Best way to invest 10k, 20k or 30k ?

Best way to invest 10k,20k,30k | Topmanagedportfolio.com

Best way to invest 10k, 20k or 30k ?

 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.

In Conclusion

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.


6 Comments

Josh Ellery

November 6, 2017 at 1:50 pm

I’m glad you mentioned them three questions at the start before getting into investing the money. You definitely shouldn’t be looking to invest anything if you owe a lot of money to the banks. A training program and learning marketing is the best way to go, the good news is, you don’t even need $20,000 😉

    Edmumd

    November 6, 2017 at 2:35 pm

    Josh, you comment hold some truths especially the 3 self awareness questions to ask before investing. 

    However, the main point here is “if I have already got my emergency fund prepared, not owing to credit card, but I have bank mortgage payments to pay… and I have these 10k or 20k, what should I invest in ?”

    This article is try to provide a broader perspective for people who think of investing, what options they can take, either Do-It-Yourself, Do-together-with-You or Do-For-You method. But everyone should learn to invest even they have debts because when investing are done properly, it can speed up your wealth accumulation process and pay off your debts faster.

    If we look around and check the balance sheet of the world wealthiest people, it is common you will find a column of “liabilities” inside, as the wealthy people know how to use “debt” i.e. investing using debt to grow wealth.

    My two sens of thought to compliment on your comment.

Lyle

November 10, 2017 at 3:52 pm

Doesn’t Warren Buffet say that the best (maybe he used a different word rather than best, I can’t remember) way to invest your money is in an Index fund. I’d imagine he intended this for people that aren’t interested in active investing but do you agree with him?

I’ve recently invest in a ETF (which I know is a little different from an Index account) and I just want to see if I made the correct decision.

    Edmumd

    November 11, 2017 at 12:55 am

    Lyle, thanks for your feedback here. 

    You mention of Warren Buffet , which brings out an interesting topic for discussion. As we all know, Warren Buffet makes his wealth through value investing in shares, and he live modestly way below his financial means. When he mention of index fund, you are right that it is a starter for people who has little knowledge in active investing, yet able to participate in the market movement and wealth building.

    Index fund represents a cheaper option to enter and participate in the market, as index fund only tracks the index closely and is passive investing in that way. It works on the premise that individual investors, in the long run, will not able to outperform the index, for example S&P 500 index.

    On the other hand, ETF (Exchange Traded Fund) is another option to participate in the investment market as well. But, one word of caution is to study what is the underlying asset the ETF is and is there any financial leverage used. In layman language, is to understand if the said ETF REALLY hold the assets in the portfolio, or does it just tracking the asset with a financial leverage that will either magnify the portfolio gain or loss.

    When you acquire more wealth, get yourself educated with many other options in investments. Understand that share market, bond market are just one of the financial markets. 

    Many people does not know the largest and most liquid markets are in FOREX markets, that trade 5 days, 24 hours and this market is much needed, irrespective whether a country economy is doing good or not, countries, people, banks still need to buy or sell currencies for various reasons. Hence, knowing of this factors can help you to spread your investment portfolio across various asset class and managed your return more systematically.

shalisha

December 6, 2017 at 2:13 am

Wow. This site is amazingly helpful to someone like me (a millenial) who is looking to invest, but not sure how to go about it. Thank you for this great resource.

    Edmumd

    December 6, 2017 at 6:48 pm

    Dear Shalisha,

    Thank you for visiting our site. Glad you find value in our site and do remember to bookmark us as we will continue to add more useful resources and contents to provide good education and investing resources to the world.

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