What can you do with 5 000

There are structural reasons behind that -- most notably, the costs and fees associated with managing an active fund make it hard for those types of funds to win. As a result, the largest companies in the index have a huge share of that index. With a mere 0.

All in all, there are lots of reasons to believe that ETF has what it takes to be worth owning as a reasonable first investment in any investor's long-term portfolio. As a jump-start, first investment it's a fabulous foundation, but building your more financially secure future will be more of a marathon than a sprint. In all probability, sometimes, you'll buy in at a higher valuation, and sometimes you'll buy in at a lower one. Indeed, time is the most valuable tool you have when it comes to building wealth.

The sooner you get yourself on a trajectory where you're regularly investing, the better off you'll likely be. When you look back at how far you've come after keeping at it over the course of your career, you'll be really glad you did. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception. Cost basis and return based on previous market day close. You can also see price of the ETF change in real-time.

Online banks typically offer more interest than a traditional bricks-and-mortar bank. While online banks offer more interest, the only downside is that they don't have physical locations, which makes it difficult to do things like talk to a teller or deposit cash.

See our list of Best Online Banks. Here are the top online banks that have the highest savings accounts rates and free interest checking accounts:. CDs currently earn a small amount of interest, however, any interest does add up. For people who are already experienced savers, Solari notes that there are more investment choices to consider.

A money market account is best described as a savings account with added convenience resembling a checking account. Regardless of what type of investment you choose, there are certain intangible truths about investing. She points out that the real risk lies in not investing. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site including, for example, the order in which they appear.

But it wouldn't have been a smooth ride. During the month period between late January and New Year's Eve that year, the same investment would have lost 34 per cent of its value. As soon as you start looking beyond the safety of term deposits and savings accounts, you run the risk of losing money, says independent financial adviser Debbie Lin.

By choosing to invest, you miss out on using the money elsewhere. Keep in mind if you have a home loan, you take no risk by paying down the mortgage or putting some money in an offset account.

If you don't have a mortgage, your next-best option is likely to be a savings account or term deposit. While you won't get a great return, your savings account isn't going to drop 30 per cent if there's a recession either. Australian shares have been a great long-term investment, providing both dividends and capital growth. These also tend to be the funds with the lowest costs, which make them a good starting point for beginner investors.

Other ETFs can give you access to the US and other international share markets, bonds which are basically IOUs from government and banks and other assets. There are also "ethical" ETFs that screen out shares in tobacco and other companies that you might not like to associate with. Whatever you choose, it's a good idea to diversify so your eggs aren't all in one basket, says Ms Lin. Depending on what you're comfortable with, you could put some in Australian shares, some in international shares and some in bonds," she says.

The stock exchange, the ASX, keeps a list of exchange-traded products. Keep an eye on the fees, and make sure you read the product disclosure statements before making an investment. Cheap, online share brokerage services are available from all the major banks and specialist providers, but the application process can be quite involved.

Once you've opened an account and deposited some money — which you should be able to do via bank transfer or BPAY — you're ready to get started. One of them is bound to suit your risk tolerance and goals, and all of them are within reach.

Find out with our k calculator. Limited time offer. Terms apply. You could build a portfolio of ETFs, or you could have one of these computer-driven advisors manage a pre-built portfolio for you. Robo-advisors offer complete portfolio management. However, there are a few free options. Axos Invest has no minimum and is free indefinitely. Our picks for the best robo-advisors. You can open an IRA at any online broker.