I’m a Self-Made Millionaire: 3 Ways I Invest $1,000
Written by
Heather Taylor
Edited by
Molly Sullivan
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How should you invest $1,000? While some people may already know where they’d invest this money, others might look to self-made millionaires for their two cents on making a sound investment.
GOBankingRates spoke to three self-made millionaires to find out how they’d invest $1,000. Ultimately, how you invest this money depends on what you hope to accomplish with your investment.
Buying Stocks
Self-made millionaire Ashley Jones is the creative director and founder of Tones of Melanin. She said one of the best ways to invest $1,000 is to purchase stocks.
Which types of sticks should you focus on?
“I recommend investing in products that you use every day and understand such as Amazon, Honda or Apple,” Jones said.
The one caveat of making this investment? Investors need to be comfortable knowing purchasing stocks will not provide an immediate result on their $1,000.
Purchase Bonds
Matt Willer, managing director, capital markets and partner at Phoenix Capital Group Holdings, recommends opening a Roth IRA if you don’t already have this account.
Once you open it, invest the $1,000 in high-yield bonds with reasonable credit quality and reinvest the interest.
“As rates fall, you will not only benefit from locking in a reasonable rate but also get capital appreciation as rates decline,” Willer said. “Using the Roth as the vehicle allows you to accomplish this without tax exposure.”
David Delisle, self-made millionaire and founder of The Awesome Stuff, agrees with Willer about putting your $1,000 toward investing in bonds.
“With interest rates rising, there are some really good bond options that provide a guaranteed return and are much safer than the stock market,” Delisle said. “Government bonds will have the lowest returns but are the safest. Large corporate bonds are also a great choice.”
Buy an Exchange-Traded Fund (ETF)
Another investment recommendation from Delisle that’s worth putting $1,000 into is to buy an exchange-traded fund (ETF).
Ideally, this ETF should invest in the total stock market. Those unsure of where to start are recommended by Delisle to purchase a VTI from Vanguard, which comes with low fees.
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