How To Invest $10,000 In The Stock Market For Passive Income

How to invest in the stock market for beginners if your starting with $10,000 or less. We will go over two stock market investing strategies one for more passive income and one that will require more active attention.

If your starting to learn how to invest in stock market the most crucial place to begin is understanding your risk tolerance. We will go over your risk levels but In simple terms, high growth companies that have more volatility to there stock price can make for bigger returns but also bigger losses and depending on you age this will matter.

If your investing in your 20's it's more appropriate to take on these higher risk investments because if they go down you will have the next 30-40 years before retirement to make up for any losses, understanding an investment strategy will help mitigate these looses from happening.

How To Invest $10,000 With The Least Effort To Passive Income

The first way to invest $10,000 in the stock market is the most passive and that is by purchasing exchange traded fund. ETFs are more passive because they take the self management risk off the table and allow you to leave it up to the pros.

Investing in ETFs give you exposure to hundreds of companies in many sectors making it hard to loose large amounts of invested capital. If your investing in your 20's I would divide $10,000 like this, 20% Safe stocks, 30% growth stocks, 30% dividend stocks & 20% aggressive growth stocks.

For example

  • 20% safe stocks - Vanguard s&p500 index fund ticker VOO
  • 30% Growth stocks - NASDAQ 100 index fund ticker QQQ
  • 30% Dividend stocks - Vanguard Real Estate ETF ticker - VNQ
  • 20% Aggressive growth stocks - Ticker ARKK

Active investing In Individual Stocks For Passive Income

When investing in individual stocks with $10,000 you wouldn't need to own more then 5 stocks. The reason being is to help give you the largest amount of exposure possible with the least amount of risk. In which I would structure these 5 stocks the same way I would buy ETFs just on an individual basis.

Arranging any 5 as you'd like for example

  • 20% safe stocks - Pepsi, Johnson & Johnson
  • 30% growth stocks - Apple & Microsoft
  • 30% Dividend stocks - Goldman Sachs & O Realty Income
  • 20% Aggressive growth - Tesla & Amazon

Now if your investing in individual stocks you will have to keep up on them semi regularly and buy only what you best understand, we will go over all of this and more in this video!


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