What if you just got 200K? Where would you invest?

Invest, Investing

Well … great news today… you got 200K in your checking account. Now, what to do with it? Please do not even think about buying stuff … NO, you do not need that brand new phone, purse or car!! It’s just ‘wasted’ money and we already discussed about it.

Back to us, it’s an unprecedented moment in history, with a lot of economic and financial instability. So, what is the best way to INVEST that money?

A couple of basic rules:

  1. If you have debts, it’s a good opportunity to reduce / cancel them. Remember: if you want to have good financial health it’s better to avoid debts
  2. If you do not have an emergency fund it’s better to create one … you never know
  3. If you want the best payback you need to invest in yourself, in your personal growth
  4. DIVERSIFICATION is paramount. Today more than ever!! So, please, do not put all ‘the eggs’ in a single basket because it’s simply too risky, even if the payback looks great.

A good diversified portfolio may look like this:

  • 30% in index funds, managed on my own or by purchasing a managed portfolio at a firm such as Vanguard, Schwab, Betterment ….
  • 20% in stocks … riskier but with higher payback
  • 20% cash … some sort of cash account, to be able to purchase stocks on a downturn without having to sell current holdings
  • 15% real estate … different opportunities here
  • 10% bonds … long term and short term government bonds – this last similar to cash
  • 5% gold … in any way or form

What do you think? Now let’s go through some investment methods and investment tools that will lower your risk. So you can invest your 200K with confidence!


If you consider yourself financially & digitally savvy you can proceed with online brokerage accounts, a class of financial websites that offer to manage your portfolio with minimal in-person interaction and a heavy reliance on the latest investing tools and software.

The benefit is that these tools limit fees as much as possible.

One of the most popular is Betterment, and we like it as well! This is an investment platform that automate your investing, and even allows you to make money while sleeping! You can open an account with no money at all and get the benefit of professional, low-cost investment management that enables you to invest in thousands of securities with limited capital.

Leveraging complex investment software, Betterment defines your investment portfolio aligned with your individual circumstances, investment time horizon and risk profile.

In the meantime, they keep fees at a minimum by using ETFs (exchange-traded fund) that let you have a diversified portfolio. As a matter of fact, ETF have a low expense ratio and Betterment is able to pass those savings along to the consumer. Because the service is able and willing to deal with investors at all stages of wealth accumulation, it has become a go-to for many investors.

Other competitors are Wealthfront and Personal Capital

But if you feel the need of a little help or if you don’t have the time, it’s not a problem. Live it to the experts! Actually, it might even help you get better returns.

Investment advisors can help you navigate the complexities of investing so that you are more likely to get a great return and keep more of it, too.

There are many types of investment advisors. We strongly recommend you to look for CERTIFIED FINANCIAL PLANNERS, which means that they have a fiduciary responsibility to do what’s in your best interest!


There are multiple ways to invest in real estate but online investing sites have changed the game in recent years. With these sites you can own small shares of real estate projects. What this means is that you can get exposure to real estate, but you don’t need to come up with huge sums of capital or deal with tenants. This is a simple passive income strategy!

Our top pick in this category is Fundrise, because you can start with very little money and you do not need to be an accredited investor.

With Fundrise you open an account and select from a number of portfolio options. Fundrise charges a management fee of around 1% per year, which is fairly low compared with other options, and 2019 annualized return was 9.47%.

In this way, you gain exposure to the real estate asset class with very little money or effort! 


But if you are totally risk adverse do not worry. We have a solution for your as well. It has less risks and, for sure, less rewards. But it works!

One option is with high-yield savings accounts. They are called “high-yield” savings accounts because they result in higher returns than most savings accounts, but they don’t provide great returns on your money. CIT Bank provides some of the better returns of all the competitors.

Another ‘safe’ option is CD (certificate of deposit). While you won’t get the same high returns of riskier investments, a CD provides you with security and stability.

When you invest funds into a CD, you receive a set interest rate and agree to a term, which could be from a few months to years. CDs tend to come with higher interest rates than savings accounts, but if you withdraw before your term reaches maturity, you pay a penalty. 

So, if you have 200K and you are not sure where to put your money yet, a high-yield savings account or a CD are other places that are great for short-term investing.

We are interested to know … where would you invest??!

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