exactly how I would invest $ 5,000 if I had to start from scratch today | Personal finance
With just 0.2% annual fees and almost no sales, the equal-weighted Invesco S&P 500 ETF offers a good combination of low fees and low churn rates that give index funds their edge. All in all, there are plenty of reasons to believe that an ETF has what it takes to be worth holding as a reasonable first investment in any investor’s long-term portfolio.
Why all at the same time?
While $ 5,000 is a great start to investing, a single $ 5,000 investment is unlikely to be enough to get you to and through a comfortable retirement alone. As a springboard, first investment, it is a fabulous foundation, but building your future more financially secure will be more of a marathon than a sprint.
Therefore, whether the market moves higher or lower in the short term, your plan should be to add money on top of that initial $ 5,000, where possible. In all likelihood, sometimes you will buy at a higher valuation, and sometimes you will buy at a lower valuation. Over time, however, seeing that $ 5,000 as the first step on a long journey will be a better idea than worrying about getting into the perfect price today.
Indeed, time is the most valuable tool you have for building wealth. The sooner you embark on a trajectory where you invest regularly, the better off you are likely to be. So if you have $ 5,000 to put to work for you, use it to build your financial base and inspire you to stay on course for your longer term future. When you look at how far you’ve come after persevering in your career, you’ll be truly glad you did.