Best way to invest 5000 dollars

[gaylfer]

Hi there so this year, I am actually taking my finances very seriously and want to actually have a safe fund(I do not have any savings) I will be receiving 5000…. I just want to know what is the best way to invest it so I actually get some passive income back!

Thanks!

 

[ibaneztony]

@gaylfer It depends on a lot of variables such as how long you plan on investing the money, what is your risk tolerance for it and do you have contribution room in your TFSA?

If you want a guaranteed return for your invest that’s zero risk then GIC’s/bonds are what you want. Maybe make 4-6% back per year right now. If you have a bit more risk tolerance then you’d want to put it into an ETF or something similar that generally has decent returns of 8-12% these days if the economy stays steady. Higher risk puts you into individual company stocks that fluctuate much more in value so you could lose a good percentage for a while or you could luck out and gain a high percentage.

Just make sure you educate yourself about investing before making any decisions. $5000 isn’t an incredible amount of money but, if it is to you and you’d hate to lose any of it in the long run, play it safe. You could lose most of it by gambling on volatile stocks.

 

[gaylfer]

@ibaneztony Damn this is a lot of money for me! Thanks for the advice and taking the write this! I think I will put it in my TFSA that is managed and wait and see

 

[ibaneztony]

@gaylfer Yeah definitely put it in your TFSA if you have room! You won’t have to pay any tax on the gains you make with that amount. GIC’s/bonds for that amount of money really won’t give you much back. Roughly around $250 per year. Even an ETF or stock would get you around $500-$1000 per year if they do well. Educating your self about investing is the best thing you can do before making decisions! So many options that all depend on how much risk you want to take. Buying stocks is always a gamble.

 

[resjudicata]

@gaylfer In a business or in yourself to learn a new skill to make more money