Where to invest 500 over 5 years: 3 experts answer

maybe you’ve never invested before; maybe you’ve dabbled a bit and are looking for different ways to increase your savings.

Whatever it is, there are myriad ways you can invest, from different platforms, different investment types (stocks? ETFs?), and even creative ways to ensure your money is going towards a more environmentally friendly future. the environment.

Reading: If i invest $500 in bitcoin today 2021

If you had $500 to invest, with a time frame of five years, where would you put it?

If you asked a financial advisor, a ‘finfluencer’ and an analyst from an investment firm, you would get very different answers.

yahoo finance contacted financial advisor james gerrard, tiktok star queenie tan, and perennial value management analyst to find out where they would keep $500. this is what they said.

Also read: Investor rebellion: 5 ways your money can help save the planet

Also read: 10 hot investment trends: how to choose the best thematic ETF

james gerrard, financial advisor, co-founder of a cryptocurrency research firm

  • the quick answer: invest in cryptocurrencies

    Background: Let’s go back five years, when the price of bitcoin was $827. today, it is around $65,700. “So if you had invested $500 in bitcoin five years ago, it would be worth just under $40,000 today,” Gerrard told Yahoo Finance. While you probably wouldn’t see the same 7,858 percent gain over the next five years if you invested in bitcoin today, it doesn’t mean other cryptocurrencies aren’t on a similar trajectory.

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    the details: “coins like cardano and ripple that have interesting technology and projects are generally viewed more favorably in the long-term perspective. of long-term investment by traders, compared to currencies like doge, which are more sentiment-driven but have less compelling long-term prospects,” Gerrard said.

    read more: bitcoin, ethereum: which cryptocurrency is right for me?

    read more: doge, ethereum: 5 bitcoin alternatives to know about

    • the risk: obviously cryptocurrency is “extremely volatile”, gerrard warned, so not for the faint of heart or if $500 is your last of your savings. “so while the potential returns may seem attractive, you should always keep in mind that there is no such thing as a free lunch and that there is a very high level of risk involved with investing in cryptocurrencies.”

      The lesson: “Research before you invest.”

      tiktok star, “finfluencer” queenie tan (@investwithqueenie)

      • the quick answer: diversify

        The background: So you would allocate your money using a concept called a “central satellite wallet”.

        read more: what is central-satellite investing and why this expert has built her portfolio around it

        “A core satellite portfolio consists of a core of passive investments (such as ETFs) and satellites of more active and speculative investments (such as individual stocks and cryptocurrencies),” Tan said.

        • See also: Why Bitcoin ATMs are Vexing Rulemakers – POLITICO

          the details: So I would put $250 in global ethical ETFs, $100 each in Australian Ethical ETFs and individual stocks, and $50 in cryptocurrency split between bitcoin and ethereum.

          Like many other young Australians, Tan is keen to ensure her investments serve a better planet, which is why she would dole out $350 in ethical ETFs. the other $150 is reserved for riskier but higher-yielding potential investments like stocks and cryptocurrencies.

          • the risk: worth the potential reward, says queenie. “Ever since I’m young, I’ve been happy to take a little bit of risk in my portfolio. I tend to stick to the big cryptocurrencies like bitcoin and ethereum. I see this as a long-term investment rather than a get-rich-quick scheme.”

            Emilie O’Neill, Investment Firm Evergreen Value Management Equity Analyst

            • the quick answer: put everything in one place

              Background: ETFs allow you to buy a basket made up of multiple shares, meaning your $500 would be spread across many companies.

              The Details: O’Neill also recommends putting your money into the einvest better future fund (asx:impq), which is made up of 45 Australian and New Zealand small businesses actively working towards sustainable solutions . . it’s also won awards and has a pretty impressive 3-year performance of 14.6 percent per year. “fund companies operate in industries such as healthcare, education, renewable energy, or have developed technologies that reduce carbon emissions or improve worker health and safety.”

              the risk: While ETFs are generally considered a fairly safe way to invest, as with any investment, you are subject to market risk, so if the ETF performs poorly, your money will fall, too.

              see below: the big investment trends in a post-covid world

              Disclaimer: All of the above is general advice only and does not take into account individual goals, financial situations or needs. past performance is not indicative of future performance.

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              See also: No Wagering Bitcoin Casinos | Wager-Free Crypto Bonuses


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