How to invest $10,000 is a common question I get. Investing ten thousand dollars can be a great opportunity. If investing in the stock market, do your research before deciding how to invest $10,000 you have to spare. This video should shed some light on how to invest ten thousand dollars. How To Invest $10,000 | 6 Ways… 1. Roth IRA If time is on your side, you should invest in a Roth IRA. This is a long term retirement investment that is separate from a traditional 401k. With a Roth IRA, taxes are paid ahead of time and the earnings grow tax free. If you are under 50 and earn less than $117,000 a year, you can contribute up to $5,500 towards a Roth IRA each year. One perk with a Roth IRA is that you can use up to $10,000 of earnings from this investment towards the purchase of your first home penalty free. 2. Invest $10,000 in Index Funds or Mutual Funds If you are looking to minimize risk and get exposure to the stock market, invest $1000 in a low fee index fund or mutual fund. Here is a surprising fact: From 1997 to 2012 all-index fund portfolios outperformed actively managed funds 83.4% of the time. Low cost index funds beat the professional stock pickers 83.4% of the time! The disadvantage to investing in a mutual fund or an index fund is there is little involvement on the part of the investor. This is a set it and forget it type of investment. 3. Real Estate Direct Ownership You can get started investing in real estate with $10,000. Leverage your money as a down payment on the property and rent it out each month. The other option is to buy the real estate and flip it after making repairs. This requires access to financing to make repairs. 4. Real Estate Investment Trust Many beginners invest in a REIT because it is as easy as trading a stock. A REIT is born when a trust is formed and the money from the investors is used to purchase, operate and sell income producing real estate properties. REITs trade on the major stock exchanges and operate similarly to a dividend stock. A REIT must pay 90% of the taxable profits in the form of dividends. 5. Invest $10,000 in a Stock Portfolio If you are looking to invest $10,000 in stocks, I recommend investing 25 to 40% in one blue chip stock, investing another 25 to 40% in another blue chip of a different industry and then investing the remaining 20 to 50% in one to three mid cap growth stocks. You want to avoid investing in penny stocks, small cap stocks, biotech and pharmaceutical companies. Until you have more experience investing in the stock market, stick to lower risk investments and think long term. 6. Get a Certification/Start a Business My favorite way to invest $10,000 is to invest in yourself. A few examples of this are a home inspection license, a real estate license and a private investigator license. These are not get rich quick schemes but if you are willing to put the work in you can make a lot of money doing these things. In my opinion these are the best options of how to invest $10,000. If you are trying to learn how to invest $10,000, I recommend following one of these options above. Your best option for how you should invest $10,000 is to invest in your own business. These are the investments that pay you back the most. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Videos: How to Invest $10,000 https://www.youtube.com/watch?v=RTEZwFIz1QA&t=252s Related Articles: 15 Ways to Invest $10,000 http://www.goodfinancialcents.com/how-to-invest-10000-dollars/ Where to Invest $10,000 Right Now https://www.bloomberg.com/features/2016-how-to-invest-10k/ The 5 Best Ways to Invest $10,000 https://www.nerdwallet.com/blog/investing/best-ways-invest-10000/ If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life!
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