Investing With Less Than $5000

$5000 dollar bill

A commonly believed myth in the world of investing is that a large sum of money is a necessity to begin investing. This is simply not true. There are many quality investment strategies for persons that do not have or want to risk a large sum of money. Many of these strategies can be implemented with $5000 or less.

Peer To Peer Lending Platforms

Peer to peer lending platforms match investors wishing to lend money to borrowers in need of capital. The interest rates earned by investors are often above average when compared to other investments. These platforms are also beneficial to the borrower as more flexible loan terms can be offered than is common when using traditional banks for loans.

There is some risk to investing at lending sites but a little strategic planning can greatly minimize this risk. One popular peer to peer lending website suggests that investors begin with a $2500 investment. The minimum required investment in a loan is $25 which gives an investor the flexibility to invest in as many as 100 loans.

The Stock Market

The stock market has always been, and perhaps always will be an excellent opportunity for investors. And for those individuals that display the ability to choose profitable companies to invest in on their own stock market investing just may be their avenue to wealth.

Excellent online brokerage accounts exist for investors to use. These online platforms contain all the tools needed to become a skilled investor. The low fees associated with these accounts make trading individual stocks all the more affordable.

Real Estate

Real estate is another mainstay in American investment portfolios. And while investing in real estate with less than $5000 may seem like an impossibility the presence of real estate investment trusts make this option extremely viable. REIT investments have been observed to give investors advantages that personal ownership of properties does not provide.

  • A Liquid Asset – Shares in REITs can be quickly sold and turned into cash when needed or desired.
  • Diversity – REIT investments represent a collection of properties or mortgages and not only a single piece of property.
  • High-Yield – Dividend payments derived from REIT investments are typically higher yielding than those from stocks and much higher yielding than certificates of deposits.
  • Lower Taxes – REIT investments result in lower capital gains taxes than mutual funds because the sells of properties take place much less frequently.

Sell Products Through Amazon FBA

Amazon FBA is an excellent way to sell or resell products without the need to worry about fulfillment duties. Items you intend to sell are sent to Amazon and when an order for these items take place Amazon will assure that the customer receives the items. Individuals with an ability to find discounted items or see value in wholesale opportunities will find this investment method extremely simple and profitable.

CDs and Savings Accounts

An extremely safe option to invest in with less than $5000 is CD’s and Savings Account but the yield must be high enough to be worth the effort. In recent times the best returns on these types of investments have come from online banking sources, and there are differing perks for opening an account with one bank over another. Check out NerdWallet for a full list to help you choose.

Get A New Skill

Often times the best investment an individual can make is an investment in oneself. There are a number of skills to be acquired that will cost the investor less than $5000. These skills can be attained through continuing education classes at community colleges, trade schools, online learning platforms or in a variety of other ways. All added skills a person acquires can result in higher earning potential in future years.


 

Conclusion

Contrary to popular belief, there are many investment opportunities to be had that do not require a small fortune. For as little as $5000 many individuals have made investments that would lead to lifelong improvements in their financial health.

For more information on investing with small amounts using an IRA, contact Accuplan Benefits Services today.

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