Best Thing To Do With $100k

Here is a situation that isn't very common among Americans,however most people would be happy to find themselves in: You have extra $100,000 in discretionary cash on hand and you're not sure what to do with it! The best thing to do with that extra cash comes with a finicky approach.The use of the word discretionary assumes that your $100,000 of extra cash really is extra and that you do not have any outstanding debt, especially high-interest credit card debt. But if you do have debt, your number-one priority for that liquid asset is to pay down your debt.

With that behind you, and perhaps you already have some other financial instruments in place — such as a viable retirement plan, an adequate rainy day savings account, and some other well-placed capital, then you're already abreast of formidable financial strategy. If so, then you probably know what some of your options are already. But if you are new to investing, then below are some of the options to start with.

The "Best Thing" to do is actually one of many. No one option is the absolute go to option. But, one thing you cannot do with this pile of cash is become complacent. Not consciously planning or strategizing could lead to missed opportunities or even loss of capital. As with any other financial decision, your job here is to choose the investment vehicle — or combination of vehicles — that is right for you. Cited below are some best options for your cash that you might not have visited, or which you may want to revisit.

Real Estate

Consider paying off your mortgage if you have one. And if you do not own your home or another investment property, then do think about investing in real estate. Real estate can be a solid investment, but it is complicated; so it requires that you do your due diligence.A real estate fund or REIT are smart ways to invest in real estate with doing any Real Estate development yourself.Most real estate fund managers already handpicked their development projects to give investors a healthy returns on their investments. It may be worthwhile looking at profile and performance history of the fund manager to determine where to put the pile of cash.

Taxable Investments

You also can put your extra cash into taxable investments. The advantages are that when you decide to withdraw your cash, this money will be tax-free because the principal that you invested has been taxed already. However, any money earned on interest, capital gains or an increase in the initial investment will be considered as taxable income.