How to Invest a Lump Sum Effectively

If you have recently come into a large lump sum and you have decided to invest the money, good for you! This is the best decision you could possibly make. However, knowing how best to invest your money can be quite confusing. Fortunately, there are various excellent ways in which to do this: let’s take a look at some of the best ones!

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Putting your money into a high-yield savings account is one of the safest options as this way, you know your money will not be lost and can only gradually earn interest (albeit a small amount) as the years go by. Then, if any (real) emergencies crop up, you can use the money for these. You will definitely be glad that you have this fund!

Investing your money in the stock market or for your retirement is another great option. The FTSE market offers many excellent share opportunities so take a look at the current FTSE 100 share price of some promising companies and take your pick!

With the incredibly high price of college these days, setting up a college fund for your children would not be a bad idea at all. Why not invest in a 529 plan that will allow you to invest in $ 10,000 per annum? This will gather interest over the years and your kids will thank you later!

Finally, if after you have invested most of your money and you are still lucky enough to have some money over, you could consider using it to pay off your mortgage. Paying off your home loan early can only have a positive effect as you save on all that interest in the long run and you also no longer have the expense of those monthly mortgage payments. Just think what you could do with all that extra money every month!