Ten thousand dollars is a good starting point if you are interested in any type of investment. The safest and most risk-free option would obviously be to put it in a savings account with as high an interest rate as possible. However, this is not enough for many people. There are more profitable strategies – plus you might not want to put all your money in one place. When thinking about the best way to invest $10,000, it’s important to consider not just the traditional options, but the newer ones as well.
One of these “newer” types of investing is the peer-to-peer lending platform which involves joining an online platform where investors can become “lenders” themselves to others who need money and don’t want to go through a big bank or financial institution. lender. With peer-to-peer lending platforms, you can spread your investments across hundreds of loan increments for as low as $25 to $50 depending on the platform you choose, and earn around 5% per year on each of interests. However, you might get a higher rate of return if you spend more money and make riskier loans.
EFTs should also be considered. “Exchange-traded funds” can hold a wide variety of investments, including commodities, bonds, and stocks, some of which are US-only holdings while others are international. The advantage of opting for an EFT rather than buying stocks individually is that there are low expense ratios and fewer brokerage fees to worry about.
Best way to invest $10,000 online
One of the best ways to invest ten thousand in the 21st century is to use an ONLINE bank that offers CDs. Since online banks don’t have physical branches all over the country, they don’t need as much overhead and operational costs, and are therefore in a better position to offer customers higher CD rates. higher than traditional physical type banks. .
CDs can be more cost effective than savings accounts because with CDs you agree to deposit and hold your money in the account for a set amount of time, called the “term length”. During this time, you will have no access to the funds and if you withdraw early, there could be a penalty.
Another benefit of living in the 21st century is that you don’t need $100,000 to invest in real estate. You can still do it with $10,000, as long as you look into REITs (real estate investment trusts). These types of businesses own/finance income-generating real estate in various sectors (Retail, Lodging & Resorts, Self-Storage, Healthcare, Residential, etc.) in different geographies.
If you are unsure of the best way to invest $10,000, join Motley Fool. You’ll get all the educational tools and resources you’ll need, including free advice, the best places to put your money, and the best stop picks from top experts.
Comments are closed.