Investing is always a wise idea, regardless of available cash. A popular strategy is to make regular investment instalments. Over time, even $50 a month will grow.

What if you had $20,000? This is a large amount of money, allowing you to contribute to various investments or put the whole amount into one vehicle. Depending on your financial situation, this could be your life savings or part of your monthly income. It may also be from an inheritance, a bonus, real estate sale or financial windfall. However, it comes to you that you want it to be safeguarded and used to increase your net worth. 

So, what can you do with 20K?

Open Up a Brokerage Account

Having a large amount of money to invest in the stock market enables diversification. This can mitigate any fluctuations between investments and help you weather any downturn in the short term. An online brokerage account is easy to open, and you can fund it with 20k to start. They have various financial products to access, including:

  • Stocks
  • Bonds
  • EFTs
  • Mutual funds
  • Option trading

This puts you in control of investing. While it is a steep learning curve, there are lots of resources to educate yourself and make wise investments. Take it slow first and monitor your investments daily or often, depending on your trading type.

Family Offices

For those high net-worth individuals, 20k may be a regular amount of money they want to invest. Successful business owners and affluent families are usually busy building their companies and looking for financial professionals to invest in them. 

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Family offices provide that service and more and can take 20k and invest it in various investments for maximum growth. A family office is dedicated to serving its clients full-time and has experienced professionals dedicated to building wealth. If you have a high net worth or generate a large income, consider using a family office to invest your 20k and beyond. 

Max Out Your Retirement Accounts

Preparing for the future is a wise strategy; you may have room in your investment accounts. Topping up your 401(k) or RRSPs is wise and can be an effective tax strategy during your high-earning years.

Using up all your TSFA room is also a wise move, but they are bought with after-tax dollars and are not tax deductible. They are still a smart choice for both short-term and long-term savings and can be used as an emergency fund or even a down payment on a home.

Buy Alternative Assets

Investing in things other than stocks and bonds can provide more growth opportunities, and with 20k, you can participate in various vehicles. This includes:

  • Art
  • Coins
  • Private Equity
  • Commodities
  • Collectables
  • Cryptocurrency
  • Venture capital
  • Peer-to-peer lending

Some of these investments come with an elevated level of risk or will only increase in value over longer periods. Be prepared and ensure they are the right financial vehicle for you and align with your goals.

Real Estate

Historically, real estate has been among the best investments, and they aren’t making more land. Depending on the location you want to buy in, 20k can be used to purchase bare land. It can also serve as a solid down payment for a personal or investment property. The advantage of buying a property you don’t reside in is that it can become passive income if you rent it out. This can be for:

  • Residential tenants
  • Long-term vehicle storage
  • Farmland
  • Commercial leasing
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Investing in real estate can build up equity and, in turn, allow you more buying power when used as leverage for other ventures.

Start a Business

Trading time for money is what most people do, and this is a job we may love or hate. With 20k, you can make serious changes to your employment by becoming your boss and starting a business.

How about using the money to fund an education where you can put out your shingle? This could be as a lawyer, doctor, accountant, therapist or any number of professions. Maybe you want a storefront or a pop-up restaurant. 20K can certainly get that off the ground. Other businesses that require a medium amount of cash to get started include:

  • A food truck
  • Catering
  • Event planner


20k can also fund your life while developing an online business like a YouTube channel, e-book publishing, online course creation, Amazon store or blog. 

This is what you can do with 20K. Remember, while it may not seem like much money for a large purchase, using this amount to jump-start your investment portfolio will kick it into high gear and motivate you to direct even more money to secure a wealthier future for you and your family.