Investing $100,000 wisely is a critical decision that can lead to significant financial growth and a steady stream of monthly income. With so many investment options available, it’s important to choose the right ones that align with your risk tolerance, investment goals, and timeline. Here, we’ll explore some of the best ways to invest $100k for monthly income.

1. Dividend Stocks:

Investing in dividend-paying stocks is one of the most popular methods to earn monthly income. Companies that pay dividends typically do so on a quarterly basis, but you can structure your portfolio to receive dividends more frequently by selecting companies with staggered payout schedules. Look for stocks with a history of consistent and growing dividends, and consider Dividend Aristocrats – companies that have consistently increased dividends over the past 25 years.

2. Real Estate Investment Trusts (REITs):

REITs allow investors to generate income from real estate without having to own physical properties. These trusts are required to pay out at least 90% of their taxable income as dividends to investors. This makes them a great option for regular income. REITs can be purchased through a brokerage just like any other stock.

3. Bond Ladders:

Bond ladders involve buying bonds with different maturity dates so that you receive regular interest payments as each bond matures. This strategy not only provides consistent income but also reduces interest rate risk because you’re not locked into long-term bonds during times when rates may go up.

4. Peer-to-Peer Lending:

Platforms like Prosper or Lending Club allow you to invest in personal loans issued to individuals or businesses. The returns come in the form of monthly repayments with interest, providing a steady income stream. However, be aware of the default risks associated with unsecured personal loans.

5. High-Yield Savings Accounts and CDs:

For those seeking minimal risk, high-yield savings accounts and certificates of deposit (CDs) offer lower returns but are virtually risk-free insured by the FDIC. You won’t make as much as with other investments, but there is no risk of losing the principal.

6. Annuities:

Annuities are insurance products that can provide a steady income stream during retirement. By investing a lump sum upfront, you can receive payments immediately or defer them for future income.

7. Rental Properties:

Direct investment in rental properties can provide regular monthly rental income along with potential property appreciation benefits. It does require active management unless you hire a property manager, which will cut into your earnings.

8. Business Development Companies (BDCs):

These companies invest in small- and medium-sized businesses by providing funding in exchange for interest payments or equity positions. BDCs often generate high-income distributions which they pass on to investors through dividends.

Each investment avenue comes with its own set of risks and benefits; diversification across several options could help mitigate risks while providing a steady monthly income stream from your $100k investment.