What is the best way to invest a one-time lump sum of $2,500? My plan is to leave the money alone and let it grow for a long time.
Some people play single stocks on one-time investments like this, but I don’t like that idea. Single stock investments don’t consistently generate the kind of returns over long periods of time that a good mutual fund will. Why sell yourself short?
When it comes to investing, I consider 10 years or more to be a long time. That being the case, I’d suggest a growth stock or growth and income mutual fund with a solid track record of 10 to 20 years.
I hope this helps!
*Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of The Ramsey Show, heard by more than 18 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.