If you have saved 100k now, you are looking for opportunities where you can invest your $100,000 for the next 6 months. This article is perfect for you because I will try to help you figure out some smart moves you can take to get a high return with low risk.
And here, our main goal is to park $100k in the right place where they can safely grow with minimum risks when you’re trying to make a short-term profit. These strategies will help you get your money back quickly, and on the other hand, your money will also be working for you, which we call passive income.
However, keep in mind that risk-free investments like high-yield savings accounts, certificates of deposit (CDs), and Treasury Bills give little return. On the other hand, with a little more risk, you can make a high return. I’ve mainly focused on low risk, but I’ve also shared a risky one, where you can expect a higher return. So, after reading this article completely, you’ll have the idea of exactly where to put your $100k to get the best bang for your buck in just six months.
Best Ways to Invest $100k for 6 Months with Low Risk and Higher Return
Okay, Here are some of the best options when you’re trying to invest $100k for six months with low risk and high returns. Most of these options balance risk and return in different ways, so pick what matches your comfort level and goals.
1. High-Yield Savings Accounts
My first choice is High-yield savings accounts to invest your $100k for 6 months or any other short-term period. With High-yield savings accounts, you can make much more interest than traditional savings accounts. So, it might be an excellent choice when you’re trying to grow your money in the short term. Another thing I like about it is that they’re FDIC insured, which means your investment is saved up to $250,000.
Besides this, you can get your money back whenever you want, and it’s a nice thing when you invest for a short period, like six months. You can look for any high-yield saving account that provides around 4% APY (Annual Percentage Yield), and it’s a good return if we compare it to standard rates. You can also use websites like NerdWallet and Bankrate to find the best deals for you.
However, keep one thing in mind: high-yield savings accounts are usually safe and offer really good returns, but it doesn’t mean they will make you rich overnight. But for short-term investments like six months, they’re hard to beat when it comes to safety and liquidity.
2. Certificates of Deposit (CDs)
My second choice for short-term investments is Certificates of Deposit (CDs); they’re like a savings account but with a little twist. When you’re investing in CDs, you agree to lock your money for a set period. In our case, you’ll lock your 100k for the next six months. They’ll give you a higher return than a regular savings account.
Nowadays, Many banks are offering an attractive, pretty good return on a $100k investment for 6 months; sometimes, they’re also offering a little similar return to high-yield savings accounts, which is 4% APY. By the way, you can choose any option when making an investment in CDs, such as fixed-rate CDs (which lock in your rate for the term) and the second is variable-rate CDs (The rate might change based on market conditions).
I like CDs because they’re generally low-risk, but they’ll ask you to commit your money for the duration of the term, such as 6 months or a year. Besides this, you can’t do early withdrawal before the given period; if you do so, then get ready for penalties because it usually happens. Therefore, Invest in CDs after making sure you won’t need the funds before the CD matures.
3. Treasury Securities (T-Bills)
Another super choice for short-term investing is the Treasury Bill, which some people also call the T-Bills. They’re backed by the U.S. government; therefore, T-Bills are among the lowest-risk investments. Commonly, they’re sold at a discount and pay out their face once they get mature.
In our case, we want to make a 6-month investment, so T-Bills might be an ideal choice because they’re secure and offer good returns without the ups and downs of other investments, as we usually see. If you want to buy T-Bills, you can use TreasuryDirect, which you can also buy through a broker.
They’re a good option if you want something low-risk with predictable returns. Plus, you can be sure that your investment is backed by the government, making it a reliable choice.
4. Money Market Funds
Money market funds are also quite similar to savings accounts, but the only difference is that you expect a slightly higher return than savings accounts. These types of funds invest in short-term but high-quality investments like government bonds and commercial paper.
Moreover, they offer much better yields than a traditional savings account. Plus, I also like the liquidity, which will allow you to access your cash relatively easily, unlike Treasury Securities. If you like money market funds, make sure to check out the fund’s yield and expense ratio. Because some funds offer 3.5% and some offer 4%, you can choose anyone that you like. Actually, investing in money market funds might be a good choice if you want a balance between safety and return.
Although they’re not FDIC insured, they’re still considered low-risk, so you can also invest your money there and give your money to work, making more money.
5. Corporate Bonds
Another good place where you can invest your $100k for six months is short-term corporate bonds, which offer a little more yield. Especially if we compare corporate bonds with government securities, then you can expect higher returns from corporate bonds.
So, if you make a decision to invest in a 6-month investment, then you can try to look for an investment grade with a good credit rating. Generally, these types of bonds are less riskier as compared to lower-rated bonds, plus they can provide around 4%. However, before making an investment, you should do more research about the bond through financial news sites and brokerage platforms.
Keep in mind that some of them are safe, and some might be a little risky. However, their main aim is to provide a good return to their investors. So before choosing a corporate bond, make sure to study a little bit about the company and see if they have strong financials.
6. Peer-to-Peer Lending
If you want to make a high return on your $100k in 6 months, you can try Peer-to-peer (P2P); it’s a risky options that also offer a high return; investing in peer-to-peer is giving your money to individuals or small businesses through online platforms. You can get a good return through peer-to-peer for a 6-month investment, and you just have to choose the right platform.
You can choose any peer-to-peer lending platform that has high ratings. Besides this, you can diversify your investments through multiple loans to minimize the chance of risk. You can expect a return somewhere between 5% to 7%, but always remember that defaults can happen.
So, If you’re comfortable with risk because you want higher returns, then Invest in peer-to-peer lending for high returns; otherwise, don’t do it. I just want you to be sure to research properly and understand the risks that are usually involved in P2P.
7. Short-Term Real Estate Investment Trusts (REITs)
For a 6-month investment, you can also consider investing your money in short-term real estate investment trusts (REITs). This investing method allows you to invest in real estate without buying property directly, which is usually expensive. REITs will invest your money in properties and mortgages and will pay you a dividend based on the income they generate.
If you want to invest in REITs, then look for its good track record, plus make sure it’s stable in the property sector. You can expect a return from 4% to 6%. If you’ve got more money, you can also buy your own property and sell it later.
8. Stock Market Trading
If you have $100,000 and you want to make a pretty good return within six months. Then, investing in the stock market and buying individual stock is an excellent choice for you. But you should remember one thing: investing in the stock market is relatively risky if we compare it with other options that I have discussed before.
If you want to succeed in the stock market, you need to stay updated with news and what’s going on with the company you’ve invested in. Every day, you’ll see ups and downs in the market.
If I share my personal experience with the stock market, I still remember last year, I put around $2,000 in stocks and bought more than 15 stocks of different companies. And after one year, I got a 25% return, and I don’t remember exactly how much I made in 6 months. But I know one thing: investing in the stock market for the long term is mostly profitable if you know the company.
And I’d recommend you to hold stock if you see you’re not in profit after 6 months. Most importantly, you should focus on diversification. You can invest in different sectors like energy, automobile, technology, etc.
Conclusion
If I were to share my point of view on where I’d prefer to invest if I had $100k, my first choice would be the stock market because I’m not too afraid of taking risks. And if I don’t get a good return within six months, I’d just let that money stay invested in the market for another year. In my experience, most of the stocks I’ve picked tend to go up in one year.
I firmly believe that even if you don’t make money in the short term with the stock market, you’ll definitely make money in the long term. Warren Buffet is a living example that if you have patience, anyone can make money from the stock market. But you also need to know how to choose the right stocks.
If you’re also planning to invest in the stock market, my advice would be to pick good stocks. First, do your research on the company, and never put all your money into just one stock that you’ve chosen without careful consideration.
A hundred thousand dollars is a significant amount, and if I were in your place, I’d diversify it across at least twenty companies because I don’t want to risk losing everything. Let’s say I invest in twenty companies—if I face a loss in one, the other nineteen can help recover that loss. Additionally, if I believe that a company might recover after some time, I’ll hold onto that investment.
Where should I put $100k right now?
If you’re wondering where to invest your $100,000 for 6 months but want to go with a safe option, I would suggest choosing short-term CDs or Treasury Bills. These are generally safe choices when you’re looking to invest your money for the short term. Besides that, peer-to-peer lending is also a good option. You can also invest in real estate, as it can offer a slightly higher return, but my favorite place is still the stock market, although it’s risky.
What risks should I watch for in peer-to-peer lending for a 6-month term?
If you’re interested in peer-to-peer lending and want to invest your money for six months, my recommendation would be to thoroughly research any platform you choose. Make sure to read reviews and, if possible, try to contact people who have previously invested in peer-to-peer lending through that platform. This will give you a good idea of whether the platform is genuine or not.
How can you invest $100,000 in a quick return?
If you’re wondering where to invest your $100,000 for a quick return and want to go with a safe option, my choice would be short-term CDs, Treasury Bills, or a high-yield savings account. These are generally low-risk, and you can even predict how much money you’ll have after six months—whether it’s 4%, 5%, 10%, or something else.
Additionally, if you’re willing to take a bit more risk, you can invest in peer-to-peer lending or the stock market. While the risk is higher here, the potential returns are also greater. On the other hand, you could also spread your money by investing a bit in Peer-to-Peer Lending, some in the Stock Market, and some in Short-Term CDs or Treasury Bills.
By doing this, your portfolio will be more diversified, which can reduce the risk slightly. At the same time, the chances of profit might increase a bit, and you could expect a slightly higher return. However, this is just my point of view.
