If you’ve saved up $100,000 or more, you’re likely thinking about how to invest it wisely. While there’s no one-size-fits-all answer, various strategies can help you make the most of your money. In this guide, we’ll explore some of the best investment options available in Canada and how you can approach your investment journey in 2025.

Before You Start Investing

It’s tempting to jump into investing as soon as you have the funds, but there are a few steps you should take first to ensure your financial foundation is solid:

1. Pay Off High-Interest Debt: If you have any high-interest debt, such as credit card balances, it’s a good idea to pay them off first. The interest you save by eliminating debt will be far greater than what you could earn from investments.
2. Build an Emergency Fund: Having 3 to 6 months’ worth of living expenses set aside is essential for financial security. This fund acts as a safety net to cover unexpected expenses without derailing your investment strategy.
3. Define Your Goals and Risk Tolerance: Take some time to assess what you’re investing for—retirement, buying a home, or other financial milestones. Also, think about your comfort level with market fluctuations. Understanding your risk tolerance will guide your asset allocation decisions.
4. Choose the Right Investment Accounts: Consider tax-advantaged accounts like the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). These accounts offer unique benefits to help maximize your investment growth, such as tax-free earnings with a TFSA or tax-deductible contributions with an RRSP.

Best Ways to Invest $100k in Canada

Once you’ve laid the groundwork, here are five popular ways to invest your $100k in Canada:

1. Real Estate

Real estate is a tried-and-true investment that tends to appreciate over time, making it a solid option for long-term wealth building. While $100,000 can make a substantial down payment, it’s important to consider the location, property type, and market conditions when investing in real estate.

• Traditional Real Estate Investment: Purchasing rental properties or homes to flip can offer steady returns, but it requires a lot of work, from dealing with tenants to managing repairs and legal obligations.
• Mortgage Investment Corporations (MICs): If you want exposure to real estate without the hassle of property management, MICs can be an excellent alternative. MICs pool funds from investors to finance a variety of mortgages, allowing for diversification across different locations and property types. This provides potential for solid returns without direct ownership.

2. Stocks

Investing in the stock market offers the potential for high returns, but it comes with risk. If you’re looking to make significant gains, you can buy individual stocks, but this requires a solid understanding of market analysis and company performance.

If picking individual stocks isn’t your thing, mutual funds and exchange-traded funds (ETFs) are great alternatives. These funds allow you to invest in a diversified mix of stocks, which reduces risk while offering growth potential.

3. Mutual Funds and ETFs

Mutual funds and ETFs provide an easy way to diversify your portfolio without much effort. By pooling investors’ money, these funds invest in a wide range of securities, such as stocks, bonds, and commodities, providing exposure to various markets.

• Mutual Funds: These funds are actively managed, meaning a fund manager selects the securities to buy and sell. However, they tend to have higher fees compared to passive funds like index funds.
• ETFs: ETFs are traded on stock exchanges, providing flexibility to buy and sell shares throughout the day. They typically have lower fees than mutual funds and track specific market indices, such as the S&P/TSX Composite.

4. High-Yield Savings Accounts and GICs

For a safer, lower-risk option, consider high-interest savings accounts (HISAs) or Guaranteed Investment Certificates (GICs). These options provide guaranteed returns on your money, though the rates are typically lower than those of stocks or bonds.

• HISAs: These accounts offer higher interest than traditional savings accounts, typically ranging from 1% to 3%.
• GICs: GICs offer fixed returns over a set period, with terms ranging from 6 months to 10 years. While you sacrifice liquidity, GICs can provide a secure, guaranteed income.

5. Bonds

Bonds are a relatively safer investment option, as they provide a fixed interest return over a specified period. When you purchase a bond, you’re lending money to the government or a corporation, and in return, you receive periodic interest payments.

Bonds are an excellent option for those looking to preserve capital while earning predictable returns, but the returns are generally lower than those of stocks or real estate.

How Much Interest Can $100,000 Earn?

The interest earned from investing $100,000 depends on the type of investment. For example, if you invest in an Amur Capital Income Fund, which targets an annual return of 11%, you could earn $11,000, bringing your total to $111,000 after one year.

Should You Invest All $100,000 at Once?

The decision to invest your entire $100,000 at once or to spread it out over time depends on your risk tolerance. Lump-sum investing has historically outperformed dollar-cost averaging (DCA) in most cases, as long as you’re investing for the long term. However, if you’re more risk-averse, DCA might offer more peace of mind, as it reduces the impact of market volatility by spreading out your investment over time.

Tips for Investing $100,000

• Diversify Your Portfolio: A well-rounded portfolio can help protect against losses in any one asset class. Consider a mix of stocks, bonds, real estate, and alternative investments to balance risk and reward.
• Monitor and Rebalance Your Portfolio: Over time, your portfolio may drift from its target allocation due to market fluctuations. Regularly rebalancing your investments ensures they remain aligned with your goals.
• Consider Working with a Financial Advisor: A financial advisor can help you create a strategy that suits your long-term goals and risk tolerance. Research shows that advised investors tend to accumulate more wealth over time compared to those who go it alone.

Conclusion

Investing $100,000 in Canada offers a variety of opportunities, from real estate to stocks and alternative investments. By understanding your financial goals, risk tolerance, and preferred investment vehicles, you can create a well-diversified portfolio that grows your wealth over time. Whether you choose traditional options like stocks and bonds or explore alternatives like MICs, the key is to take a strategic approach that aligns with your financial aspirations.