What type of account should you invest in with $50,000? That’s the question GOBankingRates reader Betty recently shared with our Top 100 Money Experts series.
We knew just who should answer it: Dr. Preston D. Cherry, a financial planner who calls himself “a life designer in the world of wealth.” He’s also the founder of Concurrent Wealth Management and author of “Wealth in the Key of Life.” His experience enables him to guide people like Betty through major decisions about how to build wealth.
“When people ask where to put $50,000, they often expect a hot tip: ‘Buy Nvidia,’ ‘Put it in gold,’ or ‘Go all in on Bitcoin,'” he said. “The truth is, the right answer depends on your financial foundation, your life stage and your long-term goals.”
While Betty didn’t specify a timeline, we’ll use a 10-year horizon as an example of how someone might grow $50,000. The principles Cherry outlines still apply — the timeline simply shapes how much risk you can take on and how you should balance your investments.
For Cherry, the answer to Betty’s underlying question — how can she maximize growth on that $50,000? — goes far beyond what type of account she should use. Using his “Alignment Sequence,” a framework for directing your money wisely, he offered her more holistic advice.
Cherry wants Betty to begin her investment journey by asking a few key questions to assess her financial stability:
If the answers are yes, she has a solid foundation to begin investing.
Once she’s financially secure in the present, Cherry recommends turning her focus toward the future — specifically, her retirement readiness.
“$50,000 is powerful, but it only works if it’s built on a solid foundation,” he said.
Betty may be wondering whether to invest in a tax-advantaged account or a brokerage account. According to Cherry, that decision should depend on her stage in life and financial goals.
“If retirement is the goal and you’re eligible, a Roth or traditional IRA can be the best home because of tax benefits,” he said. “If you’re employed, a 401(k) with an employer match and tax deferral may fit.”
If Betty is self-employed, Cherry suggests exploring a solo 401(k), which allows both employee and employer contributions — offering higher contribution limits and tax benefits.
However, if she’s looking for more financial flexibility, whether to fund a home, a business or other lifestyle goals, a taxable brokerage account might be a better fit.
“Think of retirement accounts as ‘locked boxes for your future,’ and brokerage accounts as ‘flexible buckets’ for life along the way,” he said.
As Betty moves into the next stage of her investment journey, Cherry offers simple advice: “Keep it simple and diversified.”
Assuming a 10-year time horizon, this would mean focusing on long-term growth while maintaining enough diversification to handle market ups and downs.
With $50,000, low-cost exchange-traded funds (ETFs) or index funds can provide broad market exposure across sectors and asset classes.
“A balanced stock-to-bond mix — like 80/20, 70/30 or 60/40 — works for many, adjusted to your life stage and comfort with risk,” he said. “Review yearly and rebalance if allocations drift.”
Cherry added that if Betty wants “a small satellite sleeve for opportunistic investing” — such as buying during market dips, making sector plays or exploring crypto — she should keep that portion separate from her core investing strategy.
Fifty thousand dollars is a significant amount to invest, so it’s no wonder Betty wants to do it wisely. With advice from Dr. Preston Cherry, she can position her money for long-term growth while staying aligned with her financial goals.
“The bottom line: $50,000 isn’t about chasing the next big thing,” he said. “It’s about following the Alignment Sequence™ — Stability, Growth, Freedom and Legacy — so your money builds in the right order and stays aligned with your life.”
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
