Put your $15,000 in savings to work if you haven't already. If you don't, inflation might swiftly deplete your savings. Additionally, the current increase in interest rates has made it advantageous to have money back in savings accounts.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
Where should you put your $15,000 though? Whether you want the money to grow for a few years, a few decades or longer depends on when you'll need the money. You should think about how much danger you're ready to accept in the interim in order to obtain an acceptable return.
10 Ideas for Investing $15,000 in 2023
I've produced a list of 16 of the top alternatives to assist you decide how to invest $15,000. Continue reading to see where I believe $15,000 should be placed in early 2023 and how you can get started right away.
1- Savings Accounts with High Yields
A high-yield savings account would be the best option if you have $15,000 to invest but intend to spend the money within the next several years. The FDIC insures the top high-yield savings accounts, giving you protection up to $250,000 per depositor per account. Additionally, especially when looking at the leading online banks, saving account returns are significantly greater than they were in the previous several years.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
Consider UFB Direct's high-yield savings account as an illustration. This account has no minimum deposit restrictions and gives a 3.83% annual percentage yield on deposits. You get a free ATM card that you can use to withdraw money whenever you need it, and whether you deposit all $15,000 of your nest egg in this account or just a portion of it, you will still receive the same amazing income.
2- Investing on autopilot
By automating your investing contributions, you may put $15,000 into investments over time. With Acorns, a savings program that enables you to automatically "round up" all of your purchases and invest the difference, you may use this tactic.
Your funds will be automatically invested by Acorns into professionally constructed and managed diversified ETF portfolios. It's simple to observe your money's growth over time with the well-regarded Acorns app.
It's interesting that Acorns even allows you to put your extra cash and other funds into a Bitcoin ETF. This implies that your investments will increase in value over time in tandem with the value of Bitcoin, which appears to be the most relevant and durable cryptocurrency investment currently on the market.
Depending on the options you desire for your account, Acorns also offer a low monthly fee of $3 or $5. My review of the Acorns app has more information about Acorns and how it functions.
3- Purchase fractional shares
Another wise choice is to invest in fractional shares, especially if you have $15,000 saved up yet want to purchase equities. After all, fractional shares effectively allow you to own portions of a common stock without having to purchase a complete share if you so want. Your ownership of each stock will increase in proportion to its value, exactly as if you were the proud owner of a complete share or numerous shares.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
Due to the fact that you may invest using its user-friendly app and all trading is commission-free, M1 Finance is one of the finest platforms for buying fractional shares.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
You may invest with M1 Finance in "pies" made up of several stocks and ETFs, including fractional shares. Additionally, you have the option to create your own pie or pick one out of a variety of expert pies created by professionals with various objectives.
Read my M1 Finance review before you begin to learn more about this investment software and how it functions.
The nicest thing about real estate crowdfunding is that it frees you up from dealing with tenants and other landlord duties.
4- Property crowdfunding
A second wise strategy to increase $15,000 is by making real estate investments without becoming a landlord. This choice makes sense because it would be challenging to purchase a real home for only $15,000 down, especially when closing expenses and other fees are taken into account.
Fundraise is my preferred real estate crowdfunding platform, and this account is ideal for investments between $10,000 and $15,000. In essence, you may finance a REIT (real estate investment trust) that holds both commercial and residential properties. Your account benefits from the rental income generated by Fundraise buildings, but it might also increase in value if the firm sells properties.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
The nicest thing about real estate crowdfunding is that you avoid dealing with tenants and the tedious tasks associated with being a landlord. Simply invest your funds and wait for a healthy return (although returns are never guaranteed.)
Nevertheless, Fundraise has had success thus far. Investors in the platform received an average yield of 22.99% in 2021, while as of the third quarter of 2022, investors who made investments in 2022 received an average yield of 5.40%. My Fundraise review contains more information about this business and how it functions.
Check out Realty Mogul, another real estate crowdfunding platform that functions similarly, in the interim. The key distinction between Realty Mogul and Fundrise is that the latter requires accredited investors, whilst Fundraise often does not.
5- Establish a Brokerage Account
Then, with your $15,000, you could always think about opening a brokerage account. Almost every online brokerage platform, including well-known providers like Vanguard and Fidelity and investment applications like M1 Finance and Robinhood, allows you to accomplish this.
By opening a brokerage account, you may make future investments outside of a retirement account and have access to your funds by selling shares whenever you choose, rather than having to wait until you are 59 and 12 years old.
You may start investing in dividend stocks or index funds that follow indices like the S&P 500 using your brokerage account. A brokerage fund can also be used to purchase specific stocks, bonds, ETFs, etc. You have the option.
You may get started with the aid of my guide to the top online brokerage accounts, but be careful to evaluate accounts based on their minimum balance requirements and costs.
6- Work with a Robo-Advisor
You might desire to invest in the stock market but be unclear about where to begin or how much money to put up. The best course of action in that situation may be to hire a Robo-advisor.
Robo-advisers employ algorithms and statistics generated by computers instead of human advisors to choose the best investments. Robo-advisers also often cost less than traditional advisors, allowing you to retain a larger portion of your long-term gains.
For a number of reasons, Betterment is the Robo-advisor I often suggest. Betterment makes it simple to invest automatically and asks you questions to better understand your objectives and determine your risk tolerance.
In my Betterment investing review, I describe the platform's operation. Betterment costs for investing accounts start at just 0.25%, which is a unique feature. Compared to the 1% or more that the majority of financial consultants charge, this is quite favorable.
7- Start a Roth IRA
Consider starting a Roth IRA if you're searching for a strategy to set aside some of your $15,000 for retirement. You may save money for retirement on an after-tax basis with this sort of retirement account, but only if your salary is below a specific level. In other words, after you reach retirement age, you gain from tax-free growth and tax-free disbursements.
You may withdraw your contributions (but not your returns) without incurring a penalty at any time, which is another Roth IRA secret. This implies that you can withdraw the funds from your account that you deposited before the age of 59 1/2 without having to pay income tax on your withdrawals.
Through websites like M1 Finance and Robinhood, or a Robo-advisor like Betterment or Wealthfront, you may create a Roth IRA.
8- Invest in cryptocurrencies
Given the way, things have been going over the past year, investing in cryptocurrencies could seem dangerous. For instance, a recent analysis from CNBC indicated that the value of cryptocurrencies peaked in November 2021 and that since that enormous run-up, investors have lost $2 trillion in wealth tied to cryptocurrencies.
A few cryptocurrencies, including Bitcoin and Ethereum, appear to have reached their lowest point. Some currencies will undoubtedly survive the crypto sell-off and withstand the test of time, or at the absolute least, they may be on the verge of doing so.
You may utilize a variety of sites to get started if you want to put some of your $15,000 into cryptocurrency to see where it goes. Options include investing applications like Robinhood and M1 Finance as well as cryptocurrency investment sites like Coinbase.
9- Consolidate high-interest debt
Using your nest egg to pay off your debt might be a very wise decision if you have high-interest debt and $15,000 in savings. This is particularly true today when average credit card interest rates have risen to above 19%.
Although it shouldn't, paying off debt should feel just as rewarding as investing. After all, you basically receive a "return" equal to the interest rate you are paying when you pay off high-interest debt.
A 19% return on investment would be equivalent to paying off a $15,000 credit card balance at a 19% APR. Additionally, clearing your debt releases money that you may invest over time.
10- Purchasing collectibles and fine art
Unaware of this? You may spend $15,000 on well-known pieces of art or even electronic art. For instance, non-fungible tokens (NFTs), which are digital works of art that may appreciate in value over time, are an investment option.
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| 10 Insightful Ways to Invest $15,000 for the Long Run |
A site for significant works of art crowdfunding that I admire is called Masterworks. You may invest in fractional shares of well-known works of art through Masterworks, which have a potential value of millions of dollars. You profit when the value of the art rises and it is eventually sold for a greater price.
To find out more about this business and how to start, see my Masterworks review.
Last Thoughts on 15k Investing
If you have $15,000 set aside and are prepared to make wise investments, the solutions described in this guide may work for you. To diversify your portfolio, you might even split your original investment across various items on the list.
Whatever you do, be sure to carefully study the terms and conditions of any new accounts you wish to create and have a firm grasp on the amount of risk you're ready to accept.
Keep in mind that previous performance does not guarantee future outcomes, which is the investment industry's cardinal rule. The investments on this list can help you increase $15,000 over time, but there is always a chance of short-term financial loss.
Frequently Asked Questions About Investing $15,000
Is $15,000 sufficient to begin investing?
$15k is an excellent starting point for investing if you are beginning from scratch. Stocks, mutual funds, exchange-traded funds, and crowdfunding real estate are good places to start. However, it's crucial to keep in mind that investing entails risk, thus it's crucial to conduct research before making any financial commitments.
In 2023, where can I invest $15,000?
The greatest place to put your money, if you had $15,000 to invest in 2023, would be in a diverse combination of equities, bonds, and real estate. This will offer you the best possibility of earning a favorable return on your investment while reducing your risk. Either you do it yourself or have an internet broker do it for you, you may invest in individual stocks and bonds. Additionally, you can pick a Robo-advisor with minimal or no costs.
A variety of internet tools, such as Investopedia, are available to you if you decide to do it yourself. Most brokerage firms will provide a range of investment alternatives, including stocks, bonds, and even mutual funds if you choose to let a professional handle it (like Edward Jones, Merrill Lynch, etc.).
