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How to Invest 200k to Make $1 Million? 16 Best Ways to Invest in 2023

What's the best way to invest $200,000? Depends on your timeframe. Check out our top tips.

Deepti Nickam - Finance Writer
Written by
Finance Writer
Derek Sall - Personal Finance Expert
Reviewed by
Personal Finance Expert
27 min
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How does one invest $200k to make $1 million? Is it actually possible? Or is it just wishful thinking?

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Here’s a well-known rags-to-riches story for inspiration—Warren Buffett (the man, the myth, the money-making legend) made his first investment of just over $100 at 11, and became a millionaire at 30. 

Now, you might not be starting at age 11—but if you’re reading this, you have a lot more than $100 to play with ($200k, to be precise).

$200K is quite a bit of money. If you got a windfall or a massive boost in income, you may be ready to invest. But what’s the best way to invest such a large amount of cash? You’re about to find out.

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What to Do With 200K: 16 Ideas on Where to Invest 200K to Make $1 Million

Let’s get this straight—millionaires are made, not born. Ramsey Solution’s survey of over 10,000 millionaires revealed that 79% did not receive any inheritance from their parents or other family members. They got there through hard work and investing.

And according to Credit Suisse, the US had 2.5 million new millionaires in 2021 alone. So, with 200K to invest, you could be next in line!

Here are 16 ways you can invest 200K to make a million:

1. Real estate

Expected earnings: 6%–8%

Time needed to turn $200k to $1 million: 20–28 years

Most wealth managers and experts will ask you to invest in real estate. This comes with varying degrees of risk, and is one of the best ways to invest 200k for passive income. A study by the Federal Reserve Bank of San Francisco and the University of California showed that real estate had offered the highest returns of any asset class over the last 145 years. Wondering how to invest 200k in real estate? If you think $200K isn’t enough capital, you couldn’t be more wrong. Here are some tips on how to invest 200k in property:

  • Invest in REITs (Real Estate Investment Trusts): these are usually companies owning commercial real estate—such as retail spaces, office buildings, apartments, and hotels. They let you invest in real estate without becoming a landlord—which is why they’re often compared to mutual funds. REITs also tend to pay high dividends, making them an especially attractive investment option for retirement. 
    You can start investing with a reputed crowdfunding platform like Fundrise. With a whopping $7+ billion real estate portfolio, it claims to have provided its clients with average annual returns of 5.40% in 2022. You can choose from REITs, electronic real estate funds, and Fundrise IPOs—and the minimum investment required is as little as $10.
  • Invest in fractional real estate: fractional real estate investors own a small portion of expensive real estate properties. You can use online real estate investing platforms to fund developers looking to finance their projects through debt or equity.
  • Flip real estate: House flipping can be lucrative—you can buy an underpriced house, renovate it, and resell it for a profit. 
  • Consider rental properties: the iGMS Annual Forecast Report says the short-term rental market has seen a 21% increase in demand in 2022. You can buy a property and convert it into a vacation rental. 
  • Rent out a room: Own a house with a spare room? You can rent it out to long-term tenants or prescreened renters on Airbnb

Things to keep in mind:

  • Real estate is almost never a liquid investment like stocks and bonds—go for it only if you don’t need cash immediately.
  • It can be tough to find out which REITs are risky. You should stick to publicly-traded REITs at the beginning.
  • You might need to be an accredited investor for some real estate investing platforms. The Securities and Exchange Commission defines an accredited investor as someone who has earned an income of over $200,000 ($300,000 with a spouse) in each of the last two years or has a net worth of $1 million or more (this excludes the value of their primary residence).

If you qualify as an accredited investor, you can use CrowdStreet to start with your real estate investments. The platform has a higher minimum investment of $25,000, and it offers an array of single-sponsor real estate funds, CrowdStreet funds, individual deals, and managed portfolios.

  • The location of your real estate can determine the returns you make on it. Your property probably won’t increase in value if it isn’t located in the right community.

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2. Stock Market

Expected earnings: 10%

Time needed to turn $200k to $1 million: 16–18 years

More Americans own pets than stocks. That’s 70% of American households with little furry creatures vs. 53% of American families investing in the stock market. Here’s a more bewildering fact: CNBC’s 2021 report found that the wealthiest 10% of Americans own a record 89% of all US stocks. So, if you’re on the wrong side of these stats, it’s time to start investing. Consider investing in:

  • Individual stocks: if you’re interested in a particular company, consider investing in individual stocks. It’ll give you complete control over where your money goes, and you can also save on management fees that can eat into your returns. Experts consider Etsy ($14.99 billion market cap), Pinterest ($16.62 billion market cap), and Scorpio Tankers Inc. ($2.92 billion market cap) as quality stock investment opportunities. 
  • ETFs: with Exchange-Traded Funds (ETFs), you can have a more diversified portfolio than investing in individual stocks. They can be an excellent entry point into the stock market for new investors. Consider investing in large-cap ETFs that track broad market indexes, such as the S&P 500 (this way, you’ll invest in some of the largest companies in the country). Have a look at Vanguard Information Technology ETF (VGT), Invesco Solar ETF (TAN), and VanEck Retail ETF (RTH). 
  • Dividend stocks: dividend investing can be great if you’re looking for lower-risk investments—here, companies share a part of their profits with shareholders, so you have two sources of returns—regular dividend payments and the stock’s actual value. Some dividend stock favorites are First American Corp. (FAF), Packaging Corp of America (PKG), and JPMorgan Chase & Co. (JPM).

Things to keep in mind:

  • Investing in individual stocks can be time-consuming, as you’ll have to thoroughly research and evaluate the stock market before buying them. 

You can make life simpler by using an investment rating platform like Morningstar. Just type in the symbol of a stock, ETF, or mutual fund, and you’ll see all the key information at a glance. You can then evaluate the asset quickly.

  • Most ETFs are registered with the SEC as investment companies, but some commodity and currency ETFs aren’t, (even if their publicly-offered shares are registered under the Securities Act).
  • A study by Hartford Funds revealed that investors often make the mistake of choosing dividend stocks that offer the highest yields. Apparently, stocks offering the highest level of dividend payouts haven’t performed as well as those that pay high (but not the very highest) levels of dividends. Keep in mind other criteria, like growth potential and payout ratio.

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3. Solo 401(k)

Expected earnings: 10%

Time needed to turn $200k to $1 million: 16–18 years

A solo 401(k) plan lets a one-person business set up a 401(k) through a brokerage platform, and save up to $20,500 (if you’re under 50) in 2022 as elective deferrals). The investment goal here is usually long-term growth. Investing in solo 401(k) can also give you access to tax deductions. You can choose to make tax-deductible deferrals or tax-free Roth deferrals. 

Things to keep in mind:

  • To qualify for a Solo 401(k), you can’t have any employees (other than your spouse).
  • If your account has more than $250,000 in assets, you’ll need to file an annual report on Form 5500-SF. 
  • You can only withdraw your funds when you reach the age of 59.5 (55 in some cases).

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4. Bonds

Expected earnings: 4%–9%

Time needed to turn $200k to $1 million: 20–40 years

Governments and private companies use bonds to raise money from investors. But what do you get in return? The bond issuer will pay you back with interest over a period of time. You can invest your $200k in three different types of bonds:

  • Corporate bonds: companies use these to raise money for expansion or development. These bonds are taxable, but they usually fetch you higher yields. 
  • Municipal bonds: the state can use these bonds to raise money for public projects like hospitals, schools, or roads. You don’t have to pay federal tax on the interest you earn from these bonds. Obligation municipal bonds will fund non-revenue-generating projects like a playground—while revenue municipal bonds can fund revenue-generating projects such as highways.
  • Treasury bonds: (also known as T-bonds) are essentially risk-free as the US government issues them. You have to pay federal tax on Treasury bonds, but you’re exempt from state and local taxes.

Things to keep in mind:

  • Bond investors are experiencing large paper losses because of inflation and the rising interest rates. These trends show you how the market value of bonds fluctuates. In his recent New York Times opinion piece, Jeff Sommer, the author of Strategies, outlined how US bond returns are the worst ever recorded in 2022
  • Bond prices and interest rates are inversely related. Increasing interest rates in the US have led to a fall in bond prices. 
  • David Rosenberg of Rosenberg Research points out that Treasury bonds will be the best asset class in 2023, considering the impending recession. Bonds may yield different returns if sold before maturity. 

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5. Start a Business

Expected earnings: Speculative

Time needed to turn $200k to $1 million: Speculative

Have a business idea you put on the back burner? Now may be the time to bring it to life! The risk you’re taking (and the capital you’ll need) will vary depending on your business idea. According to the US Small Business Administration, most microbusinesses need around $3,000 to kick things off (most home-based franchises will need $2,000–$5,000). With $200k in the bag, you can certainly afford to start a small to mid-size business. Some key expenses you should take into account:

  • Office space
  • Licenses and permits
  • Insurance costs
  • Inventory
  • Website building
  • Advertising and marketing
  • Employee salaries

Things to keep in mind

  • If you’re considering starting a high-risk business, make sure you research your prospect, seek expert advice, and develop a solid business plan before starting.
  • Starting a business is time-consuming—and it can take months (even years) to see a significant return from your business. 
  • There’s a high risk of failure. Startup Genome’s Global Startup Ecosystem Report 2019 says 9 out of 10 startups fail
  • A successful business has great wealth-building potential, as you can sell your assets for capital gains in the future.

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6. Crowdfunding

Expected earnings: 5%–22%

Time needed to turn $200k to $1 million: 10–35 years

Private equity attracts many investors because of its potential to fetch large returns. Angel investors with plenty of capital can usually figure out which startup to bet on because of their connections. But these entry barriers won’t stop you from investing in businesses—all thanks to crowdfunding. Platforms like SeedInvest and OurCrowd let you invest in promising startups across various industries. (These are equity-based investments, so you’re essentially buying ownership in a company on the same terms as established angel investors.)

Things to keep in mind:

  • The best thing about equity investments is their potential to fetch massive returns (if you’re able to invest in a business early on, and it grows into a large corporation). 
  • The risk of startup failure is significant. Consider the risk of being diluted down, and how long your money can be locked up in shares.
  • If you don’t already have a solid foundation for your portfolio, investing a large part of your $200k fund in private equity may be too risky.

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7. Individual retirement accounts

Expected earnings: 7%–10%

Time needed to turn $200k to $1 million: 17–25 years

If you’re self-employed without a company retirement plan, this one is for you. Individual retirement accounts (IRAs) provide tax-deferred growth for your investments, and are a must-have for long-term investing. You can invest in two types of individual retirement accounts (IRA):

  • Roth IRA: pay taxes on contributions, and get access to tax-free withdrawals later.
  • Traditional IRA: deduct contributions upfront, and pay taxes on withdrawals you make later.

Both options offer great benefits—but it makes sense to choose an account based on your expected tax bracket at retirement age. If you expect a higher income at retirement, go with Roth IRAs—you don’t have to pay taxes on your withdrawals at that time.

Things to keep in mind:

  • Many financial experts say that retirement income should be about 80% of a couple’s final pre-retirement annual earnings. Even an employer-sponsored 401k may not be enough for that—making IRAs more attractive.
  • The 2022 contribution limit for both IRAs is $6000 ($7000 if you’re 50 or older).
  • Roth IRAs have income restrictions, while anyone with earned income can contribute to traditional IRAs. 

You can open an online IRA in less than five minutes with SoFi Invest® and save for retirement with SoFi’s active or automated Traditional, Roth, and SEP IRAs. A SoFi account will also give you access to a broad range of investment options, member services, and several planning and investment tools. You can also move your existing 401k to an IRA with SoFi’s rollover options.

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8. Cryptocurrency

Expected earnings: Speculative

Time needed to turn $200k to $1 million: Speculative

Young and thin—we think that’s an accurate way to describe the cryptocurrency market. The world is still learning to invest, grow, and regulate this niche. But you don’t have to watch on the sidelines—consider spending a small part of your $200k on getting started on your crypto investment journey. Cryptocurrency is any digital currency in which the transactions are verified, and records are kept by a decentralized system using cryptography. Right now, leading cryptocurrencies on the market include Bitcoin, Ethereum, and Litecoin. Here are some statistics that put the success of cryptocurrency into perspective:

  • The global crypto market cap reached $863 billion in November 2022.
  • The price of Bitcoin increased by over 540,000% in 2012–2022.
  • Singapore-based blockchain firm TripleA claims that 320 million people worldwide used or owned cryptocurrencies in 2022.

Sounds exciting, and you can start, too—through a cryptocurrency exchange or a broker. Bitcoin IRA is a great option for investors looking to get started. This is the world’s first cryptocurrency IRA platform that enables you to self-trade crypto anytime, anywhere—so you can take action right when the market moves. And since you’ll be investing with your IRA, you can maximize your retirement growth through tax breaks.

Things to keep in mind:

  • Cryptocurrencies are very volatile digital assets—this means higher highs and lower lows. Given the infant stage of cryptocurrencies, crypto projects can easily collapse. We’ve recently witnessed this with the FTX scandal. Only a few weeks ago, FTX was one of the biggest exchanges lauded for its credibility—today, the company is facing a criminal investigation.
  • Cybersecurity is another major consideration with any crypto investment. With the industry being marred with security breaches, investors should know how to secure their investments with hardware wallets.

Charlton Haupt, Founder and CEO of Bad Astro Society, thinks the fallout of the FTX scandal has many investors asking themselves what they need to consider while betting on crypto. While sharing tips, he says, “Many investors will purchase their crypto on an exchange and leave it there for convenience. You want to avoid this at all costs and store your crypto in a hardware wallet. Secondly, investors should use multiple exchanges at a time for their orders. This will diversify the risk should one exchange go down while you are in the middle of a trade. I personally know someone who had an exchange go bust, but he diversified with other exchanges and didn’t suffer a devastating loss.

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9. High-yield savings accounts

Expected earnings: 3%

Time needed to turn $200k to $1 million: 17–25 years

Some of your $200k should go into a savings account. You may want to choose a high-yield one since they pay higher interest rates than regular ones. Growing your funds in an FDIC-insured savings account is virtually risk-free. You can also easily access your funds, though some savings accounts limit withdrawals.

Things to keep in mind:

  • Here are four things to consider while choosing a high-yield account:
    • Minimum deposit amount
    • Annual percentage rates
    • Minimum balance amount
    • Withdrawal options
  • Interest rates on high-yield savings accounts can fluctuate at any time. An advertised high annual percentage yield (APY) may look appealing when you apply, but it likely won’t last forever.
  • High-yield savings account APYs are much better than the rates of other brick-and-mortar banks. But you probably still won’t earn enough to keep up with inflation—you’ll have less buying power even though your bank account balance will be saying something else.

Read more:

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10. Healthcare savings accounts

Expected earnings: 0.25%

Time needed to turn $200k to $1 million: just over 650 years.

Putting money aside from the $200k for healthcare expenses is key. Consider investing in a healthcare savings account (HSA)—especially if you have a high deductible healthcare plan. Money in an HSA can grow tax-free, just like a retirement account. This means you can invest and grow your funds, using them for qualified healthcare expenses like doctor’s visits and medicine.

Things to keep in mind:

  • You must have a high-deductible health insurance plan to get an HSA. A health insurance deductible is the amount you must pay out of pocket yearly before your insurance plan benefits begin.
  • This means you’ll need to pay for doctor visits, medical procedures, and prescriptions until you satisfy your deductible. In 2022, you’ll need to pay a deductible of at least $1,400 for an individual and $2,800 for a family ($1,500 and $3,000 in 2023 respectively).

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11. Index Funds

Expected earnings: 8%–10%

Time needed to turn $200k to $1 million: 20–25 years

Index funds are mutual funds or ETFs that build portfolios to match certain market indexes, such as the S&P 500 or Dow Jones Industrial Average. Buying an index fund gives you access to a broad range of holdings. These funds also tend to have low management fees, meaning more money goes towards investing. You can consider investing in funds like Fidelity ZERO Large Cap Index (FNILX), SPDR S&P 500 ETF Trust (SPY), and SPDR S&P 500 ETF Trust (SPY). These index funds track the S&P 500 Index Fund and let you invest in stocks of the S&P 500 at a low cost.

Things to keep in mind:

  • Index investing can give you the upside when the market is doing well, but it also leaves you completely vulnerable in harder times.
  • With index investing, you can’t act on your knowledge even if you have a clear idea that a stock is overvalued or undervalued.
  • Since indexes are set portfolios, you’ll have no control over the individual holdings in the portfolio after buying an index fund.

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12. Mutual Funds

Expected earnings: 10%–12%

Time needed to turn $200k to $1 million: 15–17 years

Mutual funds are another way to invest your $200,000 in the stock market. They hold a portfolio of stocks, bonds, or other securities, and offer diversification and convenience—making them a very attractive investment option. You can invest in some of the biggest mutual funds in the stock exchange, including Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), Fidelity Government Cash Reserves (FDRXX), Fidelity 500 Index Fund (FXAIX), and more.

Things to keep in mind:

  • Active mutual funds aim to outperform the market, unlike index funds that only seek market-average returns. This results in less predictable returns when compared to index funds.
  • Be cautious of mutual funds with expense ratios higher than 1.50%. If you’re not paying attention to expense ratios and sales charges, they can get out of hand.
  • Mutual fund investments can mean higher-than-expected tax bills. This is because mutual funds can sell securities from their portfolio, leading to year-end distributions to investors—which are taxable investment income.

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13. Money market funds

Expected earnings: 2%–3%

Time needed to turn $200k to $1 million: 55–80 years

Money market funds are low-risk investments, and are one of the best ways to invest 200k short-term. These fixed-income mutual funds invest in debt securities with short maturities and minimal credit risk. Depending on the type of securities the funds have invested in, your income can be taxable or not. A money market fund can invest in debt-based financial instruments, including:

  • US Treasuries: short-term government debt issues.
  • Repurchase agreements (Repo): short-term government securities.
  • Bankers’ Acceptances (BA): short-term debt guaranteed by a commercial bank.
  • Certificates of deposit (CDs): savings certificates issued by banks with short-term maturity.
  • Commercial paper: short-term unsecured corporate debt.

Categories of money market funds based on what they invest in:

  • Prime money funds invest mainly in floating-rate debt and commercial paper of non-Treasury assets.
  • Government money funds invest 99.5% or more of total assets in very liquid investments, like cash, government securities, and repurchase agreements fully collateralized by government securities.
  • Treasury funds invest in short-term US government debt securities, such as Treasury bills, Treasury bonds, and Treasury notes.
  • Tax-exempt money funds mainly consist of municipal bonds and provides earnings free from federal income tax.

Things to keep in mind:

  • Unlike investments like certificates of deposit (CDs) or savings accounts, money market funds aren’t insured by the Federal Deposit Insurance Corporation (FDIC). While these funds still invest in high-quality securities, there’s still a risk of you losing money.
  • Money market funds are short-term investments. And as a result, they give lower returns than more volatile investments like stock and bond mutual funds. This also means that your rate of return may not keep pace with inflation.

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14. Collectibles

Expected earnings: 2%–20%

Time needed to turn $200k to $1 million: 10–55 years

Collectibles can mean anything of value that people collect. And no, that doesn’t include the crockery set you bought last Christmas. Here’s a more specific definition: collectibles are items worth more now than when you bought them. This includes art, antiques, wine, stamps, books, coins, trading cards, and more. The rarer something is, the higher its resale value. Some collectibles aren’t easy to categorize. From Ty Cobb’s dentures to Justin Bieber’s hair—a lot of weird stuff has been sold to collectors with unique tastes. But here’s the thing—regardless of what you’re looking to buy, collectibles are expensive. And you don’t want to be spending all of your $200k on a painting. The solution? Consider investing using a platform like Masterworks. Masterworks is the first platform for buying and selling shares representing an investment in iconic artworks. You can own a piece of an iconic painting, just like you own stocks in a company. The platform also gives you access to expertly-vetted artworks, meaning you can avoid fakes—a common problem faced by collectors. Not keen on investing in art? Check out Yieldstreet. This platform empowers investors to grow their wealth outside the stock market by curating private market alternatives. You can invest in anything from private business credit, real estate, legal finance, and so on.

Things to keep in mind:

  • Collectibles are alternative investments. They’re not bonds, stocks, ETFs, mutual funds, or cash.
  • If your collectible appreciates in value, you’ll have to pay a whopping 28% capital gains tax on its sale.
  • Counterfeits and frauds are common in the collectibles world. You want to take every possible measure to avoid falling into this trap.
  • Since it’s usually tough to sell collectibles at short notice, you may face liquidity issues.

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15. Emergency fund

Average expected earnings when parked in a No-Penalty CD: 2%–3%

Time needed to turn $200k to $1 million: 55–80 years

Unpleasant financial surprises can happen to anyone. The best way to protect yourself is to set up an emergency fund.Some places where you can park your emergency fund:

  • A traditional savings account connected to your checking account.
  • A money market account with a debit card or check-writing privileges.
  • No-Penalty CDs so that you can withdraw money whenever you need.
  • Mutual funds with easy liquidity.

Things to keep in mind:

  • Before setting aside a part of your $200k for your emergency fund, make sure you account for the minimum you need for all your unavoidable monthly expenses (rent, loan installments, utility bills, and so on). You should aim for six months of basic expenses as your emergency fund.
  • Don’t spend your emergency fund on incidental expenses. Use the fund only in the event of an emergency—it always takes much longer than anticipated to replace it.

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16. Invest in yourself

Average expected earnings: Speculative

Time needed to turn $200k to $1 million: Speculative

We get it—it sounds like something you’d read on QuotesLyfe.com. But this is a serious investment—so let’s talk numbers. The World Economic Forum tells us that wide-scale investment in upskilling can boost GDP by $6.5 trillion by 2030. That’s nice for the economy—but what does that mean at an individual level? A study on upskilling by Gallup and Amazon says American workers who recently participated in an upskilling program saw an average salary increase of 8.6%. Simply put, upskilling can help you make more money.

Things to keep in mind:

Upskilling without a strategy can be a wasteful effort. Narrow down on your goal for upskilling.

  • Do you want a promotion?
  • A better job?
  • Or start something of your own?

Once you have your goal, figure out your blind spotsthe essential skills you lack to achieve your goal. Then invest a part of your $200k in the right resources. Check out MasterClass today to learn new skills from the best in the business. MasterClass is a streaming platform that allows anyone to watch or listen to hundreds of video lessons taught by more than 180 of the world’s best. MasterClass delivers a world-class online learning experience—whether in business and leadership, photography, cooking, writing, acting, music, sports and more.

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How to Turn 200k Into a Million

We’ve looked at 16 different ways you can invest your $200k. Here’s an example of a balance portfolio of a $200k investment for 20 years.

Investment avenue % Invested Amount invested Returns after 20 years
S&P 500 index fund 30% of $200k $60,000 $403,649
Real estate 15% of $200k $30,000 $116,090
Savings account 10% of $200k $20,000 $21,024
Private equity 10% of $200k $20,000 $327,330
Short-term corporate bond 15% of $200k $30,000 $65,733
Individual Retirement Account (IRA) 15% of $200k $30,000 $139,828
Total returns at the end of 20 years $1,073,654

Tips on How to Invest 200k to Make $1 Million

These tips that can help you stay on top of your investing game:

1. Know your finances

Before you invest that $200,000, think about where you are in your finances right now.

  • Do you have an emergency fund in place?
  • Are you overspending?
  • Do you have debt that is high in interest or won’t be paid off with your regular income?

Check if there’s anything more important you need to take care of with your $200k (like a high-interest debt that’s costing you thousands of dollars each month). Deal with the most financially pressing stuff, and then start investing.

2. Decide on your goals

It’s important to know what your financial goals are. Want to earn money each month? Consider investing in passive income revenue streams. Want to retire with a fat wad of cash? Invest in riskier stocks or options with higher rates of returns.

3. Start investing immediately

Are you financially stable, but waiting for the right time to start investing? The right time is now! Here’s the thing—the sooner you invest, the more chance your money has to grow. Investing earlier in life can earn you an extra few thousand in interest alone.

4. Automate everything

You don’t need a financial advisor to invest your $200k. You can find all the relevant stuff online. Plus, you can manage your money with robo-advisors like Wealthsimple. Another trick to efficient investing is to automate your payments—have your investments taken out of your checking or bank account each month automatically, so you won’t miss any due dates.

5. Make Sure Your Investments Are Diversified

Investing only in one type of niche, industry, or sector can be devastating to your finances if that market dips. Diversify your investments instead. Look into passive investments, real estate, and even different types of stocks. That way, if anything happens to some of your money, the rest will be safe.

Key FAQs on Investing 200k

Here you’ll find the answers to some of the most common questions about investing $200k:

1. Is 200K in investments good?

Absolutely! Investing 200k, and giving it 20 years to grow at a 7%–8% interest rate, can turn it into almost $1 million dollars. You may be able to earn more than that if you invest in real estate, high-risk investments that earn big returns, or passive income options.

2. Can you retire on 200k?

You can do it if you’re smart and careful with your investments—but it’ll depend on how much you spend a year, if you have any debt, where you live, and other factors. You could even retire for more than 20 years—though you’ll probably have to live off just $25k a year. If you can stretch your money (for example, with passive income or social security), those dollars could go even farther.

3. What is the safest investment with the highest return?

No investment is entirely safe or guaranteed to earn you a high return—that’s why you must diversify your income portfolio. This way you’ll keep more of your money, avoid possible market dips, and have a safety net if you retire early. If you’re looking for safer investments that have seen high returns in the last 20 years, try out:

These are considered safer because they don’t tend to “ride the wave” like stocks and real estate.

4. What is the interest on 200k?

The average annual rate of return is about 10% if you’ve invested in the stock market, so your initial $200k investment would make over $20,000 a year. If you want to be more conservative, experts say to plan for around 6%–7% (about $12,000–$14,000 a year on $200k). While $200,000 isn’t chump change, and will grow over time, you can boost this even more by adding to your investments every month.

5. How to invest 200k for monthly income?

If your goal is to invest $200k to generate steady monthly income, consider:

  • Investing in Real Estate Investment Trusts (REITs).
  • Renting out a property.
  • Getting a Certificate of deposit (CD) savings account.
  • Investing in monthly dividend stocks.

Wrapping Up

Whether you’re investing $1 million or 200k, look at your financial situation. Are there any issues you need to deal with right away? Make sure everything else is in order before investing liquid money. Remember—no investment strategy will assure a profit or protect against loss. The best thing to do is to have a diversified portfolio. And we’ve listed out 16 different ways you can do just that!


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Deepti Nickam - Finance Writer

Finance Writer

Content writing and marketing professional with 4+ years of experience in the B2B and B2C sectors. Deepti has written about several subjects, including finance, project management, human resources, and more.

Kacper Kozicki - Editor


Editor, copywriter, and multilingual translator with expertise in producing tailored content for global online brands. When not editing articles for LifeAndMyFinances.com, he enjoys rummaging through paper dictionaries, walking in nature, and making travel plans.

Derek Sall - Personal Finance Expert

Personal Finance Expert

Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially—one email, one article, one person at a time.

Lauren Bedford - Finance Writer

Finance Writer

Lauren is a published content writer who is passionate about helping and informing others through her content. In the last 5 years, Lauren has written about a range of subjects, including business, technology and finance.

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