How to invest $2500?

It's such an insignificant amount of money. You'd be better off spending it on something that will improve your quality of life day-to-day. Buy a piece of furniture, a kitchen appliance or a skin/dental procedure.

Mattress, OP. Trust me.

ETFs.

[quote]t's such an insignificant amount of money

If you can regularly contribute more to an investment account (even like $50 every two weeks), I would go ahead and open an account (like mutual funds).

Otherwise CDs. Lots of places have short term (3-12 months) CDs right now for 3-4%.

Listen to r.4. If you use this as a foundation to put money in regularly, it will grow. If you expect it to turn into a small fortune? Not going to happen unless you somehow pick the next NVIDIA.

Establish an emergency fund in a high yield savings account so you don’t have to rely upon credit cards for unexpected expenses.

This is a little surprise money that I want to put away for about 10 years and let it grow some.

Also, if you are nervous about stocks, put $500 in every two weeks or month rather than in one fell swoop. Do an S&P ETf, which will provide the least risk while giving some return.

That 2500 will likely be worth 2400 next year if you do nothing. Yes, there is risk in the market, but there is also risk in holding onto cash.

How old are you? What are the chances you'll need the money in the next two years?

I'm 69 and fully invested in S&P and NASDAQ index funds (or ETFs, not sure). But I can afford to lose 20% and not have to worry about it.

I'm 51. Like I said, this is a little bonus money I want to put away for awhile to grow. I don't know investing. If I don't put it away, I'll just spend it.

Hookers and booze are up.

Not telling you, I don’t want to decrease my returns.

Alliant CU. Anybody can join.

3.6% 5 year.

Then invest it in the market. Unless there's one stock you absolutely believe in, then buy an index fund. Then just leave it and don't worry about it. Say you want to get it when you turn 65 for a trip. If you invested $2500 in 2011 (14 years ago), you'd have $15,053.88 today. Don't try to time the market and don't get scared. Let it ride.

Okay, if you hypothetically took R13's advice, and invested $2500 in a CU CD five years ago, you'd have $2,983.59.

If you invested in the $2500 in the S&P 500 in 2020, you'd have $4,932.49 today.

Of course, it depends on your comfort level. The CDs are very safe and you'll get your money. The stock market is essentially a casino. You won't lose all of your investment, but you could lose some, probably $500 at most. But it's more likely to go up than down. If you don't need the money, go for it.

Crypto

I'm not opposed to some kind of investment where I could also add a couple of hundred a month.

You can put money into leveraged ETFs but I would not recommend that if those funds are not play money uyou could otherwise part with. They can fluctuate upwards on 10% on a volatile day but on the good days, you skim a little off of the top.

If the OP is like me, and knows little or nothing about investing, why would you suggest that R18. Keep it simple.

Canadian Allied Petroleum

Plastics.

R13 that’s the dumbest idea here. A five year CD? Why would you lock up any amount of $ for so long with such a small return.

100% into NVIDIA.

R4 has it. Put it somewhere at 4% and add as much as you can every month. Before you know it you’ll have a nice sum.

Do a search for the top-paying high-yield accounts. You can just set those up online and electronically transfer the money in.

[quote]Why would you lock up any amount of $ for so long with such a small return.

Because it is a guaranteed return.

I read the OP as not wanting to deal with a lot of "hard" investing questions.

You could put it into a much shorter term CD at a higher rate than 5 year CD anywhere in the US. Rollover based on then current rates. Long-term CDs are a ripoff.

Vanguard ETF like VOO or VT.

Be circumspect about the CD rollovers. Institutions will often offer a "special CD" for some short term (months) at a high rate to draw in depositors . . . but the "special" ones then at maturity rollover into one of their regular short-term CDs at an embarrassingly low rate, so you need to be Johnny-on-the-Spot and intervene when your Special CD matures to plow it back into another Special CD (or do whatever is most favorable at the moment). It's the regular CDs which rollover into whatever rate the same term regular CD has at the time of renewal/rollover.

According to my CD experience (more than 50 years, and they have served me very well--no regrets whatsoever), you'll tend to find higher regular CD rates at Credit Unions. While you'll be sweating the ups and downs of other investments, with five and six year CDs you'll just be rolling along placidly for the term of the CD . . . and if for some reason rates shoot up midterm, you can always withdraw the interest from your long-term CD and plop the proceeds into the new high-rate CD.

Anyone who can’t calendar their own CD maturity date and pick a new rate is an idiot who deserves to lose their money. On the Citi phone app, you get updates and reminders and notices —you need not go to a branch or speak to a rep. It takes less than one minutes to renew a CD. Same any CIT and elsewhere.

Sofi is paying 4% on savings account. Does not tie up your money pays compuned interest monthly, FDIC insured. If you are putting it away for an emergency then probably your best bet. Will grow some and fully acessable if you need it. CD will tie it up for6-12 months, SnP investment is a long term investment. If you don't plan to add to it and just want to stash it away for an emergency this is your best way. Fully accessable if needd yet growing at a decent return.