Congratulations on making your money. It is a hard journey to get to where you are. Now, if you have a lot of money, then you know that keeping it in the bank will decrease the value of your money over time, thanks to inflation. They say, Inflation is around 7%-10% per year. So now you need to think of ways to invest your money, and that can get tricky once you have so much.
You can start by thinking about businesses you want to invest in, assets that with generate income, assets that will increase in value and much much more. Below is just advise and opinion, nothing more.
1) Stocks, Index funds and Bonds etc…
You can invest in the stock market, and in stocks that you would like to hold long term, and overtime these will increase in value. You can pick stocks like Tesla, Amazon or what ever you fancy.
What are index funds?
Index funds are a group or portfolio of the top stocks in the market. You have index funds like the S&P 500, which hold 500 of the best stocks in the market. You have the FTSE100 in the UK, which hold the top 100 stocks in the UK market. Investing in these will guarantee a steady rate of return over the years.
You can also invest in government bonds, which are an IOU (I owe you). These are safe investments, but your money will be tied up in them for a minimum period of time. You could possibly get a return (say 2%) each year, or a the original payment with interest at the end of the period.
How do you invest in the stock market. You could do it your self through services like Plus500, Etorro and more. If you don’t want to do it, you bank can do it for you, but you may have to pay a management fee. Or hire a hedge fund to invest for you, but they will take a cut.
2) Real estate, cars, yachts, watches and assets
You can invest your money into property. They say property is the safest investment. You can spread your money out, and buy property all over the world. You can buy apartments to hold, or rent if you need the income. Buy property in key cities all over the world, and watch them go up in value over time. When you need the money sell one or two off. You could buy cars if you know what you’re doing, watches, and other assets that will increase over time. I know people with art collections, trainer collections, cars, yachts and more. Investing in assets like property will keep you money safe from inflation.
This is providing that you buy your property and assets outright. Loans, like mortgages with their high interest rates can be damaging.
3) Invest in start up companies (not on stock market, as they are new companies)
If you like high risk with lots of reward, then investing in companies can be a good way to grow money. You could start off as an angel investor, putting your money in companies you like. Get in early to get a larger chunk of the company. There are platforms like gofundme, crowdfunding and more, that allow you to fund companies looking to grow and make a difference.
New investment opportunity – Cryptocurrency
Cryptocurrency is new and not much is known about it. We know it can be very volatile and fluctuate all over the place. But they do say it is the future, There are platforms building on Ethereum and many outlets are now accepting cryptocurrency, as methods of payment. It could be a lucrative opportunity if you can get to grips with it. There are platforms like Binance and Coinbase, that allow you to trade cryptocurrency. I believe, Binance offers lower trade and withdrawal rates that competitors.