How to Invest $150k: 19 Best Way to Use $150,000 in Cash

Are you looking to invest $150,000? These are smart ways to invest $150,000 and minimize risk.

Looking to learn the best way to invest 150k safely? Lucky you. If you need some help on how to invest $150,000 and avoid risk, let's get to work.

Because if you are reading this article, then it probably means you are either working actively towards amassing wealth to the tune of a 150k (by investing smartly) or you’re fervently hoping to win the lottery someday.

Either way, it’s smart to learn about how to invest and not spend this huge amount even before it hits your account. The reason is that $150,000 will not guarantee financial security unless the money is invested in ways that allow it to compound.

So it's important to invest your 150k with caution to keep your investment portfolio diversified.

19 Ways to Invest 150K Safely

Before that $150,000 burns a hole in your bank account, let's work on building a diverse investment portfolio. While investing in the stock market is a no-brainer, there are multiple ways to invest money so you don't have all your eggs in one basket.

1. Pay off your debt.

The easiest way to invest your money is by paying off debt. It may sound odd but paying off your debt is the first and biggest investment you can make with $150,000 in your account. The interest on any debt you have grows with time and the sooner you pay it off, the more you will save.

You should know that the secret to success is paying off debt. Sure cutting expenses and spending less is important but getting out of debt is a worthy goal. Before you go off and invest $150,000, make sure your debt with the highest interest rates are paid off, in many cases that is going to be credit cards.

“So before you go dip your chunk of money into stocks, you'll likely get a better return on your money if you pay off your high-interest consumer debt.”

According to the latest reports, the average credit card interest rate is 17.98% for new offers and 14.58% for existing accounts. While the average stock market return for 10 years is 9.2%, according to Goldman Sachs data for the past 140 years.

Are you picking up what I'm putting down? Or is your credit card debt all paid off? Let's move on.

2. Alternative investments.

You'll be wise to consider investing some of your $150k invested in alternative assets. Companies like Yieldstreet offer a curated selection of alternative asset opportunities that were previously only available to institutions and the ultra-wealthy.

This opportunity is good for those with $150k to invest and who want to go beyond the stock market. It’s no secret that wealth professionals recommend allocating 15-20% of your portfolio to alternatives. And that's where Yieldstreet can be a smart option for investors.

Yieldstreet gives you access to investment opportunities in commercial real estate, art, legal finance, and more. With historical yields of up to 18% and over $100 million in interest paid to date, Yieldstreet takes pride in helping investors reach their ambitions. Diversify your portfolio and earn passive income with investments starting at only $10,000.

Got some time? Use their passive income stimulator and explore how you could build passive income with Yieldstreet today.

3. Portfolio management.

If you are working with $150,000 in liquid cash — you are considered a high-net-worth client who would benefit from a personal touch. With that amount of capital, you can start investing with Empower.

Empower has two options. The first is a free planning tool that collects information from your financial accounts and helps you make improvements to increase returns. That's a great option for anyone, no matter where you bank or invest.

The second option is using their asset management service which has a minimum account size of $100,000 to start. Once you join, you can get help setting goals for your money — primarily for your retirement. If you invest your money here, the app will invest your money based on the Modern Portfolio Theory (MPT) which ensures true diversification and they go a step beyond tax-loss harvesting. They will optimize your tax burden and your portfolio will be tax-efficient.

According to the company's own tests, it outperformed the S&P 500 by more than 1.5% annually with less volatility. Overall, it is a safe bet to open an Account at Empower to help you grow your $150,000 safely.

4. Real estate.

One joint study by the University of California and the German central bank found that over the last 145 years, real estate offered the highest returns of any asset class. Even better, it did so with far less volatility than the stock market.

As such, one of the easiest ways to grow your money is to invest in real estate. Robert Kiyosaki, author of ‘Rich Dad Poor Dad’ learned to quickly grow his money by making down payments for rental properties and gaining profit by selling the property later at a higher price.

Another way to invest in real estate is by buying a property and renting it with companies like Arrived. With the ever-increasing inflation rate, rents will go up while your mortgage payments stay the same. This increases your cash flow and your rental yield as an investor.

Top offer pick

Arrived lets you invest in residential real estate and vacation rentals with only $100. It's an excellent option for anyone looking to earn passive income with rental units. And the platform is available to non-accredited investors.


You could also invest your 150K in raw lands with FarmTogether. Investing in lands is a profitable venture because of one key reason: land is scarce and its demand will always exceed its supply which makes it one of the best assets to build wealth.

5. Index funds.

If you want to know how to invest 150k then index funds should be at the top of your list. Investing in index funds is like investing in the stock market without taking on too much risk. The risk of investing in index funds is very minimal yet the benefits are massive. The trick is to diversify your stocks by buying the largest companies through your index fund.

According to Bankrate, the best index funds to own this year are as follows:

  1. Fidelity ZERO Large Cap Index (FNILX)
  2. Vanguard S&P 500 ETF (VOO)
  3. SPDR S&P 500 ETF Trust (SPY)
  4. iShares Core S&P 500 ETF (IVV)
  5. Schwab S&P 500 Index Fund (SWPPX)

These index funds track the S&P 500 Index Fund and offer you a way to invest your $5,000 in stocks of the S&P 500 at a low cost, while still enjoying diversification and lower risk.

6. Mutual funds.

Another way to invest your $150,000 in the stock market is through mutual funds. A mutual fund is an investment vehicle that holds a portfolio of stocks, bonds, or other securities.

Since they hold many different securities, it makes it a very attractive investment option for someone who has $150,000 to invest. Investing your money in a mutual fund instead of individual stocks means you get diversification, convenience and lower costs.

According to Investopedia, the top 5 biggest mutual funds in the stock exchange are:

  1. Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
  2. Fidelity 500 Index Fund (FXAIX)
  3. Vanguard Institutional Index Mutual Fund (VINIX)
  4. Fidelity Government Cash Reserves (FDRXX)
  5. Vanguard Federal Money Market Fund (VMFXX)

Some people may wonder how mutual funds are different than index funds? An index fund only seeks market-average returns (safe), while active mutual funds have fund managers that try to outperform the market. This means that the fees for active mutual funds are higher than index funds and less predictable returns.

7. Max out your retirement accounts.

You can invest in index funds and mutual funds in your retirement accounts and shoot for maxing out these accounts.

If your employer offers a 401(k) that matches employee contributions, and you aren't currently contributing enough to earn that match, let your extra 150k free up some space in your budget so you can do so.

The other option is to contribute to a Roth IRA or traditional IRA. These retirement accounts do have annual contribution limits — $6,000 in 2022 ($7,000 if age 50 or older).

8. Invest in art.

Most people don't consider investing in art when thinking about how to invest 150k. Plain and simple, art did better than the stock market in 2020. While the last year was sharply volatile for most parts of the public market, the art market in 2020 looked remarkably similar to prior years. 

Contemporary art has offered an annual return of 14% over the last 25 years, as of December 2020, versus a 9.5% annual return from the S&P 500, according to the Citi Global Art Market chart.

With these advantages in mind, Masterworks has become the first company to allow investors to buy shares of great masterpieces by artists like Picasso, Monet, and Warhol. For too long, access to these blue-chip art investments have been limited to the ultra-rich and connected. 

No longer. Through fractional ownership, Masterworks has opened the door to top-tier, blue-chip art investments to everyone.

9. Invest using a robo advisor.

Last month, I had $150,000 to invest and I chose to invest some of it using a robo advisor like M1 Finance. Who says you have to stick all of your money in just one place? You should diversify in order to not put all your eggs in one basket.

M1 Finance is best for making automated, long-term investments. Similar to Robinhood, M1 Finance allows users to buy fractional shares. This is great for diversifying your portfolio as you can buy multiple stocks and ETFs at your preferred price. It’s a robo-advisor and one of the cooler features the M1 Finance app offers is the choice to construct investment pies.

A Pie is a portfolio that is fragmented into different stocks and ETFs you’d like to invest in. It looks just like a – you guessed it – a pie chart. Once you’ve chosen your assets, select what percentage of your money you’d like to each of them, and the app will automate your investments.

Plus, they're one of the only top-tier robo advisors that has $0 commission fees and $0 account minimum when you join through this link.

10. Invest in yourself.

Investing in yourself is one of the best investments you could ever make and it can take many forms: pursuing a creative project, nurturing a talent taking a course, learning a new skill or pick up a new side hustle to make $1,000 fast.

While you won't likely spend $150,000 by investing in yourself, when you put your wellness first, your energy and production will increase at work which will yield better results and more revenue overall.

11. Annuities. 

This is a low-yielding investment that could pay as low as 3% on your capital. An annuity is a way to supplement your income during retirement.

Annuities can be a smart option since it provides regular payments, tax benefits, and a potential death benefit. The other advantage is that your capital is kept safe and your returns are guaranteed.

For example, you can get income for life after 90, starting at just $25/mo with companies like AgeUp. AgeUp is issued by MassMutual, a company that's been in operation for more than 160 years.

The AgeUp annuity provides guaranteed lifetime income if you reach your 90s, and an optional return of premium that could help cover final or other expenses if you don't.

What's best about AgeUp is that you can contribute in low monthly payments. Unlike annuities that require large lump sum deposits upfront… it's affordable for almost everyone.

12. Donate to charity.

One of the best ways to invest 150K is to make an impact in the lives of the less fortunate through charitable giving. Investors who are into impact investing also get tax deductions. Most all charitable organizations qualify for a charitable contribution deduction.

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

13. Emergency fund.

One wise thing to do once you have your 150k in hand is to set up an emergency fund or fund it if you already have one. It will shield you from life’s unpleasant surprises.

Because if you don't feel comfortable putting your money into a high-risk investment, the safest thing to do is put it in a traditional savings account. The main drawback is that you'll get very little interest. However, there are now high-yield savings accounts that pay up to 5% savings for you to consider.

Whether it's a few hundred dollars or many thousands of dollars, everyone should have a few bucks aside for rainy days stashed in an emergency fund.

As you may have guessed, there are so many ways to invest your $150,000 with confidence. You might choose one particular method, or you might choose to diversify. Just make sure to invest somehow so you can offset inflation and your wallet will thank you for it.

14. High-yield savings account.

This is another way to invest your 150k that is risk-free. It’s much more profitable than the normal savings account. Your money can sit in there and accrue interest passively.

Most experts recommend CIT Platinum Savings which is a high-interest savings account from CIT Bank. It offers one of the highest APYs on the market.  The account has two tiers: a low tier of 0.25% APY and an upper tier of 5.00% APY. To qualify for the upper tier, you must maintain a minimum balance of $5,000.

The account has no account maintenance fees and a minimum initial deposit of $100. Customers can make an unlimited number of transfers and withdrawals each month.

Other features of the account include:

  • Competitive interest rates
  • Digital convenience
  • No monthly service fees
  • CIT Bank's mobile app makes it easy to manage your account

Here you can earn a very impressive 5.00% annual percentage yield which is an APY that’s much higher than the national average.

15. Treasury bonds.

Treasury bonds can be an excellent investment for those looking for safety and a fixed rate of interest that's paid semiannually until the bond's maturity.

There are 4 different types of treasury bonds (NerdWallet):

  • Treasury bills (or T-bills): Short-term debt securities that mature in less than one year. Though T-bills are sold with a wide range of maturities, the most common terms are for four, eight, 13, 26 and 52 weeks.
  • Treasury notes (or T-notes): Intermediate-term debt securities that mature in two, three, five, seven and 10 years.
  • Treasury bonds (or T-bonds): Long-term debt securities that mature between 10 and 30 years.
  • Treasury Inflation-Protected Securities (or TIPS): Another type of Treasury bond, adjusted over time to keep up with inflation.

Overall, treasury bonds should play a strong role in your portfolio's asset allocation because it provides steady returns and can help offset the volatility in the stock market. You can purchase Treasury bonds directly from the Treasury Department through its website, TreasuryDirect, or through any brokerage account.

16. Peer-to-peer lending.

This is a way to make a direct impact on the lives of people. This is how it works: you sign up on a platform like LendingClub or Prosper and start giving loans to peers registered on the platform. You can buy into a thousand different loans to spread out risks and earn a profit in the form of interest.

17. Invest in cryptocurrency.

When it comes to investing, diversification is key. Cryptocurrency can be considered as one of the newest and most exciting asset classes that is available to investors.

Bitcoin, the world's largest crypto by market cap, has fallen half its value since hitting a record high. Some experts are saying now is the time to invest by using trusted cryptocurrency apps.

For those who may be too risk-averse to adding crypto in their portfolio, there are dozens of ways to score free Bitcoin as well.

18. Start a business.

Invest your 150k in that promising business venture you put on the back burner for lack of money. If it is a high-risk business be sure to conduct research into your prospect, seek expert advice and develop a solid business plan before starting out.

Of course, the amount of money required to start your business depends on your business model and industry. However, a 2009 study conducted by the Ewing Marion Kauffman Foundation puts the average cost of starting a business is around $30,000, leaving you $120,000 for other investments.

Alternatively, starting an online business with no money might initially seem like a far-fetched idea, but it's not impossible. You can even use a personal loan to start a business, in certain situations. The bottom line is that nothing is stopping you from launching a business.

19. Buy a home.

In most parts of the country, 150K can act as a down payment on a decent house if you're in the market for one. That being said, depending on where you live, it may not be enough to cover it all. For example, in expensive real estate markets like San Francisco or New York City, the down payment could be as high as $200K for a million-dollar mortgage.

It's important to note that the housing market is cooling and we're likely past the peak in home sales — especially for existing homes. House price gains have been unsustainably rapid – even faster than during the housing boom of 2002-2006.

If you're thinking about buying a house in the near future, it's important to be aware of these trends. You'll also want to consider how much debt you currently have and whether you'll be able to afford the monthly mortgage payments. If you are in the market for a home then be sure to use a mortgage lender who will help you understand what you can afford within your budget.

Things to Keep in Mind Before You Invest $150,000

Before investing $150,000, take a deep breath and go over your financial situation. Do you have any pressing financial issues that you need to deal with? Before investing this money that's liquid, you should make sure everything else is in order.

This generally means that you already have an emergency of three to six months set aside, you are paying down debt already, and you need to understand what type of investor you are.

Because you only know your risk tolerance, so that alone will help you decide which way you want to invest your money.

Whether you want to use it as a down payment on a rental property, pay off some expenses, invest in a CD, or a taxable brokerage account, it's all up to your risk tolerance.

If you're looking to invest a lower amount of money, you can see how to invest $50k safely.

For you: What ways have you found to invest or which best way to invest 150k safely did you like best?

Top offer pick

Arrived lets you invest in residential real estate and vacation rentals with only $100. It's an excellent option for anyone looking to earn passive income with rental units. And the platform is available to non-accredited investors.

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of Smarts, a personal finance site helping you easily explore your best money options. He helps readers follow the smart money in order to increase their earning potential and start building wealth for the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Business Insider, Yahoo! Finance, NASDAQ, Discover, and more.
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