What Is The Best Way To Invest $10,000?
Deciding where to invest your money is not a small decision. And it is certainly not a small decision when the amount you’re talking about investing is $10,000. The possibilities are immense and 10k is enough to cover most online broker minimums. Let’s find out the best way to invest $10,000.
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Best Way To Invest $10,000
Peer-to-Peer Lending is a great means, especially if we are talking about short-term investments. It provides you with an opportunity to grow interest rates which are well above average. Several lending sites bring investors and borrowers together and create an open lending environment. These cut the banks out along with their high rates and several restrictions.
The result is more flexible loan terms for borrowers and higher interest rates for investors than what they could get for a longer term certificate of deposit. If you are looking for other means of short-term investments, here are The 7 Best Short-Term Investment Plans For You!
Do you have spare 10k? Then it’s time to cut those credit card debt, student loan and home mortgage amount down. You don’t have to finish up all the 10k in paying these debts but use a significant amount in reducing them. What you are left with can be added to your emergency funds or vacation funds. One of the biggest dilemmas a person faces is What’s The Better Option: Pay Off Mortgage Or Invest?
Real Estate is an amazing investment field without a doubt. But you have to agree that $10,000 is not enough to make a down payment for purchasing an investment property these days.
One way to invest in real estate is through real estate investment trusts (REITs). The advantages of doing so are:
- High Liquidity
- High Income
- Tax advantages
Boosting your investments
If you do your own research, you will realize that a number of stocks that are at stable prices and grow regular dividends are often undervalued in comparison with fundamentals, tend to outperform. The wise thing to do would be to split your $10,000 among:
- Dividend growth stocks
- Value stocks
- Low-volatility stocks
- Momentum Stocks
Returning to School
$10,000 can be enough amounts to start your career again. This would be your best investment of time and money. Of course, 10k won’t get you a degree from a named university, but it can cover the cost of getting an Associate’s degree at a local community college near you.
The perfect opportunity to reshape your career! You can even take up a student loan to get a better degree. However, you need to know the different types of Student Loans first.
Your own business is a good place to invest.
Have you always wanted to own a business? Are you tired of working under someone else and want to be your own boss? Then why don’t you start your own business with $10,000! Getting the initial funds for any start-up is the most difficult task. You can use this money improve your skills and make your living through what you love. However, it is also advisable to prepare for your retirement. But you need to know the different types of Retirement Plans before choosing one.
In these current economical crisis, $10,000 might not seem a very large amount. However, it is fairly large to put your life on a right track!