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Ten thousand dollars is a good place to start if you are interested in any type of investment. The safest and most risk-free option would of course be to put it in a savings account with the highest possible interest rate. However, that is not enough for many people. There are more profitable strategies out there – and you may not want to put all of your money in one place. When thinking about the best way to invest $ 10,000, it’s important to consider not only the traditional options, but newer ones as well.

One such “newer” type of investment is the peer-to-peer lending platform, which involves joining an online platform where investors themselves can become “lenders” to others in need of money rather than through a large bank or want to go to a financial institution lender. With peer-to-peer lending platforms, you can spread your investments across hundreds of loan steps for as little as $ 25-50, depending on which platform you choose, and earn around 5% in interest per year. However, you can get a higher return if you spend more money and take out riskier loans.

EFTs should also be considered. Exchange Traded Funds can contain a wide variety of investments including commodities, bonds and stocks, some of which are held only in the US while others are international. The advantage of an EFT over buying stocks individually is that there are low cost ratios and fewer brokerage fees to worry about.

The best way to invest $ 10,000 online

One of the best ways to invest tens of thousands in the 21st century is to use an ONLINE bank that sells CDs. Since online banks do not have physical branches across the country, they have fewer overheads and operating costs and are therefore better able to offer their customers higher CD rates than traditional banking.

CDs can be more profitable than savings accounts because with CDs you agree to deposit and hold your money in the account for a period of time called the “term”. During this time you will not have access to the funds and if you withdraw early you may incur a penalty.

Another great thing about living in the 21st century is that you don’t need $ 100,000 to invest in real estate. You can still do it for $ 10,000 as long as you deal with REITs (real estate investment trusts). These types of businesses own / finance income generating real estate in a number of sectors (retail, lodging and resorts, self storage, healthcare, residential, etc.) in different geographic areas.

If you’re unsure how best to invest $ 10,000, join the Motley Fool. You will get all the educational tools and resources you need, including free advice on the best investments and the top stop picks from the leading experts.

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Source by George Botwin