How would you invest 10k usd?

Question

I've been saving money to invest at some point in time, but I'm not sure which route I should take. I'm interested in real estate and have family that is in the business, but its something very new to me and I am not a big risk taker. So what would you invest the money in? would you just keep saving for something bigger?

Answer 1

If $10,000 represents your total investment portfolio, it would probably be prudent to invest in a broad based stock index fund and a broad based bond index fund. Also, please consider using that $10,000 to first pay down any credit card debt, and also to fully fund a Roth or traditional IRA, if you're eligible.

There are several good calculators online to help you determine your risk tolerance. Try going to Schwab.com, Fidelity.com or Vanguard.com for some free portfolio allocation advice.

I think that $10,000 is too low of a sum to start investing in real estate, and you're also placing all of your bets in only one sector of the market-not such a good idea.

Answer 2

If you don't have a ROTH retirement account, that's what I'd recommend. However, you're limited to a $4000 contribution in 2006 for all ROTH and traditional IRA accounts. You can put the rest in an online high yield savings account, like at hsbcdirect.com or ingdirect.com. Then you can put more in the ROTH next year.

I recommend Vanguard and Fidelity for your investments. Vanguard has lots of good low cost funds, and Fidelity has very low cost index funds with a minimum initial investment of $10,000. To get into one of those funds, you'd have to open the account and put the money in a different fund until the beginning of 2008 when your yearly contributions can finally add up to $10K or more. Otherwise, Vanguard and Fidelity both have lots of other funds with lower initial minimums.

Answer 3

Depends on if you want any risk or not. If not, buy a 6 or 12 month CD, which would give you around 4-4.5 %.
Otherwise depending on who you listen to, you could put part of it in an IRA now and then some more of it after the first of the year. Find a good mutual fund.

Answer 4

Over a period of time, long one, common stocks and real estate have been best. Keep some money in a bank CD in case you need it. Open a brokerage account, try 100 shares of HD or CAT, watch and buy on a little dip, hang on 3 or 4 months, see if you like it. If uncomfortable, go to the family and see what they offer.

HD has been good a long time, CAT very much in position almost forever if any such thing. They should be good !

Answer 5

if you have 10k to invest I would try to spread your money in five different areas - but you need to do your research pay attention of you investment - and diversify, diversify, diversify. If you are not willing to do that I would suggest you get yourself into a nice mutual fund and let the experts manage your money for you. You can monitor what your mutual fund does with your money and learn from that. I would suggest contacting T.Rowe Price http://www.troweprice.com/prospectHome/0,,pgid=prospHome,00.html?src=corporate&id=Prospect%20Investors or the Vanguard Group https://flagship.vanguard.com/VGApp/hnw/HomepageOverview who are probably the best mutual fund families with no-load (no investment fees - only a management fee) for their mutual funds, TIAA-CREF http://www.tiaa-cref.org/ as the best non-profit run mutual fund family (not a not-for-profit organization) or invest with the big daddy of profit mutual fund families - Fidelity Investments https://www.fidelity.com/frameless_pr_A.shtml.

Answer 6

Take a look at www.quarantz.com They can make you a free and personal financial plan and have different guaranteed options to invest in ways you wish. No risk in talking to them, because of the 'no fee' for their consultation.

Answer 7

I'd go with a Roth IRA.

Answer 8

Roth IRA and money market account with that amount.

Answer 9

Wow, Thankss! I was asking myself the same thing today

Answer 10

Was curious on the answer to this as well