How to Invest $100,000: A Simple Strategy for Long-Term Growth

If I were to invest $100,000 of your money, here’s exactly how I’d do it and why.

I’m Tyler, a former financial advisor and portfolio manager. Now I create financial content for free so you don’t have to pay for it.

1. Invest in a Low-Cost Index Fund

Start by investing 70 to 90% of your money in a low-cost index fund that tracks the S&P 500, like Vanguard's VOO or Fidelity's FXAIX. The exact allocation depends on your age, your goals, and your appetite for risk.

2. Short-Term Money Market Fund

Invest the rest in a short-term money market fund like Fidelity's SPAXX or iShares' SGOV. Either one would provide liquidity, stability, and consistent income while rates are reasonably attractive for lenders.

3. Follow the Investment Formula

Finally, I’d invite you to join me for a walk in the woods in Vermont, and I’d teach you the following formula: 120 minus your age equals what you should invest in stocks, with the remainder invested in bonds or money markets. Spend 15 minutes a year rebalancing those two funds to keep them reflecting the appropriate level of risk for you.

Conclusion

This might not be perfect, but if it’s good enough for Warren Buffett’s estate, it’s good enough for me. If any of this is helpful, sign up for my free weekly newsletter by clicking the link in my bio. Each week, I’ll send you over another money playbook that actually works.

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