Where do I invest $100,000 and up for x-amount of time?

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April 24th, 2006

Six figures to play with means you are doing something right, so pat yourself on the back. Any of the previous strategies will give you good returns as well, so here are a couple of general tips:

First, make sure you divide your money among different investments. You need to remember that FDIC insurance only protects each account up to $100,000, so never have more than that amount in any one bank.

Second, you need to diversify your investments. You can split this amount of money into many different investments, and you should. Check out our explanation of diversification to familiarize yourself with what to look at.

Third, consider employing a professional money manager if you don’t have time to manage it yourself. The worst thing you can do is make investments and not keep track of them. In theory, if you have made this kind of money, you are better off doing what ever it is you do to make that, and letting someone else help manage your money. This doesn’t mean you don’t stay involved, if anything you should be speaking with your manager weekly, if not daily to discuss strategy and performance. Think of them as your employee, not your guru.

Fourth and finally, have a lawyer review any contract for any kind of investment. Make sure they sign off that everything is normal and there are no special cases that could get you in trouble. See the above tip for why a professional is a better alternative than yourself.

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