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The Best Investments IDeas for $10,000 in 2021

date November 3, 2020 time 6 min read 1751 views

If you have $10,000 to invest with, you can create a diverse and robust investment portfolio.  Instead of putting all your money in one place or throwing it into a savings account that earns you pennies, choose a diverse mix of investments to do more with your money.

Is $10,000 a lot of money for a beginning investor to begin investing with?

According to stats from ValuePenguin in 2021, the average American has roughly $10,000 saved up by the time they’re in their 30s. However, the median American shouldn’t expect to have $10,000 in their savings until they are in their 50s.

That may seem intimidating to some, however, $10,000 is a very achievable goal if you manage to sock some funds away regularly during your early career. 

And, if you are fortunate enough to reach a full $10,000 in savings, you’re in additional luck. It’s a rewarding amount of money to start investing with because reasonable returns like 10% (a healthy $1,000) start to seem like they are earning you some real money.

There are a growing number of great investment ideas for $10,000 online
There are a growing number of great investment ideas for $10,000 online (source: youtube.com)

Here are some tips on how to invest $10,000 today.

Defining your investment goals for $10,000

As with any investment, you need to figure out exactly what your goals are if you want to stay motivated:

Investing $10,000 in the short term

If you plan to spend that $10,000 within, say, a year then you probably shouldn’t invest. Most decent interest rates won’t give you much money if you don’t invest for more than a year. And once you start crossing the 12% mark is where investing often starts to become more like gambling.

If you see yourself needing your money back soon, you’ll want to find an investment that allows you to get a little interest while also giving you the flexibility to withdraw your funds when you have time.

For most people, this is a bank account or high-yield savings account. However, today there are a growing number of alternative options with more favorable interest rates like P2P lending that still allow for quick withdrawals.

Now let’s talk about some investment ideas for $10,000.

Some traditional and safe investment ideas for $10,000

Here are some of the classic investment areas where you can consider investing $10,000 right now if you don’t like risk and are content to sit on your investment for a couple of years.

Mutual funds

Mutual funds are professionally managed funds made up of a curated handful of stocks, bonds, and other securities. Mutual funds are usually considered fairly low-risk investments because they are well diversified. 

You can access mutual funds through most normal brokerage services.

Managed brokerage accounts

A managed brokerage account is an investment account composed of stocks or bonds and overseen by a broker.

When you open an account, your broker will oversee all of your trades and make decisions about where to put your money based on your financial goals and timeline. These accounts are great for a beginner as they give you a high degree of guidance. The main drawback is that you’ll usually have to pay your broker a commission fee.

Treasury Bonds

US treasury bonds are probably the safest investments you can make with $10,000. They are essentially small loans to the US treasury that they promise to repay after a certain period of time. 

Unfortunately, if you want a decent interest rate on treasuries, you’ll need to go in for the long haul. Right now if you want to get rates over 2% you’ll have to take out bonds for over 30 years.

Investments like stocks and ETFs are one of the most common approaches to investing 10,000 dollars for a quick return (source: financialexpress.com)

But are these methods the best way for you to earn interest on $10,000? Traditionally, maybe, but today there are a lot of great options that let you earn better returns from more diverse sources.

P2P lending

Peer-to-peer platforms are a smart, modern place to get steady returns out of a $10,000 investment.

P2P lending connects investors directly to borrowers, allowing you to make money on interest payments. Borrowers usually pay back on a monthly, quarterly, or term basis. Returns are steady and risk levels are usually manageable, with riskier borrowers giving higher returns.

There are even forms of P2P lending today that work with cryptocurrency. Crypto has revolutionized the P2P industry by creating more secure collateral for loans that can be easily collected in the case of borrower loan defaults.

Today, platforms like MyConstant use crypto-backed P2P loans as a way to help investors get solid interest rates up to 7% without the risks inherent in traditional P2P lending from defaulting borrowers.

Real estate investments & crowdfunding

Today you don’t even need huge amounts of cash or loans to tap into the juicy returns of the real estate market.

Instead of purchasing an entire property, there are many online platforms out now that allow you to make fractional investments in real estate, even with $10,000. You can invest in different sectors of the industry too: platforms like Fundrise let you help fund new developments while platforms like Groundfloor let you fund home flippers. Rates are often around 10% although there may be a degree of risk.

Alternate investments in real estate crowdfunding are some of the best places to invest 10,000 dollars today
Alternate investments in real estate crowdfunding are some of the best places to invest 10,000 dollars today (source: cloudfront.net)

Robo-advisor investments

Robo advisors are similar to managed brokerage accounts, except without a human broker helping you out. Robo-advisors instead use an algorithm to choose your investments for you based on your desired rates and risk requirements.

This is typically a more affordable way to invest that comes with fewer associated fees than a managed account. Many robo-advisors operate out of apps right on your phone.

One of the best investments for $10,000 today

While some P2P platforms have a high level of risk because of potential loan defaults, MyConstant is a little bit different. On our platform, we offer collateral-backed investments eliminating risk for investors.

MyConstant allows you to invest with 3 powerful tools:

  • Instant-access investment. When you deposit money into a MyConstant account, we lend your money for you out of an investment pool. You get 4% APY and anytime free withdrawals with no minimum investment. That’s a really handy tool if you want quick returns on $10,000.
  • Crypto-backed. With this option, you can earn up to 7% APR and invest with as little as $50 by lending to cryptocurrency holders around the world. You choose the term (1,3, or 6 months) and keep all of the interest.
  • Crypto-Lend. If you choose to use your $10,000 investment to get into the world of crypto,  you can invest your idle coins and earn 8% APY compounded and paid out every second through our Crypto-Lend feature.

The worst thing you can do with $10,000 is to let it sit idle in your bank account when you could be earning. Sign up with MyConstant today and do more with your money.

Peer-to-peer lending platforms like MyConstant allow you to invest 10,000 dollars for quick returns, like cryptocurrency or loan origination
Peer-to-peer lending platforms like MyConstant allow you to invest 10,000 dollars for quick returns (source: unsplash.com)

So what should you choose for your $10,000 investment?

These are only a small selection of some of the safest options with decent returns you can invest $10,000 in. There are, of course, limitless other options you could sink some of your money into for a wide range of rates.

The most important thing to remember is that you should never have all your money invested in one place. Try out a handful of options, see what you like working with, and reallocate as you see fit. And don’t forget to give us a try!

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George Schooling

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