What should I do with 60,000
Invest 10,000 euros correctly: the three best options
Valeria Nickel, June 15, 2020
With € 10,000 in hand, investors have quite a bit of leeway when choosing the asset class. In this case, however, it is all the more important to have a meaningful and considered choice hold true. Because € 10,000 can play a major role in wealth accumulation and develop either into the cornerstone of success or into a factor of despair. Therefore, every investor should know his own risk preferences and the investment horizon so as not to make mistakes here.
Pre-inspection: financial buffer
Who in addition to the available € 10,000 Nest egg for financial bottlenecks or put aside spontaneous, major purchases, should do so first.
It must be possible for the investor to withdraw the money at any time. For example, a Overnight money account. It is an option for everyone who cannot precisely assess whether and when they will need their € 10,000 again. For this, however, they have to accept mini interest.
Also the Paying off debts in advance of the investment makes sense, because interest rates reduce the return.
1 | Fixed deposit
Anyone who can plan further into the future could opt for a fixed-term investment.
The advantage here is that fixed-term deposits offer a fixed interest rate and a fixed term. So you know what return you will get and when. Besides, it's a very safe investment, as it is offered by banks and these have to guarantee a deposit protection of € 100,000 per investor.
The downside is that fixed deposits have only been available for a few years very low interest rates offers. It is only worthwhile for very security-conscious investors to accept the measly returns. Anyone who can afford to take a little more risk should look around for alternatives.
2 | Stocks and equity funds
Less security, but one good return has always offered equity investments.
€ 10,000 can be converted into Single shares create ("stock picking"). The amount is high enough for the cost per order to pay off. But one should note that then there is insufficient risk diversification.
So it is recommended to come here for Equity funds to decide who have many stocks in their portfolio and thus better diversify the risk.
Investors shouldn't need money invested in stocks at any particular point in time because stocks are subject to high price fluctuations. If you need your capital exactly when the prices are low and you can't wait for a rise, high losses are inevitable.
3 | Real estate and equity crowdfunding
Of course, € 10,000 is not enough to buy a property. However, there are other ways to invest directly and indirectly in real estate.
Are an indirect investment option Real estate funds: Here professional fund managers collect the money in order to invest it in several properties. “Indirectly” in this case means that you invest your money in the fund company and then let them choose the properties for the portfolio. The investor himself has no influence on this. Due to their experience, however, the managers can usually generate a high return with their selection.
However, anyone who wants to invest “directly” in real estate, that is, to choose the property themselves, could opt for Real estate crowdinvesting decide. Here, private investors come together via an Internet platform and can thus raise the high amounts that are necessary for an investment in real estate projects. € 25,000 is the maximum amount that private investors can invest in a crowd investing project. In contrast to the much better known crowdfunding, investors receive a return here. The advantage of crowd investing is that it high returns and fixed terms combined. As with fixed-term deposits, you benefit from the certainty of when you will have your money available again and what return you will get for it. At the same time, the interest rates are at the same level as the high return on equity investments.
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Conclusion on the topic of investing € 10,000
With € 10,000 you already have several options as an investor to invest your money sensibly. The availability and your own risk tolerance should always be checked. If there are no debts, it makes sense to take a look at our top 3 investment options.
It can also make sense to distribute the € 10,000 among the various options and thus diversify the investment.
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Image Copyright: B.Stefanov / Shutterstock.com
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