Having a huge investment capital is one thing and investing said money wisely is a whole different ball game. A ten-million-dollar investment can keep you financially secure for years. This is especially true when you take smart investment paths that prioritize growth and income generation.
However, there are so many investment options that fall under this umbrella making it very difficult for investors to choose the right fit for them. Because of this, investors often enlist the help of financial advisors to help them make the right choice. While this is a smart and logical move, at the end of the day, the choice is still yours to make.
This is why you need to by yourself, know the different options available to you. You also need to know what factors to consider so you make the right choice. Hence, in this article, we will discuss these factors and 3 different ways you can invest 10 million dollars.
Factors to Consider When Making a Wise Investment Choice
It doesn’t matter whether you are investing 10 million or 10 dollars. Regardless of the amount you want to invest, it’s always important to consider certain factors to make sure you make the right choice. With that said, below are important factors that you need to consider before you make any investment.
Your Risk Tolerance
Your risk tolerance as an investor will go a long way in determining the kinds of investments you make. If you do not want to take a big risk, then you need to opt for safer investments. However, know that in most cases, the bigger the risk, the higher the profit. If your risk tolerance makes you opt for safer options, then know that you may not make a lot of money from it.
Your financial goals will also determine the kind of ventures you’ll be willing to take. Before you make any choice, you need to sit down and evaluate your goals and then think of the best options that will help you meet those goals. For example, let’s say your goal is to be financially stable after retirement.
In this case, it will be logical to make a retirement-based investment, like a gold IRA. You can visit this site to learn more about gold IRAs. Investments like these prioritize safety yet still have the potential to grow.
Liquifying some investments is very easy, while others are quite difficult to liquefy. This is why your liquidity need is another thing to consider when making the right investment choice for you. If you want to be able to turn your assets into cash easily, then stick to liquid options like stocks and bonds. But if you want to illiquid investments, then you can consider real estate, precious metals, and so on.
Investments You Can Make With 10 Million Dollars
Knowing the factors to consider when making the best choice is not enough. You also need to know the options available to you. Therefore, below, we will discuss 3 major ways you can invest 10 million dollars.
You can invest in mutual funds with a high minimum investment requirement. Because the minimum amount you can invest in these mutual funds is very high, they often come with lower fees. Mutual funds offer investors income in the form of interest and dividends. Also, finding a good high minimum requirement mutual fund to invest in isn’t difficult at all.
A major benefit of this option is that they are managed by professionals. When you invest in mutual funds, you are essentially entrusting your funds to the company. The company would in turn use research and market analysis to invest your money. Knowing that your money is in professional hands will give you a level of peace of mind.
Exchange Traded Notes (ETNs)
If you aren’t a risk taker, then this is an option for you to consider. ETNs can provide you with significant profits as long as the market is favorable, and the borrower is reputable and reliable. When you invest in ETN, the company will pay you an index or return over a specified period.
When the bond matures, the company will then return the exact amount invested back to you. Aside from not being too risky, this option comes with several other benefits that make it a great way to invest 10 million dollars. For example, it can help minimize your taxes as you only get to pay tax on it once, i.e. after selling the notes.
If you would like an illiquid asset investment, then real estate is one of the best ways to go. Typically, investing in real estate is quite expensive. This makes it a great way to invest a huge amount of money.
You can passively make money from all the methods we have discussed so far. But real estate is not quite passive; especially if you’d like to make a considerable profit off it. There are different ways to invest in real estate, you simply need to do your research and settle on the one that suits you best. However, if you opt for this option, then we recommend you enlist the help of a reliable real estate management firm.
Other ways to invest your 10 million dollars include index funds, alternative assets, preferred stocks, bonds, gold IRAs, and so on. Visit https://altinvestor.net/how-to-invest-10-million-dollars/ to read up on these other options. Before you make your choice, ensure that you take your time to do your research and find out all you can about it.
Investing 10 million dollars wisely can help you stay financially stable for a very long time. As we have seen in this article, there are different ways to invest your money wisely. However, the choice you make should be based on several important factors like your risk tolerance, financial goals, liquidity needs, and so on.