A New Investor’s Guide to the Best Way to Invest $10,000 in 2019
With whisperings of another economic recession, now is the time to build some financial stability. Investing is the name, residual income is the game.
Knowing exactly where to invest your money, though, can be as difficult as making the money. Done correctly it will lead you down the path to financial freedom.
Keep reading to discover some tips on the best way to invest $10,000 in 2019.
Real Estate
Real estate investing is still a great way to earn dividends on your investments. You can choose to be a landlord and buy a few properties. This will involve managing tenants, maintenance, applicable taxes, and more.
If that isn’t your cup of tea, try a real estate investment group (REIG).
A REIG is a group of builders or buyers that sell properties to investors as rentals. The group then manages the property for a fee. This way, you get the luxury of being a landlord with none of the 3 am maintenance calls.
Mentorship
The best investment you can make is in yourself. In fact its the only investment that doesn’t hold the risk of losing money. There are no penalties on self-improvement. A financial coach or mentor can lead you in the right direction toward greater financial freedom.
Many investing mistakes you will make will be from lack of knowledge. A professional coach or mentor can help you build the skill needed to bypass some of those costly mistakes. And while a mistake is inevitable, you can learn more quickly from them with guidance.
Retirement
If you have extra money, it is very easy for your expenditures to grow to the amount you have. This is why many people don’t save for retirement. Out of sight out of mind.
When you have the opportunity to save for retirement, you should. Even if you put a little away at a time. Your future self will thank you.
The platforms of saving for retirement have changed a little. You can still invest in a Roth IRA and collect interest until you’re of retirement age. There are other programs with similar setups. For example, if your family has high healthcare deductibles, invest in a Health Savings Account. It’s a retirement account similar to a Roth but you can use the money for healthcare expenses before you are retirement age.
Also, similar to the Roth, if you take money out before you’re 65 you’ll have to pay some hefty fees.
Stocks
With a myriad of online options, investing in stocks is easier than ever. Gone are the days of the wood-paneled offices and prohibitive jargon. Now, if you have a smartphone, you can buy and sell stocks.
It’s never a good idea to through all your coins into something you don’t understand. You should take the proper amount of time to really learn how the stock market works and practice buying stocks. Platforms like Etrade and TD Ameritrade make it easy to do both.
The Best Way to Invest $10,000
The best way to invest $10,000 will depend on what your current financial status and goals are.
If you are trying to build wealth in the long term and make sure your family is cared for in retirement, a Roth or Health saving account may be for you. If you are looking for something that pays dividends now, real estate and stock may be your best bet.
One investment you will always gain a return from is an investment in yourself.
Investing can leave your money tied up with tons of hoops to jump through before you can get to it. Contact us today for advice on how you can be more flexible with your investments.
