How to Invest $1M

If/when you ever ask a mob of individuals how they would spend a million dollars, you will rarely observe the same reply twice. Granted, this is due to many factors such as education, upbringing and life goals. That said, most would not disagree that using that million to generate MORE money (recurring cash flow in this instance) is the absolute best way to utilize the funds…

How would you spend a million dollars, if your goal was to generate the highest recurring cashflow possible?

When the question is rephrased in this way, people would tend to give generic, vague answers such as “stocks”, “crypto”, and of course, “real estate”. But ambiguous terms like these are not helpful, and may be entirely incorrect if interpreted in one specific variant. For instance, real estate can be broken down into residential, commercial, multifamily, office, industrial, or otherwise. Not all real estate investment models are created equal, and the same goes for financial products such as stocks, bonds, mutual funds and ETFs. We need to go deeper in our investment options, in order to find the best answer to this question. Let’s see what they could be:

Angel Investor

An angel investor is someone who invests in a company in the early stages when they are still relatively new. The funds are typically needed to acquire new talent, pour into advertising or grow the business through other means which also require a great deal of capital. In almost all instances, however, angel investors do not get paid until AFTER a company is either sold or goes public. For the most part, it’s a high risk play which needs several rounds of funding to survive, and to eventually come out on top on.

Monthly Return: 0%


Single Family Home

While a great option to live in, the single family home makes for a terrible investment. It can be rented out for a reasonable amount, but a single tenant is both risky and unstable. Dependent on location, a million-dollar SFH can return a $2000-5000 rate on average.

Monthly Return: 0.35%



It is true that stocks has outperformed real estate and perhaps created more millionaires than any other investment model. That does not mean it’s without its own shortcomings. First of all, we are not talking about day trading or short selling, which are volatile and unpredictable on their own. Secondly, not all stocks are created equal, and there is a science to it, similar to any other endeavor. Thirdly, stocks/ETFs that produce monthly dividends are an even smaller pool of options. That said, the returns are fairly consistent and may be a better option for those who don’t like their money tied in real estate, where it’s not nearly as liquid or versatile.

Monthly Return: 0.6%



Similar to a duplex or triplex, a fourplex is an apartment complex which boasts 4 separate units which can act as rental properties. Depending on a number of factors, a fourplex worth around a million dollars could bring in anywhere from $6000-9000 per month. Not amazing, but far and away better than a single family home.

Monthly Return: 0.75%



Business is by far the greatest investment one can make. While it is the most nuanced, and may require some work to maintain or grow, the returns it provides are unmatched. One look at any business listing marketplace tells the story quite vividly. Businesses sell for many different reasons, and there are many that are ready to simply be taken over and perhaps need a little tweaks to enjoy an even higher return than originally expected. There are many that have a sale price similar to the annual revenue they generate, which makes it a no brainer if you are willing and able to make it yours.

Monthly Return: 1-25%