What to do With $100,000: A Comprehensive Guide to Effective Investment
Knowing where to start is often the toughest part of any decision tree, so we have created this guide to give you somewhere to begin.
We have chosen $100,000 as an illustrative figure because our expertise lies in serving high-net-worth investors, but you can substitute out this amount for whatever you have. In this blog, we will discuss three different investment ideas that could potentially lead to a more Effective Investment.
Remember that all investment carries risk and you might get back less than you put in.
1. Capitalize on the Stability of Traditional Investments:
This is an approach for the highly risk-averse. If you are an investor who wants high stability, and you value the likelihood of stable but much smaller returns – this might be the option for you. Traditional investments include assets like equities, fixed-income securities, and bonds.
As an elementary principle of investment, diversification is key to risk management. Here’s how the low-risk investor might want to go about that:
Equities & Fixed-Income Securities: You could allocate a part of your capital to a diversified portfolio of equities and bonds. This strategy leverages the long-term growth potential inherent in the equity market, complemented by the relative stability offered by bonds.
To give you an idea of returns, as of the latest data collected in July 202023, the US 2-Year Government Bond has a 4.961% yield.
2. Future-Proof Your Finances with Retirement Accounts:
Another option that you might want to consider alongside traditional stock and bond investing would be to maximize contributions to tax-efficient retirement accounts, like 401(k)s and IRAs. Although this strategy does not provide immediate returns, the compounding benefits over time can be substantial.
3. Diversify Further with Alternative Assets:
In search of a more unconventional approach? Alternative assets offer unique investment opportunities beyond traditional means, enhancing portfolio diversification and offering the potential for significant returns. To compare with the current 2-year treasury bill we discussed above, our own 2-year MCA note aims for a return of 12%.
Alternative assets have several unique and valuable qualities, which is why their popularity is skyrocketing. Alts can provide low correlation with traditional assets, diversification, inflation protection, and a range of long-term and short-term options. Among these alternative assets, Merchant Cash Advances (MCAs) stand as a promising option.
Unlock the Potential of MCAs with Supervest:
Merchant Cash Advances represent an innovative form of investment, promising immediate, daily returns at competitive rates. In essence, you advance capital to a business, and they repay this sum, plus a premium, from their daily revenues, establishing a mutually beneficial relationship. You can read a deep dive into exactly how MCAs work, start to finish, here.
Choosing Supervest as your MCA investment platform further streamlines this process and mitigates potential risks. Here’s how:
- Immediate Daily Returns: Unlike many investments that require extended waiting periods for returns, MCAs via Supervest offer daily returns.
- Competitive Rates: Supervest’s return rates frequently exceed those of traditional investments, allowing your $100,000 to deliver optimized performance.
- User-Friendliness: Supervest simplifies the MCA investment process, ensuring that complex financial landscapes become less daunting.
- Risk Diversification: With Supervest, your capital is distributed across a diverse range of MCAs, thereby effectively reducing individual investment risk.
Investing in MCAs with Supervest might be a superior strategy for you if you are looking for diversification, competitive returns, and the realization of those returns in a shorter timeframe.
Each investment decision, however, requires comprehensive research, a clear understanding of your own financial capacity, and an assessment of your risk tolerance. It is highly recommended to consult with a financial advisor.
If you are looking to transform your $100,000 into a more substantial Effective Investment, you may want to think about alternative asset investing. Experience the unique potential offered by MCAs with Supervest here.
