Best Ways to Invest 10k


December 15, 2020 | AtoZ Markets – When deciding how to invest 10k, there are a huge variety of options. Whether you have received an inheritance, won the lottery, or are using your savings, there are plenty of options that can benefit you when it comes to investing. $10,000 is a significant amount of money, so when you invest it, you want to know the best ways. That way, you can guarantee yourself a good outcome.

How to get started

When you are beginning to outline your investing, it is essential to create goals and a plan. Without these two things, you will find your investing journey to be somewhat of a struggle. Luckily, creating your goals and having a good plan is fairly simple and straightforward.

When you consider your goals, timeframe, and plan, you begin to put your investing journey into perspective. This will, in turn, make it easier for you to make smarter choices when you are deciding how/when /where to invest. However, there is a big thing you have to consider, and that is risk.

If you completely shudder at the chance of losing money, even the smallest amount, then you are most likely not the type of investor that should take risks with your money. It will only cause you stress and sleepless nights.

Exchange Traded Funds (ETFs)

EFTs are a great way to dip your toes in without diving in, so they are considered a good start for beginners. They are a type of investment that typically hold assets like shares and bonds. They typically aim to outperform/track a specific index.

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EFTs are usually one of the lowest-cost investment strategies that also offer exposure to a wide range of asset classes. However, because of the fact that the performance is tied to the index, they perform (go up and down) in the same way.

Stocks

Before investing in stocks, it is recommended that you read, research, and understand stock performance histories. Then, you should choose one or two stocks to start your investment. It is always a good idea to hold off on investing (especially in stocks) until you have a good understanding of the field you’re playing.

Once you have an understanding, create a good plan, this will make all the difference. Recognize the amount you want to invest and gain an understanding of what you have to lose. That is one of the best ways to remove emotion from the equation, emotional investing is not a good idea.

Mindful Trader is a highly beneficial service when it comes to stocks. You will be provided with updates, trade alerts, and great service, all while getting the best out of your investments. Mindful Trader also teaches you how to avoid emotional investing.

Invest in bonds

Basically, when you buy a bond, you are buying debt. You are able to invest them pretty much the same way you do stocks, but they are far more predictable as opposed to stocks. There are three main types of bonds:

  • Treasury- can be purchased directly from the US Government
  • Corporate- offered by corporations looking to raise capital
  • Municipal- issued by towns, cities, and states to fund public projects

Based on the credit of the issuer, bonds may receive different ratings. Usually, you will be able to calculate your return before you purchase the bond. The calculation is based on the rate and period of maturity.

Robo-advisors

If $10 000 isn’t enough for a financial advisor to work with you as a client, a robo-advisor is likely your best bet. They can be highly helpful and guide you through your investing journey. A robo-advisor is essentially a software program or automated advisor that does all the hard yards for you.

You can usually find them at a low-cost as well as being user-friendly, and easy to understand. This way, you won’t have to worry about the stress and anxiety that comes along with investing as your robo-advisor will handle it all for you.

Knowing your situation when it comes to investing can make all the difference in your investment journey. Do your research, shop around, and find the best way to be able to invest your $10 000. Good luck and happy investing!

 

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