Could I do better with $20,000?

amother

Thu, Jun 03 2021, 10:18 am

I have no idea how to invest. I don’t even think I have enough to do any big investing. I have $20,000 ($23,500 to be exact) that I put away a few years ago and don’t want to use for a while.
It’s in a capital one account. I make about $8 a month in interest.
Is this the safest way to go?
Anything else I can do to earn more that’s not complicated or risky?

steak4me

Thu, Jun 03 2021, 10:22 am

amother [ OP ] wrote:

Open a Charles Schwab account and invest in a low risk. It’ll be a lower return than high risk but will still make about an average of 10% a year.

If you leave it there for 10 years you should have approx 60k from that money without adding anything. 20 years would be approx 154k....

You can google any investment calculator and see what it would net you.

Money sitting in savings actually is a loss. Bec currency depreciates by 3% a year

amother

Aubergine

Thu, Jun 03 2021, 10:24 am

amother [ OP ] wrote:

For zero risk, that's what you get.

For slightly higher risk, you can go with an index fund. You're not going to make a huge amount, but you're not likely to lose a huge amount, either.

More risky are other mutual funds. Most risky are individual stocks.

amother

Slateblue

Thu, Jun 03 2021, 10:26 am

Honestly if I only had 20000 I would leave it in Capitol one savings. Its important to have about 3-6 months worth of living expenses available in case of loss of job, sudden medical emergency/disability, large unexpected expense etc

If you invest it and then need to cash in on it in the short term you may end up losing money