Best Way to Invest $10,000 – A Few Online Investment Opportunities to …
Ten thousand dollars is a good place to start if you are interested in any kind of investing. The safest, risk-free option clearly would be to stick it in a savings account with as high an interest rate you can get. However, thats not enough for many people. There are more profitable strategies – plus, you might not want to put all of your money into one place. When thinking about the best way to invest $10,000, its important to consider not only the traditional options, but newer ones in addition.
One such newer kind of investment is the peer-to-peer lending platform that involves joining an online platform where investors can become lenders themselves to others who need money and dont want to go by a big bank or financial institutional lender. With peer-to-peer lending platforms, you can spread your investments against hundreds of loan increments for as low as $25 – $50 depending on which platform you choose, and earn around 5% per year on each in interest. However, you could score a higher rate of return if you use more money and make 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 assistance of going for an EFT as opposed to purchasing stocks individually is that there are low expense ratios and fewer broker fees to worry about.
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 edges dont have physical branches all over the country, they dont need as much overhead and operational costs, and are consequently in a better position to offer clients higher CD rates than the traditional brick-and-mortar kind of bank.
CDs can be more profitable than savings accounts because with CDs, you agree to place and keep your money in the explain a set amount of time, referred to as term length. During that time, you will not have any access to the funds and if you make an early withdrawal, there could be a penalty.
Another great thing about living in the 21st century is that you dont need $100,000 to invest in real estate. You can nevertheless do it with $10,000, as long as you look into REITs (real estate investment trusts). These types of companies own / finance income-producing real estate in a range of sectors (retail, lodging and resorts, self storage, health care, residential, etc… ) across different geographical areas.
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