Maybe before spending money......exactly what storage configuration do you have now?
That model never shipped with mech HD-only storage, the big bottleneck in most "slow iMac" complaints here. Entry point for your model was a 1TB Fusion drive, and larger Fusion system plus large-capacity Flash storage were options.
A healthy Fusion Drive will outperform most external USB SSD setups. Data I saved from late 27-inch iMac Fusion performance reported here show Writes at 600-900 MB/sec and Reads up to 2000MB/sec. The external USB3 SSD option can be as a slow as 400MB/sec for both speeds depending on the enclosure and SSD used). They seldom can exceed ~900MB/sec in the real world.
Fusion drives are not bulletproof and can have issues when someone diddles with the OS.. Fortunately, a "split" Fusion drive is user-fixable.
The factory optional SSD-only config is the benchmark to meet or beat. My 2017 iMac 5K with the factory 1TB SSD does writes from 2200-2600MB/sec and Reads up to 2900MB/sec. Thunderbolt external can easily match those speeds.
Speed issues can be as simple as removing unneeded software. Before spending money, give us a peek at your current storage config and its performance. Please post an EtreCheck report. We can quickly and within the limitations of these forums help you determine what issues are at play without our playing a protracted game of "20 Questions" with you that could go on for days.
EtreCheck Pro is available here: https://etrecheck.com/index
The free version will do nicely for this purpose, although the app is worthy of our financial support.
We can see hard data about drive performance, software interferences, and RAM usage. Etrecheck is a reporting app, not a "fix-it” app, expressly for displaying information in these forums to help us help you remotely. It will not reveal any personal or secure information.
That gives us a better opportunity to a specific recommendation for your individual situation.
Please see this excellent user tip on how to post long text reports like EtreCheck's into a forum response:
How to use the Add Text Feature When Post… - Apple Community