Quora Answer: How Should I Invest $40,000 in Order to Get Interest of about 3%?

The following is my answer to a Quora question: “How should I invest $40,000, in order to get interest of about 3%?”

You could put it all in some sort of index or mutual fund, and easily get almost double that, per annum.  However, you do need to consider professional advise on the weightage of the portfolio.  This depends on your risk tolerance, and investment horizon.  Alternatively, you could take advantage of dollar cost averaging, and put in a small amount over an extended period.

Alternatively, if you know how to utilise it, if you are young enough to have a minimal mortality charge, and you require some form of immediate estate in the event of death, there is the option of an investment-linked plan.  Again, it would be better to avail yourself to a competent financial advisor.  You have the option of a single premium, or regular premium investment-linked plan that will give you this at the very least.  The advantage is that it will also provide you a death benefit that can be up to 1.5 times the invested amount, depending on where you are.  You are unlikely to lose your entire capital your money here because of the way the fund is structured and managed.