Having $200,000 to invest puts you in an enviable position. It is a large enough sum to provide you with useful additional income, or if you don’t need to touch the capital, a significant base for capital growth. Either way, if you want to see this amount grow, you’ll need to invest it.

The best way to invest your money depends on your circumstances, your age, future financial needs, etc. We will make no assumptions about your situation here and so look at general investment opportunities. It’s then up to you to decide which option is the best one for you.

Bank Account

At current rates of interest, putting your money in a bank account is little better than hiding it under your mattress. You may well find that inflation eats away at the interest your money earns. 

Keeping a healthy balance in your bank account, is always a good idea, but an account is not a good investment vehicle. You can do more constructive things with your money.

Buy A Business

This option might suit those who want to be directly involved with their investment. You could start your own business—plenty of people do, and some make a success of it. However, many people end up losing a lot of money.

One option that you might consider is opening a franchise. There are plenty of franchises that cost under $200,000 to open and some even provide the opportunity for multi-franchise ownership. If you choose a recognized name in a sector that suits you and you run it right, you could be wildly successful. 

Of course, running any business is hard work. This option is best for those who want to continue working. Although, having said that, you can employ a manager to run the business for you and operate as a semi- or fully-absentee owner. 

Buy Real Estate

You can make plenty of money in real estate. It’s a classic investment scheme. However, it is an area that you should research very carefully. In some areas, you can buy a lovely property for $200,000. In others, this amount will only get you something that needs a lot of work. 

Let’s look at two ways to invest in property.


Flipping consists of buying a property, fixing it up, and reselling at a profit. Some people re-invest the original stake plus profit into buying another, better property. They repeat this process and can end up making a lot of money. This investment technique best suits people who can do much of the work themselves.


You can buy a property and rent it to tenants. This can generate a useful income. You should make sure that the rent you charge covers your costs and makes you a profit. Rental properties often have a high turnover of tenants. Be prepared to have some periods when your property stands empty.

Use a property management company if driving to your property regularly is a hassle. Although it is an additional cost, using a third party gives you peace of mind and ensures that someone can address your tenants’ needs quickly and thoroughly.

Any property investment is risky and can leave you out of pocket. You need to do a lot of research before you decide to take this path.

Buy Cryptocurrency

Not for the faint-hearted. 

Bitcoin is the world’s largest cryptocurrency and offers the possibility of a high return on your investment. However, the market is very volatile, and you can lose a considerable amount of money. Personally, I would be wary of investing in this sector until things settle down—if they ever do. 

It is definitely not for the cautious investor.

Invest In Gold

Investors have long considered gold (and other precious metals) a safe investment in uncertain times. Remember that if you invest in gold stocks, you are not investing in gold itself. Your money is going to a company that, for example, mines gold. These companies are as exposed as any others. 

If you buy physical gold and then sell your coins or bullion, you will pay capital gains at the collectables rate. You should be aware of the applicable tax rate.

Gold may appreciate over time, but it does not provide a consistent, regular return. It is, therefore, a safe haven but not a strong investment performer.

Invest In The Stock Market

If you have a 401k or private personal pension scheme, you already invest in the stock market. Investment management happens behind the scenes.

The stock market offers opportunities for every investor, from the most cautious to those who get an adrenalin rush from high-risk moves. Any investment carries some degree of risk. By definition, we are talking about future possibilities, and the future is uncertain.

Nevertheless, investing in such products as the S&P 500 index fund in the US and the FTSE 100 in the UK gives you a portfolio invested in some of the respective countries’ best-performing companies. Over time, these funds may return around 10% annually. If you consistently plough back your profits into the fund, you will see a very healthy return in a short time.

You can invest in individual stocks yourself as well. If you stick with blue-chip stock, then you should make a healthy profit from dividends.

If you had invested your $200,000 in Amazon when stocks came on the market in 1997, it would be worth considerably more than $240 million today. Not bad. Unfortunately, not all companies are Amazon, and FTSE and S&P 500 won’t give you these kinds of returns. But it should be a safe and profitable investment nonetheless.


As I said at the beginning, which is the best investment for you depends on your circumstances. Personally, I would choose a well-managed fund on the stock market. These are broad-based and lessen your risk. 

In any case, it is best not to put all your eggs in one basket. All investments have some element of risk, so you want a broad portfolio. An investment fund will offer you that.

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