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Best way to invest $5000?
Posted on 8/23/16 at 4:42 pm
Posted on 8/23/16 at 4:42 pm
I have about $5000 that I want to put towards some sort of investment instead of just having it sit there.
What would be the best in terms of long term?
I recently got a new job, so need to find out the details with what they match in the 401k.
Just looking for some initial research on this to help make a decision.
What would be the best in terms of long term?
I recently got a new job, so need to find out the details with what they match in the 401k.
Just looking for some initial research on this to help make a decision.
11
Posted on 8/23/16 at 4:44 pm to ThatsJustTheWave
Standard and Poors 500 index fund
Posted on 8/23/16 at 5:03 pm to ThatsJustTheWave
quote:
Just looking for some initial research on this to help make a decision.
Would be better if you did the initial research then came back and asked a more specific question.
This board overall would be better if people did a little bit of their own homework before making threads like this.
Posted on 8/23/16 at 5:30 pm to Jon Ham
You have a fair point and I understand. I initially thought to do that, but really have no idea where to start and felt someone overwhelmed. I figured this would give me a good start that I could turn into my own research and also provide me with some back and forth dialogue.
I will look into it some on my own.
Thank you for the response. It is better than no response.
I will look into it some on my own.
Thank you for the response. It is better than no response.
Posted on 8/23/16 at 5:41 pm to ThatsJustTheWave
The stickied thread on this board is a good place to start. Good luck. I'm sure some others will be by soon to give some substantive advice.
Posted on 8/23/16 at 5:44 pm to ThatsJustTheWave
I don't think he was trying to give you a hard reply. But when you ask for the "best" way to invest $5000, you really do have to give more details about your investment background and goals (as in, your long term is likely quite different than mine). Short of that, yeah, I'd probably just go with the S&P 500 index fund too.
Posted on 8/23/16 at 7:31 pm to ThatsJustTheWave
Is this your first $5k to invest? If yes, put it in an index fund.
If you've already got half a million in retirement then try an individual stock.
So many different scenarios...we need more info.
If you've already got half a million in retirement then try an individual stock.
So many different scenarios...we need more info.
Posted on 8/23/16 at 7:56 pm to bayoubengals88
Iraqi Dinar
Posted on 8/23/16 at 8:18 pm to ThatsJustTheWave
AMD stock
Posted on 8/23/16 at 8:25 pm to ThatsJustTheWave
Would probably be wise to just pick an index fund as others advised, maybe through Vanguard.
Be careful if you decide to purchase individual stocks, which are more risky than index funds. If you are looking to go the stock route, stick with large companies like AT&T, Apple, Exxon, Coca-Cola, etc. that pay consistent dividends which can be reinvested for more shares over time with not much downside assuming you don't plan to touch the money for decades.
Be careful if you decide to purchase individual stocks, which are more risky than index funds. If you are looking to go the stock route, stick with large companies like AT&T, Apple, Exxon, Coca-Cola, etc. that pay consistent dividends which can be reinvested for more shares over time with not much downside assuming you don't plan to touch the money for decades.
This post was edited on 8/23/16 at 8:26 pm
Posted on 8/24/16 at 12:38 am to ThatsJustTheWave
If you aren't risk averse throw it all into a solar etf or grains etf
Posted on 8/24/16 at 12:39 am to ThatsJustTheWave
Do you already have an emergency fund with 3-6 months expenses? If not, invest in a low-risk bond fund and only touch it if you lose your job
Posted on 8/27/16 at 7:30 pm to Ostrich
Current situation:
6 month living expenses saved
maxed out 401k
no debt
$10,000 in extra funds
Should I continue to save cash for a large down payment on a house or start investing in a roth IRA? If I should do the $5,500 max for the roth, what about the remaining $4,500? Aggressive or low risk approach? My goal is to buy a property in 6 -10 years.
6 month living expenses saved
maxed out 401k
no debt
$10,000 in extra funds
Should I continue to save cash for a large down payment on a house or start investing in a roth IRA? If I should do the $5,500 max for the roth, what about the remaining $4,500? Aggressive or low risk approach? My goal is to buy a property in 6 -10 years.
This post was edited on 8/27/16 at 7:34 pm
Posted on 8/27/16 at 7:36 pm to SpanishFortTiger
Max the Roth and get in the habit of doing so annually. Buying that far out, I'd probably look at some taxable investment accounts with some conservative investments. How big a down payment you needing?
Posted on 8/27/16 at 7:41 pm to Costanza
Well I would love to avoid PMI but since I am in my mid-20's saving 20% with all the other requirements seems a bit unrealistic. My goal was to have $30k for the down payment and $15k for a repair fund.
On the taxable investment funds, I have my 401k with T. Rowe Price, any advantages or disadvantages to staying with the same company?
Thank you for the advice!
On the taxable investment funds, I have my 401k with T. Rowe Price, any advantages or disadvantages to staying with the same company?
Thank you for the advice!
This post was edited on 8/27/16 at 7:45 pm
Posted on 8/27/16 at 7:51 pm to SpanishFortTiger
Many here recommend vanguard. Key thing to look at is the fees/expenses that come with the funds you select. Vanguard has the lowest costs, typically. I'd caution against mirroring your 401k investments in your Roth and taxable accounts due to the higher costs associated with most 401k investment choices. I use TD Ameritrade and am happy with it. Read the stickied thread up top and check out the boglehead forums. Some great free learning resources to learn about long term investing strategies.
As far as the house down payment, for right now with potentially a decade before you buy, there are a million costly things that can creep up. Ring, wedding, kids, new car, etc. Keep plugging away, your income will go up, but life will happen. Good luck.
As far as the house down payment, for right now with potentially a decade before you buy, there are a million costly things that can creep up. Ring, wedding, kids, new car, etc. Keep plugging away, your income will go up, but life will happen. Good luck.
Posted on 8/27/16 at 7:58 pm to Costanza
Thank you. One last question, how bad is PMI? Should I not even consider a home (townhouse) if I have to pay PMI?
Posted on 8/27/16 at 8:04 pm to SpanishFortTiger
It's certainly not the end of the world. With some types of mortgages, the PMI will fall off after you reach 20% equity, with others, you can refinance once you hit 20% to get rid of it (if the expense of refinancing and interest rates make sense, of course). Sure it costs some cash, but if you're doing as well as you said (full 6m emergency fund, maxing your 401k contributions, about to start maxing your Roth, and still have cash left over, you can certainly swing it. Sounds like you're doing great for your age.
Where are the townhouses in Spanish Fort, btw?
Where are the townhouses in Spanish Fort, btw?
Posted on 8/27/16 at 8:12 pm to Costanza
Townhouses
Just starting to think about it. I will open max a roth IRA out and continue to research mid-term plans for the real estate downpayment. Want to be doing a bit more than just letting sit in a savings account
Just starting to think about it. I will open max a roth IRA out and continue to research mid-term plans for the real estate downpayment. Want to be doing a bit more than just letting sit in a savings account
Posted on 8/27/16 at 8:19 pm to SpanishFortTiger
Any concern I should have with the market potentially about to slow down? Maybe hold off for a bit or is that naive?
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