Where I’d invest $50,000 into ETFs (2024)

FAQs

Where is the best place to invest $50,000? ›

The best place to invest your money depends on your current situation as well as your long-term goals and portfolio strategy. Some popular ways people invest $50,000 include real estate, stocks and bonds.

The interest you can earn on $50,000 in one year can range from $2,125 to $3,000 depending on the interest rate.

You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.

Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.

If you have $50,000 to invest, there are plenty of good options. You can choose safe investments, like CDs or high-yield savings accounts. Alternatively, you can invest in things like stocks and real estate in the hopes of achieving superior long-term returns.

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

You might be reluctant to put your money in high-risk investments, like stocks. However, for potentially higher returns over a longer period, a certificate of deposit (CD) could be a great place to put your $50,000.

If you buy substantially identical security within 30 days before or after a sale at a loss, you are subject to the wash sale rule. This prevents you from claiming the loss at this time.

What if I invested $1000 in S&P 500 10 years ago? ›

According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.

What can you do with 50K to make money? You can invest in stocks, bonds, real estate, cryptocurrency, artwork, and other asset classes to generate a return on investment. I would recommend investing it on Betterment and allowing it to create a portfolio tailored to your financial goals.

Before spending any of your inheritance, it's a good idea to make a plan for how you'll handle it. Some choices include creating an emergency fund, paying off high-cost debt, building up retirement savings, saving for kids' educations and buying personal luxuries.

To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.

If you're nearing retirement with just $50,000 in savings, the reality is that you're frankly not in the best shape. The average 60-something has a retirement savings balance of $112,500, according to Northwestern Mutual. Even that, frankly, isn't a ton of money.