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By: Josh Slocum, McClellan Wealth Management


If you have $200,000 right now, should you invest it or leave it in cash? This decision can be a big one. The team at McClellan Wealth Management provides financial planning in Birmingham, AL. We can help you navigate your options and make investment decisions designed to offer you the optimal benefit.

How Should You Invest $200,000 

Having this sum of money could be intimidating for some people. Your particular path will depend on what your circumstances are. Before looking into an investment, it is a good idea to develop a financial plan. If the money is not needed for expenses right now and you can wait three or more years, right now may be a good time to invest. 

Investing $200,000

After developing your financial plan, it may be a good time to invest if it is determined that you do not need $200,000 for expenses right now. You may wonder how to invest. Below are a few ways to invest $200,000 right now. 

Stock Market

Versus leaving the money in a savings account that gains interest over time, your $200,000 may grow exponentially in the stock market. The stock market is currently down, and if you can invest and sit on it for a few years, the market may go back up as we get out of inflation. 

High-Yield Savings Account

Consider a high-yield savings account if you want to avoid investing in the stock market. These savings accounts are often through online banks and can provide a higher interest rate compared to traditional banks. This is again an option if you do not need the $200,000 for expenses right now. These savings accounts often have a monthly withdrawal limit. 

Healthcare Savings Account

An HSA account allows you to set money aside for certain healthcare expenses. If your healthcare plan has a high deductible, this will enable you to cover some costs. These accounts can grow tax-free.

Financial Planning With McClellan Wealth Management

Whether it is $200,000 or $1,000,000, the team at McClellan Wealth Management can help you develop a financial plan to determine the path that will provide optimal benefit for you and your family. Our team will work one-on-one with you and consider your current situation as well as what your goals are for the future. 


*This material is provided as a courtesy and for educational purposes only.  Please consult your investment professional, legal, or tax advisor for specific information pertaining to your situation.  Investing involves risk, including loss of principal. Advisory services are offered through McClellan Wealth Management, a Member of Advisory Services Network, LLC.

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