How can i invest 50000 dollars

I like to think of live-in flips as an unconventional form of house hacking. When you go to sell, your gains should more than cover your housing payments for the last year or two, meaning that a successful live-in flip also means net free housing. The classic house hacking model involves buying a multifamily property, moving into one unit, and renting out the other s.

Your neighboring tenants cover your mortgage with their rent payments, and ideally your other non-mortgage expenses to boot.

Multifamily properties are far from the only option for house hacking. My co-founder at SparkRental, Deni Supplee, has house hacked by renting out storage space. Today she takes it a step further: she brought in a foreign exchange student and the placement company pays her a monthly stipend that covers most of her mortgage. In fact, her home is a mixed-use property with two residential units and one commercial unit.

Her daughter lives in the neighboring residential unit and covers a hefty chunk of the mortgage, and she and her husband write off the commercial unit as the headquarters of their businesses. You can get as creative as you like with house hacking. My friend Renee covers the bulk of her rent by leasing one bedroom for two weeks out of the month.

Best of all, when you house hack, you can use traditional mortgage financing rather than an investment property loan. It also means lower interest rates and lender fees, making for far more attractive financing. And when you move out? You can keep the home as a rental property, with your owner-occupied loan left in place. Much as I love directly investing in real estate, it requires knowledge and a degree of work.

The traditional indirect real estate investment is publicly traded REITs real estate investment trusts. You can buy shares in them through your regular brokerage, your IRA or Roth IRA, and often through your employer-sponsored retirement account like a k. They trade like mutual funds or ETFs exchange traded funds , and come in two varieties. Like stocks and mutual funds, REITs are highly liquid and make it easy to diversify your investments.

More recently, crowdfunding websites have risen to offer an alternative to publicly traded REITs. If you personally know real estate investors with a track record of success, you can also lend money toward their real estate investing projects in the form of private notes. As investors scale and grow, many move away from investment property loans and raise money privately from friends and family.

Not everyone feels comfortable investing tens of thousands of dollars in real estate and some investors want to prioritize tax-sheltered accounts like a Roth IRA, k , or HSA before investing in taxable assets. Because there are multiple assets within an ETF, they can be a popular choice for investors who want to diversify.

Although they are much like mutual funds, they trade like stocks. Many ETFs have low expense ratios and broker commissions than buying the stock directly. This is unlike mutual funds, which are not traded on an exchange, and trade only once per day after the markets close. Their holdings are transparent on a daily basis. While Mutual funds report holdings a few times in a year.

An ETF can own a large number of stocks across various industries, or it could be specific to one particular industry or sector. So, you can decide to make more money with your They can run for a long period, from six months to two years.

The idea is to leave a lump sum deposit untouched for the agreed term, after which you will be paid the agreed interest rate for your money. They are a safer and more conservative investment than stocks and bonds, offering lower opportunity for growth, but with a non-volatile, guaranteed rate of return.

CDs can serve as another means to make more money with Another option to choose how to invest 50k is to invest in real estate. Unlike stocks, mutual funds, and ETFs.

Also, it is one of the fastest ways to make more money. Although 50k may not help you buy an entire property, it can still serve as a down payment on a property you want to purchase. REITs are publicly traded stocks, and they work a lot like index funds. This can be another good option if you are looking for how to make money with dollars. So its best to invest it into something that will continuously yield results in the future. It is a tax-advantaged account set up separately by individuals to track their retirement savings.

Your IRA depends on your employment status, and it has some limitations surrounding it. This adds up to the amount you save for retirement. A taxable brokerage account is similar to a retirement account like IRA or k but without the tax benefits. You can also withdraw money at will. It gives you the opportunity to diversify your investment and make more money.

If you are just interested in making money with your 50, without caring about the whole processes involved, hiring a financial advisor is the best option for you. They are available to manage your investments and answer any questions you might have.

They will advise you on the best investment strategy to use at different times in the market. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.

Don't let indecision weigh you down. Instead, we suggest a measured approach. Then check two crucial financial boxes: having an emergency fund and not having high-interest debt. That depends on you and your goals. Consider the following five suggestions a buffet — take a little of each or load up on the ones you like.

Jump off here to see our picks for the best robo-advisors. The most important lesson of investing : Time matters — specifically, time in the market. Ok, so we've convinced you that time is of the essence. Once you've developed your plan, you'll need to open a brokerage account to get access to various types of assets like stocks, mutual funds, exchange-traded funds and bonds.

See our choices for the best online stock brokers for beginners. If the prospect of selecting investments is daunting, you may want someone — or something — to dive deep into your financial life. Websites like Unbiased and Vouchedfor are a good place to find an adviser, although do your own research too and ask friends and family for their recommendations. Find out more: How much does financial advice cost — and is it worth it? The products mentioned in this article have been independently chosen by Times Money Mentor.

This helps fund the website and keeps it free to use. We do not allow any commercial relationship to affect our editorial independence. Receive regular articles and guides from our experts to help you make smarter financial decisions. By entering your details, you acknowledge that your information will be used in accordance with our privacy policy. You can unsubscribe at any time. Searching Money Mentor. See all results. Investing basics. Once you have considered all these options, you can then think about investing.

What is your financial goal? Think about what you want to use the money for. How long is your timeframe? How long you are prepared to keep your money tied up in investments will dictate your strategy. In the investment world, people talk about short-term, medium-term and long-term, so just to clarify: Short term: under five years Medium term: five to ten years Long term: ten years or more.

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