[deleted]
What can I do with US$10K that is a good investment?
Submitted 1 year ago by robocall@lemmy.world to [deleted]
Comments
Boozilla@lemmy.world 1 year ago
robocall@lemmy.world 1 year ago
I have my emergency fund, and no debt. If I were to lose this $10K, it wouldn’t impact my life. I’m comfortable with taking $10K out of my bank account and doing something with it but I don’t know how to go about that. I don’t know how to open an index fund or money market account.
RBWells@lemmy.world 1 year ago
I’m going to second (third, fourth, fifth) the Roth IRA recommendation. You can set it up with Schwab or whoever and can make recurring contributions too (set it and forget it) there are income limits so if you are really raking it in one year you can’t contribute that year but whatever you put in there is still (usually) going to grow in value. If you have an emergency situation and need the money you can withdraw contributions, not earnings, ahead of retirement, so it’s not lost to you, but working for you and much easier at tax time, no worries about how to report it.
OhStopYellingAtMe@lemmy.world 1 year ago
Pay down your debts first.
snausagesinablanket@lemmy.world 1 year ago
Buy 10 Babies in Arkansas.
robocall@lemmy.world 1 year ago
it’s cheaper than surrogacy.
Wiz@midwest.social 1 year ago
Does beer come with that?
otter@lemmy.dbzer0.com 1 year ago
Leave the country while you still can? 🤓🤘🏽
lord_ryvan@ttrpg.network 1 year ago
I kind of agree, moving from USA to for example Switzerland would be an improvement in every aspect of life.
But that might not be what they want.
It’s a big undertaking; learning the language and law, changing jobs, being okay with the fact you’ll rarely if ever see your family and friends…
Asafum@feddit.nl 1 year ago
The biggest problem for some people is no country wants them.
America seems to take just about anyone given you wait decades, but every other country worth moving to has strict income or professional requirements. I’m just a worthless factory schmuck so I’m stuck here :(
teft@lemmy.world 1 year ago
Bees.
BigBenis@lemmy.world 1 year ago
An index that either tracks the top 500 companies or the total market. Look up a 3-fund portfolio if you want to go a little deeper.
FundMECFSResearch@lemmy.blahaj.zone 1 year ago
VT. Don’t gamble on single stocks. But since capitalism rules and all of congress owns stocks, you can be fairly confident the market will go up in the long term 10+ years horizon. And compound interest does miracles.
JusticeForPorygon@lemmy.world 1 year ago
Venmo me
BruceTwarzen@lemm.ee 1 year ago
But how do we know that you are use it for drugs and hookers and not just some nonsense?
JusticeForPorygon@lemmy.world 1 year ago
Damn you got me I was gonna be an idiot and put it in an IRA
AndrewZabar@lemmy.world 1 year ago
Vanguard S&P 500 fund.
Hawk@lemmynsfw.com 1 year ago
This. Alternatively, 401K depending on a variety of factors.
Steve@startrek.website 1 year ago
Depends on your risk tolerance.
A 4% savings account is “safe” but might not keep up with inflation.
An index fund might be “good”, but the value can go down.
otter@lemmy.dbzer0.com 1 year ago
IIRC, >6% is the floor to keep up…
workerONE@lemmy.world 1 year ago
The average inflation rate for the last 20 years is under 3%
Grayox@lemmy.ml 1 year ago
Put it in an IRA so you cant touch it and buy high dividedend yeilding stocks that reinvest in more shares and let it sit for the next decade and pray that there is a radical social change in out society so we can save the Planet and Poor from Billionaires.
ShunkW@lemmy.world 1 year ago
You can definitely touch an IRA. Had to empty mine since I’ve been unemployed.
InternetCitizen2@lemmy.world 1 year ago
What kind of work are you looking for?
rimu@piefed.social 1 year ago
There is no universally good investment - it all depends on your priorities, risk appetite and timeframe.
njordomir@lemmy.world 1 year ago
I’ll reply without knowing your situation fully. If you don’t have an emergency fund that would cover several months worth of expenses that is probably the single most impactful thing you can do with $10k. A few high yield savings account offer rates around 4%, some of them have strings attached, so read how it works carefully. Think of this as insurance against unforseen expenses that you might otherwise have to put on a card and consequently pay interest for. Pick a number and always make sure you keep that account at that number.
If you already have an emergency fund, you have lots of options. Personally, I am onboard with the folks recommending index funds. I have an ETF that tracks the DOW and it has outperformed most of my individual stocks significantly over time.
Most importantly, strangers on the internet are likely not financial advisors and may not even know what they are doing. Take everything with a grain of salt and if you talk to any investment companies make sure you understand the difference and overlap between a financial advisor and a fiduciary.
twistypencil@lemmy.world 1 year ago
Don’t disagree about stuffing it in VTI… But, be aware that things can go up and down, so don’t obsess over the value one you put it in. It’s long term so it should go up over long term, but they’re can be months sheets it goes down and even a year where it doesn’t do well
InternetCitizen2@lemmy.world 1 year ago
There is already some good advise, so I will add some of dubious value that might make sense for some people. Buy a better car (or get a motorcycle). I live in the US, so having private transportation is a necessity. I have a car, but mostly I share it with my parents. I do use a motorcycle as my main commute and it is cheaper than a car’s running costs. Just saying that $10k + sale of your current car could fetch you just about any other car. It is kind of hard to do a whole lot of life changing things with only $10k. Perhaps dental work if you need any.
robocall@lemmy.world 1 year ago
So from what I’ve read after viewing this thread, I make a vanguard account, either get a money market fund or a brokered CD, put the money in, let it sit for awhile, and then profit years down the line?
Hugin@lemmy.world 1 year ago
Money market or CD is going to have terrible return. You will be lucky to match inflation. Get a low overhead SP 500 index fund. By low overhead I’m taking .15% or less. You should be able to find .125% with a bit of poking around.
Asafum@feddit.nl 1 year ago
5% is terrible? I have 13k in a 9 month CD at 5%
Almost a year and I get like $600, doesn’t seem so great to me but there’s no risk either I guess :/
Asafum@feddit.nl 1 year ago
Hmmm I see a distinct lack of CDs on here…
(Now I’m considering not renewing my 5% 9 month investment) Lol
robocall@lemmy.world 1 year ago
I just looked up what a CD is. It seems easier to understand than some of the other suggestions that have been made.
Septimaeus@infosec.pub 1 year ago
Roth grows tax-free and has more long term flexibility. It’s better for most.
walter_wiggles@lemmy.nz 1 year ago
High yield savings account at SoFi or Ally Bank will give you 4% right now.
hddsx@lemmy.ca 1 year ago
No offense, but that sounds like a terrible idea.
MrEff@lemmy.world 1 year ago
$10,000 at 4% gives you $400 interest in one year.
Just about any decent dividend stock will outperform that. Look at PET for example. It is sitting at $3.65/share right now and offers a quarterly dividend of $0.30. That puts you at $1.20/share per year. 10k = 2739 shares = $3,286.80 dividend payout in one year.
Banks are the worst place to put investments. Money in bank accounts are only supposed to be there if you need it liquid, like an emergency fund or your checking account.
walter_wiggles@lemmy.nz 1 year ago
Baby steps. Asking someone to go from nothing to investing in stocks is quite a leap.
corvid_conspiracy@lemmy.world 1 year ago
PET? What stock are you talking about?
Captainvaqina@sh.itjust.works 1 year ago
How much do you personally have invested in stocks like these?
Grayox@lemmy.ml 1 year ago
Sofi isnt a bank.
potentiallynotfelix@lemdro.id 1 year ago
Give it to me
FourPacketsOfPeanuts@lemmy.world 1 year ago
Passive global technology index tracking fund
robocall@lemmy.world 1 year ago
I’m going to need this dumbed down so I can understand
Evotech@lemmy.world 1 year ago
They have low cost to you
Global means they have stock in all markets, so if us is going bad is not necessarily bad for you
Technology mens they mostly have stock in technology
Index funds follow the market. They have stock on everything in a segment or general so if market does well, you du well.
adj16@lemmy.world 1 year ago
I like roboinvester accounts. You put money in, it automatically invests in stocks for you based on your current age and risk tolerance (which you can change whenever you like). I particularly like Wealthfront, and their app/website are really good. They’ll manage $10-15k for free, and then above that you pay a small fee out of your earnings for their service. If you use someone’s sign-up link, they’ll bump your managed amount by $5k. Comment back if you’re interested and I can share mine. Good luck with your investment, whatever you choose!
aubeynarf@lemmynsfw.com 1 year ago
pay off high interest debt
top off your emergency fund so you don’t run into expensive short-on-money situations
take care of deferred maintenance on your car or house that might turn into an expensive repair
If you have an employer sponsored 401k, increase the contribution amount to get 10k more tax free into it before the end of the year and use the $10k cash in hand for expenses.
Open a roth IRA and contribute the maximum amount you can (which may vary based on your income)
VT, VTI, and SPY are good broad-market funds with good historical growth.
PineRune@lemmy.world 1 year ago
I like these points. Preventing a future expense by paying less now is always worth it, if you can afford it.
BassTurd@lemmy.world 1 year ago
Being poor is expensive.
r_thndr@lemmy.dbzer0.com 1 year ago
That depends, how far in the future, how big of an expense, how much interest can you earn, and what’s inflation looking like?
If it’s more than a couple thousand dollars more than a couple years out, you could possibly make useful money with a high interest bearing account provided inflation is expected to be less than about 2/3 of the interest rate of the account.
Time IS money.
robocall@lemmy.world 1 year ago
1-4 are all taken care of. I need to learn more about a roth IRA and what an index fund is. I’m okay with letting $10K sit somewhere for 5-10 years, possibly longer like for retirement.
prayer@sh.itjust.works 1 year ago
Don’t rule out a Roth if you only want to save for 5-10 years. You’re allowed to withdraw the principal (initial 10K) at any time for no penalty/cost, so long as it’s recorded properly with the IRS when you withdraw it.
zerotozero@sh.itjust.works 1 year ago
Read up on Roth IRAs - your future self will thank you! You can open an account anywhere you’d like (Vanguard, Fidelity, Charles Schwab, etc). One thing I’ll mention though: the annual limit is 7K for 2024 (8K if you’re 50+), and you have to have at least that much in income to contribute (i.e., if you only had 5K income for 2024, then that’s your limit).
So, for 10K you’ll have to invest in 2024 and 2025. You also have until tax day to make contributions for the prior year.
friend_of_satan@lemmy.world 1 year ago
Second vote for VTI.