• Asafum@feddit.nl
    1·
    2 minutes ago

    Hmmm I see a distinct lack of CDs on here…

    (Now I’m considering not renewing my 5% 9 month investment) Lol

  • InternetCitizen2@lemmy.world
    53·
    1 hour ago

    There is already some good advise, so I will add some of dubious value that might make sense for some people. Buy a better car (or get a motorcycle). I live in the US, so having private transportation is a necessity. I have a car, but mostly I share it with my parents. I do use a motorcycle as my main commute and it is cheaper than a car’s running costs. Just saying that $10k + sale of your current car could fetch you just about any other car. It is kind of hard to do a whole lot of life changing things with only $10k. Perhaps dental work if you need any.

  • aubeynarf@lemmynsfw.com
    60·
    4 hours ago

    1. pay off high interest debt

    2. top off your emergency fund so you don’t run into expensive short-on-money situations

    3. take care of deferred maintenance on your car or house that might turn into an expensive repair

    4. If you have an employer sponsored 401k, increase the contribution amount to get 10k more tax free into it before the end of the year and use the $10k cash in hand for expenses.

    5. Open a roth IRA and contribute the maximum amount you can (which may vary based on your income)

    VT, VTI, and SPY are good broad-market funds with good historical growth.

    • PineRune@lemmy.world
      10·
      2 hours ago

      I like these points. Preventing a future expense by paying less now is always worth it, if you can afford it.

    • CrimeDad@lemmy.crimedad.workEnglish
      3·
      2 hours ago

      I used to not have any doubts about a Roth, but I’ve been considering that maybe it’s a little too much like giving the government a free loan. Do you know if there’s a thorough comparison anywhere between a traditional and Roth IRA that takes into consideration the opportunity cost of paying tax on the contributions?

  • Steve@startrek.website
    81·
    3 hours ago

    Depends on your risk tolerance.

    A 4% savings account is “safe” but might not keep up with inflation.

    An index fund might be “good”, but the value can go down.

      • workerONE@lemmy.world
        103·
        2 hours ago

        The average inflation rate for the last 20 years is under 3%

        Edit: why are people downvoting me, refute my statement with a source instead of downvoting because you wish inflation was higher

  • Rimu@piefed.socialEnglish
    72·
    3 hours ago

    There is no universally good investment - it all depends on your priorities, risk appetite and timeframe.

  • Boozilla@lemmy.worldEnglish
    20·
    4 hours ago

    If you don’t have an emergency fund, I would put some or all of it into something like a money market account. It won’t grow very much, but it’s safe and is quick and easy to withdraw when needed.

    Otherwise depends on your age and situation, but an index fund (S&P 500) is almost always the right choice. It’s flexible, doesn’t usually lock you in, and will generally do very well in the mid-to-long term. If we hit a recession you might get stuck holding the shares for several months to a few years. The last thing you want to do is panic sell in that situation.

    If you have any debt, paying that down is a very smart move, especially if the debt is charging more interest than your investment can earn. Future you will thank you.

    • Nougat@fedia.io
      5·
      2 hours ago

      Index fund, most definitely. And find one that has low administrative fees, I know that Vanguard has at least a few that are super low.

  • Grayox@lemmy.ml
    82·
    4 hours ago

    Put it in an IRA so you cant touch it and buy high dividedend yeilding stocks that reinvest in more shares and let it sit for the next decade and pray that there is a radical social change in out society so we can save the Planet and Poor from Billionaires.