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We Asked 7 Financial Advisors How to Invest $10K - Here's What They Said

If you have a pile of extra money lying around, consider putting it to work in these ways.

By Chris Kissell

Edited by Lisa Dammeyer

Updated Feb. 19, 2026

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What would you do after landing a windfall of $10,000? In addition to celebrating, you would likely wonder how best to spend, save, or start investing the money.

You might be wondering this even if you didn't suddenly come across a big lump sum. Maybe you've been diligently pocketing away small amounts, and you're now wanting to put that money you've saved to work in a smarter way that will earn you better returns.

Recently, we asked seven financial advisors how they would recommend investing $10,000. Here are their answers.

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Pay down debt

Many people with $10,000 might be tempted to buy a new car. Others might look to the stock market in hopes of growing the money into something much bigger.

But if you have debt, you are probably better off paying it down first, according to MaryAnne Gucciardi, a certified financial planner and founder of Wealthmind Financial Planning.

"Before thinking about traditional investments, many people are better served by paying down high-interest credit card or private student loan debt," said Gucciardi.

If you buy something expensive with your $10,000, the money will be gone forever. If you invest in the stock market, there is no telling how your investment will pan out.

On the other hand, paying down debt gives you a return that is "immediate and risk-free," according to Gucciardi.

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Buy index funds

Getting rid of credit card debt should be a priority, according to Robert R. Johnson, a chartered financial analyst and professor of finance at Creighton University's Heider College of Business.

Assuming that debt is gone, Johnson recommends putting the $10,000 to work in the stock market.

"I would advocate placing 100% in a broadly diversified common stock index fund, assuming the investor's time horizon was long and risk tolerance was high," he said.

Johnson said the time horizon should be more than 10 years.

Build an emergency fund

Building an emergency fund should always be a priority, according to Valerie Rivera, a flat-fee certified financial planner and founder of FirstGen Wealth.

"If credit card debt exists, I'd split the funds — half toward debt and half toward an emergency fund," she said. "The lack of an emergency fund is usually what contributed to the debt in the first place."

Crystal Cox — a certified financial planner and senior vice president at Wealthspire Advisors — agrees that an emergency fund can be a great place to park your $10,000. She suggests putting the money in a high-yield savings account.

"Treat it as your financial shock absorber," Cox said. "To prevent the temptation to dip into it, consider opening the account at a different bank or an online-only institution so it stays out of sight until it's truly needed."

Fortify retirement savings

Investors who are at least five years away from retirement should consider earmarking the money for their golden years, according to Bryan Gum, a certified financial planner and founder of Lighthouse Planning.

"I'd typically recommend a globally diversified portfolio of stocks," Gum said. With a time horizon of at least five years, investors "can stomach the short-term volatility in exchange for higher expected returns in the long run."

For many people, investing this money in a Roth IRA makes sense. "Tax-free growth and distributions is hard to beat," Gum said.

Fund a 529 college savings plan

Before deciding how to invest the money, it's important to ask yourself where you are on life's financial journey, according to Anthony DeLuca, a certified financial planner with Delta Capital Management.

Depending on the answer, you might use the money to build a solid emergency fund or save for a down payment on a house. Or, you might use the money for retirement savings.

However, another option is to fund a 529 college savings plan for your children. You use post-tax dollars to fund this type of account, but in return get other tax advantages.

"When the assets are used for education expenses, the growth is not taxed," DeLuca explained.

Take advantage of your company's 401(k) match

Those with an extra $10,000 should consider beefing up their retirement savings, according to Asher Rogovy, chief investment officer of Magnifina.

In particular, he recommends investing enough to get your company's 401(k) matching funds if you haven't already.

"The match is tantamount to an instant 100% return, and it would be extremely rare to outperform this with other investments," said Rogovy.

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Invest in your health

One of the best investments you can make is in yourself, according to Gucciardi.

"Investing in your health — such as buying adequate insurance, addressing deferred medical care, or joining a gym — can have long-lasting financial, health, and personal benefits," she said.

Using the money to further your career by earning professional certifications, advanced training or other education "increases earning potential or opens doors to more aligned career opportunities or career advancement."

Aim for long-term returns

Wherever you decide to invest your $10,000, Johnson strongly urges you to avoid "hot" stocks and to instead invest for long-term returns.

"Building wealth is a marathon and not a series of sprints," he said. "People make the mistake of believing that the way to build wealth is to move from investment to investment — that is, to trade. Nothing could be further from the truth."

Instead, investing in index funds over a long period is more likely to result in success.

Bottom line

Saving up $10,000 is a great way to boost your financial fitness. But to make that money really pay off, you will need to invest it wisely.

Everybody's financial situation is different, and the best way to invest money differs from person to person. If you are unsure of where to invest your money, consider meeting with a financial advisor who can help you reach your financial goals.

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