What to do with 1 million dollars is complicated because the first thing we always think of before investing is how to achieve maximum profits. To get the returns on investment, we must calculate the net present value which is the present value of the investments and their future returns. Diversification is a concept that is very important while investing because it minimizes or spreads the risks. This is done by investing in different types of projects.

Investing in government bonds is less risky, and it is preferred by the older people who have a shorter horizon. A savings account may also be safe but it depends with the commercial institution. Mutual funds are good to invest in but they can be very profitable and risky at the same time. It depends on the type of mutual fund because there are others that are relatively safe with average returns. CD’s is a safe option whereby I give money to the bank and the longer it stays there the higher the returns. We can also start business projects with the one million dollars because they are easier to evaluate.

We must choose a method of investing that corresponds closely to our preferences. The risks likely to be involved should be considered because anything valuable has got an inherent risk. Objectives and goals must be clearly stated before starting an investment, and should always work towards achieving them. A financial advisor may also be required to give enough information that will keep the investment running. I will also take into account the state of the country’s economy.