How to Invest $50,000

How to Invest $50k – 8 Best Ways to Invest $50,000 in Dec 2022

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You’ve got $50,000 to invest.

As a former financial advisor, here’s how I recommend you should invest your $50,000 (and how I invested my first $50,000).

Don’t worry, it’s not as complicated as it seems.

If you want to skip over all of this and take a “hands-off” approach to investing your $50,000, go straight to #1.

What is Asset Allocation?

There’s an important concept you need to understand: Asset allocation.

Asset allocation is how you divide your money between different asset classes, such as stocks, bonds, cash, and more – it’s is how you diversify your investment portfolio.

Instead of investing all $50,000 into a single asset, you should spread it amongst multiple assets so you’re not overexposed to any one area.

Therefore, the question isn’t “What is the best investment for 50k?” (which implies there’s a single investment you should make). The question is “How to invest $50,000?”

In my opinion, this is the best way to invest $50,000.

The Best Way to Invest $50k

Here’s my list of the 8 best ways how to invest 50k which are divided into 3 “buckets”:

    • Safety ~ 20% ($10,000)
    • Growth ~ 70% ($35,000)
    • Risk ~ 10% ($5,000)

Each investment below falls into 1 of these 3 buckets.

For example, I list 3 options for “Growth”. It’s up to you to decide how to allocate the $35,000 of “Growth” money between those 3 options (though I’ll make some recommendations).

There is no “perfect” allocation, so feel free to tweak my suggestions to fit your goals and needs as an investor.

By the way, if you’re working with a smaller account, we’ve got you covered. Check out how to invest $1,000.

Now, here’s how to invest 50k wisely.

*Disclaimer: Not investment advice. Lincoln Olson and WallStreetZen are not liable for any investment risk you undertake. Invest wisely.

The 8 Best Ways to Invest $50,000 in 2022

1. Betterment

Bucket: Growth

How much I would allocate: 40% – 70% ($20,000 – $35,000)

Betterment is a robo-advisor, an automated financial advisor that provides wealth management services.

It’s like having a personal financial advisor who works 24/7.


Betterment offers algorithm-driven financial planning services which provide you with easy account setup, robust goal planning, portfolio management, tax-efficient investment strategies, diversified asset allocation, and more.

Like I said, personal financial advisor.

I would strongly consider investing your full “Growth” and “Risk” bucket amounts with Betterment. If I wasn’t a total finance nerd, that’s what I would do.

You can get started on Betterment by filling out a short survey covering your age, risk tolerance, current financial situation, and future goals. Your answers are transformed into advice and a custom financial plan tailored to meet your needs into which you can automatically invest.

After setting up your account and making your initial deposit, you can turn on auto-deposit and make recurring contributions to your portfolio which Betterment will automatically spread across your optimal investment mix.

Betterment will create a custom portfolio for you filled with ETFs (low-cost, well-diversified investments) that invest in stocks and bonds. The younger and/or more pro-risk you are, the more stocks will be in your portfolio. The older and/or more risk-averse you are, the more bonds will be in your portfolio.

This is the exact approach a financial advisor would take (remember, I would know).

Except there’s one major difference: Betterment is FAR cheaper than a typical financial advisor.

    • Betterment charges just 0.25% of the assets you have invested with them ($40,000 invested will cost $100/year in fees).
    • Most financial advisors will charge at least 1% for the same service ($400 for the same $40,000 invested).

Betterment is the best solution for the vast majority of people. I can’t tell you how many former prospects I referred to Betterment – it’s that good.

2. Stocks and ETFs

Bucket: Growth

How much I would allocate: 0% – 20% ($0 – $10,000)

If you’d like to take more of a hands-on approach to your investing and not rely totally on Betterment, then you should allocate some of your “Growth” bucket toward individual stocks and ETFs.

If you want to buy stocks and/or ETFs, you need a brokerage account.

My personal favorite is eToro, which is offering a bonus of up to $240* for U.S. residents who open and fund a new account (as of December 10, 2022).

*8-12 bonus, depending on deposit size. Only available to U.S. residents. Additional terms and conditions apply.


Stocks are publicly-traded companies, meaning you can own a small portion (share) of a company. You can buy a tiny slice of companies like Apple, Tesla, Costco, Amazon, and more.

Exchange-Traded Funds (ETFs) are baskets of stocks, bonds, or both which let you invest in many securities with a single investment. For example, Vanguard’s Total Stock Market Index Fund ($VTI) is an index fund ETF which owns every publicly-traded company in the United States.

If you want to start analyzing individual companies, head over to WallStreetZen. You can start by looking into Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Costco (NASDAQ: COST), and Amazon (NASDAQ: AMZN).

If you’re interested in buying individual stocks but don’t want to perform your own analysis, check out a subscription to Motley Fool Stock Advisor.

This option will require significantly more work, however, than simply using Betterment to automate your investing. You will need to perform research, due diligence, and familiarize yourself with financial jargon and many personal finance topics (not the case with Betterment).

3. High-Yield Savings Account

Bucket: Safety

How much I would allocate: 7.5% – 10% ($7,500 – $10,000)

Everybody needs an emergency fund.


Life happens – the car breaks down, there’s a medical emergency, you lose your job. These things happen.

And while we can’t plan for them, we can be prepared for them.

I recommend having 3-12 months of savings in an emergency fund. This way, you can easily cover the costs of any unforeseen emergency without needing to take on debt.

In addition to its practicality, an emergency fund also provides psychological benefits – the reassurance of a safety net removes significant stress.

But traditional savings accounts are horrible savings vehicles. My old bank paid me 0.045% in interest.

That’s $4.50 for every $10,000 I had saved.

Fortunately, there’s a better option.

Online banks are able to offer much higher interest rates because they don’t have to pay to operate physical buildings and pay staff to operate them. By doing this, these banks can pass their savings on to you in the form of higher interest rates.

I like CIT Bank.

A minimum deposit of just $100 will unlock a savings account paying 3.25% interest, 72.2x higher than my old bank!

4. Real Estate

Bucket: Growth

How much I would allocate: 0% – 10% ($0 – $5,000)

Another option beyond Betterment is real estate investing.

Historically, $5,000 was not nearly enough money to start real estate investing. But it’s 2022.

Yieldstreet is a crowdfunding platform for people who want to start investing in real estate.

And $5,000 is all you need to unlock the potential of private real estate investing, an asset class that has consistently outperformed stocks for the last 20 years:


Real estate investing taps into 2 types of returns: Investment income (from rent) and price appreciation (from the rise in property value).

Plus, in periods of high inflation, real estate has historically increased in price well above the rate of inflation. It’s also tax efficient and offers diversification outside of public markets (stocks and bonds).

And unlike self-owned real estate, there is no management, maintenance, or deal analysis.

Real estate investing is no longer only for the wealthy.

5. High-End Artwork

Bucket: Risk

How much I would allocate: 0% – 5% ($0 – $5,000)

Like real estate investing, art investing is both lucrative and very capital intensive.

At least, it was capital intensive.

Pierre auguste renoir %281841-1919%29 still life  2420 - kelvingrove art gallery and museum

Masterworks allows you to start investing in high-end art with just $20.

Masterworks purchases high-end artwork, registers it, and then allows individuals to buy shares in it. You can hold on to your shares or sell them to another investor if you want.

Masterworks holds the art for anywhere between 3-10 years to allow it to appreciate. When the art is sold, investors receive a profit based upon their number of shares, minus the company’s 1.5% annual fee for each year held.

The returns, especially during periods of inflation, are exceptional:

Masterworks returns

Crowdsourced art investing is still a relatively new field, however, which is why I’ve included it as a “Risk” investment.

In the “Risk” bucket, expect high risk/high reward assets.

6. Pay off High-Interest Debt

Bucket: n/a

If you have credit card debt or other high-interest consumer debt, pay it off immediately.


Although not an investment per-se, one of the best investments you can make is eliminating your high-interest debt. Most credit cards charge APYs above 20%. By paying off those balances, you’re instantly “earning” a 20% ROI – the highest guaranteed rate of return you will find.

While it’s not necessarily earning you money like a traditional investment, the end result is the same: More money in your pocket.

7. Series I-Bonds

Bucket: Safety

How much I would allocate: 0% – 2.5% ($0 – $2,500)

While a high-yield savings account can fulfill all of your “Safety” bucket’s needs, there is a way to turn up your returns, if you’re willing to work a little harder.


The U.S. government sells bonds to its citizens which are inflation-protected. These bonds are known as Series I-Bonds.

Wondering how to invest 50k for cashflow? Consider I-Bonds.

I-Bonds pay interest rates that are made up of 2 parts: A fixed rate and a variable rate. The variable rate is tied to inflation; when inflation is high, these bonds can pay high interest rates.

Right now, I-Bonds have a 6.89% composite rate.

That’s a guaranteed, government-backed ROI of nearly 7%.

There are a few rules and regulations to consider:

    • Series I-Bonds are only available to U.S. citizens
    • The minimum purchase amount is $25
    • You can buy up to $10,000 annually
    • They can be held for anywhere between 1-30 years but there is a penalty for redeeming them before 5 years (forfeiture of the previous 3 months’ interest).
    • The variable interest rate adjusts every 6 months based on the latest inflation data.

This list is not exhaustive – be sure to research these in more depth before investing.

You can learn more about and invest in Series I-Bonds at

8. Cryptocurrency

Bucket: Risk

How much I would allocate: 0% – 5% ($0 – $5,000)

Like art investing, investing in cryptocurrencies is a bit of a black box.


You can buy cryptocurrencies like Bitcoin and Ethereum on eToro.

Don’t forget to grab your bonus of up to $240*. The bonus is available to all U.S. residents who open and fund a new account (as of December 10, 2022).

*8-12 bonus, depending on deposit size. Only available to U.S. residents. Additional terms and conditions apply.

If you have conviction about the future of cryptocurrency and want to make an investment in its future, I won’t stop you. But if you’re doubtful and don’t see the value in it, don’t worry about making it a portion of your portfolio.

Cryptocurrency is highly volatile – prices fluctuate wildly. Today, Bitcoin is down nearly 7%, which would be a massive one-day swing in the stock market but it’s far less common in crypto.

If you’re bullish on the future of cryptocurrencies then don’t hesitate to make an investment. My only recommendation is to keep it a relatively small part of your investment portfolio.

Final Word: How to Invest $50k

Based on my allocations above, here’s what my portfolio looks like:

2 accounts – that’s all I need.

Anyone who tells you that how to invest 50k is more complicated than that is lying to you.

But that’s just my opinion.

Feel free to mix in some higher risk assets like art (Masterworks) and cryptocurrency (eToro). You may also want to add some real estate to your portfolio (Yieldstreet).

And if the Betterment route is too hands-off for you, open your eToro account and start investing in individual stocks and ETFs, after doing your homework.


What should I invest in right now with 50K?

You should invest your 50k on Betterment.

Betterment is a robo-advisor that creates custom portfolios based on your personal profile, financial situation, and investment objectives.

What can you do with 50K to make money?

You can invest in stocks, bonds, real estate, cryptocurrency, artwork, and other asset classes to generate a return on investment.

I would recommend investing it on Betterment and allowing it to create a portfolio tailored to your financial goals.

Where can I invest $50000 in the short-term?

You should invest $50000 in a high-yield savings account or a CD at an online bank.

My favorite high-yield savings account is CIT Bank, which is currently offering interest rates of 3.25%. You can also invest in certificates of deposit (CDs) on CIT Bank and earn an even higher return.

Where to Invest $1,000 Right Now?

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About the author

Lincoln Olson

Business Strategist

Lincoln is an investor and content marketer. He has worked for financial advisors and institutional investors at a publicly-traded fintech company. Lincoln holds degrees in Finance, Economics, and Accounting.