Looking to learn the best way to invest 80k safely? Lucky you. If you need some help on how to invest $80,000 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 80k (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 $80,000 will not guarantee financial security unless the money is invested in ways that allow it to compound.
So it’s important to invest your 80k with caution with a recession looming.
How to Invest 80K Safely
Before that $80,000 burns a hole in your bank account, let’s work on investing it.
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 $80,000 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 you can cut expenses and spend less, but getting out of debt is a worthy goal. Before you go off and invest $80,000, make sure your debt with the highest interest rates is 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. Portfolio management.
If you are working with $80,000 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, calculates your net worth, 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, they 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 $80,000 safely.
3. 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 stocks.
As such, one of the easiest ways to grow your money is by learning how 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.
You could also invest your 80K 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.
4. Index funds.
Index funds can be one of the simplest ways to invest part of your $80,000 because they give you exposure to a broad group of companies without having to pick individual stocks yourself.
For example, an S&P 500 index fund tracks many of the largest publicly traded companies in the U.S., which can help you diversify your money while keeping costs relatively low.
According to Bankrate, some of the best index funds to consider include:⁴
- Fidelity ZERO Large Cap Index (FNILX)
- Vanguard S&P 500 ETF (VOO)
- SPDR S&P 500 ETF Trust (SPY)
- iShares Core S&P 500 ETF (IVV)
- Schwab S&P 500 Index Fund (SWPPX)
Index funds can be a practical option for long-term investors, but they are not all the same. Before putting a large amount like $80,000 into one or more funds, it is worth comparing expense ratios, holdings, performance, risk, and whether the funds overlap with investments you already own.
A research tool like Morningstar Investor can help you compare index funds, ETFs, ratings, fees, analyst research, and portfolio allocation before you decide where to invest.
6. Compare mutual funds and ETFs.
Another way to invest your $80,000 is through mutual funds. A mutual fund is an investment vehicle that holds a portfolio of stocks, bonds, or other securities.
The benefit is diversification. Instead of putting your money into one company, you can spread it across many investments through a single fund. But not all funds are created equal.
Some funds charge higher fees. Some overlap heavily with funds you may already own. Some are actively managed and try to beat the market, while others simply track an index. And when you are investing a larger amount like $80,000, small differences in fees, performance, risk, and allocation can matter a lot over time.
That is where a tool like Morningstar Investor can be useful. Morningstar helps you compare mutual funds, ETFs, stocks, ratings, fees, performance, analyst research, and portfolio allocation in one place. It can also help you see whether your portfolio has too much overlap or too much exposure to one area of the market.
If you are planning to invest a serious amount of money into mutual funds or ETFs, researching your options first can help you make a more confident decision. Morningstar Investor currently offers a free trial, and you can save $50 on your first year if you choose the annual plan.
- Compare mutual funds, ETFs, stocks, fees, ratings, and performance
- Review independent analyst research before investing
- Check your portfolio allocation, overlap, and risk
- Start with a free trial and save $50 on your first year
6. 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 80k free up some space in your budget so you can do so.
The other option is to open a Roth IRA or traditional IRA and contribute to it. These retirement accounts do have annual contribution limits — $6,000 in 2022 ($7,000 if age 50 or older). You can pad these retirement accounts in order to help prepare yourself for retirement down the road. Your retirement accounts commonly invest in index funds and ETFs, mutual funds, and are low-risk investments because your investments are diversified.
7. Start a business.
Invest your 80k 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 $50,000 for other investments.
Alternatively, starting a 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.
8. Want more control over your 80K? Public can help.
If you have $80,000 to invest, you may want more flexibility than a basic investing app can offer. That is where Public can be worth considering.
Public lets you invest in stocks, ETFs, bonds, Treasuries, options, crypto, IRAs, and a high-yield cash account from one platform. So instead of only buying a few index funds or leaving your money sitting in savings, you can build a more complete investment strategy based on your goals.
For example, you could keep part of your money in a high-yield cash account, put some into ETFs for long-term growth, buy Treasuries or bonds for income, and use Public’s tools to research individual stocks.
Public also offers AI-powered investing features, market summaries, earnings call recaps, investment plans, and custom index tools that can help you research ideas before investing.
Like any investing platform, Public should fit your goals, timeline, and risk tolerance. But if you are ready to take a more hands-on approach with your $80,000, Public gives you a simple way to build a flexible portfolio in one place.
- Invest in stocks, ETFs, bonds, Treasuries, crypto, and more
- Keep uninvested cash earning with a high-yield cash account
- Build a more flexible portfolio from one investing app
- Use AI-powered tools, earnings recaps, and market insights to research ideas
9. 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 $80,000 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.
10. 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.
11. Donate to charity.
One of the best ways to invest 80K 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.
12. Invest in an emergency fund.
One wise thing to do once you have your 80k 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.
As you may have guessed, there are so many ways to invest your $80,000 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!
13. 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 Treasury bonds are a safe and reliable way to invest, offering steady returns and government-backed security. They pay semiannual interest and return your full principal at maturity, making them a great option for long-term stability.
Whether you're looking to diversify your portfolio or simply want a low-risk way to earn passive income, Treasury bonds can be a smart addition to your financial strategy. While TreasuryDirect has traditionally been the go-to platform for purchasing these bonds, it has limitations, including a complex interface and restrictions on transfers.
Public offers a modern, user-friendly way to invest in Treasury bonds with as little as $100, making it more accessible than traditional platforms. Instead of dealing with complex systems, Public lets you invest in fractional bonds and build a diversified Treasury bond ladder with maturities ranging from 3 months to 30 years. This approach provides steady returns while keeping your investment strategy flexible.
With competitive yields, currently up to 6.7%, Public simplifies the process of investing in bonds without the hassle of outdated platforms. Whether you're looking for a low-risk way to grow your money or aiming for long-term financial stability, Public offers a seamless and accessible way to put your money to work.
14. Research individual stocks before buying.
If you want to put part of your $80,000 into individual stocks, do not just buy random companies because they are trending. Index funds and ETFs can help with broad diversification, but individual stocks require more research because your money is tied to specific businesses.
That is where a stock research service like Zacks Confidential can be useful. Instead of trying to scan the market yourself, Zacks Confidential gives members 2 to 3 high-conviction stock picks every Monday, along with analyst commentary on market trends, earnings momentum, and growth opportunities.
This can be helpful if you want stock ideas for a smaller, more aggressive part of your portfolio. For example, you might keep most of your money in diversified funds, cash, bonds, or real estate, then use a smaller portion to research individual stocks with higher growth potential.
Zacks Confidential is not something I would use for your entire $80,000. But if you want help finding stock ideas and understanding which trends analysts are watching right now, it can be a useful research tool before you buy.
- Get 2 to 3 high-conviction stock picks every Monday
- Research trends like AI, earnings momentum, and growth stocks
- Includes bonus reports on stock picks, earnings, and AI opportunities
- Backed by a 90-day satisfaction guarantee
15. Invest in cryptocurrency.
Diversification is a key principle of investing, and cryptocurrency has become an increasingly popular asset class for those looking to expand their portfolio. While Bitcoin, the largest cryptocurrency by market cap, has seen significant fluctuations in value, many investors see these price movements as opportunities to enter the market at a lower cost.
For those new to crypto, Coinbase offers one of the easiest and most secure ways to start investing. The platform provides a user-friendly experience, allowing you to buy, sell, and hold Bitcoin and other digital assets with just a few clicks. With built-in security features, educational resources, and an intuitive mobile app, Coinbase makes it simple for beginners to enter the world of cryptocurrency.
It also offers the ability to set up recurring investments, helping investors gradually build their crypto holdings over time. Whether you're looking to make a one-time purchase or take a more long-term approach, Coinbase provides a seamless and reliable way to get started.
16. High-yield savings account.
If you're looking for a risk-free way to invest your $80,000 while still earning a competitive return, a high-yield savings account is a smart choice — especially one that outperforms the average bank account.
The CIT Platinum Savings account stands out as one of the top options, offering an industry-leading 4.10% APY for balances of $5,000 or more. For comparison, the national average savings rate lags far behind at 0.41% APY.
With zero market risk and passive interest accrual, this is an optimal place to park your cash while maintaining full liquidity. Unlike traditional savings accounts that barely keep up with inflation, CIT’s high-yield structure ensures your money grows efficiently.
If you're serious about maximizing returns while keeping your capital secure, this is one of the smartest moves you can make.
- Earn 3.75% APY on balances of $5,000 or more
- No monthly fees to worry about
- Open an account with just $100
- Make unlimited transfers and withdrawals
Things to Keep in Mind Before You Invest $80,000
Before investing $80,000, 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 larger amount of money, you can see how to invest $150k safely.
For you: What ways have you found to invest or which best way to invest 80k safely did you like best?
