How To Invest A Million Dollars In Today’s Market

I think for a lot of beginners starting in stock market investing, they are short on cash. But what if you had a bunch of money and you needed to learn how to invest a million dollars in today's market. I think the first thing I would do is pay off all of my debt and sock away one year's expenses in a money market account and probably take part of that one year's expenses and maybe ladder some certificates of deposit with different maturity dates so that they keep renewing. After that, I'd probably set up some form of annuity to guarantee me a certain amount of money for life.

Once I've done those things, I'd probably next set up an index fund to track the overall market and the remaining amount, I'd put in an investment fund to invest in the market today in individual stocks. I'd do this with this portion of money because my guaranteed income stream will erode some with inflation. The index fund and the individual stocks I buy in the market today, I'd invest those to hedge against inflation and provide me a higher return over the long haul.

Wouldn't it be nice to win the lottery and have to decide instantly where to put a million dollars and figure out how to invest it in the market today? I'd like that problem. I'm sure that you could also hire professional money management if you wanted, but as we have talked before, I am almost convinced they would have you fully invested at all times and in today's market, you can't invest that way when you are buying individual stocks. You absolutely have to lock in gains and limit losses.

Anyway for most of us, getting a million dollars today seems farfetched although it's within reason to see our investment portfolios grow to over a million. But only if we get started now!