Ten thousand dollars is a good place to start if you are interested in any type of investment. The safest and risk-free option, obviously, would be to keep it in a savings account with the highest possible interest rate. However, that is not enough for many people. There are more profitable strategies; Also, you may not want to put all your money in one place. When thinking about the best way to invest $ 10,000, it is important to consider not only traditional options, but newer ones as well.
One of those “newer” types of investing is the peer-to-peer lending platform which involves joining an online platform where investors can themselves become “lenders” to other people who need money and don’t want to go through a big bank. or a financial institution. lender. With peer-to-peer lending platforms, you can spread your investments against hundreds of loan increments for as little as $ 25 – $ 50, depending on which platform you choose, and earn around 5% per year on each interest. However, you could get a higher rate of return by spending more money and making riskier loans.
EFTs should also be considered. “Exchange Traded Funds” can contain a wide variety of investments, including commodities, bonds, and stocks, some of which are US-only holdings, while others are international. The benefit of opting for EFT over buying stocks individually is that there are low expense ratios and fewer broker fees to worry about.
The best way to invest $ 10,000 online
One of the best ways to invest ten thousand in the 21st century is to use an ONLINE bank that offers CDs. Since online banks do not have physical branches across the country, they do not need as much overhead and operating expenses and are therefore in a better position to offer customers higher CD rates than the traditional bank type of brick and mortar. .
CDs can be more profitable than savings accounts because with CDs, you agree to deposit and keep your money in the account for a specified period of time, known as a “term length.” During that time, you will not have access to the funds, and if you make an early withdrawal, a penalty may apply.
Another great thing about living in the 21st century is that you don’t need $ 100,000 to invest in real estate. You can still do it with $ 10,000, as long as you look for REITs (real estate investment trusts). These types of businesses own / finance income-generating real estate in a variety of sectors (retail, lodging and resorts, self-storage, healthcare, residential, etc.) in different geographic areas.
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