An extra $1,000 can be a strong starting point for building wealth, or can give an existing portfolio a boost. Whether you use your money to amplify your current plan or to explore other ways to invest, you have plenty of flexibility. Wondering where to invest $1,000 right now? Here are nine investment options that offer a diverse range of exposure and risk to help you achieve your goals.
When you buy a stock, you’re essentially buying a share of ownership in a company, which gives you access to the upside or downside of the business. There are two primary ways to buy stocks:
- Brokerage accounts give you the control to start researching companies listed on the major stock exchanges, transfer money online from your financial institution, purchase shares of public companies when you want, and keep track of your investments. With a brokerage account, you’ll take a DIY approach to investing, which means you’re responsible for choosing your own stocks.
- Managed investment accounts are owned by investors but managed by someone else, typically a financial expert. While managed investment accounts have historically been exclusive to high-net-worth investors, Titan is a new-guard investment platform bringing this style of premier investment management to everyone.
ETFs are a pooled form of investment that is designed to track an index, sector, or commodity. They’re traded like stocks, so you can research each ETF’s historical performance. ETFs can include hundreds of stocks. If a few companies perform poorly, experts believe your exposure will be more limited than if you had put all your cash in one pick. There is, however, still the same level of risk as any stock market investment. Experts advise researching the best ETFs for your portfolio and risk tolerance.
You can buy ETFs directly from your brokerage account, or you can invest in a managed account or robo-advisor account that will buy ETFs on your behalf.
3. 401(k) or IRA
401(k)s and IRAs are investment vehicles, not actual investments. These tax-deferred accounts are designed for retirement savings—meaning that the money you invest in these accounts is off-limits until you’re at least 59 ½ years old, with a few exceptions.
A 401(k) is typically offered through your employer. An employee designates a certain percentage of their salary to flow directly into that account before any taxes are paid on that money. An IRA is a type of tax-deferred account that isn't tied to an employer. You can set up an IRA with a bank, a life insurance company, or a brokerage.
Each of these accounts come with annual contribution limits, so experts advise checking your current contribution levels to make sure you’re eligible to add more.
When you invest via a 401(k) or traditional IRA, you can experience tax advantages:
- You can deduct the money you invest in these accounts from your yearly income, which can lower your tax bill today. In that way, these accounts help reduce your taxes over the course of your lifetime.
- You won’t pay taxes on any investment gains you make in these accounts until you withdraw during retirement. This could help you accumulate more money, faster.
You can also invest the extra $1,000 in a Roth IRA. You can’t deduct the contribution from your taxes this year, but you won’t have to pay taxes on any gains, and you won’t pay taxes on that money when you withdraw it, either. To open and contribute to a Roth IRA, you must meet the following income requirements:
- Single taxpayers: less than $125,000 for maximum contribution
- Married filing jointly: less than $198,000 for maximum contribution
You may still qualify to make smaller contributions if your income is less than $140,000 for single filers and less than $208,000 for married taxpayers filing jointly.
Cryptocurrency is a form of digital currency. There are hundreds of different types of cryptocurrencies, each with their own valuations. Bitcoin is the most widely known (and expensive) form of cryptocurrency.
Investing in cryptocurrency can help you diversify your portfolio beyond the stock market, since its performance isn’t tied to traditional markets. The crypto market is, however, known for volatility, and requires some expertise to navigate, as each crypto has its own structure of how and when new coins may be produced.
You can buy crypto through a managed investment account, brokerage account, or through a crypto exchange. With a brokerage account, you’re typically required to leave the digital currency in your account. With a crypto exchange, you can hold your currency in a crypto wallet, which offers more security.
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If you’re ready to start growing your capital, Titan is ready for you. Our team of exceptional investment analysts manage hundreds of millions of dollars, investing our clients in actively-managed, long-term strategies with an eye on massive growth potential. Through our award-winning app, you’ll ride shotgun with some of the smartest investment minds in the business. Sign-up takes minutes: get started today.
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