Sun Jul 28 2024, by Tyler Gardner

Investment Strategies for $20,000

Here's how I would invest $20,000 into the stock market as a former portfolio manager and a self-made trillionaire who walks in the woods all day.

I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so that you don’t have to pay for it.

1. Invest in a Low-Cost Index Fund

I would invest $7,000 in a low-cost index fund within a Roth IRA because it’s the max that I can put in each year. This is a retirement account and I’m looking at a 40 to 50 year time horizon where 100% of my gains—everything I earn on my investments—would be 100% tax-free after 59 ½. I would treat this like a second emergency fund because I can take back the contributions at any time, penalty and tax-free.

2. Invest in High Risk, High Reward Tech Fund

I would invest $2,000 in a high risk, high reward tech fund like Invesco's QQQM, Vanguard's VUG, or if I were feeling really risky, into a semiconductor fund like SOXX or SHOC. Again, I have a really long time horizon and I can afford to remain invested through some inevitable market downturns.

3. Invest in Your Physical and Mental Health

I would invest the remaining $1,000 into my physical health by buying a gym membership. And for my mental health, I’d allocate funds to purchase about 20 books a year on personal finance, investing, and business strategy. If you are not investing at least 10% of your assets in your physical and mental wellbeing, it doesn’t matter how much fricking money you have because you’re not going to be operating at your best.

If any of this is helpful, like and follow and I’ll keep trying to get you one step closer to where you need to be.

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