What is the best way to invest $10k? 

1 min readLast updated March 8, 2024by Unbiased team

Gain insight into the best ways to invest $10,000 and understand the importance of defining your investment goals and exploring diverse investment options.

Summary 

  • Investing $10,000 requires clear financial goals and a good understanding of your risk tolerance. 

  • Before investing, it's best to settle debt and establish an emergency fund. 

  • Mutual funds, ETFs, REITs, the S&P 500, high-interest savings accounts, and money market funds are all good options for investing 10k. 

  • Speaking to an investment advisor is the best way to help you grow your money. 

What are your investment goals?  

Before you embark on an investment journey, it's essential to reflect on your financial aspirations, set clear goals, and understand your investor identity. For instance, if you’re investing 10k, are you looking for long-term growth, stability, or a balanced approach?  

Need help investing?

Unbiased can match you with a financial advisor who can create a personalized investment strategy just for you.

Identifying your objectives and risk tolerance allows you to tweak your investment strategy to align with your unique financial roadmap.  

By doing this, you can ensure your investment choices line up with your aspirations and investing comfort level.  

Whether you seek to build wealth, save for a specific milestone, or safeguard your financial future, clarifying your investment goals before you decide how to invest $10,000 becomes the compass that guides you through the complexities of the financial market. 

A financial advisor will review your circumstances and work with you to create a personalized plan with carefully picked products and services to achieve your financial goals. 

Unbiased can match you with an SEC-regulated financial advisor perfectly suited to your unique needs. Get started now.  

What factors should you consider before you start investing your money?  

Your journey involves more than just choosing how to invest $10,000; you need to have a solid foundation before you can start making any money moves.  

Here are two ways to get started: 

  • Prioritize settling your outstanding debts: As alluring as potential returns may be, settling your debt is an initial first step. Clearing your financial baggage ensures that looming liabilities won't overshadow your investment gains. 

  • Build an emergency fund: Before plunging into market unpredictability, build an emergency fund as a safety net. Life is unpredictable, and having a financial cushion safeguards your investments from unexpected hiccups like sudden expenses or unforeseen circumstances. 

By addressing debts and establishing an emergency fund, you can solidify your financial standing, allowing your investment ventures to thrive on a stable and secure foundation.  

5 ways to invest $10,000 right now 

There are plenty of ways to invest $10,000, and the diversity of investment options reflects this reality.  

However, bear in mind that your investment journey is unique, so a one-size-fits-all approach isn't realistic.  

Therefore, tailoring your investment strategy to align with your preferences, financial goals, and risk tolerance ensures a more fulfilling and successful investment journey. 

Here are five different ways to invest $10,000 right now: 

1. Invest in mutual funds and ETFs 

  • Mutual funds and Exchange-Traded Funds (ETFs) offer an instantly diversified portfolio, spreading the investment risk across various assets. 

  • Mutual funds and ETFs are managed by professional fund managers who conduct thorough research and analyze market trends before making investment decisions. 

  • This option suits people seeking hands-off investing with exposure to various assets, making it ideal for beginners. 

2. Consider real estate investment trusts 

  • Real Estate Investment Trusts (REITs) provide a gateway into real estate without the hassle of property management. 

  • REITs are known for consistent and typically higher-than-average yields, given the laws surrounding the distribution of dividends. 

  • Investing 10k in REITs allows individuals to diversify their investment portfolio by focusing on various real estate types, e.g., commercial, residential, industrial, or healthcare properties. 

3. Invest in the S&P 500   

  • The Standard & Poor 500 (S&P 500) represents a broad spectrum of stocks from major US companies, offering diversified market exposure. 

  • Historical data for the S&P 500 indicates strong returns over time, making it ideal for those seeking long-term growth. 

  • Investors can use low-cost vehicles like mutual funds and ETFs to gain exposure to the S&P 500. 

4. Look for high-interest savings accounts 

  • High-interest savings accounts offer a safe haven with better returns than traditional savings.  

  • Investors should be aware of the fees and conditions of the account, such as a minimum balance, to maximize the higher interest. 

  • High-interest savings accounts are ideal for risk-averse individuals prioritizing capital preservation and easy access to their funds. 

5. Consider money market funds 

  • Money market funds invest in low-risk and short-term securities, providing stability and liquidity. 

  • They are one of the best ways to invest 10k for conservative investors looking for modest returns while preserving capital. 

  • The returns on money market funds are usually lower than high-risk investments but higher than high-interest savings accounts. 

Should you invest your money all at once?  

Investing 10k gradually or all at once is a personal decision.  

However, while immediate returns might be tempting, experts often advocate a more gradual approach to investing. This is because spacing out your investments over time mitigates the impact of market volatility and aligns with a strategy called dollar-cost averaging. 

Dollar-cost averaging involves investing a set amount regularly, no matter the market conditions. This strategy shields investors from the emotional rollercoaster of trying to invest timeously in the market. During market downturns, your fixed investment buys more shares; when prices rise, you buy fewer.  

Over time, this disciplined approach smooths out the effects of market fluctuations, potentially leading to better long-term results. Ultimately, it's a patient and pragmatic method, acknowledging the unpredictable nature of markets while steadily building your investment portfolio. 

Get expert investment advice 

Knowing how to invest $10,000 requires that you understand what your financial goals are and what options are available to you.  

The best way to invest 10k will depend on your personal circumstances, plan for the future, and financial security. 

To make informed decisions tailored to your circumstances, seeking the guidance of a financial advisor is paramount.  

Let Unbiased match you with an SEC-regulated financial advisor to receive expert financial advice.

Get started now

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.

Need help investing?

Unbiased can match you with a financial advisor who can create a personalized investment strategy just for you.