What To Do With $10,000
If you’ve managed to save up $10,000 or get some sort of windfall gain, what do you do with it? The stock market is scary. Savings accounts return a negative return after inflation. What would you do with ten large? Here are my thoughts…
Liquidity is of big importance. If you don’t have any savings or emergency funds, then most of this should just be put in a savings account and be labeled as emergency funds. If you’re inclined, maybe put $1,000 of it into silver american eagles to hedge the other $9k against inflation risks.
If you have a bunch of savings and a fully-funded emergency fund, you might consider putting the entire $10,000 into a basket of precious metals. Again this is a hedge against your cash savings losing purchasing power.
If you have a bunch of cash and a bunch of gold, then what? Well, maybe you should fund your Roth IRA for the year, and then put the other half of it into some alternative investments. Maybe a couple guns that will go way up in value should inflation hit or laws be enacted making it tougher (or more expensive) to buy certain guns.
Lastly, if you’re rolling in it, maybe you want to put the $10k towards a nice, used boat or something. Your call.