Top 10 Ways To Earn A 10% Rate Of Return On Investment

how to make 10 percent interest monthly

Without a doubt, all of us want to earn more. But, the question has always been, how?

In this article, you will read 10 of the easiest tips and techniques to earn a 10 percent rate of Return on Investment (ROI). While you might think that this percentage is too little, note that these savings can sum up a large amount of money when accumulated. Find which of these ways works for you and your situation, especially during recession and pandemic.

Top 10 Ways To Earn A 10% Rate of Return on Investment

1. Real Estate Investing

One way to earn a 10 percent ROI is real estate investing. There are multiple mechanisms to do this. You can choose to rent out your property. Just make sure that the rent rate is more than your monthly mortgage or loan payments. If you don’t want this type of real estate endeavor, you can try other methods too.

You can also buy and sell homes to earn an income. A pro tip here is to invest in single-family rental homes. These types of homes sell like pancakes.Experts even claim that these types of houses will continue to grow even during and after the pandemic. With the work-at-home option growing popular, people choose to stay in these comfortable and affordable homes even with a high rent rate or an expensive price tag.

If you want to venture into the market of single-family rental homes, you might want to check out companies like Roofstock. The company is dedicated to this type of rental service. They offer to buy, own, and sell rental homes, so this is the best place for you to find potential clients and customers. They are one of the best in the industry, but you can surely look for other companies in the same field.

If investing in single-family rental homes is not right for you, you can also try to invest in real estate debt. Here, you can invest in the loans made to borrowers. As these borrowers pay back their loans, you get to earn you money as well. The nice thing here is that you do not need to manage the property while being part of the thriving real estate investing industry. You can check out Peerstreet if you want to try this out.

Another option to enter real estate investing is to invest in corporations that give dividends or dividend stocks. It may take time before you profit from these real estate investments, but they are relatively more stable sources of income. They are for a long term investment. You might have to wait for five years for your first dividend, but you can earn per month or per quarter after that. Check out Fundrise or Streitwise if this type of real estate investing works for you best.

2. Paying Off Your Debt

If you have an existing loan, chances are you are losing a lot of money because of the interest rates you are paying back. One easy way to earn a 10 percent Return on Investment is to pay back your loans so you can save money. The longer you are keeping your debt, the higher the interest rate you are paying. By doing so, you are no longer charged with the interest rate each month, thereby making you save a ton of money per month.

Just think of this scenario – your credit card debt charges you around 16 percent per month. The longer time you wait to settle your debt, the more money you have to pay the loan agencies per month. The same goes for your other loans. For example, student loans have big interest rates, so you have to pay them back as soon as you can.

If you cannot avoid taking loans, you have to apply to the best credit institutions or to take the best credit cards available in the market. Only take loans with fair and reasonable terms. If you fail to do so, this could hurt your finances in the future.

3. Long-Term Stock Trading

To invest in stocks for the long term, you have to get in touch with an investing company and let them manage your money. Long term stocks are conservative because the Robo advisors or financial advisors put your money into various businesses. They are the ones to choose an option for you. In doing so, you, as an investor, are not taking too much of a risk.

One downside of this type of stock trading is that it might take months or years before you start earning money. But once your investment has given your due diligence, you can start earning high returns.

If this option fits you and your financial goals, you can contact a trusted bank, a discount broker, or even a smartphone app. A financial advisor or Robo advisors will then choose where to put your money.

4. Short-Term Stock Trading

In long-term stock trading, you make trades for a long period of time, like for several months or often years. In contrast, in short term stock trading, you buy-and-hold trade quickly in days of weeks. This is a riskier type of investing because you are only given a short period of time to make trades. The short term fluctuations in the market can potentially turn you into a financial success overnight or potentially lose your savings.

Honestly, the short term stock trading is not meant for everyone. There is a learning curve if you wish to do this for a living. Remember to read various resources before jumping into this market to come in ready and prepared.

5. Starting Your Own Business

If you have a trust issue and would not allow other people or organizations to manage your money, you can always start your own business. Once you build a successful business endeavor, you can ensure your continuous 10 percent earning per month.

To get started in your own business, you have to begin looking at the market familiar. If you are a fan of a fashion, technology, or food trend, make your business revolve around things you know and love.

One of the best tips when starting your first business is to use your personal capital. This is to minimize the risk of being in debt. You do not need to start big here. You can start small, grow your business, and then acquire investors once you are confident about your business plan.

If you plan on investing in a small enterprise, you should get familiar with Facebook, Twitter, Instagram, or other social media marketing tools. These are affordable and easy-to-use tools proven to attract the money market. With limited funds, you might have to do much of the work in the first few months of your business.

6. Art and Other Collectibles

Do you know that your collection hobby can be turned into a profitable business as well? Art and other collectibles can diversify your investments. Make money by buying popular collectible items, keeping them in good condition, and then selling them to the right customers. Navigate Facebook, Twitter, and Instagram to know what items are hot among collectors.

Some of the common collectibles in the market today are books, toys, legos, paintings, and many more. Popular media items, ones released by corporations like Disney, Warner Brothers, Mattel, etc. are also safe bets when it comes to earning your 10 percent ROI. And of course, try to stick on the market that you are already familiar with. If you are into Harry Potter, for example, start your collectible items within this realm.

7. Create a Product

If the stock market or real estate investing does not appeal to you, you can always try to make products that could entice people. One of the useful tips in creating a product is to get an education about the industry before designing or developing a product.

You do not just produce something and sell it to others. Instead, you have to gather the necessary information from your potential clients to ensure that you create a marketable and profitable item.

When creating a product, do not limit yourself to the fashion or food industries. For one, digital products are popular among younger consumers today. You can create a blog, vlog, website, or other online products and earn 10 percent of ROI monthly.

8. Junk Bonds

Given the economic crisis we are currently facing, investing in junk bonds can be the best investment option you can do today. Junk bonds refer to bonds rated below investment grade by the top rating agencies in the country. Most investors would not choose to invest in junk bonds because they carry a higher risk of default than other bonds. But, take note that junk bonds have the potential of significant price increases when the company’s financial situation improves.

Remember that investing in junk bonds is like betting to a given business. This means that before investing, you have to gather all the relevant information to bet on the business that is likely to be a success in the next months or years. If you have to invest in the right junk bonds, the return can be big for you.

9. Peer-To-Peer Lending

Peer-to-peer lending, otherwise known as P2P lending, is a mechanism where lenders are matched to borrowers. You have to use a third party business like Lending Club or Prosper.

In Lending Club, for example, you can earn a rate of return on investment of over 10% per year. For more conservative investments, the ROI is at 6 percent, while for more risky investments, you can even earn a return on investment of 20 percent or more per year.

10. Master Limited Partnerships

There are basically two paths to take under the master limited partnerships. First is the so-called limited partnership is where you provide capital for the business and eventually receive income distributions. Here, you become an investor because of the money you gave to the business as their capital.

On the other hand, there is the so-called general partnership. Here, you help manage the business. Eventually, you get a return on your investment in the form of a compensation basis monthly.

Note that Master Limited Partnerships is similar to trading stocks. They can be risky and are not for every investor. If you wish to proceed, you might want to consult a financial advisor before committing as an investor.

Which One is Right for You?

If you have some funds in your savings accounts, your money is sleeping because of the extremely low-interest rate it earns from the bank. In some cases, inflation could even decrease the value of your funds. If you truly want to improve your personal finance and grow your funds, you have to start building your investment account. As an investor, begin with the industry familiar to you.

Before investing, you have to be certain how much money from your savings account you are willing to use in investing. Also, create a target on when you want to start earning your ROI. All these factors are essential in choosing which type of investment you are willing to make.

While not necessary, it will not hurt you to know the basics concepts in finances and investing, including inflation rate, interest payments, money market fund, credit score, government bonds, and many more.

You do not need to invest a large sum of money. You have to be certain that you are investing in a field with a high rate of return or a growth rate. Make the right decisions by getting insights, suggestions, or education from groups and individuals who are experts in investing. There are more tools online than ever that could make you start earning that 10 percent ROI of interest monthly.

Conclusion

As seen above, there are more ways than ever to start earning that ROI of interest monthly. If you are afraid to start investing, financial websites, consulting firms, and business organizations can be found on the Internet. These groups and individuals are willing to help you and guide you in investing your finds to rightful businesses or endeavors.

One of the most reliable financial websites today is Investoralist. We have tons of reading materials, tips, and guides for you. We can help you understand seemingly complex concepts like compound interest, day trading, real estate investing, mutual funds, money market funds, and more. Just send us your queries and concerns, and we will provide you the necessary information you need.

The 10 Best Vanguard Funds for 2021

best vanguard funds to buy now

For people looking to diversify their assets, investing in Vanguard Funds is a good option. The Vanguard Group, an American registered investment advisor, has provided mutual funds and index funds to millions of investors in the past. It is known to promote low-cost, beginner-friendly investment for individuals with little to no knowledge about the trade.

If you wish to know more about earning additional income through investing in bonds and index funds, this article is right for you. We will help you identify the best Vanguard Funds buy and hold this year. Also, we clarify how each type of index fund.

What Are Vanguard Funds?

Vanguard funds are a type of index funds managed passively through a so-called index-sampling strategy where it tracks a benchmark index. This index is a list of companies grouped based on specific categories like geography (domestic, regional, international) or size (small-cap, mid-cap, large-cap). Vanguard earns money by charging expense ratios which is a fee paid by clients in exchange for the company’s job of managing the index funds for them.

Many investors choose vanguard because they are known to offer one of the lowest expense ratios in the market today. Also, even with a little money you have, you can create an investment. Businessmen like Warren Buffett, who is the CEO of Berkshire Hathaway as well as dozens of other companies, advocates the use of Vanguard funds because it brings investment to the masses. Investment advisors like this company make it easier for lay citizens to dabble in the world of investment.


Vanguard is the world’s largest issuer of mutual funds and is the second-largest issuer of exchange-traded funds (ETFs). Investors who buy from Vanguard are not charged with fees or commissions. Instead, they have to pay for the so-called expense ratios. The expense ratios for mutual funds and ETFs are calculated by computing the operating costs of the fund and divide them by the assets under management (AUM).

For many investors, Vanguard’s low expense ratio is the reason why the company is the best investment advisor there is. To give you an idea, the company’s expense ratios for its mutual funds are around 80% less than what other companies offer. For those who wish to keep their investments for the long term, they could save thousands of dollars in a 5-year or 10-year average.

Aside from saving fees, the ETF and mutual funds sold by Vanguard are often cited as profitable. Anecdotes from individuals who have invested through Vanguard swear by the efficiency and effectiveness of Vanguard as an advisor. People looking to diversify their savings or retirement funds choose to invest in this company.

Top 10 Best Vanguard Funds for 2021

When is the perfect time to save? The answer to this question is always now. Admittedly, there is so much to unravel and understand when it comes to investing. Terms like stocks, mutual funds, government bonds, and many others are a challenge for individuals who do not have prior experience in investing.

Lack of knowledge on stocks, ETFs, and mutual funds should not deter you from starting to build your investment portfolio. In fact, financial advisors recommend individuals to start investing in small-cap to mid-cap funds this year. Do not be content with paying off debts on your credit cards or buying real estate properties. Vanguard funds below are a good starting point in starting your investment journey.

To use Vanguard funds is to choose one or two of the many index funds they offer. As an investor, you can choose which fund you think will give you the biggest return in the long term. In spite of this, it is important to remember that choosing one specific type of ETF is like betting on a particular industry or stock market niche. Hence, it is important to choose an ETF that you think will have a good performance in the long term.

1. Vanguard Dividend Growth Investor (VDIGX)

  • Type: Dividend growth
  • Market value: $40.8 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0.22%

Investors earn some income by being exposed to dividend-focused companies from various industries based in the United States. The fund tracks the performance of high-quality companies that are known to have the ability to grow their dividends in a certain period of time. The risk of VDIGX is that it is fully exposed and dependent on the domestic stock market. A downfall in the domestic stock market could mean a loss to the investors of this fund.

Investment advisors often claim that investing in the Vanguard dividend growth fund is the best choice one can make this year. It is the best actively managed dividend growth funds in the market today. It is more stable than other funds in this list, which means less risk to you as an investor. The minimum investment for this fund is $3,000.

2. Vanguard Dividend Appreciation ETF (VIG)

  • Type: Dividend growth
  • Market value: $51.1 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0.06%

This fund tracks the performance of the NASDAQ US Dividend Achievers Select Index, which is previously known as the Dividend Achievers Select Index. Somehow, it is similar to the approach of VDIGX. The only difference is that this ETF mainly relies on the rules-based system. Human managers play a very little role when it comes to managing it. Choosing between VIDGX and VIG is a matter of choosing between human controllers and a rules-based control system.

3. Vanguard Short-Term Investment-Grade Investor (VFSTX)

  • Type: Short-term bond
  • Market value: $61.5 billion
  • SEC yield: 2.2%
  • Expense ratio: 0 .20%

While the first two funds have more risk, more reward approach, this index fund is particularly notorious for having less risk and less reward. It is a short-term fund that invests in high- to medium-quality, investment-grade bonds with short-term maturities. It invests primarily in corporate bonds, U.S. government bonds, and pooled consumer loans.

This investment is for individuals who have short-term savings goals and who are willing to see only a minimal price movement. The minimum investment for this fund is $3,000. Meanwhile, the fund advisor is Vanguard Fixed Income Group.

4. Vanguard Limited-Term Tax-Exempt Investor (VMLTX)

  • Type: Limited-term municipal bond
  • Market value: $29.5 billion
  • SEC yield: 1.3%
  • Expense ratio: 0 .17%

This one is considered as a low-cost municipal bond fund that wishes to have an income exemption from federal taxes. It has an index of more than 6,000 municipal bonds. Investors of this fund face minimal risk, especially that municipal bonds are less likely to default than corporate bonds. Oftentimes, it is chosen by groups and individuals who belong to higher tax brackets.

The minimum investment for this fund is $3,000. Also, the fund advisor is Vanguard Fixed Income Group. If you wish to save on the expense ratio, you can choose Admiral Shares (VMLUX) instead.

5. Vanguard Health Care Investor (VGHCX)

  • Type: Health sector
  • Market value: $47.5 billion
  • Dividend yield: 1.1%
  • Expense ratio: 0 .34%

This is an actively managed fund that has been in existence for more than two decades now. It is a low-cost index fund that tracks the performance of domestic and international companies belonging to the healthcare industry, which includes medical research facilities, medical supply companies, and pharmaceutical firms. One advantage of this fund is that it has geographical diversity as it invests in companies based in various parts of the globe.

Meanwhile, one downside of this investment is that investing here means investing solely in the health care sector. A good way to balance this out is to invest in other sectors. This fund is best for those who have a diversified portfolio with a long-term horizon. It remains one of the best actively managed funds offered by Vanguard. By the way, the minimum investment here is $3,000.

6. Vanguard Wellington Investor (VWELX)

  • Type: Balanced
  • Market value: $110.7 billion
  • SEC yield: 2.3%
  • Expense ratio: 0 .25%

This one is considered the oldest mutual fund offered by Vanguard. It is an investment to both stocks and bonds in various economic actors. It is particularly known for having a broad diversification and a well-balanced asset class. It has a medium risk and medium reward scheme.

Take note that you can only buy this fund directly from Vanguard. The minimum investment fees or amount here is $3,000. Also, for this mutual fund, Wellington Management Company LLP will serve as your fund advisor.

7. Vanguard Total Stock Market Admiral (VTSAX)

  • Type: Large blend
  • Market value: $874.5 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0 .04%

It is considered the biggest index fund offered by Vanguard. Hence, for some, it is the best vanguard you can buy any day. This fund exposes investors to the entire United States equity market, which includes small-cap, mid-cap, and large-cap stock funds. It is mainly for investors looking for a low-cost investment who are willing to bet on the U.S. stocks market.

This is popular because it is low cost, has a broad diversification, and can be efficient when it comes to tax. It has a relatively high risk and high reward capacity. Also, it has a very low expense ratio. Note that you have the option to buy this as an ETF.

8. Vanguard International Growth (VWIGX)

  • Type: Foreign
  • Market value: $38.8 billion
  • Dividend yield: 1.2%
  • Expense ratio: 0 .45%

While VTSAX focuses on the domestic market, this International Growth Fund focuses on non-American companies with high growth potential. Investors are apprehensive to invest in this fund because it is less stable than the domestic fund. On the other hand, it is a good choice for those wanting to be less dependent on the U.S. economy.

This is an aggressive type of investment. But don’t worry because the 10-year average of the fund has been nothing but positive. This is mainly because of the fact that companies overseas have been growing in the past decade. Its 10-year average return is at 10.38% while its 5-year average is at 16.25%.

9. Vanguard S&P Small-Cap 600 ETF (VIOO)

  • Type: Small-cap stock index
  • Market value: $1.1 billion
  • Dividend yield: 1.4%
  • Expense ratio: 0 .15%

This ETF tracks the performance of stocks belonging in the S P Small-Cap 600 index, which is a list of 600 small companies based in the United States. Notably, the share value of this fund fluctuates abruptly compared to bond funds. Investing here is best for those who have long-term goals and are willing to face high risk and high reward.

It is an aggressive type of investment. People investing here are often individuals who believe in the capability of the US stock market index fund. Investment advisors suggest that investors should purchase this ETF because it will continue to continue growing in the long term. To give you an idea, the top 3 of its largest holdings as of October 2020 are NeoGenomics Inc., Kinsale Capital Group Inc., and Stamps.com Inc.

10. Primecap Odyssey Stock (POSKX)

  • Type: Large blend
  • Market value: $10.8 billion
  • Dividend yield: 1.0%
  • An expense ratio of 0. 66%

For those looking for a Primecap product from Vanguard, POSKX is a good chance for new investors to get one. This fund is managed by various fund managers. Most of the stocks of this fund are invested in the technology and health care industries. Hence, investing in this fund is risky, but on many occasions, the gains are big too.

Investing in this is not as affordable as investing in other actively managed funds of Vanguard. Despite this, some advisors claim that the 10-year average return of this fund is expected to be high.


Bottom Line

Vanguard index funds have been offering affordable and reliable options of investment for the general American population in the past decades. People who wish to diversify their investment portfolio choose to get one or more of the ETFs offered by the company.

It is noteworthy too that aside from investors belonging to a high tax bracket, there are also vanguard index funds sold made for just looking for minimum investment options or those who have bit built an investment portfolio.

Also, take note that the 10 index funds discussed above are only the top best choices of index fund investment in 2021. Needless to say, Vanguard has a long list of other products with the potential to become a high growth index fund.

It includes Vanguard 500 Index Fund Admiral Shares (VFIAX), Vanguard Total International Stock Index Fund Investor Shares (VGTSX), Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX), and Vanguard Total Stock Market Index Fund Investor Shares (VTSMX). These Vanguard index funds can also be a good investment in the next months or years to come.

Understandably, the topic of investing is difficult to understand. If you wish to learn more about Vanguard index funds, the fees associated with it, and the expense ratio tied to these funds, browse more of our articles on Investoralist.

Admittedly, one article will not provide you with all the information you need to fully understand the concepts of investing. Our website is dedicated to helping you not only on the topic of investment but also on other financial topics of retirement funds, mutual funds, real estate, credit cards, credit score, target retirement funds, and many more.

10 Best Ways How to Invest $20,000 Wisely

how to invest 20000 dollar

It’s not really common for one to inherit or save $20k, as that is a relatively huge amount of money. Credit cards sometimes hinder us from saving! But if you have that amount of cash in your hands, then good for you!

Now, what you would want to do with that amount of money is not to let it sit around. Because of inflation, you might end up losing money rather than making more of it! This is why the idea of investment comes into the financial picture.

This article’s content will help you with 10 of the best ways to keep your money rolling.


1. Invest With a Robo-advisor

One of the best ways to invest 20k is to do it with a Robo advisor. Doing so will keep you invested in the stock market using broad and various approaches. There are many resources and content online should you know more about what Robo advisors do and how they could help you with stocks, ETFs, personal loans, and credit card budgeting. However, let me give you an idea about what Robo advisors are. For one, they know money cards best.

A Robo advisor, in general, is like a financial advisor. Still, instead of them being a person, your finances are analyzed by a series of computer algorithms that are programmed to adjust, maintain, diversify, and pick out your investment as time passes by.

Just like what a financial advisor would do, all these algorithms are based on the context of your finances, credit card debt, car insurance, emergency fund, your risk level of choice (also known as your risk tolerance), and the duration of your investment plan. Also, you can opt for some regular, taxable investment account. You can set up your own IRA funds ETFs by yourself.


2. Max Out Your Retirement Accounts

If people around you say that it is too early (or sometimes late) for you to plan for retirement, then don’t believe them. With an investment of 20k, you may have the financial buffer you need to increase or max out your 401 k and even your individual retirement account.

Take note of these three strategies:

  • Always remember that you put into an investment for each dollar and know that your employer at work will match a portion of that amount. While we all know that plan terms may differ. But a 50% to 100% match on your contributions as an employee (those which range from 3% to 6%) is something that isn’t rare.

    That’s why the tip is for you to be able to contribute an ample amount to earn that full match. You won’t need to worry because if you end up short on your utility bills or credit card bills, for instance, your $20 000 is there to cover for you. Just be sure to read their privacy policy as well.

  • Another strategy is to open an account with the IRA and make sure to maximize that out. Choose between a Roth IRA to collect tax breaks in retirement should you opt to start financial withdrawals. You can also choose a traditional IRA (different from a Roth IRA) for tax deductions made upfront.

  • Lastly, even if you think that it makes sense to raise your best personal 401 k contributions, know that you may also have other goals for investment. This year, to max out both your 401 k and your IRA or Roth IRA, you would need to use a benchmark of $25k if you are aged 50 or below. Also, take note that the annual contribution limit is $19.5k for 401 k and $6 000 k for your IRAs. This is one of the best credit deals ever.

3. Invest With a Broker

Now, if you are those types who wouldn’t patronize Robo advisors’ use because you would want the best credit or to invest on your own instead, that is also a fine choice.

Personal finance brokers, especially with a good investment portfolio, can help you do that–even with mutual funds or retirement funds—people before used to pay high fees to brokers who would trade on their behalf.

Thanks to algorithms, technology, and artificial intelligence, these are now becoming things of the past. All you have to do is to create a brokerage account.

Online brokers now exist, and they only cost a fraction credit of the cost of your regular, traditional brokers. They know credit cards best. They know insurance best. They handle your accounts best.

These online platforms, using a brokerage account, can help you get educated not only with the stock market, the stock exchange, and how its dynamics are but also on investments — namely– how to build your investment options and your other credit investment products.

They can also help plan you with the best online car insurance, emergency fund, life insurance, checking accounts, or even mutual funds.

Some online brokers offer stock trades for free, with additional educational resources that explain how investing works. Others may charge fees, but you get additional options, such as a real-time monitoring system on how the stock market performs.


4. Do a 401(k) Swap

You may already get this idea: if you are not jobless and have 20 000 dollars at hand, which you can use two invest, even for your retirement, it is also the best way to do a credit 401 k swap effectively.

You can easily invest 20k with this method. This is a good advantage to tax-loss harvesting and investing more in life insurance as you age.

Since this type of money comes from your payroll or your work bonus, you can increase your contribution amount, usually up to 75 percent of your paycheck, until you have contributed $20 000 using that money you have on hand — just so that you can replace the income that you have lost.


How Does This Work, Though?

For example, a way to invest here is to imagine that you are a person who makes $40 000 per annum and that you are currently contributing 5% into your 401 k (life insurance) right now.

This amount will be about $2 000 per year, assuming that no employer match is included. Given this context, let’s continue to think that you have come into $20 000 that you’d like to invest.

What’s going to happen is that you could keep that $ 20 000 in some high yield savings accounts and then increase your 401 k contribution, which will make you feel that you are not living off of any less. That’s one way to take advantage of a high yield savings account as well.

Now consider this: instead of paying a five percent contribution, raise them to 50%! After a year, you did not just invest 20 000 bucks, but you have just reduced your taxable income by 50%. From the government’s perspective, you just paid fewer taxes because you earned only half of what you received per annum.


5. Put the Money in a High Yielding Savings Account

In relation to point number 4 above, we would still recommend that you, as an investor, put off 50% of your money in a high yield savings account because going above it might not return greater investment returns.

However, if you are certain that you will need the money shortly, you should feel okay about going above fifty percent; but we advise you to think twice.

There are high-yielding savings accounts that will give you a 1 percent yield per annum (or sometimes higher). This is good for a savings account. But if you want a higher reward for your investment, one way to invest is to invest in stocks, although you will need to have a higher risk tolerance for this.

Another way to start investing is to do this with your money through the best Robo advisor in the utmost conservative way possible. For instance, if you save for a house, you choose to take your money out of your high-yield savings account and put it onto that best Robo advisor.


6. Try Out Peer-to-peer Lending

Peer lending is a method of loaning money to others who need it. It is a great way to invest. You can lend to someone who needs investors for their business idea, their student loans, for instance, or some would want to pay the debt on their credit cards or bank account. In other words, it just seems like you’re providing personal loans to other people. Some people would do this best online.

Now, the benefits you can get from peer lending is that your investments can give higher returns as compared to having to invest in stocks. When you invest your money here, however, the risks are so much higher.

Because according to experience, people would not usually pay back the personal loans on time, or in some cases, you might not make money because, as you start lending to them, they might not pay the personal loan back at all.

Before you engage in peer lending, be sure to heed to investment advice first (such as Robo advisors), and make sure that you have the personal capital to lend. Remember: based on data, the more risk you are taking, the more yields you receive.


7. Start Your Own Business – 100% Recommended!

Pre-discussion notes: The recommended percentage allocation of investing 20 000 bucks for this is 100%; however, take note that this involves a high level of risk.

Starting a business can be stressful sometimes, but always know that this is a very lucrative line of work and that most times, it is also very fun. All you have to do is to be certain about your plans and what you are doing.

Where does this start, you might ask? It starts with a solid and clear business plan. Without this, starting such a business might just put your investment goals and funds into waste, and might only live for a short term.

Sometimes, you can look for business partners or financial advisors to help you analyze the risk. Compared to other methods on how to invest, you will need to have personal capital and time, and a lot of energy to keep your best personal business going. Some businessmen would say that sometimes they would even work for more hours than a regular employee.

Just get started! The fund’s payoff can be great, and these investments may be good in part for the long term as long as there’s a money market for your products. If you are equipped with the right information and do things the right way, you could end up profiting from your products–with or without business partners on your side!


8. Pay for an Education

You might remember your parents telling you when you were younger that the only thing that other people can never take away from you is nothing but education. Well, a lot of people have testified to the validity of that quote, and the principles behind it stay true –even up to this day. If Robo advisors could talk, they might even suggest the same thing!

Even if you invest in stocks, you can lose all your money in the stock market. You can go bankrupt on your bank account. You could even stumble into debt on your credit cards or even on your checking accounts. But if you have a strong foundation in education, that foundation will never go away.

If you do not have a bachelor’s degree, be an investor in your education, and consider getting yourself through college. Access to this may be hard as you might fall into student loans. If you do already have a college degree, consider getting a higher form of education. For some schools, student loan services are usually available even for graduate degrees.

If you have the college fund to access higher education, consider this one of the best ways to invest in your future. Know that when you invest 20k into this, it might not cover all your fees, but this will surely be a good investment portfolio.


9. Be an Investor in Your Education Today!

Invest in an employer-sponsored retirement account. Once again, one great way to invest your 20 000 bucks is in your retirement account. You can get ample tax advantages when you invest 20k into accounts such as 401(k), the traditional IRA, or Roth IRA.

The first investment for many people is the 401(k) plan, co-sponsored by your employer. This can help you get started with your investments since the transactions are automatic.

One thing to consider about investing in 401(k) plans is the high management fees. With this, your investments might grow more slowly than the other types. This gets worse if the set of options you would otherwise choose and invest 20k on is not offered.


10. Invest in Real Estate Investment Trusts

REITs (also known as real estate investment trusts) serve as an alternative real estate directly when it comes to real estate investing. Some would offer the most attractive services, products, and other information regarding money market accounts and stock trading.

REITs have been very popular in forms of real estate investments since the 1960s. Think of REIT as somewhat to a huge lending club of real estate assets whose location is freely traded on the stock market.

Similar to real estate, REITs can invest in more options and locations. Also, as additional information, know that real estate is categorized into the following:

  • Retail
  • Residential
  • Lodging and Resorts
  • Specialty
  • Industrial and Office
  • Health Care; and lastly,
  • Self Storage

To invest money in REITs can be done easily by any investor (and sometimes guided by best online financial advisors), regardless of their credit score, because of the availability of mutual funds and ETFs. If you are a beginner, you can think of getting index funds based on REIT as a start. You can also check out a crowdfunding website or sites online that offer such services–including ETFs.

Personal finance success stories in real estate prove that it is an excellent avenue for long-term stocks investment. Know that purchasing property accounts best more of a sizable monetary investment (sometimes higher than 20 000 bucks).

However, always remember that you can start investing in REIT, as this is a strategic alternative in owning real estate. This is because REITs provide good gains from expense ratio as you get passive income, a growing nest egg, and a diverse investment portfolio. Imagine how you will continue to earn from stocks or ETFs–even up to your retirement accounts!


Conclusion

Invest your $20k into good use by planting them into the right avenues. Some advisors are available best online, as compared to the traditional financial advisors. You can trust them to Robo advisors who know insurance best or credit cards best. They can handle your accounts best as well! Aside from these, they can educate you with stocks!

Aside from those, other ways to invest can be chosen as well. From education to stocks, to real estate, to ally invest, always remember that you will benefit in the long run as long as you invest your money carefully and properly.

Fidelity Go Review: Best for Low-cost Choice for Investors

Fidelity Go Review

Robo-advisors are the future of tech-led investment ventures, and the Robo-advisor Fidelity Go has become enormously popular among many US investors from all walks of life. Truthfully, Fidelity’s popularity began with its affordable, virtually zero-commission mutual funds and high-return indexes.

Today, its user-friendly investment platform has become widely popular. Many of them swear by its simplicity and accessibility, thanks to its low to zero minimum balance requirement.

If you’re looking for excellent Robo-advisors, then Fidelity Go might be your best bet. Read more about everything it can offer you in this in-depth Fidelity Go review.

 

For Clarity: What Type of Account is Fidelity Go?

Fidelity Go is an investment platform/Robo-advisor that acts as your investment manager, strategist, and financial planner. This financial technology will ask you about your investment preferences and then present a great number of investment strategies. It will recommend the best strategy for you using your answers to its questions.

Once you’ve decided, it makes all the effort to buy, sell, and manage your portfolio. You can view its overall investment progress through Fidelity’s dedicated website and application.

Most Robo-advisors use algorithms and complex machine-learning to adapt to certain situations. However, Fidelity has a human team of financial specialists who perform all adjustments and rebalancing fees accordingly. You can be sure it’s not a machine making big decisions for your money.

 

Why You Should Consider Using Fidelity Go

Any Fidelity investor of mutual funds should have a Fidelity Go account. Truthfully, anyone with an existing Fidelity account will find Fidelity Go an excellent companion investment to improve their existing portfolio regardless of the portfolio.

Fidelity Go is advisable for passive people who trust specialists but love the convenience of using Robo-advisors. Plus, it’s quickly accessible for anyone because of its $0 starting account management fee. As long as your account isn’t earning anything beyond $10,000, you don’t have to pay anything yet.

 

Shortcomings That Can Put Off Some Investor

Unfortunately, if you are an investor with a high-risk appetite, you’re better off investing and managing your index and stock-based portfolio on your own. Fidelity Go prioritizes Fidelity’s Flex mutual funds in its entire portfolio. While it’s a well-diversified portfolio (as you’ll see in your investment charts), it will comprise Flex mutual fund, decreasing the portfolio’s full earning potential.

 

Our Advice: Fidelity Go is Excellent for Low-Cost Investment

It takes $0 to start a Fidelity Go account, but you’ll need to pay $10 to start your investment portfolio. Additionally, if you’re new to investing and growing your money, you can entrust its growth to an excellent Robo-advisor. This platform helps you identify your risk appetite and investment behavior, and the adjustment and rebalancing human oversight team take note of your preferences. Lastly, you only start paying fees after your account has earned beyond $10,000 starting from scratch.

 

Editor’s Rating: 4/5

Fidelity Go isn’t exactly perfect. However, its shortcomings are offset by its user-friendly platform, human-based adjustments and rebalancing, zero starting fee, and a low-risk investment portfolio. It can and will work for most investors who want to see financial growth with adequate guarantees and financial safeguards that their investment is in good hands.

 

‘Too Long, Didn’t Read’ Summary

Fidelity’s Robo-advisor Fidelity Go takes accessibility and hybrid fund management to the next level. It’s perfect for a first-time investor who has $0 to start an account and $10 to begin investing. Your annual fees only start once the account starts earning beyond $10,000. Plus, you won’t need to worry about complete machine management because a human team works behind the scenes in adjusting and rebalancing your fund to your preferences.

 

Fidelity Go: A Helpful Snapshot of Everything in Store

Here’s an overview of everything valuable and crucial you should know about Fidelity Go.

Account Minimum $0 to open. $10 upon investing
Account Management Fee No Advisory Fee: Below $10,000 account balance

$3 Monthly Fee: $10,000 – $49,999 account balance

0.35% Commission Fee: S$50,000 and above account balance

Investment Expense Ratios Included in management fee
Account Fees for Annual Transfer, Closing, and Others None
Portfolio Mix Fidelity Flex Mutual Funds

Well-diversified

Lack of international bonds and non-market correlation assets (REITS, commodities, etc.)

Supported Accounts Individual and joint retirement accounts

IRA (Roth, Traditional, Rollover. US Only)

Tax Strategy No tax-loss harvesting available. Uses municipal bonds in tax-brokerage accounts.
Rebalancing Strategy Free. Human oversight monitors and adjusts rebalancing strategies accordingly not automatically
Options for Human Advisors None. Fidelity has an alternative Personalized Planning and Advise platform
Cash Management Account Option Fidelity has a separate cash management account, which they can integrate with Fidelity Go.
Customer Support 24/7. Monday to Friday live chat starting from 8AM-6PM EST

Things We Like About Fidelity Go

1. Competitive Fees

You can see everything about the account and its interface for just zero. You won’t even need to synchronize any account or register your credit card yet. However, once you agree to start your recommended strategy, you’ll need to pay $10, which isn’t a significant amount. Plus, you’ll only pay your $3 annual fees once your account starts reaching $10,000. The 0.35% account management fee only starts when your Fidelity account starts earning beyond $50,000.

2. Quick Start

We’ve mentioned it in the early sections of this review: Fidelity Go is the most feature and user-friendly platform we’ve ever seen. You won’t need to pay anything to start an account. To begin, you’ll need to fill up their quick signup form; then, you’re registered. Once they’ve identified the best investment strategy for you after you answer their interview questions, you can synchronize your deposit account to pay the initial $10. It’s that fast and easy.

3. No Minimum Deposits

Fidelity Go does not require you to make a deposit, which is especially helpful for those who want to look around first. You’ll only pay a single deposit of $10 to jump-start the Robo-advisor’s highly recommended strategy. Without huge minimum deposits, you can explore its investment options without fear of losing anything. Additionally, Fidelity Go starts charging fees only when it makes you profit $10,000 and beyond.

4. Synchronizes With Any of Your Existing Accounts

The investment platform can communicate and interface with virtually any US bank account. Therefore, if you intend to deposit pre-emptively when changing investment strategies or addressing recommended readjustment balances, you can quickly do so. Fidelity Go allows you to make deposits on its online platform and app too.

5. Significantly Low Annual Fees

If your portfolio is earning less than $10,000, Fidelity Go won’t charge you anything. Instead, it will keep executing its investment strategies (with humans making manual adjustment balances behind-the-scenes) and then charge you a small $3 annually once it goes beyond $10,000. Even if you reach the $50,000 threshold, the 0.35% management fees are tolerable considering the high profit you can receive.

6. Fee Transparency

Any time you are confused about your Fidelity charges and fees, their customer service department is fully transparent regarding its calculations. While it might take them some time to produce your information, Fidelity Go’s representatives can give you a clear statement that leaves you with a full understanding of your fee calculations, which is critical for budgeting and investing.

Generally speaking, Fidelity has an excellent customer service department to address all your needs.

 

Is Fidelity Go a Good Investment?

Fidelity Go is a great investment of your time and money. With $0 to sign up for an account and a small $10 fee to start your investment strategy, you won’t have anything to lose that Fidelity Go and Fidelity Investments did not produce through their account. You can open an account without hassles, and Fidelity offers the best investment possibilities with full integrity and transparency.

 

Can Beginners Quickly Use Fidelity Go?

Yes, anyone can use Fidelity Go, especially if they’re already familiar with the beginner-friendly Fidelity Investments. Success with Fidelity Go is enormous, especially for an investor who has a low-risk tolerance. Fidelity Go’s mutual funds-oriented financial planning strategies makes it an excellent choice if you need a safe haven to offset your other index and stock-oriented investments.

 

Areas For Minor Improvements

1. Lack of Tax-Loss Harvesting

All US investment portfolios will earn capital gains tax (CGT) depending on your time horizon. Short-term investment incomes incur up to 37% CGT. On the other hand, long-term investments, which Fidelity Go hugely encourages, have lower CGT at 20%.

Tax-loss harvesting is a fund manager’s automatic rebalancing method, enabling them to sell certain stocks and assets at a loss to cover CGTs. Fidelity Go does not have this automatic rebalancing, which means investors still need to calculate and deduct CGTs to learn their total net profit. With tax-loss harvesting, investors can save time and have clarity about their net profits.

2. Poor Integration with Fidelity Spire

Fidelity Spire can synchronize your bank accounts, just like Fidelity Go. However, you cannot integrate Fidelity Go with Fidelity Spire.

About Fidelity Spire: This app is Fidelity’s young professional-oriented financial planning application, allowing them to monitor their spending activities. Furthermore, it allows them access to limited investment vehicles and uses the same Robo-advisor algorithm as Fidelity Go. It’s free for anyone to use, and its interface is user-friendly and intuitive.

3. Focused Only On No-Commission Mutual Funds

Fidelity became widely famous because of its zero-commission Fidelity Flex funds, which attracted significant investors’ waves to use their services. However, mutual funds are a mixed bag that prioritizes risk-offsetting. Doing so limits all possible higher-stakes investments you can find in an exclusive index fund or ETF-oriented fund. However, anybody looking for stability will find it by investing in Fidelity Go.

Alternatively, the company offers an excellent index fund and high-risk appetite products, allowing you to use Fidelity Go as an excellent offset.

4. Limited Account Variety

Fidelity Go’s ultimate goal is to have you start making investments. To attract passive investors and present viable long-term investment strategies, it’s a cost-effective and low-risk proposition. However, it’s a “one-trick pony” because it’s the only purpose and objective Fidelity Go has.

We look forward to seeing some account variations, but we believe Fidelity has other high-risk tolerance products.

 

How Much Does Fidelity Go Cost?

Here’s Fidelity Go against other products with the same features, benefits, and service.

  Fidelity Go Betterment Marcus
Account Minimum $0 to Open. $10 For Investing $0 for Betterment Digital, S$100,000 $0 to Open
Fees 0.35% 0.25% n/a
Account Fees for Transfer Etc. None None n/a

Where Fidelity Go Truly Shines: Low-Cost Investment Management

Virtually every highly-interested investor is in a position of need with minimal cash available for investment. With zero account minimum to start using its services and just $10 to begin your investment journey, this investment platform is the most accessible for young professionals. Additionally, beginning investors and passive investors looking for safe havens that can offset their aggressive portfolios can use this to their advantage too.

Additionally, partnering low-cost investment management with low-risk mutual fund-oriented portfolios is a good thing for the wider beginner investment population. The passive investment style requiring no manual asset allocation will suit most traders who aren’t keen on paying attention to tickers and graphs for hours after work.

 

Is Fidelity Go Perfect For You?

No investment platform is perfect, and Fidelity Go has many personalities compatible with the majority of beginning investors. Additionally, if you’re someone looking for an investment with nearly-guaranteed investment outcomes in the next few decades, Fidelity Go is certainly your best bet. Truthfully, low-cost investment partnered with low-risk portfolios sound better than an insurance policy offering the same portfolio but with strict claim conditions.

 

Fidelity Go: Not Perfect But Effective and Affordable

Fidelity’s mutual funds-oriented Go platform isn’t perfect. It has a single goal: to get beginner investors and provide them with virtually-guaranteed results. Furthermore, it’s passive, but a human team of financial advisors is at the helm of all of its financial planning. It’s an excellent and effective product for investors with a low-risk appetite and has ample amounts to invest.

To find more review content about the best financial technologies, products, and services, Investoralist has a dedicated review section for all your needs. Our blog can give you ideas on your first investment journey too!