Learn how to invest wisely and not lose it all in one shot
Foster City, CA – May 13, 2021 – Everyone wants to make money off their money, but some may be too embarrassed to ask how to get started. The leading personal finance site, MyBankTracker.com, pulled together the 7 Best Ways to Invest $5,000 of Your Savings to help new investors start building a portfolio:
- Online savings - The ultimate low-risk investment is a savings account and one from an online bank is a solid choice. Online banks tend to offer much higher interest rates than traditional banks with lower fees.
- Certificates of deposit (CDs) - To earn more interest on your money, a CD locks in your funds for a specific period of time at a locked interest rate. It’s also a rather low-risk investment that can be used for setting aside money towards certain financial goals.
- Money market accounts (MMAs) - Much like a savings account that offers more liquidity and access to cash, money market accounts could be an option for people who may be able to hold a larger amount of deposits in exchange for a higher interest rate.
- Roth IRAs - The tax advantages of a Roth IRA is too attractive to ignore. With a Roth IRA, contributions are made with post-tax dollars while there are no taxes when the money is taken out during retirement.
- Robo-advisory services - A robo-advisory service will look at an investor’s profile, risk tolerance and investment goals to create a complete, diversified portfolio. It’s rather hands-off as investors just put money into the account and split across the selected investments automatically.
- Index funds - Index funds are designed to track various stock market indices, which often hold up to thousands of stocks and other securities. They’re great for instant diversification and often carry very low expense ratios.
- Exchange-traded funds (ETFs) - ETFs can be seen as mutual funds that are traded like stocks. So, they’re also stellar choices to build a diversified investment portfolio to your liking.
“Everyone may not be able to manipulate the market like the GameStop investors,” notes Simon Zhen, senior research analyst for MyBankTracker.com, “but it’s never too early to start learning how to invest. It’s an important tool to grow wealth and plan for your future. Some advisors say the real risk is not investing, so beginners may want to consider contributing extra money each month to build a portfolio. And if $5,000 is too steep -- any amount is better than none.”
Zhen is available for comment and can provide tips on the best tools available to help beginners start their investment journey, what to look for in a financial advisor or discuss the best savings accounts rates to help consumer make the most of their money and more. He is an expert on consumer banking products, bank innovations and financial technology.
About MyBankTracker
MyBankTracker is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. MyBankTracker is a member of QuinStreet’s expert research and publishing division.
MyBankTracker is an independent comparison website helping consumers make smart banking and financial decisions. The mission is to match consumers to their perfect bank by providing and tracking in-depth information on more than 5,000 banks, credit unions and financial products. Using a combination of technology and money management expertise, MBT provides personal finance comparison tools and educates consumers to optimize their relationships with banks and lenders.
Twitter: @mybanktracker
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Media contact
Amy Eury
Public Relations Manager
412-532-9352
aeury@quinstreet.com
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