What is your dollar return if you invest $5000 in the stock and the stock price is $45?
Your dollar return if you invest $5,000 in the stock and the stock price is $45, is $-500. Your percent return if you invest $5,000 in the stock and the stock price is $45, is -11%.
The best way to gain exposure to stocks is by investing in exchange-traded funds, or ETFs. Typically, ETFs hold a basket of stocks across sectors, which reduces overall risk, allowing you to buy the world's largest companies at a lower cost.
- Pay outstanding debt. ...
- Contribute to your superannuation. ...
- Managed funds and ETFs. ...
- Shares. ...
- Robo-advisors. ...
- P2P platforms. ...
- Term deposits and high interest savings accounts. ...
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- S&P 500 index funds.
- Nasdaq-100 index ETFs.
- International index funds.
- Sector ETFs.
- Thematic ETFs.
- Real estate investment trusts (REITs).
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- Invest in ETFs. ...
- Invest with a robo-advisor. ...
- Invest in a group RRSP with employer contributions. ...
- Invest in peer-to-peer lending. ...
- Invest in real estate investment trusts (REITs)
- Pay off high-interest debt. ...
- Build an emergency fund. ...
- Build a CD ladder. ...
- Get your 401(k) match. ...
- Max out your IRA. ...
- Contribute to your HSA. ...
- Invest through a self-directed brokerage account. ...
- Open a high-yield savings account.
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
Allocate a portion of your $5,000 to stable, dividend-paying companies. Look for companies with a history of consistent dividend payments and potential for future growth. Reinvesting dividends can compound your returns over time, enhancing the passive income stream.
What stock to buy with $5,000?
Nvidia (NVDA) One of the best stocks to buy with $5,000 is Nvidia (NASDAQ:NVDA). It has made investors rich over the past few months and if you missed the chance to buy the stock, you can buy it now.
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.
- Money market funds.
- Mutual funds.
- Index Funds.
- Exchange-traded funds.
- Stocks.
- Alternative investments.
- Cryptocurrencies.
- Real estate.
A money market account can be a safe place to park extra cash and earn a higher yield than from a traditional savings account. Money market accounts are like savings accounts, but they often pay more interest and may offer a limited number of checks and debit card transactions per month.
The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.
A bond is a debt instrument. When you invest in a bond, you're allowing the bond issuer to use your money for a set time period. In exchange, the bond issuer pays interest back to you. Bonds could be a good way to invest $10,000 for passive income if you're looking for lower-risk investments.
“If you're looking to boost your retirement savings, contributing to an IRA or a Roth IRA can be a wise choice,” remarked Kovar. “Investing in a diversified mix of stocks and bonds through low-cost index funds or ETFs within these accounts can offer growth potential over the long term.”
In conclusion, making an extra $100 a day is possible with some effort and creativity. You can start a blog, do freelance writing, complete online surveys, sell products online, drive for Uber or Lyft, rent out your home or space, sell photos online, or become a virtual assistant.
- 9 ways to invest $50,000.
- Open a brokerage account.
- Invest in an IRA.
- Contribute to an HSA.
- Look into a savings account or CD.
- Buy mutual funds.
- Check out exchange-traded funds.
- Purchase I bonds.
Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate. For a rate of return of 5%, you'd need to save around $14,700 per month.
How much do I need to invest to make $500 a month?
Some experts recommend withdrawing 4% each year from your retirement accounts. To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.
Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from $13,000 to $15,500 a month and invest it wisely enough to earn an average of 10% a year.
For a quick return on a $5,000 investment, consider options like stock trading, especially in high-growth sectors or investing in a diversified mutual fund. Short-term P2P lending can also be a way to see quicker returns, though it carries higher risk.
Turning $5,000 into more money requires careful consideration and an understanding of your financial goals, risk tolerance, and investment horizon. Here are some legitimate ways to grow your money: Invest in the Stock Market:Consider investing in individual stocks, exchange-traded funds (ETFs), or mutual funds.
USD | CAD |
---|---|
1,000 USD | 1,353.88 CAD |
2,000 USD | 2,707.76 CAD |
5,000 USD | 6,769.42 CAD |
10,000 USD | 13,538.84 CAD |