15 Ways to Invest Small Amounts of Money (and turn it into a large amount of money)

In 16 Ways to Invest $100 I gave suggestions on how to invest when you have just a few dollars.

In this article I want to take it up a notch, which is to say how can you invest when you have more than a few dollars, but not the thousands that traditional investment vehicles usually require?

Before I started investing, I was under the same misunderstanding that you had to have thousands of dollars to get started.

I was surprised, shocked really, that I could start investing in the stock market via mutual funds with only $50 per month.

And that’s exactly what I did.  Even though I later found out that the mutual funds were okay at best, the fact that I started investing in myself was huge for me.

And for many, it’s that first step that prevents them from amassing wealth later on.

For our purposes here we are going to define small amounts of money as something more than $100, but not more than $1,000. Based on that parameter, here are 15 ways to invest small amounts of money.

how to invest small amounts of money
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GF¢ 053: 6 Safe Places to Invest Your Money in Retirement

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“If I was your mom, how would you invest my money?”

A lady who I had previously helped with her aunt’s investments for years now came to me regarding up her upcoming retirement.

She was already working with a “broker” as she called him but didn’t feel 100% secure about her investments.

The 2008 financial crisis rocked her and she was seeking something much safer for retirement.

As we discussed her various options and I asked open-ended question after another she finally asked me that question above:

If I was your mom, how would you invest my money?

How’s that for an icebreaker question!

Once you arrive at retirement you no longer have time to wait out a major decline in the stock market.

Capital preservation and providing yourself with a regular income will suddenly be at least as important as growth.

safe investments for retirement planning

For that reason, you’ll need to begin shifting your investment portfolio from equities to fixed income assets.

Here are six safe places to invest your money in retirement that will provide capital preservation and at least some income.
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GF¢ 052: How to Avoid Getting Burned by Devastating Financial Malpractice

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Several years ago, I used to play in a flag football league.

After catching a pass, I hit the open field and between me and the end zone was one lone defender.

As I glided across the field I knew exactly what I was going to do next: I was going to bust out one of my vicious Barry Sanders-like spin moves.

There was only one slight problem: I don’t possess any Barry Sanders-like skills.

Oh, yes, I’m decently athletic. But busting out such a move in the open field was not in my forte.

As I went to make the move, my cleats caught awkwardly on the ground and I ended up falling and landing directly on my hip. The field that we were playing on had several bare, hard spots and that’s where I landed. It hurt.

I knew that I’d hurt myself, but there was no way I wasn’t going to finish the game. The next day, the pain was so bad I could barely walk, so I decided to go to the emergency room. After getting an x-ray, it turns out I only had a very deep bone bruise. I was prescribed some pain medication and sent on my way.

Financial Malpractice

Now, imagine if it was the same scenario, but before I even got x-rays, the doctor recommended that they amputate my leg. While I might not know much, I’m pretty certain that would be considered medical malpractice.

Medical malpractice happens a lot in the U.S. and we’ve all heard our horror stories – but what about financial malpractice? How often do we hear those stories? On a blog post I previously shared I revealed there are certain financial advisors I would like to punch in the face.
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10 Awful 401(k) No-No’s You Should Avoid

Me: “Who helped you select the funds in your 401(k)?

Client: “Ummm…..I just picked a few options really quick.

Me:  “How much time did you spend researching what you picked?

Client:  “I didn’t.”

Me:  <sigh>

This sort of exchange happens more often than it should.  What most investors don’t realize is that at some point, your 401(k) will most likely be the largest income producing asset you own.  Sure your home could be worth more, but; the last time I checked your home doesn’t send you a monthly check when you retire.

There are several reasons why 401(k)s make sense for so many people. But the primary reason you should take advantage of your 401(k) is because once it’s set up there’s nothing much left to do (except the occasional review as I’ll discuss).

Your 401(k) can be automatically funded using your earnings at your job – you won’t have to remember to make contributions.

401k mistakes

However, there are some 401(k) no-no’s I think you should avoid. And the sad part is that many people make these mistakes . . . don’t become one of them.
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Investing AND Borrowing Through Prosper

Want to know how to avoid your bank? If so, read on…..

Founded in 2005, Prosper is the first peer-to-peer (P2P) marketplace in the US.

Since it began, it has funded loans totaling more than $3 billion to more than 250,000 members.

As a P2P platform, Prosper brings borrowers and investors together, in a lending arrangement that eliminates the middleman from the transaction entirely.

That “middleman” is the banker.

By taking that function out of process, Prosper allows both borrower and lender to come together to create a mutually beneficial financial arrangement.

prosper loan reviews

Borrowers can take loans ranging from $2,000 to $35,000, and for terms of either three years or five years. Individual investors can invest as little as $25 in any one loan, which enables them to diversify their holdings over many different loans.
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16 Ways to Invest $100

You have a crisp, new one hundred-dollar bill in your wallet.

While it’s not $1,000,000, $100,000, or $10,000, hey, at least it’s something!

Listen up. Just because you don’t have much money to invest doesn’t mean you shouldn’t invest it.

Want to know the most difficult part of investing? Starting.

You read that right!

Just starting is rather difficult, and once you accomplish that challenge, investing going forward is pretty easy.

For those of you who are discouraged because you only have a little bit of money to invest – don’t fret!

One hundred dollars is a great way to get your foot in the door and start a habit of investing that could very well lead to a bountiful harvest down the road.

how to invest 100 dollars or small amounts of money

I’ll tell you from the start that it isn’t easy to find ways to invest just $100. Many brokers have account minimums.

Additionally, sometimes you might find yourself being charged, for example, a $50 annual fee which can cut your account in half. That makes no sense.

However, there are a few ways you can invest $100 dollars and have it be worth your time and effort. I’ll show you how.

I also invited a plethora of other financial experts to lend their advice for this article. You’ll get a big helping of financial advice along with some unique ideas I didn’t even have in mind. Really, these guys are smart and creative – pay attention to what they have to say!

Let’s start things off by looking at a few investments you shouldn’t put your money into – they’re sneaky and dangerous!
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Investing AND Borrowing Through Lending Club

Lending Club has been sweeping the investment world – and the borrowing universe – at the same time.

And why not?

Who wouldn’t be interested in a financial facility that enables investors to earn more than the going rate on their money, while borrowers pay less?

Lending Club Review

Lending Club is an online peer-to-peer (P2P) lending platform that takes the banker out of banking. Investors lend money directly to borrowers through the site, enabling both to benefit from the rate of interest that’s established for each loan.

And just as important, the entire transaction happens online, eliminating the need for sometimes embarrassing face-to-face meetings that are common with bank loans. It’s a win-win as both investor and borrower benefit from the Lending Club process.

As of March 31, 2015, Lending Club has issued loans totaling well in excess of $9 billion. This includes more than $1.6 billion issued in just the last quarter.

Let’s take a look at how Lending Club works for both an investor and a borrower.
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How One Woman Paid Over $3,500 in Variable Annuity Fees and Didn’t Even Know It

“I think I’m paying around $50 per year.”

That’s what I heard from one woman who actually paid a lot more on a variable annuity.

A whole lot more.

If you haven’t guessed it yet, I’m not a big fan of variable annuities.

I’ve seen too many investors who were sold this horrible product – having no clue what it does and why they should even own it.

They just know the advisor who sold it to them claimed it was some sort of “guarantee.”

What’s worse is the client typically has no idea what they are paying.

Don’t believe so? Here’s an actual client scenario which shows just that.

Paying Variable Annuity Fees

The Details

For anonymity I am changing a few details but you’ll get the gist.

A prospective client found my blog and was interested in working with me. When she came in I learned they were working with a local office of a big brokerage firm that rhymes with Bells Cargo – once again, I’m protecting anonymity here ;-).

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Are Annuities a Good Investment? The Good, Bad, and Real Ugly

Annuities.

You may have heard investment advisors – or insurance advisors – talk about them in the past. In fact, earlier I described several reasons you should and shouldn’t buy annuities.

If you catch me on the street and ask if annuities are a good investment, I’d tell you the short answer is that it depends.

If you press me further, I’d tell you that most of the time they aren’t a good investment.

If you demand clarification, I’d probably just shoot you a link to this article – unless you’d like to take me to In-N-Out Burger and pick up the tab. 😉

are annuities a good investment

Here, I’m going to define annuities, show you why some people buy them, present two particular types of annuities, and show you a few alternatives you might like.

If you have any questions, please don’t hesitate to reach out to me! Let’s get started.
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15 Ways to Invest $10,000

Do you remember the first time you wrote a check for $100?

The first $100 check I wrote was for my cell phone waaayyy back in 1997.  Whoa….that brings back memories.

What about your first, $1,000 check? Even better, your first $10,000 check?

The first time I wrote a check for $10,000 was to pay off my student loan debt.  That was, by far, the best check I ever wrote!

It’s not too often that you have an extra $10,000 lying around, but if you did it would definitely be a good problem to have.  :)

But the answer as to what to do with the money isn’t always clear. Allow me to suggest a few ways to invest it – like 15 of them.  Here’s 15 ways to invest $10,000.

best way to invest 10000 dollars
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What the Heck is a Hedge Fund?

Am I the only that thinks of Sonic the Hedgehog when I hear the term “hedge fund”?

Sonic the Hedge Fund

Hedge funds are the mystery players in the investment universe. We hear a lot about them, but few of us ever have any regular interaction with them, and we certainly don’t invest money with them. We assume that the only people who do are the big money people, like Georg Soros and Warren Buffet.
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11 Ways to Invest $100,000 with Confidence

A cool $100,000 hits your checking account. Good day.

Before you go bananas and buy a Tesla with automatic lane-changing capabilities, please take a deep breath – for my sake. The last thing I want to see you do is blow all your money on sports cars or bad investments.

how to invest $100000

Whether I’m investing $100,000 or $1,000,000, there are a few steps I would follow first. You can read more about those steps in my article on how to invest a million dollars.

That article is more about what to do with a large sum of money (like paying off debt and building an emergency fund) – this one will help you learn about a number of investments, investment methods, and investment tools that will lower your risk.

So grab your $100K and invest with confidence!

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