9 Financial Experts Share Their Best Way to Invest $10,000
How would you invest $10,000 of your money in 2018? That’s a substantial sum so you might consider investing in stocks, futures, Forex, options or perhaps a combination of asset classes.
Or, there are many other possible avenues depending on your level of financial experience and goals as an investor.
But smart investing is all about finding the right opportunities while you manage risk.
So, consider for a moment, how would you decide what is the best way to invest $10,000 today?
Or what if you were trying to decide how to invest $1000?
Do you have a smart investment strategy with risk management parameters to build for your future?
Deciding how and where to invest your money is not always an easy decision, nor an easy process.
Here’s some advice from a few of our top Online Trading Academy instructors and other notable financial experts on the best ways to invest $10,000:
Invest in Your Own Field
You are knowledgeable about the field where you work, and that may give you a competitive edge.
Study stocks in your industry and look for standouts as well as undervalued companies that have potential.
If you had restaurant-industry experience, for example, you might have predicted the success of Panera and Chipotle before they became Wall Street favorites.
Lynch is best known as the manager of the legendary Fidelity Magellan Fund, which averaged a 29.2% yearly gain during his tenure which ended in 1990.
Invest in Education
There are many things you can lose –your home, your job, $10,000 cash, a motorcycle…and so on. What “they” cannot take is your knowledge. I would trade $10k
anytime for the right piece of education.
Mike Mc Mahon
Online Trading Academy provides investors and traders with the knowledge tools they need to be successful in finding high-potential, low-risk opportunities
in good markets or bad. Students also learn how to conquer emotions and bad habits which may have gotten in their way,
and how to build a methodical trading plan
that is appropriate to their interests, the time they have available and their long-term goals.
Invest in Index Funds
Warren Buffett: He recently won a $1 million bet that a passively managed index fund could outperform an actively managed fund.
You can follow the same strategy simply by putting your money in a low-fee S&P index fund that matches the market’s performance.
If the market goes up, you’re a winner too.
Buffet has also become famous as a value investor who seeks out undervalued companies and holds them for the long term. “Whether stocks or socks,” he has explained, “ I like quality merchandise when it is marked down.”
Invest in Real Estate
If I had $10,000 to improve a flip house (3 bed, 2 bath) I would do the following: scrape ceilings of cottage cheese, new flooring throughout (in
older homes you often find hardwood under the carpet, best and easiest thing to do is pull up the carpet and have the floors refinished), fresh coat of
paint (I like a soft sand color with a bright white trim. It's warm, clean and allows the buyer to create a vision), clean up landscaping (add bark to
flower beds and plant colorful flowers to add curb appeal), paint the front door. This $10,000 investment should get you a 50% return on your investment
At OTA Real Estate, investors learn strategies for using property to generate income, build long term wealth or both.
Fix-and-flips, multi unit buildings, foreclosures, auctions and more offer unique opportunities to gain a market edge.
I think the best way to invest $10K is to pay off debt, add to your IRA, and anything left over add to your vacation fund.
In the OTA Financial Matters curriculum, students learn money management strategies that everybody needs but none of us heard about in school.
Taking steps to improve your credit rating can help you pay off debts at a lower interest rate. Creative investing in an IRA or 401(k), using ETFs, can help you
build up retirement security faster. And with improved quality of life from better financial management, you’ll be able to take more vacations and enjoy them more.
Fund a Trading Account
What would I do with $10k? I would fund a trading account, where I would look to generate a 3-5% monthly return without touching the principle.
Find a Low Fee Investment
The founder of Vanguard Funds once said that you can’t beat the market, so low fees are all that matters. And if you CAN beat the market, through education and experience, low fees mean you’ll keep more of what you make.
Vanguard is the world’s largest mutual fund company, with over $4.5 trillion under management.
Its 500 Index Fund Admiral Shares was the fund used by Warren Buffett in winning his $1 million bet.
It returned an average 7.1% annually over the life of the bet, compared to his competitor’s actively managed fund that earned an average 2.2%.
Invest in What Everyone Else is Selling
If you buy the same securities everyone else is buying, you will have the same results as everyone else. Instead, look for assets that are marked down because no one else wants them.
Sir John Templeton
At the outbreak of World War II, Templeton bought shares of every NYSE-listed company selling for less than $1 and made money on nearly all of them.
He was also an early advocate of diversifying overseas. $10,000 invested in his Templeton Fund in 1954 would have turned into $2 million by the time he retired in 1992.
Invest in Education
The money spent on education can save us so much down the line in our learning of doing something new! We need to respect that money we pay out by putting in
the time that it took to earn that money. I believe in lessons, so given $10,000 I would put it on lessons.
What do you consider the best way to invest $10,000 today? Get your start by attending a complimentary Half-Day Class at Online Academy. Check out the schedule of upcoming courses in your area.