I have more than 50k in my account, saved the money for like almost 5 years. I know it is not a lot but what would you do with this money? If you can invest, where and how would you invest?
Do you have any debt? If so pay if off.
I have a car finance left, but I want to keep it in order to gain higher credit score
If the APR is above 4%, pay it off. Your credit score will improve over time if you use your credit cards for all purchases
Low fee diversified stock index funds. If you don’t have a strong opinion, your default should be a Vanguard target retirement fund.
Are you maxing all your tax advantaged accounts? If not, do that first and use the cash to make up for the lost income if needed. Then toss the rest in VTSAX
Can you explain me briefly what this means? Thanks!
It depends on how soon you need the money. If 10+ years, invest in stocks. If in the next year or two, I would be more conservative with it.
If you don't have any investment experience, safe bet would be to invest in s&p500. Avg return has been 7-8% annually for past several decades.
Or VTSAX
It depends on what you want out of it. You have to also take into thought that market is at an all time high but there is a lot of geopolitical uncertainty out there. I personally am riding high dividend preferred shares/value stocks (think Disney) and high yield savings account very evenly split.
Could use a Wealthfront or betterment and they will handle the diversification across the various low cost indexes for you and mgmt fees are very low
At the very least that money should be sitting in a high interest savings account while you figure it out...Wealthfront has 2.5% right now...
Wealthfront is down to 1.82%.
Make a down payment on a house
Find good dividend stocks