How to Invest 100k Dollars or 100,000 Euros

What are the Best Investment Opportunities Today for Someone with 100,000 Euros or 100k Dollars to Invest

For many, 100,000 euros or 100k dollars mark a psychological threshold—a milestone that shifts a person from being a saver to becoming an investor. Upon reaching this amount, many realize that investing in the United States or Emerging Countries is necessary to preserve purchasing power and prevent inflation from eroding capital.

While investment opportunities are varied and expert opinions differ, everyone agrees on one thing: not investing comes at too high a cost, with the only certainty being the loss of value over time.

What Does Someone Looking to Invest 100k Dollars or 100,000 Euros Want?

For smaller amounts, most investors may be willing to take risks, even “gambling,” accepting potential partial or total losses for the chance of significant gains. However, those looking to invest 100,000 euros or 100k dollars generally adopt a more cautious approach. Since this sum often results from years of work and savings, the investor wants to see their capital grow while minimizing the risk of significant losses. For many, while the percentage gain matters, its predictability is far more important, as predictable returns allow for planning expenses and improving one’s standard of living.

Additionally, to avoid emotional rollercoasters and stress, every investor seeks to minimize volatility – the percentage variation in prices over a given period – or the fluctuations in value of an investment over time. For many, this is the greatest deterrent to investing. To understand how unpleasant this can be, consider that there is an actual Ulcer Index: a risk indicator that captures the duration and depth of portfolio losses, measuring the severity of the “investor’s ulcer” caused by investment losses.

Thus, in answering the question What does someone looking to invest 100k dollars or 100,000 euros want?, we could identify the following criteria:

• Returns that outpace inflation proportional to their risk
• Predictable returns
• Minimal risks
• Low volatility

How Not to Invest 100,000 Euros or 100k Dollars

In the current context, certain types of investments can be ruled out based on the above criteria.

Bitcoin and Cryptocurrencies
With Bitcoin reaching $100,000 only to pull back, few with 100,000 euros or 100k dollars to invest would risk it all on this or other cryptocurrencies. The perception is that the opportunity has passed, and it’s unlikely that Satoshi Nakamoto’s creation will achieve new exploits. If it does, it would likely follow apparent crashes that severely test an investor’s nerves.

Individual Stocks
Investing in stock markets by picking individual stocks (cherry-picking) can theoretically be rewarding but is practically very risky. It’s widely acknowledged that “95% of traders lose in the markets.” There’s no research to prove that the remaining 5% are genuinely profitable. Thus, the risk of burning through your 100k dollars or 100,000 euros within months, or even weeks, is almost guaranteed.

Investment Funds or ETFs
The likelihood of success increases with sufficient diversification, such as through mutual funds or Exchange-Traded Funds (ETFs). However, mutual funds often see part of the earnings “eaten” by fees for active management (i.e., someone studying markets daily and making trades), which often underperform passive management that simply tracks an index. ETFs are more efficient and cost-effective in this regard, but they require in-depth knowledge to create a balanced portfolio and determine the right time to enter and exit an index.

Bonds
Bonds appear better suited to the needs of someone looking to invest 100,000 euros or 100k usd:

• Predictable returns through semi-annual coupons
• Predictable capital gains or losses when held to maturity
• Low risk by selecting government bonds from reliable countries or corporate bonds from highly stable companies
• Lower volatility than the previous instruments

However, security comes at a cost, and instruments issued by reliable entities, such as 10-year German bunds, offer yields close to, sometimes below, inflation. On the other hand, moving to more lucrative instruments like U.S. Treasury, UK Gilt, Italian BTP, and sovereign bonds from Mexico, Brazil, or Colombia involves higher risk and volatility and exposure to currency risk if the currency differs from one’s own.

Gold and Safe-Haven Assets
Unless certain of new crises or wars erupting (the two ongoing conflicts have not prevented markets from earning significant gains in recent years), those with 100k dollars or 100,000 euros to invest should avoid safe-haven assets. Gold, other metals, artwork, fine wines, and collectible watches might make sense in a diversified investment strategy, perhaps to balance riskier and more lucrative investments. However, knowing how much to allocate to safe-haven assets requires uncommon expertise.

Income Properties as a Solution for Someone with 100k dollars or 100,000 Euros to Invest

For the reasons outlined, purchasing a pre-leased property represents the best investment for those with 100,000 euros or 100k dollars to be invested. Let’s analyze the motivations in detail:

• 100k dollars or 100,000 euros are enough to purchase a house, becoming the sole owner of a pre-leased investment property and thus already generating income. This can be confirmed by checking the Invest in the USA section of the Opisas website, where investment properties are available starting from $85,000.
• Like bonds, these properties offer a guaranteed income through monthly (not semi-annual) rent payments. Unlike bonds, where returns may be “eaten up” by inflation, rising prices generally increase both rents and property values.
• Similar to stocks, mutual funds, and ETFs, properties tend to appreciate over time. While this depends on market conditions at the time of purchase and resale, over a sufficient timeframe, any property provides the owner with a capital gain derived from the difference between the selling and purchase price.
• The real estate market is characterized by low volatility and follows dynamics separate from those of financial markets with their daily fluctuations. Property value assessments are conducted monthly, with changes often measured in fractions of a percent. Annual assessments are needed to see percentages comparable to a single day’s movements in financial markets.
• Real estate is a safe-haven asset with tangible backing and intrinsic value. Unlike gold, other metals, artwork, jewelry, and fine wines, it offers returns rewarding the owner even before its resale.

Examples of Investments Up to 100k Dollars or 100,000 Euros with Opisas

Orlando OPFLOR991 $85,000 Net income: $5,796/year 6.82%

Orlando OPFLOR948 $85,000 Net income: $6,396/year 7.52%

Orlando OPFLOR972 $95,000 Net income: $7,688/year 8.07%

How to Invest 100k Dollars or 100,000 Euros with Opisas

If you have 100,000 euros or 100k dollars to invest, or even less as shown above, and you wish to achieve high returns, low risks, and minimal volatility, contact us at contact@opisas.com to schedule an appointment with a consultant who speaks your language and discover investment opportunities within your budget.