Do you have 300k and don’t know how to invest it? Determining the objective of investing the money is essential, considering your financial goal. Risks are associated with the different investment options. Stocks, bonds, or mutual funds lose value when the market goes down due to high inflation.
Moreover, insured investments, including certificates of deposits, have inflation risk. Hence, you must consider the risk factors before investing in stocks, bonds or businesses. Investing 300k in a secure or steady market will be the best option for maximising potential profits.
Do you have existing savings to protect you or your family in an emergency? Then, you must think about investing in high-risk markets like cryptocurrency. Several investment options are there to reduce tax liability. Go for them if you want a non-taxable income.
If you have 300k, choosing a long-term investment option will be better. You can access the money even after your retirement. Financial advisers suggest investing in a different product than spending the entire money on one platform.
Here, we have compiled a list of options to invest 300k:
1. Stocks and Exchange-Traded Funds
Investing 300k in stocks and exchange-traded funds has benefits and drawbacks. An individual earns returns and more wealth over time if the market goes up with stock investment. Moreover, you can achieve your long-term financial goals with these investment options.
Exchange-traded funds are best for those who wish for trading flexibility and tax benefits. They have lower risk levels than stocks and are also taxed for short-term and long-term gains. However, ETFs have certain drawbacks which you must be aware of.
They are traded on an exchange, so investors must pay a fee to the broker. These fees can quickly increase if you buy small shares continuously. Some exchange-traded funds have zero trading commissions. So, you must look for an ETF sponsor or platform where you can trade for free.
Downsides of Stocks and Exchange-Traded Funds
You must know the drawbacks of investing in stocks and ETFs. Common stockholders are paid last when a company declares bankruptcy. Stockholders, creditors or bondholders get paid first if the company goes out of business.
Check the company’s financial statements and annual reports before investing 300k. Leading companies’ prices fall in a market correction. Thus, you must check the company’s valuation before buying a stock. If you sell the stock for a profit in future, you must pay taxes for the capital gains.
Here are the disadvantages of exchange-traded funds investment:
- Low trading volume
- Tracking error
- Less diversification
- Lack of liquidity
2. Real Estate
Do you use Real Estate crowdfunding platforms? Investing 300k will be easy. Several Real Estate crowdfunding sites are available for you. Choose the one that provides direct access to real estate investments.
The website should be user-friendly, containing easy-to-find investment details. Crowdstreet has all these features, and it charges no fee from real estate investors. However, early withdrawals aren’t allowed on this online platform.
RealtyMogul is another crowdfunding site which you must use to invest 300k. It provides commercial real estate deals to worldwide investors. This platform lets you choose from different properties to invest in, including offices.
Each real estate investment has a target hold period and equity multiple. So, you must check these factors before choosing a real estate crowding company. For instance, RealtyMogul has a 3-year target holding period. The minimum investment amount in this company is $5,000. It requires you to pay a 1-1.25% annual property management fee.
PeerStreet is another real estate crowdfunding company where you can invest 300k. It has a minimum investment amount of $1,000. This platform lets you diversify your portfolio with investments from different browsers. PeerStreet also has a lower interest rate risk than RealtyMogul and CrowdStreet.
Here are real estate crowdfunding sites ideal for investing 300k:
- EquityMultiple
- Fundrise
- Zillow
- Yieldstreet
- DiversyFund
Risks Associated with Real Estate Investment:
Investing 300k in real estate shouldn’t be your priority as it can lead to negative cash flows. Lack of liquidity and hidden structural problems are other risk factors. The real estate market also has an unpredictable nature in many locations.
3. Robo-Advisors
Have you ever thought of investing with robo-advisors? No! Then, you should. Robo-advisors have similar functions to financial experts. These applications use AI or other advanced tools to provide automated financial guidance. The best part about robo-advisors is their low monthly or yearly fee.
Which robo-advisor should you use to invest 300k? Go for Betterment, a leading robo-advisor which makes investment easy. Investors can achieve their long-term financial goals with Betterment.
It provides 9 different portfolio strategies and two pricing options – Digital and Premium. Betterment has zero funding requirements, so there is no need to invest the entire 300k one time. It also uses strategies like tax-free financial gains.
Moreover, you can use Wealthfront to invest 300k. It offers a wide range of investment management tools and products. Here are the top robo-advisors who are worth using to invest in 2023:
- Interactive Advisors
- Empower
- M1 Finance
- E*Trade
4. Online Businesses
300k is more than enough to invest in an online business. However, you must choose a profitable eCommerce store to invest in. Check the businesses’ monthly revenue before investing.
Potential investors must know how much the online store has generated in the last 6 or 8 months. Additionally, you must check the eCommerce store’s site traffic growth and customer numbers. Having experience in running an online business is crucial before buying it.
Here are the factors you must consider before investing 300k in an online business:
- eCommerce store’s financial history
- Customer base
- Brand reputation
- Main competitors
- Product or service type
- Potential for future growth
5. Cryptocurrency
Cryptocurrency is more secure compared to traditional investment options like stocks or ETFs. Crypto investing has become a trend within the past few years. Over 106 million people invest in cryptocurrency as it involves fewer scams and losses.
Theft remains one of the prime concerns for cryptocurrency investors. Online predators steal billions of dollars from exchanges and eWallet. They use different advanced tools to trick investors into giving up their tokens, doubling scams.
So, you must be extremely careful when investing 300k in cryptocurrency. What are the other threats associated with this investment option? Most digital wallets require a security passphrase to check the balance or past activities. If you forgot the passphrase, resetting these wallets will be difficult.
Many have lost millions of dollars of cryptocurrency for forgetting passwords or due to lost devices. So, which crypto trading app should you use? Coinbase is a top choice for crypto investors. Buying, selling, transferring and storing cryptocurrency is easy in this app.
Here are the crypto trading apps you can use to invest 300k:
- eToro
- Webull
- TradeStation
- Robinhood
- SoFi Active Investing
6. Small Business
Millions of small businesses are there that require capital to grow. If you have 300k, you must invest it to help fund these businesses. Moreover, it can help double your money if the business goes well.
As an investor, you must know about the most profitable small businesses in 2023. Home improvement companies are making money in 2023. They cover everything, from interior design to carpentry to landscaping. Small companies that offer house or residential cleaning also make huge profits.
Food, grocery or medicine delivery businesses are in high demand these days. Thus, look for a small company that provides delivery services to invest 300k. Here are the other profitable businesses where you must invest:
- Digital marketing companies
- App development companies
- Accounting services
- Fashion resale stores
- Gadget repair companies
- Auto parts repair business
- Dropshipping business
Alternative Options to Invest 300K
If you have 300k, you must invest in Index Funds. It generally charges 0.20%, which is higher than exchange-traded funds. Moreover, investors gain access to a wide stock variety at a low cost in index funds. This investment option works similarly to mutual funds with stocks that match an underlying index.
Additionally, investing 300k will be best in rental properties. It provides investors with numerous tax benefits. However, managing the rental properties can be challenging. Use online platforms like Arrived Homes to manage the invested properties easily.
This platform lets you start investing in rental properties with 4100. They also charge a minimal 15 fee, less than real estate crowdfunding platforms. However, returns on these properties might vary depending on your investment.
Best Tips to Follow When Investing 300K
For large investments like 300k, you must speak to a professional financial advisor. Don’t hesitate to seek assistance from a financial planner before choosing an investment option. They will also help you to decide the best investment option to increase wealth.
Always diversify the investments, and don’t spend the money only on stocks or real estate. Divide the investment amount for better financial gains. For instance, if you have 300k, invest 150k in ETFs and the remaining fund in cryptocurrency. Keep reading the finance and investment news to explore new opportunities.