Investing: Smart ways to invest $1K, $10K and $100K
From “Great Ideas for $1,000, $10,000 or $100,000” in February issue of Kiplinger’s Personal Finance:
Invest in India.
Move over China; it’s India’s turn. Thanks to tax and economic reforms, India is poised for a multiyear cycle of increasing business and consumer investment and higher productivity. A recent Harvard University study predicts 7.7 percent annualized growth in the country’s gross domestic product through 2025. (By contrast, the study forecasts 4.4 percent and 2.9 percent annualized growth in China and the U.S., respectively.) To get a piece of India’s expansion, stash $1,000 in iShares MSCI India ETF (symbol INDA), which invests in large and midsize firms, and hold for the long haul. The fund has $1 billion in assets and charges the lowest annual fee of its peers, 0.79 percent. INDA climbed 28.5 percent over the past 12 months.
Save for retirement, stress-free.
Target-date mutual funds are one-stop shops for retirement savers. Instead of managing your own portfolio of diversified assets, the pros do it for you. Year after year, a target-date fund’s managers will adjust the mix of stocks and bonds so the portfolio grows more conservative as it nears the year you expect to retire. The Vanguard Target Retirement and T. Rowe Price Target Date funds come with excellent long-term track records. Aiding performance in both cases are low expense ratios and a higher-than-average allocation to stocks over time. The Vanguard funds have a $1,000 minimum, and T. Rowe’s minimum is $2,500, or $1,000 if you purchase shares for an IRA.
Buy a ready-made portfolio.
Assembling a diversified collection of tech stocks is challenging, especially when some industry titans trade for more than $1,000 per share. But the Ready-to-Go Technology portfolio at brokerage Folio Investing (www.folioinvesting.com) gets you actual shares in 30 firms, including Alphabet (GOOGL), Apple (AAPL) and Facebook (FB), as well as Chinese internet firm Baidu (BIDU). Folio’s Technology portfolio returned 16.1 percent annualized over the past five years (through early December), compared with a 15.7 percent gain in Standard & Poor’s 500-stock index.
A $10,000 investment may not buy a full share of every stock in the portfolio, but Folio pools customers’ orders, allowing it to sell you fractional shares. You can also choose from more than 160 other ready-to-go portfolios, or build your own. For a one-year payment of $290 (or $29 monthly), you can trade any stock, exchange-traded fund or mutual fund, with no transaction fee. Folio executes trades twice a day; to place a market order that will be executed immediately, you pay $3 per trade.
Open an IRA, get a bonus.
Move your IRA or open a new one and get an instant return on your money. If you open an IRA at TD Ameritrade and fund it with $100,000 within 60 days, you’ll get a $300 cash bonus (the offer is valid through March). Merrill Edge is giving out a slightly smaller bonus of $250 for a $100,000 IRA funded within 45 days of opening the account; there is no expiration date on the offer.
(c) 2018 Kiplinger’s Personal Finance; Distributed by Tribune Content Agency, LLC.