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How to invest a Million dollars

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Written by pep1   

Need to know how to invest a million dollars? Want to put the million dollars you have to good use? Well, the information you are looking for is right here for you to read and put into action. 

Put your money in a safe Blue chip stock. You can find a blue chip stock, that will pay you annual dividend yields of 3 to 5% interest a year. These stocks are usually companies most people are familiar with, because they are stocks that are huge companies.

Blue chip stocks have overall capital that exceeds 10 billion and are companies that have established themselves in the minds of consumers. Invest in million dollar Real Estate . The good thing about real estate is that you can profit two ways.

The first way is buy buying a million dollar property and then either flipping it a month later for sale after you have fixed it up or you can wait months later and sell it. The second way would be to rent your property out to tenants for a monthly residual income after you get ownership.

If you rent the home out, it may not bring in a million dollars. But it can provide a nice residual income, of around $10,000 each month.

Sell option contracts worth a million dollars. If you invest in stock options that are safe bets like McDonald's and Coca-cola, you will not lose money in the long term. Gains of at least 3% or more a month will be stable. But you have to use the safest method of selling options there is, the safest and best method is the covered call trade.

It is when you use options to hedge a long stock position. It is like renting shares out to traders for a monthly premium. In return you get protection on the stocks you bought plus proceeds and they get a chance to "call away" your stocks, if the option they bought is now above a certain strike price.

If you can make at least that 3% that I talked about, you would make $30,000 annually from your million dollar investment in option plays.

Reference: http://www.bu.edu/econ/faculty/kyn/Ec341_money/exams/Howtoinvest.htm




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