How to Invest $15,000: 8 Smart Investments

If you suddenly find yourself with a bit of cash to invest – a bonus, a big tax refund or a small inheritance – it can be a bit overwhelming. There are so many options available to investors, and it isn’t easy to know what to do. Depending on your financial needs and goals, when it comes to how to invest 15k, here are eight options you could consider.

A financial advisor can also help you create a plan that takes into account your financial goals.

1. Emergency Fund

Before you start investing, it’s often a good idea to invest in your own financial security. Such as funding an emergency fund.

Although everyone’s needs are different, the safe thing to do is to save enough so that you can cover six months of your monthly take-home pay. For example, if your take-home pay is $2,500 per month, you could use your $15,000 to fully fund an emergency fund that would cover six months. If you’re laid off or otherwise find yourself out of work, you have a worry-free six months to find a job.

The two most popular options for your emergency fund are a high-yield online savings account or a money market mutual fund.

As of 2024, Marcus by Goldman Sachs and Discover Bank continue to offer competitive high-yield savings accounts, with interest rates that generally track or exceed the national average. Some online banks also offer promotional bonuses to new customers, adding a small incentive for savers looking to maximize returns.

For those open to a slightly higher level of risk in exchange for greater yield potential, money market mutual funds are another option. These funds invest in short-term, high-quality debt securities and typically offer better returns than traditional savings accounts, though they are not FDIC-insured. While considered low risk, they are still subject to market conditions and may fluctuate in value.

3. Bonds

Investing $15,000 in bonds can be a smart move if you’re looking to generate steady income, reduce portfolio volatility or preserve capital. Bonds offer fixed interest payments over a set period, making them especially appealing for conservative investors or those nearing retirement.

Backed by the U.S. government, Treasury bonds are among the safest investments. You could invest in a mix of short-, intermediate- or long-term Treasuries depending on your time horizon. A 10-year Treasury note, for example, might yield around 4% today, producing $600 annually on a $15,000 investment.

Issued by financially stable companies, investment-grade corporate bonds offer higher yields than Treasuries, but with slightly more risk. Yields can range from 4% to 6%, potentially generating $600 to $900 per year in interest.

However, there are a few considerations to keep in mind:

Liquidity Needs: Individual bonds may require holding until maturity.
Laddering: To maintain flexibility and minimize interest rate risk, you might consider laddering your bond investments, buying bonds with staggered maturities.
Risk and Duration: Shorter-term bonds generally offer lower yields, but less sensitivity to interest rate changes.

3. Municipal Bonds

Municipal bonds are issued by municipalities like state and local governments to pay for projects like road construction or installing new water main lines. Unlike Treasuries and corporate bonds, these bonds are free from federal income tax. In most cases, they’re also free from state and local taxes. In an environment of rising tax rates, they have become attractive to investors.

There are drawbacks to municipal bonds. Their interest rate is lower due to their tax-free status. If interest rates rise, the value of your municipal bonds may be lower if you decide to sell. You also must watch out for credit risk. Municipal bonds are ranked according to their credit risk, and you want to be aware of how risky your bonds are before you buy them.

4. College 529 Savings Plans

If you want to take your $15,000 windfall and invest in your child’s future education, you could consider investing in a college 529 savings plan. Every state and Washington, D.C. has a college 529 plan in place, and you can even access other states’ plans if they allow it. A college 529 plan is similar to a 401(k) since it’s a professionally managed investment account.

However, it is exclusively for qualified educational and associated expenses. The money you contribute to a 529 plan grows tax-free. And when you withdraw it to use for qualified educational expenses, it can be withdrawn tax-free. You get the dual benefits of the power of compound interest and tax-free withdrawal.

You may want to consult a financial advisor for help with the specifics of a 529 plan, such as what’s considered a qualified expense or if you wish to use the 529 plan for K-12 educational expenses. In addition, you can use SmartAsset’s 529 plan comparison tool to see what other states offer that you have access to.

5. Exchange-Traded Funds (ETFs)

Exchange-traded funds can offer an investor with limited funds an opportunity to enter the equities markets. If you would like to get started investing in the stock market with your $15,000, this is an investment you could consider.

Exchange-traded funds are baskets of securities much like mutual funds, but they trade like stocks on the exchange. They offer ready-made diversification for your money. You can invest your $15,000 in one or more ETFs, spread it among different sized companies and the different sectors of the market, or commit it to companies that have your investment philosophy.

ETFs are similar, but different, from mutual funds. They also lower expense ratios and lower minimum initial investments. Many of them track a market index. Some track the big, comprehensive indexes like the S&P 500 or they may track smaller market indexes for specific types of securities. Investing in ETFs would help you get started investing in equities with a relatively small stake and with the benefits of diversification.

6. Stocks

Investing $15,000 in stocks can be a powerful way to build long-term wealth, especially if you enjoy research and have a clear understanding of your financial goals. While the stock market offers the potential for strong returns, it also comes with risk. Each stock carries its own risk profile, influenced by factors like the company’s size, sector and financial health.

Before investing, take time to define your investment style. Do you see yourself as a growth investor, seeking fast-growing companies? Or a value investor, looking for solid businesses trading below their intrinsic value? Are you more comfortable with large, established companies (blue chips)? Or are you interested in taking calculated risks on smaller, emerging companies?

The stock market is divided into 11 key sectors, including technology, healthcare, energy, financials and consumer goods. While no one can predict the market with certainty, many analysts offer insights on which sectors may outperform in the current economic climate. For 2024 and beyond, for instance, areas like AI, energy infrastructure and healthcare innovation have attracted investor interest.

If you’re new to stock investing or unsure where to begin, a financial advisor can help you align your investments with your long-term goals. You’ll also need a brokerage account to buy and sell stocks. SmartAsset’s brokerage comparison tool can help you find the best online platform based on your preferences and experience level.

7. Real Estate

While $15,000 may not be enough to buy an investment property outright, it’s more than enough to gain exposure to real estate through real estate investment trusts (REITs). REITs are companies that own and often manage income-producing real estate, such as apartment complexes, shopping centers, office buildings or warehouses. When you invest in a REIT, you’re buying shares in a portfolio of real estate assets, and benefiting from both potential appreciation and regular dividend income.

REITs are especially attractive for long-term investors seeking a mix of income and diversification. They’re required by law to pay out at least 90% of their taxable income to shareholders as dividends. This makes them a popular option for generating passive income. Annual dividend yields can range from 3% to 7% or more, depending on the type of REIT and market conditions.

With $15,000, you have several ways to invest in REITs:

Individual REIT stocks. You can buy shares of publicly traded REITs — like Realty Income (O), Simon Property Group (SPG) or Prologis (PLD) — through any brokerage account.
REIT ETFs. These funds, such as Vanguard Real Estate ETF (VNQ) or Schwab U.S. REIT ETF (SCHH), offer built-in diversification by holding dozens or hundreds of REITs in a single investment.
REIT mutual funds. Offered by mutual fund companies like Vanguard or Fidelity, these funds also provide diversified real estate exposure and may include actively managed options.

REITs can add valuable balance to your portfolio by providing exposure to real estate — a traditionally inflation-resistant asset class — with the ease and liquidity of trading like a stock. They’re ideal for investors with a long-term time horizon who want to diversify beyond traditional stocks and bonds while earning steady income.

8. Retirement Accounts

If you don’t have access to a workplace retirement plan like a 401(k), investing part of your $15,000 in an individual retirement account (IRA) is a smart move toward building long-term financial security. IRAs offer tax advantages that can help your investments grow more efficiently over time.

As of 2025, the contribution limit for IRAs is $7,000 per year, or $8,000 if you’re age 50 or older, thanks to the IRS catch-up provision. You can choose between two main types of IRAs, depending on your tax situation and retirement goals:

Traditional IRA: Contributions may be tax-deductible depending on your income, and your investments grow tax-deferred. You’ll pay ordinary income tax on withdrawals in retirement.
Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free. This is a strong option if you expect to be in a higher tax bracket in the future.

IRAs can hold a wide variety of investments, including stocks, bonds, ETFs, mutual funds and more. With $7,000, you can start with a diversified mix that matches your risk tolerance and time horizon. The remaining funds from your $15,000 could then be allocated toward other investment goals, like taxable brokerage accounts or real estate exposure through REITs.

Opening an IRA through a trusted brokerage — like Fidelity, Vanguard or Charles Schwab — can be done in minutes. Many platforms offer tools to help you choose investments tailored to your retirement timeline.

Bottom Line

An investor researches how to invest 15k.

Investing $15,000 can be a meaningful step toward building long-term wealth and achieving your financial goals. Whether you prioritize growth, income or stability, when it comes to how to invest 15k, there are a variety of options to suit your needs, from stocks and bonds to REITs, IRAs and high-yield savings. The key is to align your investment strategy with your time horizon, risk tolerance and personal objectives.

Tips for Investing

To find out how much capital gains tax you will pay if you liquidate any of your investments, check out SmartAsset’s capital gains calculator.
A financial advisor can help you make good investment choices. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area. You can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.