Category : Investing
What would you do if you have $10,000, $20,000 for investing ?
It is always a wonderful feeling to find that you have extra spare cash of $10,000 or $20,000 for investment.
Investing a sum of $10,000, $20,000 is not a small amount. With so many ways, which one’s suit you ? No matter what the size of the investment, there are ways to improve your finance while maximize your investment to its fullest potential. Here are some of good tips to work out your investment.
3 questions to ask before investing $10,000 or $20,000
1. Do you have credit card loan with high interest charge?
- Pay off any credit cards or high interest rate loan you still owe. If your credit card is charging you 15-18%, then it is suggested you pay down a portion of the loan. By paying debt first, you are earning that interest when you save yourself from paying.
2. Do you own an emergency fund account ?
- This may not be the best way to set aside $10,000 or $20,000 to work. But it is a smart way. Living on your salary income month after month is not a wise thing to do. Aim for at least three months worth of expenses in your emergency fund. You can keep this emergency money in a high yield fixed deposit account to maximize your earnings.
3. How soon you need to cash out your money ?
- This relates to your investment time frame and potential return from your investment. If you need the money in a short period of 6 months, then you can talk to the bank to open a saving deposits account. If you have about 6-12 months, you can explore on some online broker managed investments. However, if your investment time frame is 24 months or more, you can consider stocks, or even become a passive mutual fund investors.
Be clear of your objective to invest $10,000 or $20,000
“In investing, what is comfortable is rarely profitable”
Most people would invest for short-term goals, some for long-term goals. In almost every response there was at least one purpose that is to improve a person’s overall financial situation be it to receive continuous income or capital growth.
Deciding how and where to invest your money is not always an easy decision. Depending on your level of experience and goals as an investor, you can either Do It Through yourself (DIY) by learning how to trade the market or by engaging an investment adviser to participate in managed investment program.
Understand your investing options
Simply put, there are 3 broad ways for you to invest your $10,000 or $20,000.
1st way – Active investing
This is the Do-It-Yourself approach. You need to put in your effort to learn, monitor and take action yourself.
Example of active investing are :
- Open a high yield savings or FD account -that could give you 3% – 5% return depending on which country you are from.
- Trading stocks, forex, options, futures – open account like in Easy Markets. with your good market understanding, you could potentially yield 10-15% return per month.
- Online marketing like Amazon, Clickbank – this need lots of effort initially to set up website, different traffic, and truly learning the ins or outs of online marketing. The successful online marketer can be really earning online up to millions of dollars
- Invest in a training program – educate yourself. You may sign up for a training or coaching program to learn up new skills to improve your career prospects or even starting something on your own.
2nd way – Social investing
This is the Do-It Together-With-You approach. You still need to in your effort to monitor and take action but you spend lesser time compared to Active investing way.
Example of Social investing :
- Invest in social trading platform like E-TORO – you are research the good traders, test out the trader performance, and follow their investment strategy. By doing this way, you are diversifying to stocks, forex currency or some even in cryto-currency in bitcoin, ethereum, just to name a few.
3rd way – Auto pilot investing
This is the Done-For-You approach. You become your own boss in the investment, and engaging a competent adviser or investment firm to manage your investment funds.
Example of Auto-pilot investing :
- Invest through investment company like Vesbolt – this is the new trend of investing. It’s an online investment management platform, often nowadays use robo or algorithm to do the trading and monitor by real competent investment managers. Everything is handled automatically for you. Investment selection, asset allocation –at very reasonable fees.
- Invest through mutual fund company like Vanguard ETF, Fidelity funds, which is by far the most common way of how people investing.
Allocation of your investments
This area touch on the risk management aspect of your investment allocation. Always remember there are Risk and Return in investing. To control your risk exposure, you can consider divide your funds into several investments by way of asset allocation.
Asset allocation is a method of investing where you put some money in stock and some in fixed deposits. The younger you are or you have longer investment time, the more risk you can take, which means, you can invest more through the managed investment funds for a higher gain.
If you are not sure how you should invest your money, it is in our suggestion that in your best interest, you should equip yourself by learning and acquire more market knowledge first. You must understand one simple rule – the market is always there for you, but make sure you will be there properly equipped. The main objective of this site is to provide you with proper education so you never be scammed or cheated by the many con artist out there.
Nevertheless, start to have a financial investing game plan in order for you to achieve financial freedom. Over time, as your knowledge improves, you’ll gain the confidence you need to move forward. The reason why we put this information out there is to guide investor like you to learn how to invest with confidence and manage your money better than ever. You can do it.