How to Invest $10,000 Read Transcript Open new window Transcript of the video: You've got $10,000 and you’ve decided to invest it. How do you put that money to work? A diversified portfolio of investments is a good place to start. So what exactly is that, and why would you start there? A diversified portfolio should contain a mix of stocks, bonds or other investments. This way, it’s less likely that the fate of your portfolio will hinge on a single investment. By diversifying your investments, you can find a mix of risk and likely reward that suits your needs. How you invest depends on your goal. Are you saving for a house? College for your kids? Retirement? If your goal is a long way off, you could consider more aggressive, riskier investments. If you'll need the money sooner, consider lower risk investments. The idea is to invest in a way that fits with your goal, timeline and tolerance for risk. If you're saving for retirement, consider a target date fund. Simply pick the year when you plan to retire, and the fund managers handle the rest. Or you could consider a robo-advisor. This is the name for a variety of online investment services that can build and manage a portfolio of funds for you. Once you’ve settled on your approach, keep investing. Even small, regular contributions can add up over time.