Best investment options for 500 a month

buy some bonds? although for risk reward it's hard to beat 2.3 for no risk

Have a roth? If not, do that. Perfect amount to do so. You can keep in cash, reits, stocks, bonds, etc.

thanks guys. Unlike high interest savings account, you don't have to pay taxes on your investment gains. Is that correct?

I'm already putting into stock market through traditional 401(k). I want an option that is accessible and risk free. I'm 36.

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Unlike high interest savings account, you don't have to pay taxes on your investment gains. Is that correct?

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No. That could be incorrect depending on the nature of the account. There are tax advantaged accounts (IRA, Roth IRA) but there are limits to how much you can put into them annually.

Investing gains may be taxed at a lower capital gains rate depending on how long you held the investment.

Ok. Are you completely maxing out your 401k? Ideally you should take complete advantage of tax deferred accounts first.

How is your emergency fund? Do you have enough for 3-6 months?

Lastly, you should really take advantage of a Roth IRA . I know you said you were risk averse, but I don't understand why unless you need the money soon. You've got plenty of time to be in the market and you don't have to go 100% VTSAX. Otherwise, just open up a high-yield savings account or VMMXX and let the money sit there gaining a marginal amount of interest.

ETA: Missed the accessible and risk free part. Just open a high-yield savings account or VMMXX. You can get a little over 2% with those.

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save and buy rentals

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If he's scared of investing in the market, he definitely isn't going this direction.

SCHD