What to do with £10,000 is, of course, entirely up to you. One thing to be aware of is that with investing comes risk, and with risk comes unpredictability. The world of investing can seem overwhelming for those who don’t know their bonds from their shares, so we’ve highlighted seven of the best ways to invest £10k below:
1. Investing £10k in your pension
If you were to invest £10k into your pension pot, you’ll not only benefit from government tax relief, but also from the free cash top-ups from employers if you’re in a workplace pension scheme.
For the self-employed, it might be good to consider a self-invested personal pension or ready-made personal pension. Ultimately, investing in a pension is investing in your future.
2. Stocks & shares ISAs
Stocks and shares ISAs are a great short to medium term investment option for tax efficiency. You won’t have to pay any income or capital gains tax on the interest you earn when you invest £10k into a stocks & shares ISA.
3. Shares
When you buy stocks and shares in a company, you’ll earn money when the value of that company goes up. While this, of course, has an element of risk to it since the company’s value could also go down, you may also benefit from receiving regular dividends if the company does well.
4. Bonds
Bonds represent a company or government debt. When a company or government issues a bond, they are issuing debt with an agreement to pay interest against the money you’re loaning them. They typically pay out annual interest while repaying their debt. Bonds are often considered a safer type of investment than stocks, especially for short-term investors.
5. Investment funds
An investment fund is where you pool your money or capital along with other investors to invest collectively and therefore make more money. With investment funds, however, you don’t have the same voting rights as you would with shares, but they are considered lower risk than just investing in one company.
6. Property
Investing in property, particularly in the buy-to-let market, is seen by most people in the UK as one of the safest forms of investment, generating reliable income in the form of rent. However, you must also consider the risks posed by the housing market and weigh up the value of your prospective returns against your mortgage.
7. Commodities
Commodities, such as precious metals, oil and stones are another option for investing. These, however, are subject to the same unpredictable fluctuations as other investments. You can usually invest in commodities via an Exchange Traded Fund, or ETF.
Putting your money into a savings account with a competitive rate of interest is also a form of investing. If you’re looking to diversify your investment portfolio and keep some access to your cash, you might be better off investing your money in savings accounts with competitive rates of interest.
FAQs
Many investment experts recommend a 60/40 mix. That is an investment portfolio invested 60% in equities (company shares) and 40% in bonds. For higher returns, an attractive investment for £10,000 could be shares or equity funds (which are made up of shares).
How should I invest 10K UK? ›
Many investment experts recommend a 60/40 mix. That is an investment portfolio invested 60% in equities (company shares) and 40% in bonds. For higher returns, an attractive investment for £10,000 could be shares or equity funds (which are made up of shares).
What's the best investment for 10K? ›
How to invest $10,000: 10 proven strategies
- Open a high-yield savings account.
- Build a CD ladder.
- Get your 401(k) match.
- Max out your IRA.
- Invest through a self-directed brokerage account.
- Invest in a REIT.
- Contribute to your HSA.
- Invest in yourself.
To potentially turn $10k into $100k, consider investments in established businesses, real estate, index funds, mutual funds, dividend stocks, or cryptocurrencies. High-risk, high-reward options like cryptocurrencies and peer-to-peer lending could accelerate returns but also carry greater risks.
How to double 10K quickly? ›
Here are some ways to flip $10,000 fast:
- Flip items (buy low, sell high)
- Start a blog.
- Start an online business.
- Write an email newsletter.
- Create online courses or teach online.
- Invest in real estate with EquityMultiple.
Some of the low-risk investment options UK investors can invest in include:
- Bonds – corporate and government.
- Gold.
- High-interest current accounts.
- Real estate.
- Retail Arbitrage. Retail arbitrage offers an effective way to turn $10K into $20K. ...
- Invest in Stocks and Exchange-Traded Funds (ETFs) ...
- Start an Airbnb Side Hustle. ...
- Invest In real estate. ...
- Peer-to-peer lending (P2P) ...
- Cryptocurrency. ...
- Resell Products on Amazon FBA.
Today's high rate environment makes it a great time to invest $10,000. Both high-yield savings accounts and CDs offer great APYs, while money market accounts have high interest and greater access to cash. IRAs might be a good choice for those who are saving for long-term goals.
What will $10,000 be worth in 20 years? ›
The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.
How much can I make if I invest 10k? ›
If you invest $10,000 and make an 8% annual return, you'll have $100,627 after 30 years. By also investing $500 per month over that timeframe, your ending balance would be $780,326. Exchange-traded funds (ETFs) and mutual funds are both excellent investment options.
How realistic is it to get to $1 million? Even with above-average gains of 15% per year, it would still take more than 30 years for a $10,000 investment to grow to $1 million.
How long does it take to turn $10000 into $100000? ›
If you're saving $10,000 a year and have an additional $7,100 you can put into savings, Singh said a high-yield savings account with a 4% interest rate could take you to $100,000 in 10 years. Is this more time than the three-year timeline? Yes, but it's also the lowest risk option of the five strategies.
How can I double 100k in a year? ›
Doubling money would require investment into individual stocks, options, cryptocurrency, or high-risk projects. Individual stock investments carry greater risk than diversification over a basket of stocks such as a sector or an index fund.
How do you turn 10k into? ›
Let's have a look at the best ways to turn your 10k into 100k:
- Invest in Real Estate. ...
- Invest in Cryptocurrency. ...
- Invest in The Stock Market. ...
- Start an E-Commerce Business. ...
- Open A High-Interest Savings Account. ...
- Invest in Small Enterprises. ...
- Try Peer-to-peer Lending. ...
- Start A Website Blog.
You can double 10k quickly if you master the art of flipping – meaning you buy things cheaply, then sell them for more. Another option is to invest in stocks or real estate. Investing requires less work, but it's also risky. Get started with EquityMultiple, Acorns, or Public.
How to stack 10k in 3 months? ›
03. Seven steps to save $10,000 in 3 months
- Evaluate your current financial situation. ...
- Get your debt under control. ...
- Set a realistic goal. ...
- Try fasting from unnecessary spending for 30 days. ...
- Get creative with your living situation. ...
- Make extra money with a side hustle or freelance gig. ...
- Invest in yourself.
The options for investing £1,000 include:
- Stocks and Shares.
- Bonds.
- Mutual Funds.
- Exchange Traded Funds (ETFs)
- Peer-to-peer lending.
- Pensions.
- Robo investment platforms.
Investing In Stocks And Shares. Of all the long-term investments that are available, stocks and shares are typically the best-known option for would-be investors. Plenty of investors, especially those with time on their hands and who are able to research the market, aim to make money from individual stocks and shares.
