“How to invest € 10,000 in a safe manner and without too much risk? “: Is a very frequent question that put us in chat or that often ask by phone to our Carlo .
Of course: € 10,000 do not turn your life and do not allow you to live on income but are certainly a good starting point to face the future with greater serenity and tranquility.
Precisely for this reason we decided to dedicate a piece of our blog, so as to respond with an article to the curiosity of many and try to help you build a solid foundation for your future savings.
But first we need a clarification, perhaps for many implicit but we want to make it clear to dispel any doubt: is not a financial advisor and we do not advise for investments. Most of the people who call Carlo asking for advice in this sense already know us and already know that they want to invest € 10,000 in private loans .
They just want to know how to do it optimally through our social lending platform , diversifying their own portfolio and the amount of investments they are making with us.
However, before entering into the merits of how to invest 10,000 euros with private loans, we want to make some premises of a more general order, to better respond to the question that many people ask themselves.
How to invest 10,000 euros today: the answer is within you (but we’ll help you: there are only 2 alternatives to start with!)
No, it’s not a mockery, it’s really like that. There is no single answer for those looking for the winning model to make the best of their € 10,000 saved and everyone has their own.
We strongly advise you to be wary of those who promise safe investments, without any risk , easy gain, returns with three zeros and more than increasing curves: if it were so simple we could all live on income. The truth is that miraculous recipes in the field of investments do not exist and instead they have to be applied with common sense and prudence , first of all.
Ask yourself the question “how to invest 10.000 €?” Requires a range of possible answers and different scenarios , which vary from person to person, from experience to experience, from the historical moment in which the investment is made (it is clear that a profitable investment and that did get certain returns 5 years ago is not said to make it so today …) and the attitude and propensity to risk at that time.
Each has different objectives, starting conditions and resources; and even the very knowledge of certain instruments and variables is so varied that it makes practically impossible the existence of equal and replicable investments.
To begin to give a personal and unequivocal answer to the question on how to invest 10,000 euros , the first variable to be untangled is to define if the 10,000 euros that you want to invest are all the assets available for investment or just one part .
If you are asking how to invest € 10,000, which are the only savings available , the answer is very clear: the first rule of investment is always diversification and our first advice will not be differentiated by originality: diversified, diversified , diversify if you do not want to make mistakes!
In this sense it will be necessary to divide the budget of € 10,000 into groups of € 2,500 / 3,000 and perhaps leave a small margin for cases of need, in case the investments do not go as expected. This approach makes it possible not to focus everything on a single source of return , but to allocate its savings on different investment options (and in this way to diversify risk).
If, on the other hand, you are asking how to invest € 10,000 that are part of a larger asset to be allocated to different investment options , then in that case the € 10,000 can also be allocated to a single investment model.
After assessing whether € 10,000 is the only sum available or just a part of its assets to invest, you have to ask if you want to make an investment in a single solution or if you want to set aside a tot each month to be allocated to the investment in small quotas (it is also probable that those who have € 10,000 as part of a larger asset to invest in this problem do not pose it and invest all in one solution).
If you have experience with investments and with the ups and downs of the market , surely you have so many elements available to make a series of evaluations and invest 10,000 euros in a single solution a little more “light-hearted” ( remembering, however, that prudence is always the best advisor and that past returns are not indicative of the future).
Otherwise, for those of the first investment experience we advise against investing 10,000 euros all at once : it would be better to start with € 3,000 and then increase , with other investments of equal or greater amount, but in successive stages depending on the returns and monitoring of the first investment. In this way, greater confidence will be gained with the financial markets if some dynamics are better understood.
Therefore, evaluate the starting point, the “available balance” to be invested and whether to invest the amount in one or more “investment packages”, the next step is to collect information, study, scrupulously read contracts and general conditions of every investment tool you’ll want to consider … without forgetting the forums!
How to invest 10,000 euros today: if the answer is not within you, try with the forum
If you try to ask the question “How to invest 10,000 euros?” On a forum , the answers are the most disparate because, as said before, there are different experiences, attitudes, risk tolerance of different respondents giving their own tips.
And for such a difficult question we are certainly not suggesting you look for answers in the forums, but advice to help you orient yourself better : cues from which to study and deepen, suggestions and stories of personal experiences that can enlighten you on your investment path and choices best to do.
But be careful because the forums are exactly the mirror of reality : what is valid for someone, not necessarily valid universally and even replicable for only one other person.
However, the forums , although today may seem extremely vintage and outdated by various social tools, they are still unsurpassed for democracy : on the forums there are no fake news so deprecated on Facebook, but certainly you can hide the fake independent consultant who, to know him well , then works for such a financial institution and its own independent is not.
So to read them you do not give up anything, as long as you do not take them as infused science but rather you read them with a critical spirit.
How to invest 10,000 euros today: strategy, planning and asset allocation!
After studying and getting the right information, it’s time to move on to action and like any self-respecting action, the investment must be carefully and strategically planned: you need to think about a strategy for your investments keeping in mind a very important variable, and that is the time that one wants to give to one’s own savings in order to yield and grow .
Choosing a specific time horizon helps to define your investment objectives , setting the period within which you want to monitor them to evaluate the results of your choices. Defining a strategy and planning their investment actions are two preparatory activities to what is actually the asset allocation that, as Wikipedia explains, ” is the distribution of the available funds among the various asset classes ( asset class ). Each portfolio is a combination of these asset classes. “
Planning and defining your own asset allocation means reasoning on the composition of your investment portfolio , prior analysis and understanding of risk and return opportunities in the financial markets. One wonders, that is, whether to invest in real estate today, or what option is the best between investing their money in gold, in diamonds, in stocks or bonds, in art, in startups or, why not, in people (as can be done through our investments in private loans ).
And, as you may have guessed by reading the article so far, the answer is not and could not be unique and the same for everyone, indeed: everyone will choose the right mix between the various investment opportunities depending on their characteristics, resources, attitudes and need of the moment.
We need to select and focus on the forms of investment that are better understood and postpone to the future others whose understanding is not immediate or whose investment base is not immediately within reach of its portfolio (if we are wondering how to invest 10,000 euros, certainly a real estate investment can not be taken into consideration … or at most it can be the basis for the first alternative investments that will allow you to accumulate a small amount of money and then buy a garage, at most!).
In short: investing, with caution and with a time horizon defined according to your objectives . All this after diligently studying pros and cons of every form of investment to be taken into consideration.
How to invest 10,000 euros today: 3 keywords for safe investments
We have already mentioned several times in the article, but repetita iuvant : to make investments as safe as possible you have to keep in mind 3 passwords:
- time horizon: it is important to set a well-defined time frame, bearing in mind that the longer the duration, the more we have the opportunity to remedy some losses due to the highs and lows of the market (lower, in case of losses);
- diversification: as repeated several times, it is essential to allocate your investments on a varied basket of instruments, in such a way as to reduce the risk that only one impacts negatively or excessively on one’s portfolio. A series of different investments makes it possible to better balance any loss of less performing assets;
- monitoring: it is important to monitor and monitor investments over time, to improve them and adjust the shot from time to time. Investments are a very delicate sector and we must take care of them to grow: if a certain investment does not perform according to our expectations, we need to monitor it to decide if and when to sell it, for example, and possibly look for forms of investment more in line with our expectations .
How to invest 10,000 euros: diversify, in the long run and monitor … but pay attention to the costs of the various operators!
Beyond any diversification choice, it is important to invest in low-cost financial instruments , which include low portfolio management costs and, if possible, reduced taxes to a minimum .
Diversifying means in fact often entrusting to different consultants, operators and services and this can multiply these cost items. Then check if any operator offers discounts in this sense -zero stamp duty, zero commissions on the account, … – it is important to grab a higher yield that in the long run is not affected and gnawed by these apparently small cost items but that, added one by one, they also influence a lot on the final performance.
How to invest 10,000 euros: eye on taxes …
If investing earnings are never certain, what is certain are certainly the taxes to be paid on capital income , which in recent years have increased, to the detriment of small private investors.
The income (ie the positive interest) received by virtue of the investment is taxed for 26% (except for investments linked to the Italian State – Italian government bonds, postal savings bonds, … – whose rate is not 26%, but 12.5%).
How to invest 10,000 euros with social lending: keep calm & register to !
Whether 10,000 euros are all your savings, whether they are just a part of your assets, the social lending could be the right answer for many of you because it allows :
- to invest with fast return times: it is possible to receive the interest of the investment after the first month, when the loan applicants return
- to invest diversifying its investments : each investment is in fact unpacked into sub-investments that are allocated to various loan applicants in such a way as to reduce the risk of insolvency;
- to invest with a return guarantee: by giving up a portion of the return you can even adhere to our performance guarantee , a piggy bank that intervenes and pays in case of insolvent loans (obviously within the limits and capacity of the guarantee);
- to invest with maximum flexibility: it is possible to invest some amounts with collateral and others without, to test different levels of risk (without guarantee you can choose the rating of the applicants you want to finance and then maybe bet on a slightly riskier rating – 4 and 5 and reserve more prudent investment parts covered by guarantee ).
- to invest with an expected annual gross return from 4% (with guarantee) to 8% if the guarantee is not adhered to and is aimed at profiles of more “risky” applicants;
- to invest with constant monitoring of their returns : by registering with .it, a user will be created that will allow access to a reserved area where the statement and the trend of their investments are explained
- shortly it will also allow to automatically re-invest the capital and the interests that fall monthly , so you can choose some options and investment rules (with or without guarantee, if no guarantee on what time and risk levels, …) which will be applied and automatically replicated at the time when principal and interest will be included in the portfolio in the form of installments including capital and interest.