The best ways to invest $5,000

You've padded your emergency fund, paid off your debt and saved up a few thousand dollars -- $5,000 to be exact -- that you're ready to invest. But is it best to put it in a mutual fund, certificate of deposit, index
fund or exchange-traded fund? If you're asking what's the best way to invest $5,000, it's kind of like asking what should I have for dinner tonight? Well, it depends," says Greg McBride, chief financial analyst of Bankrate. "What do you like? What don't you like? Do you have any allergies? What are you in the mood for? The same thing [applies] here."

Before you get to specifics, such as how much risk you can stomach or what to choose off the menu of investments, start with the basics.

"The first question you need to ask yourself is, 'When do I need to spend that money?'" says Manisha Thakor, founder and CEO of MoneyZen Wealth Management. "My rule of thumb is investing is something you do for the long run, which I would define as a minimum of five years and ideally 10-plus years. Once you are sure it's long-term money, now you're ready to really get into the nuts and bolts."

To help you delve into those nuts and bolts, we asked financial experts for advice on the best way to invest your $5,000. They suggested options for both the short and long term, if you're hoping to grow that money for retirement decades down the road.