investments you’re comfortable with and how they perform. 

Are you ready to see how you can invest $100K? Let’s get started!

How to Invest $100K

Each of the following investment opportunities comes with its own set of rules, regulations, risks, and rewards. Keep a list of the investments that strike your fancy to learn more about them and determine where and how you’ll invest.

1. 529 College Savings Plan 

Saving for college starting when your kids are young can help you prepare for this large expense. 529 college savings plans allow you to do just that. The funds you contribute to these plans can be used to pay for housing, books, and even tuition.

Depending on which 529 savings plan you choose and the state you live in, you or your child may also be eligible for additional incentives. Some plans even stipulate what age your child has to be to remove funds. If you have children and an extra $100K to spare, consider a 529 college savings plan. 

2. CDs

Certificates of deposit (CDs) can help you make money by simply loaning the government funds for various purposes. Investors tend to incorporate a CD into their portfolio as a safe and low-risk method for diversification. These funds are FDIC-insured in most cases and can run anywhere from six months at a time to one to two years or more. 

It’s important to understand that even though you can purchase a CD for a shorter period of time, most investors consider them to be a long-term investment. This is because you’ll face early withdrawal penalties if you remove funds before the certificate matures. 

At the same time, investors find ways to work around this timeframe. Though it takes some coordination, you can easily stagger your CDs to mature at intervals. This strategy does require tying up a fair amount of funds, but you can depend on it for a regular return on your investment. Check different banks and brokerage firms to find the best CD rates available

2. Focus on growth industries and stocks

If you are an aggressive investor and want to focus on growth industries and stocks, there are a few key strategies that you can use. One strategy is to look for companies or sectors that have demonstrated strong growth over time, regardless of market conditions. This might include looking at companies in the technology industries, which have historically experienced high levels of growth, or other industries that are expected to benefit from technological advancements in the near future.

Another strategy is to look for stocks in companies that have shown consistent revenue and earnings growth over time, even in times of market volatility or economic downturns. This may include looking at large-cap companies with strong balance sheets and industry-leading positions. These kinds of companies can often weather economic downturns and are likely to continue growing over time.

Overall, if you are an aggressive investor looking for growth stocks and industries in the stock market, there are many strategies that you can use to identify potential opportunities. However, it is important to do your research and carefully evaluate any investment opportunity before putting your money into it. With the right strategies and research, you can find many great opportunities to invest in and potentially achieve high returns on your investments.

3. Buy dividend stocks

If you are a more conservative investor who is looking for stocks with steady dividends and low volatility, then one strategy that may be right for you is to buy dividend stocks.

Dividend stocks are companies that pay regular cash dividends to their shareholders as a way of returning some of the company's profits to its investors. This can be an appealing strategy for more conservative investors, as it allows you to earn consistent cash income from your investments without having to actively manage them on a day-to-day basis.

There are many different factors that you should consider when buying dividend stocks, including the company's financial health, its growth trajectory, and the level of risk involved in investing in the stock.

Some key metrics to look at include the company's dividend yield, its payout ratio (the amount of dividends it pays out relative to its total earnings), and its price-to-earnings ratio.

Additionally, you should also research the industry trends in which the company operates, as well as any potential risks or uncertainties that may affect its profitability in the future.

Overall, if you are a more conservative investor who wants to earn steady dividends from your investments, buying dividend stocks may be a great option for you. With the right research and due diligence, you can find high-quality dividend stocks that have the potential to generate consistent cash income over time.

Related: 14 Best Dividend Income Trackers to Track Your Dividends

4. Invest in ETFs

Another option for more conservative investors who want stable, low-risk investments is to invest in ETFs. ETFs, or exchange-traded funds, are investment funds that track a specific index or asset class.

This allows you to easily gain exposure to a wide range of different securities without having to manage individual stocks yourself. Additionally, many ETFs are passively managed, which means that they have relatively low fees compared to actively managed funds.

When choosing ETFs to invest in, there are several key factors that you should consider. One important factor is the level of diversification offered by the fund. Different ETFs track different indexes or asset classes, so it is important to choose an ETF that offers the level of diversification you are looking for. Additionally, you should consider the fund's expense ratio, its historical performance, and any risks or uncertainties that may affect its success in the future.

Overall, if you are a more conservative investor who wants stable investments with low risk but still want to gain exposure to a wide range of different securities, investing in ETFs may be a good option for you. With the right research and careful selection, you can find high-quality ETFs that offer the diversification and returns you need to achieve your financial goals.

5. Index funds

Investing in index funds is like investing in the stock market without taking on too much risk. The risk of investing in index funds is very minimal yet the benefits are massive.

The trick is to diversify your stocks by buying the largest companies through your index fund. If are you looking for a new investing app to invest your 100k, you can try out M1 Finance which is known for its automated investing features.

Best for automated investing
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  • No fees on any of your investments
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If you are interested in buying index funds, Fidelity or Vanguard are great options as they have extremely low fees (About 0.05% of profits). I personally enjoy the Vanguard Star Fund (VGSTX) which is invested 60% in stocks and 40% in bonds.

Or if you are interested in a service that will manage the buying and selling of index funds for you and automate the process, Robinhood and Acorns are both great options that only charge low fees. All you do is set up an account, choose your risk tolerance and deposit your funds. Their service will automate the rest!

Pro-tip: There are several companies out there that will give you free money to invest in stocks or are currently offering stock broker promotions.

6. Invest in real estate

One of the easiest ways to grow your money is to invest in real estate. In our recent post about the best personal finance books, we learned about Robert Kiyosaki, author of ‘Rich Dad Poor Dad’  who learned to quickly grow his money by making down payments for rental properties and gaining profit by selling the property later at a higher price. Unfortunately, this option does require some real estate knowledge that not everyone has.

Wouldn’t it be great if you could invest in commercial real estate and apartments without dealing with all the hassle of buying, improving, and re-selling real estate? You don't have to be a millionaire to invest in these types of properties.

You can now invest in large-scale real estate for as little as $100 with Arrived Homes. Arrived is a very easy-to-use platform that allows individuals to invest in real properties for as little as $100. This option is best for users who want to make money consistently and let their money make them money.

Best for low minimum investment

Arrived is a very easy-to-use platform that allows individuals to invest in real properties for as little as $100. This option is best for users who want to make money consistently and let their money make them money.

Open Account Arrived Review

You could also invest your 100K in farmland. Investing in farmland is a profitable venture because of one key reason: land is scarce and its demand will always exceed its supply.

We reviewed AcreTrader, as well as FarmTogether, which are two of the most common platforms used to invest in farmland.


FarmTogether's crowdfunding platform is one of the few ways accredited investors can get exposure to farmland as an asset class. With decent returns and low fees, it is a compelling choice for those looking to diversify their portfolios. The minimum investment amount is $15,000.

Start Investing Now FarmTogether Review

Another way to invest in real estate is by buying a property and renting it out. With the ever-increasing inflation rate, rents will go up while your mortgage payments stay the same. This increases your cash flow and your rental yield as an investor.

7. Invest in alternative investments

Alternative investments are any asset class that is not a traditional investment, such as stocks, bonds, or cash. This can include things like real estate, private equity, art, and more.

There are a few reasons why you might want to consider investing in alternatives. First, they can help you diversify your portfolio. By including assets that don't move in tandem with the stock market, you can reduce your overall risk.

Second, alternative investments often have the potential to generate higher returns than traditional investments.

Finally, alternative investments can provide additional income in the form of dividends or interest payments. This can help you reach your financial goals sooner.

8. Peer-to-peer lending

Did you know that you could lend out money and earn passive income? Believe it or not, you can lend out money and get paid interest on your money at LendingClub.

Recently, this has become known as a great return on your money, and investors have started putting their money into peer-to-peer lending companies like LendingClub.

How does it work? By lending out your own money to peers in the form of personal loans, you are able to earn interest – similar to the way that banks and other lenders produce income. This is a way to make a direct impact on the lives of people.

The best part? It's so easy to open an account and begin investing in this passive income venture. But, think of it like this – if you put only $345 into an investing account at Lending Club and earned 14% a year (pretty easy to do at Lending Club, you'd have $180,377 saved up in 30 years!

9. Start a business

Invest your 100k in that promising business venture you put on the back burner for lack of money. If it is a high-risk business be sure to conduct research into your prospect, seek expert advice and develop a solid business plan before starting out.

Starting a business can be daunting, but with the right planning and preparation, you can make your dream of owning a successful business a reality. Some things to consider when starting a business include choosing the right industry or niche, identifying your target market and customers, building an effective marketing strategy, developing strong financial systems and hiring the right team.

With adequate planning, a supportive network, and the right attitude, you can build a successful business that provides you with the income and fulfillment that you desire.

Overall, if you are looking for an investment opportunity that has the potential for high returns but comes with relatively low risk, starting your own business may be a good option for you.

Or you can look into buying a franchise, here are the best franchises opportunities you can start for less than $100,000.

10. Rental income properties

Another good investment option for more conservative investors is to buy rental income properties. This can be a great way to generate passive income on a regular basis, as long as you are able to find the right properties and manage them effectively.

Some key factors to consider when buying rental properties include the investment property's location and desirability, its purchase price and potential rental income, as well as any management, maintenance, or legal costs that may be associated with the property.

Or wouldn’t it be great if you could become a landlord of single-family rental properties without dealing with all the hassle of buying, improving, and re-selling real estate?

You don't have to be a millionaire to invest in these types of properties. You can now find your inner property owner with Roofstock.

As with any other rental property, investors earn returns from the rental cash flow and any appreciation in the property value when it’s sold, and all without painting a wall or getting your hands dirty.

There is a reason why the number of investors on its platform increased 126% last year, the sector is booming with investors clamoring to get a return outside of stocks and bonds.

11. Short-term government bonds

These are bonds with maturities of less than five years. They don’t yield much but they have lower risk and preserve capital.

If you are looking for a safe investment option with relatively low returns, short-term government bonds may be a good choice for you. These bonds offer investors the security of knowing that their principal is guaranteed by the full faith and credit of the government, while typically yielding lower interest rates than other types of investments.

To find the right short-term government bonds for your portfolio, you should consider factors such as the bond's maturity date, interest rate, and credit rating.

Additionally, it is important to be mindful of any risks or uncertainties that may affect these investments in the future, including inflation risk and changes in interest rates. With careful research and planning, short-term government bonds can be a great way to earn a steady return on your investment while minimizing risk.

12. High-yield savings account

Though it might not seem like an investment per se, a high-yield savings account can do more for your money than a typical savings account. This is because the APY you’ll get from these savings accounts can be anywhere from 3-5% typically. Most traditional savings accounts can barely offer 1% APY, so your money has more power if you open a high-yield savings account instead. 

These types of savings accounts are also great for passive income. They’re similar to a money market account (which you can also invest in) and are FDIC-insured as well. Let’s face it, a savings account doesn’t get the senses tingling like a stock or similar type of investment, but when it comes to safe ways to earn investment income, a high-yield savings account is high on the list. 

In fact, did you know that you can earn a high rate of interest from cryptocurrency savings accounts? These accounts do require a bit of interaction with an alternative type of investment, but they can help your money work in multiple ways as well. 

13. Robo Advisors

Knowing you want to invest and devoting your free time to learning about investments are two different things. If you’re not interested in learning about stocks to the point where you could invest in them as a career, you can certainly rely on robo advisors to do the work for you. These advisors automate your investing so you can participate without having to devote your life to the practice. 

Most robo advisors will inquire about your risk appetite and tailor your plan to that assessment. Many of them will come with fees, especially if they rebalance your investments for you. If you’re looking for a good robo advisor, check out Betterment, M1 Finance, and Wealthfront. 

When Should You Invest $100K 

Having $100,000 to invest in whatever you choose can complete the definition of success for many people. However, that doesn’t mean you have to stop with $100K. Instead, you can continue to grow that wealth and achieve financial success. 

Before investing that $100,000, however, you should ask yourself the following questions: 

  1. Have I paid off all my outstanding debts?
  2. Do I have an established and sustainable emergency fund? 
  3. What types of investments am I comfortable with/knowledgeable about? 
  4. How much risk am I willing to take on? 

In addition to these questions, you can also ask yourself what goals you’re trying to accomplish by investing the $100K. While the ultimate goal might be to establish wealth for generations to come, you might consider adding another goal to the mix.

Perhaps you’d like to earn $10,000 in dividends per year or whatever your goals might be, write them down and keep them in mind as you consider how you can invest your $100K. 

Passive and Active Investing

If you want to invest any amount of money, but don’t know where to begin or how much money would be a good starting amount, then it is important that you do some research to determine what type of investor you are.

This will help you get started on your investing journey and provide you with guidance as you make decisions about the types of stocks you want to invest in or alternative investments. There are different kinds of investors, and it is important that you understand which type you belong to before investing $100K or more into the market.

One common kind of investor is what’s known as a passive investor. This refers to someone who does not actively manage their investments on a day-to-day basis. Instead, they might invest in a mutual fund or other types of investment vehicle that is managed by someone else. Passive investors are often content to let their investments grow over time and take on less risk than more active investors.

Active investing requires you to determine which opportunities you’ll take advantage of and how much you’ll allocate.

Each type of investor has different goals, so it is important that you know which one you belong to before investing a large sum of money into the market.

Related: How to Turn $10K into $100K Fast

Invest Today to Reap the Benefits Tomorrow 

We hope you’ve found this article on how to invest $100K useful in figuring out where you should invest and what opportunities are available to you. There’s no secret formula to investing any amount. Instead, you’ve got to focus on your financial goals and determine not only how much risk you want to take on, but what opportunities pique your interest. You never know when choosing the right option might even triple or quadruple your wealth.


Where can I invest $100K to earn the most?

There’s no surefire way to make tons of money by investing $10K, but there are particular opportunities that reduce risk. However, most of these opportunities (such as a high-yield savings account) are often less lucrative than other high-risk investments. 

What is the safest investment I can make with $100K?

High-yield savings accounts are often considered the safest investment, along with contributing to an IRA or similar retirement account. At the same time, a 529 college savings plan can be safe as well if you’ve got children. 

What are the best investments for beginners?

The best investments for beginners are typically passive income sources where an algorithm chooses the investment opportunities for you. Robo advisors are popular for this very reason. However, that doesn’t necessarily make them the most lucrative investments, depending on where you choose to invest your money. 

About the author

Brian Meiggs
Hi, I'm Brian Meiggs! A personal finance expert, entrepreneur, and the founder of My Millennial Guide. My drive is to help others unlock the wealth of freedom and pave the path to financial success. With my bachelor's degree in finance, I help millennials follow the smart money in order to increase their earning potential and start building wealth for the future. I write regularly about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. I have been quoted in major publications including Business Insider, Yahoo Finance, NASDAQ, Discover, GoDaddy, BiggerPockets, Fox News,, Quick Sprout, Money Geek, MSN Money and many more!