Do you have $10,000 that’s investable?
Perhaps you’ve been saving up in an investment account. Or you received a gift, inheritance, compensation bonus at work, or maybe you won a wager. Whichever way you ended up with the 10 grand, you’ve made a smart decision to invest it.
But what’s the best investment you can make with the money? Like most investors, you want the highest returns without incurring great risk. You’re also aware that you can lose your capital if you make bad investments.
That’s why you’ve come for professional help. Read on for guidance on how to invest $10,000.
Draw Goals and Expectations
Investing your 10 grand right away might seem like the best thing, especially if there’s an ideal investment opportunity, but it’s not.
Whether this is the first investment you’re going to make or you’re a seasoned investor, it’s advisable to take time to establish your goals. What would you like to achieve with your investment? Maybe you’re making an investment for retirement? Or you want to invest for your kid’s education.
You could have short-term or long-term investment goals. Either way, your goals will guide you on where to invest the $10K, since there are investment markets that will yield results fairly quickly and others will take several years.
High-Yield Savings Account
Nobody ever got rich by saving money.
You’ve probably heard of this quote, which is why you aren’t interested in letting your money just sit in your bank account. While savings accounts aren’t that attractive, they’re an ideal option for an investor who doesn’t want to incur a lot of risks or doesn’t have many investment options at a given. In this case, a savings account will enable you to earn annual interest as you find other investments.
Plus, there are high-yield savings accounts offering as much as 0.5 APR. So, with $10,000, you’re looking at earning $50 a year. Not much, sure, but it all depends on your current situation.
The Stock Market
The stock market is the go-to investment destination for many American investors, and for good reason. In the last decade (2010-2020), the stock market (S&P 500) delivered a 13 percent return on investment. If you had invested $10,000 in 2020, you’d have about $13,000.
But that’s not the complete picture. There are individual stocks that can substantially increase your returns. Tesla, for example, grew a whopping 740% in 2020!
Of course, it’s not all rosy in the stock market. You can lose money if you invest in bad stocks.
It’s essential to get professional advice when you’re looking to invest your money in the stock market.
Precious metals are a great investment for people who need inflationary protection. So, if this was your primary goal, you’re better off putting your $10K in precious metals.
These metals are also ideal for people who’re making retirement investments. A gold IRA, for instance, is an attractive investment. You, however, need to work with a reliable company. Eastbaytimes.com has information on the best gold IRA company in the U.S.
Invest $10,000 the Right Way
If you invest $10,000 properly, you could earn great returns. If you’re not careful, though, you could burn it all in poor investments.
Put our expert investment advice to use and keep reading our blog for more ways to grow your money!