How to invest 20000 dollars? There isn’t a one, great way to spend 20,000 dollars. With that amount of money your options are much wider than if you had only 2000 to invest. If you plan to use your 20000 for something in the near future (car, house) you might like to invest it in a money market account. There risk is very little and the return is up to 5%. If you plan holding money longer then a balanced mutual fund or highly rated equity would be a great deal.
If you can afford losing that money you may want to invest it in some kind of business, partnership, stocks, forex or real estate. A great idea is investing in your own business, although 20,000 dollars might not look like a sufficient sum of money. However, it is good to know that eCommerce stores or online businesses are cheap to start nowadays. You can use your $20000 as business down payment or open an orange account and get up to 3% annual return. If you want to invest in stocks – remember to learn first so that you know what you’re doing. Find and read, for instance, a book called “Investing for Dummies” or something like that.
Below are some forums’ opinions I collected while writing this post, so you get more ideas on how to invest 20000 dollars.
“I’d suggest real estate. Don’t go for stocks since the market might change with the global changes rapidly. Don’t let the lure of possible high returns provoke you to make risky choices. Be prepared to lose all the money.”
“If you’re renting a home, look into purchasing your own place or simply use that money to pursue education yours or your childrens’.”
“Consider investing in high yield investment programs (HYIP) that can give you a tremendous rate of return (even up to 3% daily). However, mind that you may lose all of your investment overnight. This type of investment requires a lot of diversification.”
“Best way to invest 20000 dollars? I’d say – find a bond brokerage and look for BAA corporate bonds at around 8%. By reinvesting the interest you ought to double your money in up to 10 years with quite a little risk.”
“Put about 30% of your money in the stock market and diversify your stock portfolio with various companies and industries. Put another 30% of your money in a moderate growth mutual fund. With the rest of the money buy something safe: cash equivalents like CD’s or money market accounts, government bonds, T-bills, and keep some cash in a savings account as emergency fund. With portfolio designed this way you can make at least 8-10% in the next 5 years.”
Decide how to invest 20000 dollars first, and certainly consider diversification. If you plan to invest in stocks or options it’s better to find a broker or carry out a lot of learning and investigation on your part. Read an interview with an amateur investor who turned 20000 into 2 million dollars within three years, here. Mind that it might be hard to repeat his success.
Learn more about stocks and bonds by watching this funny commercial:
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