How to Invest a Million Dollars to Live Off the Interest – Can It be Done?

Lots of people are looking for a way on how to invest a million dollars to live off the interest. Can it be done? Yes, it can, yet, you need to work harder. Theoretically, it seems easy and uncomplicated. All you need to do is to invest in assets with interests and put them in your saving accounts. Regardless of the interest amount, you will use it for retirement.

For instance, you retire with a USD 2 million nest egg and put all of it in investments with fixed income comes with 5% annually. It gives you USD 100,000 per year in interest. If you are lucky, you also receive a pension and Social Security. When you pass away, the heir or surviving spouse will receive the entire sum you put for starters.

It turns out that several flaws may arise with this approach. In this article, we will show you how to invest a million dollars to live off the interest as well as some smart moves you can consider instead.

How to Invest a Million Dollars and Live Off the Interest

1. Gold investment

Gold is the only one of those instruments you can buy for investment. This instrument will back you up when a financial crisis hits a country. Other than that, gold can be a hedge to cover you up when deflation is everywhere. However, gold is not supposed to be the main asset you own for investing in a retirement plan.

Buying physical gold is such a good idea since you can cash it immediately when you need it. Are you interested in investing in gold? You can visit Augusta Precious Metals website for further information.

2. Index funds, mutual funds, and ETFs

Another way you can go to invest your 100k dollars in index funds, mutual funds, or ETFs. Also, it diversifies your portfolio as an investor.

Mutual funds are a practical basket of all investments. Besides, only stocks or bonds, you can also combine both things in mutual funds. However, you need a person to manage your investment. Meanwhile, index funds are allowing you to surf in a single market index. It means that you don’t need a manager to actively make trades and pick stocks. Index funds also allow you to invest in several companies in different sectors.

ETFs or exchange-traded funds are similar to mutual funds. The only difference is in how the activity goes: it trades like stocks. You can only invest in specific company types and sectors. Pick the one that suits your investment style.

3. Real estate

Owning a real estate business is one of a few ways you can do to be rich in your golden times. Also, you don’t need to buy properties yourself as long as you start with REITs or investment funds. You may have to take care of your property, even though the return is sweet.

Regardless of your choice, finding a financial advisor will ease your burden. Other than that, knowledge will help you a lot before starting to invest. And this is the end section of “how to invest a million dollars to live off the interest”.