What will you do if you have $100,000? Will you instantly seek out a getaway or invest this amount of money to some assets? While spending some of this money will not hurt, what are the smartest options that one can do to a $100,000?
Kiplinger suggests five ways in which you can stretched out the $100,000 and use it for more incredible deals.
1. Grow your Money in Rentals
Nobody wants their $100,000 fortune go to a waste or just completely drift off. One way that you can get most of this sum of money is to buy a home and convert it into a rental. This could even be an additional source of income for your household and eventually grow your $100,000.
"If rent minus all expenses, including a management fee (typically 8% to 10% of monthly rent) and contribution to a reserve fund (equal to about three to six months' expenses for vacancies, repairs and maintenance), generates $250 to $500 each month, the transaction is a go." based on the outlet.
2. Go for Municipal Bonds
Another way of potentially growing your money is by buying a municipal bond, this type of bond as indicated is free from federal tax which makes your money potentially grow in the future.
"Interest from municipal bonds is usually exempt from federal income tax. Buy two of each of these bonds and get a tax-free yield of 2.3%: Maryland 2.5% coupon ($10,445), yielding 1.1% to maturity in November 2017."
3. Buy a State-of-Art Car
If you're not really concerned in spending your $100,000, this option may be ideal for you especially if you love cars. Tesla Model S as regarded in the outlet is one of the great vehicles that costs around this amount of money.
"With a hundred grand, you can buy one of the highest-tech cars on the road: the Tesla Model S. The 85 kWh all-wheel-drive version costs $86,200," details Kiplinger. "Add options such as smart air suspension ($2,500), a 90 kWh battery upgrade to increase your range to about 286 miles ($3,000) and a home charger ($600 to $3,200 including installation, depending on tax incentives in your state)."
4. Go on a Cruise
This is another luxurious take for people who wants a vacation getaway and can allow six months of their time for a trip. $100,000 can get you to see parts of the world in riding Ocean Insignia.
"Oceania's Insignia will sail around the globe in 180 days, from Miami to Miami, between January 6 and July 6, 2017, including stops in Central America, the South Pacific, Asia, the Middle East, the Mediterranean and Canada." as suggested by the publication.
5. Prepare your Home as an Aging Haven
Prepare yourself in old age the most extravagant way possible by converting the first floor of your house into your own pampering suite. This will knock your old-age blues aside and even enjoy your days spent in your home minus the painful plight of stairs.