By paying off the credit card, you will not only get rid of the debt permanently, but you will also lock in what is effectively a 19.99% return on your money. This can be a winning idea on so many levels, and you probably won’t need anywhere near $10,000 to make it happen. Choose a broad topic area – careers, technology, finance, investments, real estate, or just about anything you’re interested in and have at least above-average knowledge – and build a blog around it. When we think of investing, we generally think of putting money into assets with the hope of getting a return on the investment. But the best investments that you can make are the kinds that you make in yourself. Anything that you can do to improve your knowledge and skills – that will either enable you to live better or to earn more money – is a true investment.
Whatever money you don’t use, you can roll over from year to year. Eventually, you can withdraw from it in retirement — completely tax-free. When you put money into your 401(k), some companies will add extra funds on your behalf — just as a workplace perk. So with your goals in mind, here are my top 11 recommendations for how to invest $10k.
You can also purchase a CD for a higher interest rate, but you’ll pay a penalty if you withdraw your money before the CD matures. If you like the idea of investing in real estate but are leery of crowdfunding platforms, there’s another option. An REIT is similar to a mutual fund, but instead of investing in a swath of stocks, you’re investing in a selection of real estate properties, most often commercial spaces. This article is one in a series discussing Bankrate’s Market Mavens third-quarter survey. We asked experts where stocks were headed in the coming year and in the next five years, and where investors might see the highest returns.
“I would say finding a good fund that has strong exposure and ideas around investment in the energy thematic,” he said. The U.S. ISM manufacturing index, the Institute for Supply Management’s measure of economic activity in that sector, and similar measures for the euro zone are close to 30-year highs. U.S. investors have largely escaped the consequences of dollar strength and tightening global liquidity. For us, therefore, the expectation of rising prices on Treasuries makes those with yields above 3 percent attractive now.
The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing provided shall constitute financial, tax, legal, or markets for trading accounting advice or individually tailored investment advice. If you own your home, you can put your $10,000 into home improvement. But it can increase your home’s value – sometimes substantially. This won’t just get you a better price when you sell your house.
- Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
- Assuming buyers will pay for efficacious drugs, then the prognosis for the more innovative pharmaceutical companies is good.
- Real estate investment represents an excellent opportunity for long-term growth.
- They generally earn better than a savings account, but there’s also the potential for loss.
A 401(k) is an employer-sponsored retirement investment account that will allow you to allocate a percentage of your salary for tax-free growth. For example, if you have a credit card that’s charging 20% interest, paying it down by $10,000 will get you an annual “return” of $2,000. And that 20% return is virtually impossible to get on a regular basis with a traditional investment.
Head for the Oil Patch
If part of what has dislocated the market is the challenge of navigating higher interest rates, energy companies offer a reasonable hedge. Finally, large integrated energy companies are offering dividend yields north of 4 percent. If sustainability of dividend yield Lessons in Corporate Finance makes you sleep better at night, focus on the companies with very low (or zero) net debt, defined as a company’s long-term debt less cash. In capital-intensive industries such as telecommunications, larger company size brings scale economies and cost advantages.
The massive growth in liquidity created by global central banks after the financial crisis has stalled in 2018, and will likely shrink in 2019. Meanwhile, valuation spreads between expensive and cheap stocks, measured by relative price-to-earnings ratios, are at extremely wide levels vs. history. In the past 20 years, these especially wide valuation spreads typically led to a narrowing of the gap and subsequent outperformance of cheap stocks.
In 2022, you can contribute up to $6,000 per year into an IRA, or $7,000 per year if you are 50 or older. Maxing out your contributions can help keep you on track to reach your retirement goals—and possibly leave you with a few thousand bucks to invest in some of the ideas below.. Whether it comes from a sudden windfall, an inheritance or a winning lottery ticket, let’s talk about the best ways to invest $10,000. If you’re not concerned about that tax deduction, you might choose a Roth IRA. In a Roth IRA, you don’t get a tax deduction on contributions, but distributions in retirement are tax-free.
“In volatile market conditions, I encourage investors to look for high quality companies with catalysts that can result in value creation,” she said. Before even thinking about where to invest, you should make sure that you have three-to-six months of living expenses saved in an emergency fund and that you’ve paid off any high-interest loans. They have in mind a time horizon of seven years or more, which is enough to cancel out the effect of short-term market gyrations. With recession fears swirling, announcements of big job cuts rolling out daily and retirement savings battered by a turbulent year in the markets, investors can’t be faulted for feeling nervous. We also expect some investors to lock in gains from the U.S. market after its stellar performance—you’ve just seen three years’ worth of performance in three months!
How Should You Invest $10k?
If you currently own a home, $10,000 is a good chunk of money you can put toward improvements or expansions that increase your home’s value. We are an independent, advertising-supported comparison service. Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations. “[I]nvesting is a long game — years if not decades — and you haven’t actually “lost money” unless you sell,” she emphasized. Strategic caution and tactical agility may be important in a world where volatility appears ready to trend higher in the next year or two. For myself, I see the best opportunities and value in EM Asia.
Our retirement account pick: SoFi
In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor. While a practicing financial advisor, Jeff was investing strategies for 2021 named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council. Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard.
Build Up Your Emergency Fund
Debt-to-disposable income, an early warning signal in ’07, stands at an 18-year low. Thanks to low interest rates, not only is debt lower relative to income but the cost of servicing that debt is the lowest in decades. Growth expectations are collapsing, and while often viewed as an inflation hedge, gold performs best when investors are worried about too little growth. Historically, gold has risen the fastest when forward-looking economic measures, such as manufacturing surveys, are falling rapidly. Given the human and economic toll that the Covid-19 virus has already extracted, it’s not surprising that just five major asset classes posted gains in the first quarter.
Robo-advisors typically charge a small annual fee that’s a percentage of your portfolio. In exchange, robo-advisors invest your money to suit your goals and risk tolerance. Many platforms also provide automatic rebalancing and tax-loss harvesting to optimize performance and help offset some of your gains when filing taxes. Finally, some robo-advisors also let you speak to a human financial advisor if you need more personalized wealth planning. As for your specific investments inside the accounts, you have flexibility.
The AcreTrader website says farmland has a historical average return of 11.5%. With AcreTrader, you buy shares of land that typically encompass between one and four acres or more. Usually, you’d have to buy an entire piece of land yourself and rent it out to invest in farmland. However, companies like AcreTrader let you invest in pieces of farmland. When you invest in farmland, you buy acreage that farmers use to grow and sell crops. They can also be good choices if you are saving for a purchase you’ll make in the near future.