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When you’re wondering what to invest in with $50,000, the answer often lies in “diversify in multiple options”. This includes stocks, ETFs and real estate and more. But not all options are suitable for every investor. Here are 7 ways for how to invest 50k:
One of the best ways to invest 50k is in multiple individual stocks. You can choose from:
tastytrade
SoFi Invest
M1 Finance
With $50,000, you can start building serious wealth with enough time and smart decisions. Here’s a look at how it might grow in three common investment classes.
$50,000 saved or invested | Savings account | Bonds | Stocks |
---|---|---|---|
1 year | $50,500 | $53,000 | $55,000 |
5 years | $52,551 | $66,911 | $80,526 |
10 years | $55,231 | $89,542 | $129,687 |
15 years | $58,048 | $119,828 | $208,862 |
20 years | $61,010 | $160,357 | $336,375 |
25 years | $64,122 | $214,594 | $541,735 |
30 years | $67,392 | $287,175 | $872,470 |
For this table, we assumed a 1% annual return on a savings account; an average 6% return for bonds; and 10% on stocks, the market’s long-term annual return. Bond returns vary widely based on bond types, and the stock market has down years while individual stocks can go to zero. So consider these as benchmarks only and consider risk as well as return.
Timing in the market is everything. The sooner you max out your retirement account, the faster you can reach your retirement goals. If you have already maxed out your 401(k) or will do so by the end of the year, consider opening and maxing out an IRA account.
Investing in ETFs have two main advantages over investing in individual stocks: instant diversification and saving money on fees. That’s because you hold multiple stocks or assets with one purchase instead of buying them individually all by yourself. ETFs are by far one of the best ways to invest 50k.
Robo-advisors are algorithms that automatically invest your money on your behalf based on parameters that you set, such as your risk tolerance. This gives you the opportunity to invest 50k in the stock market without doing tons of research.
Aside from the “regular” investment options, consider alternative investments such as nonfungible tokens (NFTs), historic works of art, collectibles and more.
Interestingly, you don’t have to directly buy a house or any other property to get into real estate — you can invest in REITs or through crowdfunding platforms and own shares of properties with $50,000 or less.
This is investment option comes with high risk and high reward. If you’re willing to take the risk, consider investing a small amount of your $50,000 but beware of the extreme volatility of the crypto markets.
One thing is certain: $50,000 is a lot of money. Make sure you prepare and understand your investment options before you invest this money. It may be better suited elsewhere.
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Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
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