How To Invest 200k And Make A Return On Investment For 2023

Updated On: November 8, 2022

Do you have money saved from years of hard work and trying to figure out an investment strategy?

Your friends and family are telling you how to invest, and you can be peer pressured into betting all your money away. Well, don't worry. Here are some tips on investing your $200,000 and making a return on investment for 2023. 

My name is Colin and I've reviewed major topics such as investing in Gold and business ideas. 

TL;DR: How To Invest 200k

  • Stock market
  • Real estate industry
  • Diversified portfolio such as gold IRAs
  • Online savings accounts
  • Start your own business (Offline and online)

Should You Invest 200,000 Or Save it?

This question truly depends on your risk tolerance and whether or not you are still earning an income.

If you are not making any more income and need this lump sum for retirement or other expenses, it may be better to hold onto the money in a savings account or low-risk investment options.

Investing may be a good option if you have monthly cash flow and can afford to take some risks with your $200,000.

Side note: 

Please don't take this as investment advice; make sure you speak to a financial advisor for more options.

Now my opinion would be to invest my 200k and find a way to 10x it because money sitting in savings will depreciate with inflation.

1. The Stock Market

Many options are available when it comes to investing in the stock market. One option is to invest in individual stocks.

With this approach, you would purchase shares of a company that you believe will be successful. Another option is to invest in a portfolio of stocks. This can be done through a brokerage account.

With this method, you would spread your money across several different companies, which can reduce risk.

Here are the top stock investing options:

  • Mutual funds
  • S&P 500
  • Index Funds
  • Treasury Bonds
  • ETFs

Both approaches have their advantages and disadvantages. Individual stocks tend to be more volatile, but they also offer the potential for higher returns. Portfolios are less volatile, but they also offer lower potential returns.

Ultimately, it is up to the individual investor to decide which approach is best for them. 200k could go a long way in either direction.

You can also get help from a brokerage firm or personal financial advisor to create a stable investment strategy.

2. Invest In Precious Metals

Another option to consider is investing in precious metals if you're still looking at how to invest 200k.

Gold IRA is in high-demand

Precious metals, such as gold and silver, have historically been a stable investment during economic downturns. These metals can also be physically held or stored, making them a more tangible asset.

This can be a great way to provide yourself with other securities besides stocks and bonds.

Let's review some ways to invest in gold or other precious metal programs.

Gold IRAs

Gold retirement accounts provide alternative investments for your retirement portfolio. You gain tax benefits and much more when you either roll over or open a new IRA with gold.

Some of the best gold IRA companies will guide you through the entire process and explain how to invest in gold through a retirement account.

Top Gold Providers




Augusta Precious Metals Logo

Augusta Precious Metals

  • Joe Montana approves
  • Lifetime support and 1-1 call
  • Thousands of five-star reviews


Goldco box logo


  • Best Buy Back Program
  • Approved by Sean Hannity
  • A variety of precious metals 


noble gold logo box

Noble Gold

Related Blog Post: 401k to Gold

Physical Gold And Silver

Gold and silver are gaining mainstream acceptance again as a form of investment.

You can purchase physical gold and silver in the form of coins, bars, or jewelry. The prices vary based on the current market value and weight of the metal purchased.

One option is to purchase and store the physical metal yourself, but you also have the option to keep it with a third-party depository. 

Related Blog Post: Best Silver IRA Companies

3. The Real Estate Market

Next up is going into real estate investing. This is a great way to earn passive income and build wealth over time potentially.

Some options for investing in real estate include rental properties, flipping houses, or REITs (Real Estate Investment Trusts). Let's discuss a few ways you can invest your initial investment of 200k in real estate.

Fix And Flip

While doing your first fix and flip might not look pretty, it can be a great way to invest money and potentially earn a large return.

You would first look for a broken-down property by driving down different areas in your city or save time and use a real estate investment platform. You then would purchase a fixer-upper property, complete renovations, and then sell it for a profit. This requires some work and research on your end, but it can be extremely profitable with the right guidance and advice.

The only downside is making sure you understand capital gains tax and how it may apply.

Rental Properties

Owning a rental property is perfect for real estate investing and can even provide you with possible tax advantages and steady monthly income.

You can purchase a property and rent it out to tenants, earning money each month in rental income.

While there are some added expenses, like repairs and maintenance, it can still be a great investment over time as the value of the property increases.

With 200k as a down payment, you can easily purchase a rental property, have tenants pay for the mortgage payments, and start earning passive income.


REITs are a safer way to "own" an investment property without all the responsibilities and work of being a landlord.

REITs (Real estate investment trust) are companies that own and manage a portfolio of income-producing properties, such as malls, office buildings, hotels, and apartments. They offer the opportunity to invest in real estate without the added work or cost.

You can purchase REITs through stock exchanges or through private real estate investment platforms. One online brokerage firm to check out is Fundrise. 


I think this is much better than using your 200,00 in the stock market or any traditional investments.

4. Get Rid of Debt

Before you learn how to invest 200k into the stock market or any other investment, paying off any high-interest debt you may have is important.

This can include credit card debt, personal loans, and car loans.

Getting rid of any outstanding debts can free up more money to invest and increase your potential earnings.

You can't get to financial freedom or give yourself investment goals until you get rid of debt, so let's review some things to fix.

Credit Card Balances

Before you fixate on investing, paying more than your minimum balance is important as getting rid of that high-interest credit card debt.

Look into balance transfer cards with a lower interest rate or try to negotiate a lower interest rate with your current credit card company.

Paying off that credit card debt can save you money in the long run and give you more options for investing in the future.

Student Loans

Do you feel like your bank account is drained by student loan debt, causing you to take out money from your savings accounts?

Student loan debt estimate

Consider student loan refinancing, where you can possibly get a lower interest rate and extend or shorten your repayment terms.

This can save you money in the long run and free up more funds for investing 200k.

Bad Financial Liabilities

You can also use your 200,000 dollars to pay off bad debt and help you reach your investment objectives. I would recommend speaking to personal finance advisors to teach you the best steps to take when it comes to eliminating bad financial liabilities.

This could include getting rid of payday loans or settling any unpaid bills that have accumulated interest over time.

Getting rid of these debts can make a huge impact on your financial freedom and investing capabilities in the future.

5. High Yield Savings Account

Setting up a high-yield savings account is a great way to invest your 200,000 dollars and have it easily accessible for emergency funds or future investments.

Look into online banks that offer higher interest rates and have lower fees than traditional brick-and-mortar banks.

This can be a safe investment option while still earning passive income through the interest earned, and is much safer than building an investment portfolio.

6. Start A Business

Starting an online business can be a great way to invest 200k and generate income.

Consider starting an e-commerce store or providing consulting services in your area of expertise.

You can also invest the money into a local business, such as a restaurant or coffee shop, but be sure to do thorough research and create a solid business plan before diving in.

Side note:

Starting your own online business can reward you the most when investing 200,000 dollars.

Starting a business can be risky, and you even might lose your money invested, but the benefits can be amazingly such as:

  • Upfront tax advantages
  • Control over your income and cash flow
  • Put more toward your retirement savings

On top of that, small business owners and online businesses have the freedom to invest their 200k into their own ideas and passion projects, leading to potential success and personal fulfillment. 

The Pros And Cons Of Investing 200k

Investing 200k can be a difficult decision. There are many options available, each with its own pros and cons. One option is to invest in a tax-advantaged retirement plan such as a 401k or IRA.

These plans offer tax breaks that can help you save on your taxes in the long run. However, they also have strict rules and regulations that you must follow to continue to receive the benefits.

Another option is to invest in a savings account. Savings accounts offer no tax breaks, but they are typically much easier to access than retirement plans. You can also withdraw your money without penalty, making them a good choice for short-term investments.

Lastly, you could invest in stocks, bonds, or mutual funds. These options tend to be more volatile than savings accounts or retirement plans, but they can offer the potential for higher returns. Ultimately, the best way to invest 200k depends on your individual circumstances and goals.

Talk to a financial advisor to learn more about your options and how to make the best decision for you.

How Much Interest Will 200K Earn

When deciding what to do with your money, one of the most significant factors is how much interest you can earn.

How much interest will it earn if you have 200k in a bank account? The answer depends on a few factors, including the type of account, the current interest rate, and whether or not the account is compounding.

You can generally expect to earn between 1-2% interest on your 200k. However, if you shop around and find a high-yield account, you could earn closer to 3% when earning interest on your savings, every little bit counts.

By finding the right account and keeping an eye on interest rates, you can maximize the amount of interest you earn on your 200k.

Is it possible to retire with 200k?

Many people dream of retiring with a nest egg of $200,000, but is it possible? The answer depends on several factors, including your personal investment allocation and the diversification of your portfolio.

If you have a diverse mix of investments, including stocks, bonds, and cash, you may be able to retire with $200,000. However, if your portfolio is heavily weighted toward stocks or other volatile assets, you may need to revise your retirement plans.

Retirement savings colinshipp

In general, it's important to remember that retirement planning is a personal process, and there is no magic number that will guarantee success. With careful planning and a disciplined approach to saving, you can hopefully achieve your retirement goals.

Wrapping Up

Now that you know how to invest 200k, it's important to remember that the best investment strategy is a personalized one.

But if you're looking for a quick profit, then you won't be able to build long-term wealth with that mindset. Make sure to review your investing goals and work with professional financial advisors.

Consider your goals, risk tolerance, and current financial situation before making any decisions. As I said, consult a financial advisor if you have questions or concerns about investing. 

About the Author

Colin Shipp is a marketer who has been working remotely full-time since 2015. He specializes in growth marketing, content marketing, online courses, and remote work. On he writes about strategies he is using in his own life.