One of the best ways to increase your wealth beyond the rate of inflation is to invest in the stock market or in private ventures. However, what you invest in may depend on how much capital that you have available. Let’s take a look at some of the best investment options for those who have $1,000, $10,000 or $100,000 at their disposal.
If you have $1,000 available to invest, it may be a good idea to look into mutual or index funds. Many brokers allow you to start with $1,000 or less, and Charles Schwab allows you to contribute to index and other funds with no account minimum. In addition to the low barrier to entry, index and mutual funds are seen as safer investments because they offer adequate diversification with just one purchase.
The Best Ways to Invest $10,000
For those who have a little more money at their disposal, it may be worthwhile to start investing in real estate. There are several websites that allow you to invest either in mortgages used to finance purchases or by directly funding the purchase of commercial or residential property.
You could also choose to act as a hard money lender as you can charge high rates of interest on loans that may be repaid in as little as 90 days. Hard money loans are often secured with the property being purchased, which makes it more likely that you will get your money back.
The Best Ways to Invest $100,000
Once you grow your account balance to $100,000 or more, you can invest in almost anything that you want. Ideally, you will balance the need to grow your portfolio with the need to preserve capital for the long-term. This means that you may want to consider investing some of your money in startups while also investing some of your money in government bonds.
Investing in a startup may be ideal because you can see a large return on your investment in a matter of months or years. By investing in bonds, you get a guaranteed return that can help to offset any losses that you experience elsewhere. Income from bonds or dividend stocks may also keep you liquid until you have a chance to sell your stake in a startup.
Whether you have $1,000 or $100,000, it is important that you start investing as soon as possible. Through the magic of compound interest, your money can grow exponentially over the course of several months and years. In most cases, it will grow faster than the inflation rate, which means that you actually increase your buying power as time goes on.