Best Ways To Invest $50K in 2025

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Got $50,000 to invest? Whether it’s from savings or a windfall, there are many ways to grow it — safely or aggressively. Here are some of the smartest strategies depending on your financial goals and comfort with risk.

Read: What Is a Bear Market and How Should You Invest in One?

Make Sure You Are on Solid Footing

The first thing to do is to make sure that your financial house is in order. Ask yourself these questions:

1. Do I have enough money set aside for an emergency? You should have three to six months’ worth of expenses in the bank in case you unexpectedly lose your job or have a costly home or car repair bill. This amount should be in cash in the bank for easy access.
2. Is my expensive debt paid off? A mortgage and a car payment are facts of life. But if you have credit card debt you are carrying over month to month, get rid of that before you do anything else. Think of it this way: You may be paying 25% or more in annual interest on credit card balances. Paying off this debt is like getting a guaranteed 25% return on your investment. Where else can you get that?
3. Am I saving enough for retirement? There are limits to how much you can save in a 401k, IRA or another retirement account, so make sure you’re contributing as much as you can. At least contribute enough to get the company match, if you’re offered one. It’s free money and failing to take advantage of it is literally leaving money on the table.

If you can answer “yes” to the three questions above, it’s time to start looking at the best way to put that $50,000 to work for you — and if any of your answers are “no,” address those first.

Investment Options for $50,000

Here are some top options where you can sock away $50,000 depending on your investment objectives and risk tolerance.

High-Yield Savings Accounts

• Best for: Liquidity and safety
• Estimated return: 3-4%
• Risk level: Low
• Why it works: High-yield savings accounts pay higher yields than traditional savings accounts, are highly liquid and come with FDIC insurance.

High-yield savings accounts usually have no fees or minimum balance requirements, and they can be accessed with ATM/debit cards. You’ll usually have to work with an online bank to get the highest yields, however, so keep this in mind if you prefer face-to-face interaction at a physical branch.

Certificates of Deposit

• Best for: Fixed returns
• Estimated return: 3-5%
• Risk level: Low
• Why it works: CDs typically pay better rates than savings accounts, but they offer the same FDIC insurance. Unlike savings accounts, interest rates on CDs are fixed for a specified term.

Certificates of deposit usually mature in a few months to a few years. Rates are set by individual banks, so it can pay to shop around. Most carry early withdrawal penalties, so they aren’t as liquid as high-yield savings accounts. However, they often pay at least slightly higher interest rates.

Mutual Funds

• Best for: Diversification
• Estimated return: 5-8%
• Risk level: Moderate
• Why it works: Mutual funds allow you to own tens or even hundreds of different securities in a single investment, offering at least some level of instant diversification. Professional money managers make the buy and sell decisions on behalf of the entire fund.

There are numerous types of mutual funds that cover nearly the entire investment universe. Just within the stock world, for example, you can buy significant, mid or small-cap funds, domestic or international, aggressive or conservative, and so on. But there are also countless bond and income mutual funds, balanced funds, commodity funds and funds for any investment need, and they can all have varying risk-reward profiles.

Exchange-Traded Funds

• Best for: Long-term growth
• Estimated return: 6-8%
• Risk level: Moderate
• Why it works: ETFs are a highly liquid, low-cost way to track a market index or sector in a passive manner.

Exchange-traded funds are similar to mutual funds except that they are passively managed instead of actively managed. They are designed to mimic the return of an index. This can be a broad index, like the S&P 500 or the Russell 2000, or a subset of a larger index, like an ETF that tracks the semiconductor sector or the retail sector. Thus, returns and risk profiles can vary greatly.

Stock Trading Platforms

• Best for: Self-directed growth
• Estimated return: Varies
• Risk level: High
• Why it works: With your own brokerage account, you’re in charge of all the investment decisions. You can buy or sell any investment you like at any time. If you’re good at research, you may be able to get an edge that allows you to outperform the market.

If you want to try your hand at picking your own stocks, low- or no-cost trading platforms like Robinhood and Webull will help you trade for free. These platforms provide research information and even advice, but the ultimate decision to buy or sell is up to you.

If you want to trade on your own, you may want to start with a small part of your $50,000 nest egg before going all in, as self-directed trading can be risky. In fact, if you’re an aggressive trader, statistically speaking, you’re likely to do more harm than good to your portfolio. Consistently investing over the long run, however, can generate impressive compounded returns.

Alternative Investment Ideas Beyond the Stock Market

If you’re willing to take on more risk than savings accounts and CDs but are looking for something other than the stock market to invest in, check out these two ideas.

Real Estate

• Best for: Passive income
• Estimated return: 5% to over 10%
• Risk level: Moderate
• Why it works: Real estate offers the benefit of owning a tangible asset that can provide both income and capital appreciation.

Owning your own home comes with responsibilities, but it also has its rewards. In addition to the satisfaction of owning your own place, you get to enjoy the appreciation in value that real estate provides over time. If you have $50,000 to invest, that can go a long way towards a down payment.

Another option with real estate is to purchase a rental property. The passive income you derive from your rental property may pay some or all of its mortgage and eventually become a source of pure cash flow.

Invest in Yourself

• Best for: Career investment
• Estimated return: Varies
• Risk level: Low-moderate
• Why it works: Many successful investors, such as the “Oracle of Omaha” himself, billionaire Warren Buffett, often say that the single best investment you can make is in yourself.

Getting an advanced degree or a professional certification could result in a better job with higher income every year for the rest of your working life. It improves your marketability and can pay big dividends, both in your paycheck and in your job satisfaction.

Compare Various Investment Options

Here’s a side-by-side comparison of the risk-reward characteristics of these various investment options.

Which $50K Investment Strategy Fits Your Goals?

There is no single investment that is right for everyone. Once you define your financial goals and your ability to handle risk, however, you’ll be pointed in the direction of the investments that are right for you. Here’s a quick overview of how investments match up with goals:

• Want guaranteed safety? Invest in savings accounts or CDs.
• Want long-term passive growth? Buy ETFs.
• Want a diversified investment with professional management? Own mutual funds.
• Want more control or hands-on growth? Try trading platforms or real estate.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Apr. 28, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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