If you’ve got an extra $1,000 by some miracle, or perhaps thanks to COVID stimulus holdovers, it may not seem like much, but there’s no reason it can’t be the seedling of your first investment portfolio.
Perhaps if you’ve got serious debt to pay down, it’s better to do that first, but if not, there are plenty of places to park $1,000 that will make it grow rather than collecting dust in a savings account, or worse yet, under the euphemistic mattress.
And since zero-fee trading platform Robinhood descended on the Earth to democratize trading for the little people, retail investing–even when you don’t know what you’re doing–is all the rage.
The markets started to tank in March because of the COVID-19 pandemic but has also created an army of young investors that started investing out of boredom due to stay-at-home and lockdowns.
All major online stock trading platforms have seen a surge in demand in recent months, leading to a major spike in new accounts in the first quarter. Many of the new users are young or even first-time investors with over half of them aged 34 or younger. In fact, online brokers saw new accounts grow as much as 170% in the first quarter.
Recent studies show that 29% of wealthy investors are under the age of 50 and control 37% of investable assets. So, why not you?
That $1,000 you have right now could grow into years of great future financial choices.
Here are some tips for the best ways to invest $1,000 right now:
A cool grand is not too shabby if you want to start with micro-investing. With new apps (such as Robinhood) on the market, you can even start investing with as little as $5. Squirreling away even $5 a week, for instance, creates a savings/investing habit and you won’t even miss the cash.
And if you want the ease of stock trading with diversification benefits of mutual funds, you should take a look at micro-investing apps that allow you to invest in exchange-traded funds (ETFs)–entire “baskets” of stocks centered around various themes….CLICK for complete article