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Make meaningful improvements to your finances every week.

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where-to-invest-1000

Where To Invest $100, $1000, $10,000

 

Everyone should be investing. We will show you where to invest whether you have $100, $1000, or $10,000. The important thing is that you start investing today.

Not sure where to invest your money? That’s the reason many people just park it in a savings account where it’s making no interest. You don’t have to be an expert to invest. You just have to jump in. Action is almost always better than inaction. So let’s get active and see where to invest $100, $1000, and $10,000.

Where To Invest $100

It might not sound like much, but there are ways to invest $100.

Invest With Betterment

If you are flailing around in the investing wilderness, Betterment is a great place to start. There is no minimum to open a Betterment account. Part of the Betterment philosophy is to make investing available to everyone.

The fee to invest with Betterment is very low.. For accounts worth $0-$10,000, the fee is 0.35% if you auto-deposit at least $100 a month. When you open any investing account, auto-deposit is strongly recommended.

You can’t spend money you don’t see so auto-deposit fits right into LMM’s set it and forget it philosophy. We don’t want you to spend lots of time on your investments. Auto-deposit removes the need not only to remember to do it but actually doing it once you remember you’re supposed to.

If you don’t set up auto-deposit, the fee is $3 a month for the same $0-$10,000 range.

Investing $100 gets your feet wet and gets you into the habit of investing. And Betterment requires no special knowledge, no hard decisions. No books to read, no complicated equations to calculate, just a few mouse clicks. You answer a few simple questions, and you’re good to go.

Invest With Loyal3

Feeling a little more DIY than Betterment allows? There is a place for you to invest your $100 too.

Don’t have a lot of money but you’re an Apple, Google, Alibaba fan boy or girl and want to choose your own stocks? Check out Loyal3. The trades are completely free! You can dive in with as little as $10. Loyal3 also allows you to invest in IPO’s.

You are purchasing fractional shares. As I write this (slaving away for our LMM audience on Memorial Day weekend while all of you are at the beach or barbecuing or something similarly fun), one share of Apple stock will cost you the princely sum of $132.77. Out of reach for our $100 maximum. But not if you invest through Loyal3! You have access to some of the big boys without the big price tag.

Where To Invest $1000

A $1000 seems like a lot to some of us. If you don’t have that right now, this is how you can accumulate it. If you get paid every two weeks, you need to set aside $39 per check. I know things are tight but almost everyone reading this can figure out a way to cut just $20 a week from your spending. By doing so, at the end of the year, boom, you’ll have $1000 to invest.

Money To Invest

Finding Extra Money to Invest With

We discuss pain-free ways to find extra money to invest. Whether it’s into a Betterment account, a Roth IRA, or a brokerage account.

Invest In Your Retirement Account

Investing for your retirement is one of the most important, maybe the most important thing you can do for your financial health. And you don’t need a big pot to get started.

If you happen to have $1000 laying around, open a retirement account, an IRA. It takes a little more research than just opening an investment account. Luckily LMM has done the work for you!

To Roth or Not to Roth Redux with Darin Hayes

We're talking Roth and traditional IRA's today with Darin Hayes, author of Beer Money.

Both Vanguard and Schwab have IRA’s that you can open with a $1000 minimum.

If your employer provides you a 401K and you haven’t reached the max contribution yet, throw the extra $1000 in there. The max in 2015 for those aged 49 and under is $18,000 and an additional $6000 for those aged 50 and over.

Invest In Yourself

Okay, it sounds corny but if you have an extra $1000, investing yourself is not the worst thing you could do with it. If there is a class that would help you advance in your current job or an additional certification you could get that would increase your salary, that’s a great way to spend money. Have you wanted to start a side business? Take that $1000 and get started.

Invest in Yourself

We talk to you all the time about investing money. But money isn't everything. If you invest in yourself, you can earn returns that will last your lifetime. 

Use the money to take a class on the basics of investing to educate yourself and to help you make better choices. Coursehorse has several investing classes in NYC. Buy a few books on investing if you don’t have the time to take a class. LMM has compiled a list of our favorite investing books for you here.

Just don’t use that money to hire a financial adviser. You can do it yourself for free; it just takes some reading and understanding. Remember, no one will ever care as much for your money as you.

Where To Invest $10,000

Oooh, Mr/Ms. Money Pants, running around with $10,000 to invest. I’m not asking or judging how you got it. But we have to make it work for you.

Invest In Real Estate

$10,000 isn’t going to buy you a house; even hood houses don’t go quite that cheap. No, I take that back. You can buy houses in Detroit for $1000. But if you don’t want to own in Detroit (and it’s not as bad as the media makes it out to be, really, it’s not) there is another way.

You can invest in a REIT, which is a real estate investment trust. The gains of real estate investing without the hassle of being a landlord or locking your money up in a home when you’re not ready for that yet. LMM did an episode on this.

REIT

What the F**k is a REIT?

Ever hear of a REIT? No? That's ok, me neither. So we're going to learn together what that is and if we should collect, them, buy them? I don't know yet.

Invest In An HSA

An HSA is a health savings account. This is for those who have a high deductible insurance plan. An HSA is a tax-free way to pay and save for current and future medicals expenses. And face it, medical costs are not going down. Between that and the fact that medical bills are now the leading cause of bankruptcy, an HSA is a good way to protect yourself from possible financial ruin.

We did a deep dive episode for HSA’s that will help explain all the details.

HSA plan

HSA Plans – A Deep Dive with Todd Berkley and John Young

Invest In A 529 Savings Plan

Got a kiddo or two? The cost of higher education is not getting any cheaper. The cost of a college education has increased 1,120% since 1978. College is still a good investment, though. The average college graduate will earn $830,000 more than the average high school graduate over a lifetime.

To help ensure that your kid reaps those extra dollars without bankrupting you, a 529 plan is a good investment. There are two types. A pre-paid plan allows for the purchase of tuition credits at current prices for the future. With a savings plan, the account earnings are based on the market performance of the underlying investments which are typically mutual funds.

Remember, though, your kid has a lot longer to pay off their student loans than you have to save for retirement. Never raid your retirement account to pay for college. There are plenty of grants and scholarships available to kids who don’t have parents who can afford to foot the whole bill.

Invest In Something, Anything

No matter how much money you have or don’t have, there is a way to use it to help secure your financial future. I know it’s more fun to blow that extra money on any number of things, dinner, gadgets, a vacation. But always remember not to give up what you want most for what you want now. If you’ve been sitting on money you didn’t know where to invest, now you know. Get started!

 

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  • Some great points. Everyone tends to think “Oh I’ll start next year” or “When I get a raise” or “When the car is paid off” and then they never get to it. The best thing to do is just start and put it on auto. Compound interest is a beautiful thing. If you’re in Canada, Tangerine and Questrade are good places to start.

  • Thanks for this one, this is really perfect for me! I have been planning to invest, but I don’t know how to start.

  • Candice Elliott

    Thank you. Clarisse, get yourself a Betterment account for sure. It’s so simple, it just takes a few minutes. True, sometimes tomorrow just never seems to come does it?

  • drw158

    The “max contribution” link goes to the toolbox page.

  • Erica Gonzales

    Where would you recommend to keep your emergency fund? In an account with Betterment, in a stock account that you can sell or in your regular bank account?