Make the Right Financial Moves: 6 Intelligent Ways to Invest Your Lump Sum

When money enters your life in one large lump sum, it can sometimes be a bit overwhelming. The idea of a large sum of money landing in your lap will be helpful in eliminating debt. However, if you are not financially savvy, it can slip through your fingers as quickly as it was received.

The following are six ways to intelligently invest your lump sum to ensure that you maintain a solid grip on your new wealth and the further profits it is able to bring.

Investing in Stocks

The stock market can be a rather volatile place to invest one’s wealth. With the market constantly rising and falling, there is a lot of opportunity to cash in big. There is equally a lot of opportunity to lose big. For this reason, one should only invest a fraction of their wealth in the stock market, looking mostly at stocks that have a history of paying a nice dividend on investments.

Rental Properties

A good way to turn a lump sum windfall into a money making machine is to invest in rental properties. Rental properties not only preserve equity for later profits when housing values increase, but they also provide an investment property owner with the potential for regular monthly income.

Collectible Toys

Among the assets that actually increase in value steadily over time, rare collectible toys are an investment vehicle of some savvy investors. From action figures to die-cast metal cars, the toy market is always providing investors with an opportunity to buy into one limited run or other. Some are calling this their new 401K retirement plan.

Precious Gems

One of the investment vehicles of the rich is high end gems. With expensive diamonds and other gems experiencing a regular increase in value, precious gems will often be a reasonably safe place to park a portion of an investor’s wealth for long term returns. In addition, investing in gems is also a nice hobby that will involve a little research on the part of the investor.

Currencies

If you are a fast pace investor with a nose for economic trends, then the currency market may be the place to invest. Currencies open up many opportunities for fast gains. Currency markets tend to react harshly to current events, which is good news for those who can research and predict where currency values are heading. This is a fantastic investing arena for both long and short term investment strategies.

Structured Settlements

If the source of your new found wealth is a structured settlement, then your financial situation may not be as secure as you think. Even though a court may have awarded the payout, there are numerous situations where a party would not be able to comply with a structured settlement.

For this reason, it may be in your best interest to sell your structured settlement through a place like myLumpsum.com, thus allowing you to ensure that you get a large payout in one lump sum.

Invest Your Lump Sum

Lump sum payments will provide the financial potential to resolve many of life’s monetary woes. Knowing how to invest your wealth is key to staying financially strong.

Diversifying your wealth into numerous investment vehicles is one way to ensure against a total loss of wealth, and to still reap genuine profits over the long term.

Tags: invest your lump sum, Structured Settlements

Category: Family Finances