“How I Would Invest $2,000” (L145)

If I were to receive $2,000 to invest over a five year period, I would split it up between an emergency fund, bonds, stocks, and precious metals. $600 of this money would go directly into an emergency fund. Of the remaining $1,400 (for my portfolio), silver (and possibly gold) would make up 10%; it is always good to have some portion of your investments in tangible items. Stocks would make up another 60%, and bonds would cover the remaining 30%. Although I do not have details or company/corporation specific information, I can tell a risky deal from a dangerous one; I know how to be (nearly) sure that I will not lose all my money.Stocks are used to expand ones portfolio. Bonds, being less risky typically, (though not always) are more a source of income than anything else. When investing in stocks (or even possibly bonds), I would more likely than not use a dollar cost averaging technique, so as to lessen the risk of investing it all at once. Also, within my bonds and stocks categories, I would be sure to diversify. (Not put all of my eggs into one basket!) This will also lessen the risk of losing all my money in one downfall. Although I seem to be doing everything I can to avoid risk, one must also keep in mind that great return does not come without great risk, and to win big you need to play big. Do not make decisions stupidly, but boldly, and with great knowledge and understanding.

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6 thoughts on ““How I Would Invest $2,000” (L145)

    • My grandmother has Bitcoin and I have worked with it a tiny bit but I don’t truly understand it. I would like to know about it in more depth before getting involved with it. However, I do have a great amount of interest in it, and I’m glad you reminded me that I forgot to include cryptocurrency.

      Liked by 1 person

      • Glad you’re thinking about it. Personally I’d go heavier into metals and cryptos, and less into stocks. I have investments in wall street type assets, but I don’t have full faith in them to be there forever. If you want to explore Bitcoin more..start on my page 🙂 There is a “Bitcoin” tag along the right side, and within those articles you’ll find links to all kinds of information.

        Liked by 1 person

      • I honestly would NEVER go into stocks, but that is what these past two weeks were about in Personal Finance and I’m pretty sure they specifically wanted us to use them hypothetically. If this were more accurate to my life right now, about 40% would be in silver probably. Another 20ish% in crypto and the rest in savings.

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