Maybe you’ve saved all your life and you have a million dollars in your retirement account. Or maybe you inherited this fortune or won the lottery. Whatever the case, if you have a million dollars what should you do with it?

Hopefully you realize you need to invest this money so it can continue to generate cash flow and growth long term.

Let’s explore together five ways you could try to grow that million over the next five years and see which is the most profitable.

The Disclaimer

I’m not a financial advisor. Don’t take any of this hypothetical scenario as financial advice. Additionally, we’re going to keep these examples simple, so we won’t be accounting for taxes. Please consult your legal and tax professional.

#1  Savings Account

A basic savings account is the default go-to when people think of large sums of money. Savings accounts are generally considered safe and they usually do earn interest. However, at the time of publishing, savings accounts are earning a mere 0.55% interest. If you put all one million into a savings account and let it earn interest for five years, you’d wind up with about $1,027,804.

Savings accounts are “safe,” but as you can see, the returns are measly.


#2  Certificate of Deposit

Since you’re interested in earning more than a savings account can yield, CD’s might be interesting. Certificates of Deposit offer a fixed interest rate in exchange for your investment over a set period of time. At the time of publishing, a 5-year CD rate is 1.50%, which would result in your million becoming $ 1,077,284.

While this is better, it’s still not great. One million bucks has much more earning potential, thus, our journey continues.


#3  Stocks

Alright, we’re getting more serious here. Higher interest rates come with higher risk, and everyone knows that playing with the stock market can be risky.

Historically, investments in the stock market return about 10% per year (average), which means about $100,000 for your million. We can estimate that investing your million in the stock market could yield about $1,500,000 after 5 years.

Now we’re talkin’! But aren’t there other options outside the volatility of the stock market? What about real estate?


#4  Rental Properties

One million dollars could go really far in the rental property world. Consider this, you could buy real estate properties by putting 25% down. So you could snag a $200,000 single-family residence for $50,000, which means you could invest in 20 properties of that value!

If each home brought in $300 in cash flow per month (rent minus expenses), 20 properties would yield you $6,000 per month or $72,000 per year. At this rate in five years, you could have $1,360,000.

Take into consideration some improvements, rent increases, tax breaks and a few other perks, your total returns would be comparable to those of the stock market.


#5  Real Estate Syndications

This last one you may not have heard about: investing passively in real estate syndications. Real estate syndications are group investments where, as a passive investor, you pool your money together with other investors and buy a large commercial property, like an apartment complex.

Investing passively relieves you of the landlord responsibilities of managing rental properties and allows you to earn cash flow without having to find individual properties that match your price point.

The minimum investment on a syndication deal is typically $50,000, but you can invest more than that. For example, you can invest $100,000 into 10 different deals with an 8% average annual return and earn $80,000 per year in cash flow distributions altogether.

Just considering the annual return numbers, we’re coming in comparable to the other investment choices mentioned, but wait, there’s more!

Each of the 10 assets in which you invested will sell after improvements to the property are completed and the market timing is right, usually around the 5-year mark. Often, investors can expect to receive an additional 50-60% or more in returns at the sale of the real estate syndication deal.

With the cash flow distributions and the profits from the sale in consideration, you could potentially double your money from $1,000,000 million to $2,000,000 in just five years. Now that’s amazing!



Now that you have thoroughly explored what you could do with $1 million and how you can make your money earn more money, I bet you can’t wait to get your hands on a windfall. You never know, it could happen!

And when it does, you already know five different ways that money can make money – from savings accounts, CDs, stocks, rental properties, and real estate syndications.  Of course, real estate syndications are the most profitable of all these investment options. And we are here to help you get started. Join the Investor Circle now.