Do you earn a large income? Chances are that you have more investing opportunities than the average person, and you might be overlooking many of them! In this article, we’ll discuss some of the top investment options for high-income earners, their pros and cons, and the many benefits of diversifying beyond the stock market!
Summary:
If you’re a CEO, business owner, executive, doctor, lawyer, or other high-paid professional, you’ve most likely got a good problem: too much disposable income. If you earn $170,000 or more per year, you’re in the top 10% income earners.
You may already be maxing out your retirement accounts and want to go beyond regular brokerage investing. What’s more, many high-income earners may want to start transitioning out of their high-stress profession, and the following high-income investment strategies can help bridge the gap!
Turnkey rentals are new builds or recently renovated properties that can give you the cash flow, appreciation, and tax benefits of regular rentals without the stress of being a landlord. Because these properties usually have management and tenants in place, you don’t have to devote hours to them each week.
Rent to Retirement is one of the top-rated turnkey companies in the nation. We currently have turnkey rental properties for sale in some of the best cash flow and appreciation markets!
If you want the benefits of owning real estate without pouring hours and hours into real estate each week, turnkey is the way to go! These properties offer the following:
A syndication is where multiple investors pool their money together to purchase a property. Many of these opportunities are limited to high-income earners, as you often need to be an accredited investor to participate. (An accredited investor earns at least $200,000 a year or $300,000 if married, or they have a total net worth of at least $1,000,000, excluding their primary residence.)
Note: Syndications can be risky, so investors must do their due diligence on the general partners and the deal itself before investing.
High-income earners are more often accredited investors, and syndications require a significant amount of capital that the average person doesn’t have. Beyond that, these investments provide:
A REIT is a company that owns and operates real estate. As the investor, you buy shares of the company (like stocks), and as the company grows, so does your investment. Plus, you’ll receive regular dividends!
If you’re already investing in stocks through your retirement and brokerage accounts, you’ll find that investing in REITs is similar. These investments also provide the following:
Want to invest in cash-flowing, tax-advantaged, passively-managed real estate?
Private lending is when you loan your own money to another person or company—often a real estate investor for a house flip or another short-term project. Like with any bank loan, you receive regular payments with interest until the balance has been paid in full. Before lending money, you should do serious due diligence on both the deal and the investor. A lien should also be placed by the lender on the property for collateral in case the project goes south.
Private lending is one of the best investment strategies for high-income earners since they often have large amounts of capital to deploy. Many prefer this investing strategy due to the following:
The above high-income investment strategies are all real estate-related, and this is because many high-income earners are unaware of the numerous investment options that exist outside of regular stocks and ETFs. Real estate gives you benefits unmatched by most stock and retirement account investments, making it a powerful tool to help fuel early (or traditional) retirement.
Do you have a large sum of money you want to keep in tax-advantaged retirement accounts? With a self-directed individual retirement account (SDIRA), you can invest these funds in various alternative assets—including real estate!
Just keep in mind that if you’re buying a rental property, the IRA will technically be the owner of the property, and any property-related income and expenses must flow through the account.
As a high-income earner, you have a serious advantage when it comes to building long-term wealth. Rather than pouring all of your savings into an after-tax brokerage account, you can make your money work much harder for you and diversify your portfolio by investing in real estate. Plus, you’ll get tax benefits that you can’t get with most other investments!
Most high-income earners aren’t looking to take on another “job.” Thankfully, many real estate investment strategies deliver passive income and can help top earners diversify beyond the stock market, which they’re likely already investing in with retirement and after-tax brokerage accounts!
There is no universal “best” way to invest $300,000 for income, as this largely depends on your lifestyle, investing goals, and risk tolerance. Some of the best investment options include turnkey rental properties, syndications, REITs, and private lending opportunities!
A Roth IRA is a great retirement strategy for many, but in 2025, your modified adjusted gross income (MAGI) must be below $165,000 (or $246,000 if filing jointly) to contribute to a Roth IRA in some capacity. If you’re above the income limits, you can bypass them by using the backdoor or mega backdoor Roth strategy.