When I started my first job after University, one of my main interests was to start investing. I’ll never forget my first meeting with a financial advisor. He told me, “Save up $10,000 to invest and then come see me.” Wow, that sure was frustrating because I did not have $10,000 and had no idea when I would be able to invest $10,000. But that conversation motivated me to start saving money so I could invest $10,000 as quickly as possible.

Once I did save the money to invest $10,000 it became a real project to decide where to invest this chunk of change I had worked so hard to save. After all, I did not want to lose it; I’d worked way too hard to get it in the first place!

Here are the results of some of the research I conducted to find good investments for my money.

1) Believe it or not my bank actually had a great Online Savings Account percentage rate of 5%. So the first thing I did was put the money in that type of savings account so it would be earning interest while I decided what my next step would be.

2) Opening a Roth IRA for retirement was very appealing to me. These IRAs are excellent because you will have tax free income when you retire. You can start withdrawing from your Roth IRA at the age of 59 ½ as long as you have had the account for at least five years. The amount of money you can put into the IRA is dependent on your age.

  • Under the age of 50, up to $5,000
  • Over the age of 50, up to $6,000

3) I decided mutual funds were the best way for me to go as far as stock investments. Mutual funds give you the advantage of diversification. Investing a lot of money in one stock is not appealing to me at all, just isn’t stable enough. However, a mutual fund is built from several stocks. This way if one stock tanks the rest of the stocks in the fund will be able to “make up” for the bad stock. Mutual funds are managed by an expert who is in charge of buying and selling the stocks in the fund. An additional bonus to mutual funds is they can be cashed out at any time; you don’t have to wait until you are a certain age or until you’ve held the fund for a specific amount of time. I like the flexibility of this option.

I hope these ideas help you decide where to invest $10,000. If you still have questions, I suggest you find a financial advisor whom you trust. Quite honestly, I have gotten a lot of good investment advice from friends and family; this is great because they have my best interest at heart and are not going to recommend something just because they make some money off of it.

If you liked this post, our author will be glad to receive a cup of coffee from you.

Share and Enjoy:

Did you like that post? You will love these.