Survey: Best ways to invest $10,000 in 2022, according to experts

Even adding part of your $10,000 to a savings account is a solid start to an investment journey. Successful long-run investors are typically those who avoid the losses at the peaks of markets rather than those who focus on the next big win. But after the gains of the last year and the post-credit-crunch bull market, it is time for equity investors to start selling the rallies rather than buying the dips.

We remain buyers of equity volatility, which we expect to rise on a trend basis in the next year, given the rise in real and nominal rates. Finally, in a world where global growth is slowing, food producers typically outperform industrial metals, and with expectations of a new El Niño this year, prices on soft commodities should rally. After the aggressive pullback in markets, it will be tempting to buy the dips. However, this is not a normal pullback caused by normal economic drivers. Rather, recent market volatility is reflecting a complex, multi-factor shock that will probably result in a multi-phase sell-off.

Motley Fool Investing Philosophy

You can also put your money into a REIT, which we discussed earlier. One question that investors often want to know is how index funds differ from ETFs. The main difference is that index funds can be bought and sold based on the price that is set at the end of the trading day, whereas ETFs can be traded throughout the day much like stocks.

So if you’re not maxing out your 401k contributions yet, consider using part of your $10,000 bounty to do so. One company that can help you open an HSA if you qualify is Lively. Lively is a no-fee HSA provider that will work with you to maximize your HSA contributions through your Lively account. AcreTrader charges an annual asset management fee of 0.75%, and you take any profit leftover from there. The AcreTrader website says farmland has a historical average return of 11.5%.

Balchunas’s pick to play on Ketterer’s theme of buying battered European bank stocks, rose 7.1 percent. A state-of-the-art automotive plant, for example, uses industrial automation technologies to design the optimal robotics path to boost weld quality and productivity. Sensors collect real-time data and can feed information about the production process from the later stages of manufacturing back into the earlier stages of design and manufacturing.

Before you make an investment of any dollar amount, you want to understand your financial goals and priorities. Knowing why you’re investing in the first place will help you stay motivated so that you can eventually reach your goals. The most important advantage of a REIT is the dividend income. By law, REITs are required to pay a minimum of 90% of their annual income in dividends.

There’s a Price for Everything

If you don’t have access to a 401 or you want to do more, consider opening a traditional individual retirement account or Roth IRA, which can provide further tax advantages. In the grand scheme of things, $10,000 may not seem like a lot of money. But if you think about your overall personal finance goals, investing $10,000 is a significant sum of money.

• And the coolest part is, you don’t have to choose just one.
• It’s worth noting that not all debt needs to be offloaded as quickly as possible.
• So with your goals in mind, here are my top 11 recommendations for how to invest $10k.
• But a closer look at TSMC management’s comments on the latest earnings conference call explains why the stock price headed north despite a tepid near-term outlook .
• Another option would be to invest in bonds, mutual funds, or ETFs.
• The recent demonetization to encourage a shift from cash to a digital economy should ultimately fuel growth.

And that doesn’t include any employer match funds, which you should take advantage of. If your company has a 401k plan, it’s worth it to take advantage of that. For one thing, 401k contribution limits are much higher than IRA contribution limits. And withdrawals from an HSA are tax-free as long as they’re used for qualifying medical expenses. There’s no minimum withdrawal age or amount for your HSA, which means you can let the money sit until you need it.

We doubt that the U.S. can “decouple” from a global slowdown. U.S. tax cuts may only serve to offset the impact of the higher U.S. bond yields and Fed funds rates seen in the last 18 months. This implicit easing in monetary conditions, combined with the S&P 500 moving into “oversold” territory in December, provides some scope for a short-term bounce in U.S. equities. Equity volatility should fall and encourage a recovery in risk assets such as emerging-market equities and technology. There might even be scope for U.S. banks to bounce if bond yields head back to 2.8 percent and oil prices firm up.

Time to ‘Buy the Dips’

For example, the annual management fees are just 0.35% – or $35 – on an account up to $10,000. And it drops to 0.25% when you exceed $10,000, all the way down to 0.15% when you reach $100,000. If you want to put your money into a virtual autopilot situation, a robo-advisor may be exactly what you’re looking for.

Wafer-thin margins and high debt levels will put many small- and medium-sized companies critical to the supply chain at risk, which will affect activity, drive supply shortages and fuel stagflation. The current technical bounce reflects hope of a V-shaped recovery in response to aggressive policy easing and hopes lqdfx reviews of stabilization in the virus. The Biden Administration’s fiscal package and the global roll-out of COVID vaccines led to a recent rally in risk assets. Our conclusion is that it will be dangerous to fight the Fed. If you are fully invested, think about cashing in some of the gains seen in recent weeks.

Under President Joe Biden’s administration, the U.S. will likely announce a similar net-zero goal for 2050. The subsidies and investment spending needed to achieve this global energy transition could add up to trillions of dollars. And with more production, renewables such as solar and wind have reached cost parity with fossil fuels, no longer needing help from subsidies.

The return on equity for Japan’s Topix index now stands at around 10 percent, close to a multi-decade high. When you factor in Japanese monetary conditions that are still ultra-accommodative, alpari international review the low equity valuations seem even harder to justify. As many markets started the year at already-full valuations, investors could be forgiven for thinking that there are few bargains left.

How Should You Invest $10k?

Our models are prompting us to increase our suggested allocation to equities. While there may be bumps along the way, as we have seen with Evergrande and the supply shock in global energy prices, we suggest investors buy the dips. Although aerospace and defense companies have done well recently, they are well below 2019 relative levels and may be a way to take advantage of increased defense spending.

Fund your retirement account

It has most of the same tax benefits, like tax-free growth and withdrawals, but the money has to be used for qualified education costs. There are tons of great robo-advisors out there but my two favorites are Betterment and Wealthfront. Both have no account minimums, so you can start investing with $10k (or even less!). All told, there are multiple pockets of growth within the semiconductor market that could help TSMC outperform Wall Street’s expectations. And with the stock trading at 14 times trailing earnings, it isn’t too late to buy this semiconductor stock, as it is still trading at a discount to the S&P 500’s multiple of 19.

If you’re unsure about the time horizon, you could invest in both a pension and a stocks and shares ISA. Once you have your emergency fund of between three and six months’ worth of essential outgoings in an easy access account and paid off any expensive debt, you might want to consider investing. Dec Mullarkey, managing director, SLC Management, suggests investors with $10,000 invest 60 percent in U.S. stocks and 40 percent in shorter-term U.S. The unemployment rate in the United States stands at 4.4% while the unemployment rate in Canada is close to 8%. A drastic fall in consumer spending and a spike in unemployment rates have driven equity markets lower.

However, you can buy an ETF with value stocks in it and enjoy the power of diversification to reduce your risk and time spent analyzing stocks. Value stocks were mentioned multiple times by survey respondents as an attractive option. Value stocks tend to perform well during periods of rising interest rates, while many investors move out of growth or momentum stocks, pushing this latter group lower. Another option for inflation protection could be Series I savings bonds, where the payout adjusts every six months depending on the inflation rate. However, you’re limited to just a $10,000 investment every calendar year, and you’ll need to own the bonds for at least a year.

Your definition of windfall may vary, but there’s little argument that $10,000 is a healthy chunk of cash — certainly enough to give you cold feet when deciding how to invest it. Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for over 15 years, and was a senior writer and spokesperson at NerdWallet before becoming an assigning editor.

If you have any urge to pay for your child’s college education, this is hands-down the best way to save for those expenses, in my opinion. I just recommend taking care of your own retirement first, though. Since you have $10,000 to invest, it will be more than enough money to max out a single IRA (plus you’ll have a bit left over for a second one for a spouse!). That $100 monthly deposit is a pretty low threshold for one of the best interest rates out there.

Within staples, the most maligned and possibly misunderstood segment is tobacco. Both U.S. and European-listed large-cap tobacco stocks trade at sizable discounts to their history. https://traderevolution.net/ Although equities can partially hedge inflation, economically sensitive stocks — financials, industrials, consumer discretionary, etc. — usually fare poorly as economies slow.

There is scope for a tactical rally in banks if bond yields bounce back from their recent lows. The market view is that these earnings worries take into account the relatively low valuations in U.S. cyclicals. While this depressed sentiment can provide scope for a short-term rally, as we’ve seen in the first quarter, we doubt that this is the start of a more major rotation into cyclical value.

The MSCI Emerging Market Index is trading at 13.5 times trailing earnings and 11.3 times forward earnings. The former represents a 26 percent discount to developed markets. Based on price-to-book (P/B), emerging-market stocks look even cheaper. Currently, the stocks are trading at a 30 percent discount, the largest since the summer of 2016.

Do you want to grow your money in the short term or do you want to play the long-term game? There’s no right or wrong answer when building an investment portfolio. In the past, having just $10,000 was not nearly enough to invest in real estate. However, some services now allow you to invest in commercial real estate opportunities without being licensed or accredited — meaning you can now invest in potentially lucrative CME ventures.

Higher U.S. interest rates and the Federal Reserve’s cutting the size of its balance sheet created a global liquidity shortage at a time when global growth was already slowing. This challenged the outlook for U.S. equities and made the more than 3 percent yield on Treasuries attractive. It overweights information technology, consumer discretionary and communication services, and underweights staples and financials. The fund has a low correlation with the S&P 500 and an expense ratio of 0.04 percent.