HYS
PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund
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What should I do with the money I have and what are the next steps in my financial journey?
What should I do with the money I have and what are the next steps in my financial journey?
Portfolio Input! Let me know what you all think
So what is the downside of investing in 4-week bill from Treasury Direct?
New grad, prioritize paying 27k in student loans, investing, 401k, Roth IRA?
Investing in a music festival, music business.
Add advice on transitioning to all bond index fund in retirement account
HYS or Robinhood gold? Too good to be true at 4.65% APY?
VTI vs. High yield savings account while saving for a down payment?
Parking cash short term in money market funds?
Any reviews/experiences with Premier Savings or Western Alliance Bank for HYS accounts?
Mentions
Ok helping a friend out deciding something - this is in the USA. They currently have 100% equity in a rental house. Their purchase price was $132,000 plus around $65,000 worth of upgrades before it turned rental. Call it $200,000 even as their investment in this house. Rental house generates $2500/mo on average as a vacation rental. This does require some effort from him, but not a lot. Say 2-3 hours a week max to maintain the place and keep it ready for guests. Insurance is around $2000 a year, taxes are low. Since there's no mortgage, the only real costs are utilities (electric is very cheap) and insurance ($2000 a year). Taxes are cheap. So they are netting somewhere around $27-28,000 a year. Here's the thing we're trying to figure out: The house has appreciated greatly, from what we can tell, since they bought it 5 years back. Houses that are comparable in the area now sell in the $400,000's. He thinks they can get at least $400k for it, maybe more. There are already several people asking and two offers. This person is a decently learned trader who is up 50% this year on his investments. Their plan would be to take 2/3 of the money and put it in "safe" spots, ETF's, bonds, even just keep some in a HYS for a safety net. The other 1/3 would go in a family brokerage account to be used as more active trading capital. I do realize that the market has done great this year but this guy is also showing himself to be a decent trader who has had a few nice wins and is ahead overall since he started getting educated about it all. We figure that even at a very modest return per year of say 7%, that $400,000 would generate $28,000/yr ... is that not better to have the money working that way instead of having it tied up in a property? This property is definitely subject to fire and water issues (western USA) ... nothing yet but it feels very much in the cards. Insurance premiums are also skyrocketing as of late in the area. Is it a smart move to sell?
Not in your pocket, especially when you're 23 and every dollar counts, think of them as an alternative to your money sitting in a high yield savings account. I dont have a HYS so I use them in that way.
EFX, CRM, SPGI and AMZN. Would have made more in a HYS than investing in these the last 5 years.
I hear a lot of people chiming in about buying cheap stocks when the bottom hit but was that money sitting in HYS or IRA or something? Trying to understand how people avoided losing money during the ride to the bottom.
SCHD ... truly the most inexplicable of all investing decisions. Nothing like having a total return over the past year of about 2%. SGOV or HYS wildly outperformed it thus far in 2025.
They said they’re done voting period. But this isn’t about an election, my point is the market. Public sentiment runs the entire market. Look at Feb/march it wasn’t Nvidia or the companies that changed it was fear of the unknown and distrust in governments decisions. All the companies had the same fundamentals, earnings, etc. as they did before that happened and nothing changed, except sentiment. Regardless of who they would vote for they don’t trust Trump and don’t believe him about anything anymore. On top of that we have war, tariffs, 20 million losing medciad, inflation, talk of impeachment, government shut downs, healthcare premiums increasing 3x, fear of an ai bubble, an economy where people cannot afford basic needs, and the worse public sentiment I’ve ever lived through. I’m not an expert on the market, but this is my opinion. I pulled out in October put 80% in HYS and put 10% on a 2x inverse strategy stock and 10% on a 3x inverse tech stock and I’m letting it ride. Im up 200% on the strategy stock and I think the tech one isn’t far behind. I hope I’m wrong. I lovveddd watching my investments rise and rise and myself and everyone making money off this market without worrying if it’s going to crash was amazing; I would love to go back to that. I don’t feel safe or know what’s happening or what to expect. No one wants that and that’s the point, but I have a feeling by observing the world and the US just as I did in October and I’m saying all this not to argue with anyone but I honestly don’t want any Americans, especially the average American, to lose their hard earned money bc we have lost enough. If I didn’t care I wouldn’t be trying to point out to all this may not be a panic as much as it’s a hopelessness within Americans and hopelessness is a dangerous thing and definitely bad for a market that requires great trust in the economy and with your life savings/security from a majority to go up. Good luck I hope it works out for all.
There is a point when it's no longer beneficial to contribute to your pre-tax 401k. You'll need to do the calculation since it's a function of your tax rate. Basically, if your (projected) pre-tax 401(k) account could get too large, RMD would become so much that you would end up paying more tax when you take money out of your 401(k). At that point, it's better to pay the tax now via Roth. At a younger age, you can also use a Roth contribution as your emergency fund, taking advantage of more time in the market. You can always take out the Roth contribution anytime when needed. Most financially savvy people save 6+months of spending in HYS. I would put all that in a Roth account.
🌽 bros would have been better off putting their money in a HYS account in 2025 https://preview.redd.it/nckp1hiica1g1.png?width=994&format=png&auto=webp&s=05bf0929e50c8d50c007ead36deeef32c98c5383
Which HYS getting 4% right now? I used to get 4.3 but its now under 3.8
I use a money market account and a HYS savings account. ~4% return
You'd make more money in a HYS account.
If they’re not doing anything at all, a HYS would be a huge improvement
That’s a balanced approach. The HYS cushion gives peace of mind, and Acorns keeps you in the market without overthinking it.
Its a way to manage risk for a particular stock. see protective puts. OP is aware of the risk in holding these particular stocks. The question is how much risk is he willing to off load unto VOO, stock-bond/HYS, other. at What is the cost of the alternatives (unknown at this time). The use of a put will limit loss while allows gains at the cost of the put. Selling a call, he will gain in the sell but his downside is unlimited minus the premium. He also caps his gains if his option is bought. DS sold stock and bought VOO, HYSA, and crypto. He has no earned income and overseas. His goal is not to have too much loss in an equity correction- not much of a tax benefit with no income and already has loss carry toward $3000).
I progressively adjust my stop losses as profits increase, so I just get a lot of cash rolled over from dramatic manipulations like this. Then I buy back in. It's faster than moving it from a HYS and waiting for my brokerage account to clear it. It will let me buy in on margin before the trades settle. Not to be confused with trading on margin against the NAV of the account. This is not the recommended method for those concerned w CGT though.
Shiiit- my goal is 1.3, and forever using CDs or HYS after that.
Bonds, HYS, and all the other standard safe investments that are barely earning anything as their rates of return have declined. Consider the $7-$9 trillion bond "maturity wall" this year. That won't all go back into bonds with the lower rates.
I have 2 529 investment plans for both my kids (10 and 4) through state. I also have 2 brokerage accounts for them along with my portfolio. I invest 500 each month to 529 plans. 300 each on auto plan buying VOO, QQQ for both. I have 700 per month extra I put in HYS which I want to invest instead. Should I put the 350 extra per month into 529 or buy ETFs with the brokerage accounts? Any advice would help.
Heard that. I use them for my HYS account. I like that they pay out monthly and directly into your “buying power” so you can withdraw or invest it or just keep holding it to gain more interest.
Lost too many gains this week. Thinking of going HYS cash or VOO until something breaks.
Alt plan is same as I've been doing paying off debts and putting into a HYS until its at a comfortable number for me then move to Roth and HYS. Im doing those stupid baby step things ya know
You guessed wrong. We’re about ~300k of liquidity across HYS, checking, brokerage. Not including retirement. I make $185k from my day job and we have a $2M home we just purchased. I’m starting this business to eventually turn it into something other than just a trading account but for now that’s what it will be. I’ve been moderately successful over that last 10-12 years in my own accounts but I’m going to attempt to leverage debt from the markets to scale to 7 figures fast. We’ll see how it goes.
Hello, I’m a college student trying to find out what to do with my savings. I have around 5k and really want to know what’s best in terms of growing. There is a possibility I will have to go into my account which is why I am not sure about a HYS. Also, I like how for money markets I can constantly add funds. All in all, which outlet is better because it is something that I want to have for a while
Being cash gang also stinks right now. About 50% liquid/cash and just eating a 4% HYS right now.
I have an opportunity to sell all my stocks and pay 0% in capital gains this year due to my regular income being non-taxable. I was planning on using the money to purchase a house in 1.5-2 years, anyway. It would suck to miss out on some potential growth, but not paying 15% on profits and leaving the money in a 4% HYS account would stem some of the bleeding. Are there any other downsides I'm missing?
I want rates higher. HYS was paying 4.3%, now down to 3.8%.
HYS acct with Oct. ‘26 SPY call or two at $700 justttt incase… don’t wanna miss all the fun!
Rate cut chances just went to 99% and you think buy more puts? Give me half and then you put the rest in a HYS
If the ups and downs have you on edge, CDs and high‑yield savings can be a nice safe haven – but they won't keep pace with a long‑term plan. Markets are choppy ahead of CPI prints, but no one can reliably time them. If the money is earmarked for the next year or two, parking it in a HYS account is fine. Otherwise, stick with a diversified portfolio, maybe add a dash of bonds to smooth the ride, and try not to let headline anxiety push you to the sidelines. Time in the market beats trying to guess when to get in and out.
Your LIQUID funds should be in HYS. Is this an individual stock? If so you know as well as anyone you're basically gambling.
> Best way of navigating current market conditions to reduce stress? Ignore current market conditions completely. Because they have no bearing on how you should invest for the long term. > For someone who is overly invested in individual stocks, would now be a good time to divest and stay in CD and HYS accounts only? Why are you going from 100 to zero? Why not divest from individual stocks but buy into broad market index funds? > Best way of navigating current market conditions to reduce stress? You’re asking if it’s a good idea to [time the market](https://www.schwab.com/learn/story/does-market-timing-work). The answer is a resounding “no”.
HYS doesn't earn any more than a brokerage settlement account does it?
> For someone who is overly invested in individual stocks, would now be a good time to divest and stay in CD and HYS accounts only? It would be a time to stop being overly invested in individual stocks, but that doesn't mean cash - you can go with broad index funds. Tune your bond percentage according to risk, and ensure your emergency fund is appropriately sized.
Thank you! What kind of investing account should I keep the money in for the time being? I am currently only using Roth IRA and HYS for myself.
I’ll take my 4% HYS and wait for another dip to DCA.
Give me half and put the other in a HYS. You are welcome
I'm 30 and have a few thousand USD lying around that I'd like to move from my HYS into the market. Currently invested about $30k into VOO and an additional $20-30k in various other funds and stocks, but the upshot is that most of my investments are US-centric. I'm specifically looking to move this current money into ex-US funds to hedge against economic downturn in the US (I'm honestly surprised the markets have done so well over the last few months given the uncertainty in the Oval Office), and have been eyeing the EU specifically, or potentially a more global fund if it makes sense. On an ethical note, I'd prefer to avoid defense-heavy and fossil fuel-heavy funds, if possible, though I'm not sure how practical that may be when it comes to investing in broad-spectrum ETFs. Any advice?
They are for different purposes, if you have a $100k and plan on spending it in one year on a down payment, HYS will be about $104k, you can even lock it in with a tbill. Putting that $100k in S&P 500 could be reasonably anywhere between $80k-$140k depends on the market. The 8-10% returns over the long run are not uniform you are not getting that every year its just what it has averaged out to.
>**However, in my research of index funds, it seems like all of them are at nearly all-time highs** (VT, VXUS, VTI, VBK)! Markets are regularly near ATHs. [https://www.schwab.com/learn/story/does-market-timing-work](https://www.schwab.com/learn/story/does-market-timing-work) >Should I just keep the funds in my HYS account for the time being? What is your time horizon for needing the money? If +10 years, it should be in the market. If <7 years, it shouldn't be in the market.
Nah I guess I used that term wrong here. I have a brokerage account, other investments, and retirement accounts just with smaller amounts compared to the HYS (aside from the retirement accounts, which I won’t be touching anytime soon)
Keep it in the HYS! We just bought a house and my down payment was in the stock market. With the ups and downs with tariffs, I was down many thousand of dollars when we started seriously looking for a house. I'm extremely thankful the timing worked out that it rose again when my down payment was due, but I was having a meltdown for like 2 weeks.
Are you keeping it in the HYS?
Great time to have cash in a HYS in the short term imo
The bank I use doesn't have money market account. So i use the CD's in replacement of a HYS as my 1 year emergency fund,
I work in Bahrain, its tax free location for US citizens. I make little over 8k a month. My rent and utilities is 2k a month, fully furnished 2 bed 2 bath with a pool. Unless your wastefully spending, spending the extra 2k on living expense is a challenge. My thought on why i have the CD's they outperform, my banks saving accounts. They act as my one year emergency fund, earning a high rate than my banks HYS account.
I wouldn’t pay off anything less than 4.5%. Idea being that right now if you had a 6% mortgage, paying off the mortgage effectively gets you a 6% return on that cash, because you forgo paying 6% interest rate on future payments. If you have a 3.5% rate and there are money mark funds and HYS accounts offering 4.5%, parking your money in that gets you a 1% better return
I have a decent amount sitting in CDs, money market funds, and HYS currently because we are planning on buying a house and don’t want a market correction wrecking our plans when we start seriously looking in 6 months. All longer term investments (401k, HSA) are partially or fully invested in S&P index funds.
Not really an investment question. More personal finance. I’d never put money in the market that you’ll want within 5 years. There are “safer” classes of assets like treasury bonds, etc. get a plan together and look at your financial health big picture. Don’t let emotions make decisions for you. Until you develop a plan that you are comfortable with, a HYS account is reasonable
I stopped messing around with the market after losing half of my portfolio between Summer 2021 - 2022 Decided HYS would be fine for me. Missed historical ATH gains 😭
I do both. I invest and have a HYS account.
Not too late homeslice. We have all taken some Ls. Should split piles of money. Have a degen pile and a responsible pile. DCA schx and/or Voo in one pile and do dumb shit in other pile. Responsible pile should be at least 50% (preferably higher). Have some cash in money market fund or HYS to cover any emergency. The most effective way to build wealth is boring and slow. Have fun with degen pile
Any money from my dad goes to HYS or ROTH IRA from college savings programs. This money was all from me.
It really depends on the stability of your income. And your confidence on its stability. Investing in a 100% equity fund is considered more aggressive. And if there is a drawdown and you need to withdraw from that savings - it may not fit your risk tolerance. You are not likely to need all 200k at once so putting it into a bank HYS probably isn't the best option. One thing that you can do instead is ladder fixed income investments to generate a better yield. And depending on the state that you live in - it may be more tax efficient to use treasuries.
I hate posting this, but I'm so torn on what to do. Recently got a divorce and finally received the equity of my home, about $200,000. I am really unsure what to do with it. I was going to put that money toward a condo and potentially paid mostly in cash with a very small $50K loan, but that is not possible anymore due to job loss. I'm doing fine so far as a freelancer, actually making more than I was as a salary worker, but I don't know if that's sustainable and nobody will give me a loan without 2 years of proof of income as a freelancer. Anyway, I am thinking two options. 1. Put it in a HYS account. This is where the money is right now making 3.65%. That's about $610 a month, $518 after taxes. 2. Put it into some index funds like VTSAX and let it grow in there for a while. My personal situation * 40, USA * Self Employed for 4 months now. Maybe estimate 75K per year? I've made 45K in the past 4 months, but 30K of that was just one huge job that is now done. It's hard to say, which is scary to me! * Want to eventually buy another home one day, but having lost my job in February, they all want 2 years of income for a loan. This would eventually be house/condo buying money. * I don't need the money right now really... I can use the interest from a HYS to go toward an apartment. The interest earned makes a $1,850/mo place cost about $1,330 and most condos I am looking at in the area are about $450 HOA + $450 Taxes, plus about $300/mo for the loan I'd need, about $1,200 total. Unless I was able to pay for a place in cash and not have a loan, renting with the money in a HYS is about the same as buying, IMO. * Low risk tolerance? But I've been very happy just dumping money into VTSAX for retirement and how it has performed. * 330K in retirement index funds like VTSAX, 90K cash, 200K cash from house equity (290K Cash total). So 620K is my net worth right now. That 290K is making 3.65% in HYS for about $883.38/mo total. That's $10,600 a year just sitting there if I mathed correctly. * Zero debts. My kid is my only big expense! lol. House was paid off before divorce, which is why the equity was what it was. * Average cost of living over the past year without housing (and subtracting those f'n divorce lawyer costs) was $2225/mo. Yes, I tracked it closely since I was getting a divorce and wanted to know what the hell it cost to live on my own. With a $1,850 apartment now, that's $4,075/mo, $49K for the year. Is that low for a single dad with a kid? I have no idea. So yeah... hit me with some advice. I realize I could buy a condo if i just used all my cash savings, but my low risk tolerance and being a freelancer right now means I want to have a comfortable emergency fund.
I did panic and cut my weekly investments in half but I don’t regret it because I didn’t have any emergency funds so the half I didn’t invest went to HYS
UNH is treading water/dead money for MONTHS, minimum. Can only fall over Luigi's trial. Will never see ATH again. You're better off just holding cash in HYS. If you lose money on it tho, good. Awful company. Enjoy!
Hey guys, I’m interested in your thoughts… Last few times gov has printed money, the market has rocketed. On the flip side, everytime the gov prints money, worries of recession, crash, etc. come up. I missed out on the tail end of the COVID print that skyrocketed the market- but I’m look at evaluations of some of these companies and they just seem overinflated… again… It just doesn’t make sense to me how we keep printing money, and I (think) sensibly am waiting for something to break, but it hasn’t yet. The money keeps printing, stocks keep climbing, house prices, food, COL. I’m sitting about 80% in cash HYS, waiting for a breaking point. But I’m watching that 20% climb more and more every week… tough game. Are you guys investing heavy right now or on the defensive end of this? Curious to see what you guys think.
HYS is a perfectly safe place to park it. I think the only risk is a 4 day delay or so for withdrawal. But that's why god invented net 30 I would not recommend putting any on the stock market
I'm out for a while, like I said I made a killing in April and I want to enjoy the summer. Just maxed out tax advantaged accounts and sitting in my usual mix of cash in HYS/sweeps, broad etfs and bonds.
Since you're just starting out on the investment side, VOO and the HYS fund are great places to start. For the HYS allocation, once you get to about 4-6 months worth of expenses in that allocation I'd shift focus more towards the VOO allocation to focus on long-term growth.
DD is irrelevant nowadays Learn to ride the retard-wave or throw your money in a HYS
Just keeping money in a HYS account is enough to beat this market lol.
Only trading I've ever taken part in is AMC/GAMESTOP #tothef\*\*kingmoon (made North of $30k and its been sitting in a HYS where I've only gained 3.60APY..... :| ) I'm back and ready to take this seriously. PLEASE PLEASE rec. Good resources and $1.00-$3.00 potential heavy hitters for Market open 5/27... Humble me; educate me; guide me. I am hyper focused and HUNGRY!!!!!!
As a female investor myself, I would be totally fine with investing the money in a stock that I believe in. Maybe you should sit down one day and teach your wife about stocks and crypto and other investments. She probably didn’t grow up in a family who invested or saved so maybe she’s not aware of the potential gains in the stock market vs just the 5% in a HYS account. It’s important that you guys are you the same page and want the same things. I’m glad I’m not married so I don’t have to vote ot agree with anyone on how to invest my money but if I did then we would need to be on the same page.
See what your brokerage cash accounts are held in. Often it’s a money market which can yield the same as a HYS. Then you can buy more investments when you are ready.
This is real advice not clowning you. If you have 200k that you are just going to throw into something know what you doing or it’ll be gone immediately especially if this is a lot of money for you. Honest best bet take it all out and either put it into VOO/SPY or a HYS.
Depending on how much you have in your 401K this may be perfectly allocated. I'm 53 and our household keeps our networth in three equally weighted buckets: 1) Liquid (Cash, I-bonds, HYS, Gold) 2) Primary residence 3) 401lk If we start to get too liquid we have three options: Buy another property, pay down the mortgage, improve the primary property. So far we've been opting for improving the primary property.
Okay so now it’s back to where it was when I cut out half and put into HYS on days like today I feel a bit of go I but honestly the past couple months we’ve seen craziness and insider trading like never before. I still don’t trust the market, to me it still feels like a gambling and Don is the pit boss. We are not back to normal. Our country is in revolt, climate crisis, tariffs are still high, I work retail, 30% will still kill our business. America is still trillions in debt.. people always say things like “the market isn’t connected to the economy” like okay but do you feel good about that? Seems really sketchy to me. Seems like a bubble. I’m not saying we’re destined to crash and burn forever, I’m just saying… we’re not out of the water.
If it is in HYS put it in brokerage account in money market fund earning about 4%. Then take the 270K an put it in QQQI. QQQI is a covered call fund that converts market price volatility into dividends. Their target dividend is 13% but it can vary from 11% to 15% depending on the market. The fund also takes advantage of tax loss harvesting to lower the tax on the dividends you earn. Don't reinvest the dividends. Let the cash build up in the money market account When you have 6 month of living expenses saved up reinvest any amount over that level. The is refilling emergency fund that will earn 35K a year. So if you tap into the emergency cash the eufnd will refill itself over time. But one the cash runs out you still have 3K a month of dividnends common in. So if you get injured and cannot work for an extended period of time you will still have income. You could also increase teh ammount in the ETF so that it is generating enough income to cover all living expenses. Which could also you to retire much earlier than you expect. You could also put some of he money it generates in a S%P500 index fund for long term savings. Index funds like this only have a \`1.3% dividend so growth index funds are extremely tax efficient so you could save a year or more of emergency money this way. right now you are paying a tax on the 4% interest from you high yield savings which is probalnby about 12K a year. Now this emergency fund will probably increase your dividends somewhat but the money earned will exceed the taxes on it.
Just put it in a HYS you’ll get more…lmao
The problem with that is when the market rebounds too quick before you're able to redeploy your cash, you're fucked. So personally, I think it's a better strategy to go aggressive when there's a lot of fear in the market and exercise more restraint when it's pumping. You don't really need to pay attention or have massive amounts of cash to do this. Just put away some money here and there in a HYS to wait for a down turn. Down turns should excite you the most because it's an opportunity.
So funny I had the same experience except her cash pile was a bit higher. She showed me her interest payout from her BofA savings account and it was shockingly bad. First thing I did was have her open a HYS. Now she loves seeing her MUCH higher interest payments each month. Second thing I did was organize a meeting with a JP Morgan financial consultant. She now has a lot more invested in stocks which makes her feel uncomfortable but it's the right move for the long run. We're both mid 30s so we have time and can tolerate some risk. Good luck and congrats on the wedding and pleasant surprise lol!
I agree! It's kind of nice that it gets a bit of return from a HYS
There are two basic options depending on it you want to avoid taxes or not. INvest în an index fund with a low yield. About 1% or less. (VOO, VTI are popular). The only tax you pay with these funds is the dividned you receive yearly. A 1% dividend is trivial and works out to a rounding error for many people. You could save a million in assets this way and it would only generate 13K of insomnia that would be taxesd. compared to your work income this is a trivial amount of tax. These investment also generate impressive capital gains averaging about 11% per year. But in some years it can be a lot lower or a lot higher. As long as you don't sell the asset there is no capital gains taxes due. Invest in funds with a higher yield. You will pay a tax on the yield every year but it will only be a small portion of the income you get from the investment. But that said not all dividends are taxed at teh same rate depending on how the money was earned by the fund.. My favorite right now are SPYI 11% yields and QQQI 13%. This dividend is very close to captial gains of option 1 but in dividends. High dividneds often mean lower captial gains. >Honestly I’d like some higher potential returns and would like to pick some stocks individually for some fun. Based on that statement I sould expect option 2 is your preference. Additionally you didn't mention an emergency fund. but your 100K in HYS account could be that. But the problem with an all cash savings account is the once the money runs out your emergency fund is dead. A better emergency fund is a high dividned fund. As long as you don't sell the shares of the fund the dividends will keep coming in. So I would recommend slowly start building funds in QQQI and reinvest all dividneds. Keep building until the dividneds it generates is enough to cover all of your living expenses. That way when your cash runs out you could simply stop reinvesting the dividends to collect the cash. QQQI pays out a 1/13th of the yearly dividned each month. So you only need to wait a month for cash to start building in the account. Once you have enough dividned income to cover living expenses you can use the money to start other investments. Some will be like option 1 would be low dividend growth funds you can use for long term savings. Or you can deversify your dividned income with other dividned funds like PFF 6% yield, SCYB 7%, PBDC 9%, ARDC 12 %. There are many options between the 5 to 20% yield range. Look at ArmChair income on YouTube. He has a similar investing style and lists all the funds he uses.
I’ve always gone by the idea that the recession is fully here not when it’s talked about on CNBC, the WSJ, CNN, or even your local news, it’s here when it’s on the front page of your local newspaper (if you still have one). As far as getting ready for it? Keep doing what you’re doing. Maybe keep some reserve cash in a HYS account and make sure that you have a good emergency fund. Also, be sure that you keep your current job and don’t make any big life changes (new house, new car, etc). Of course, you can only go so long thinking it’s gonna happen and it doesn’t happen, so just live your life as usual, chop wood and carry water, and the world will turn.
Hey kid, I’m assuming you’re a teenager given the question: Stop. Stop right now. You have a gambling mentality. It’s not gambling. You don’t just throw money where you can afford it. An option just one strike price apart from each other is a completely different game in terms of delta, theta, IV, etc. these are the indicators that when fully understood, you can maybe, just maybe, find a consistent setup and strategy that edges out the market - you don’t just throw whatever money laying around on whatever option you can happen to afford because you think “SPY GO UP I BUY CALLS !! :))”” doesn’t work like that. You’ll get IV crushed, theta decayed, your liquidity might be garbage way OTM. So dude just stop. You want to actually be wealthy? Here’s a genuine from the bottom of my heart tip: You’re better off taking that $100 or whatever you had laying around and paying of a high interest debit card, expanding an emergency savings fund to 2-3x your income, maxing out your IRA (if you really aren’t a child), or just holding a HYS account.
Betterment 5% HYS for new accounts for 3 months and then 4% after that.
I sold my heavy tech portfolio in Feb, so 🤷♀️. Would have lost way more than any tax burden I’ll pay next year in HYS. Maybe I’ll get back in since a lot of the stocks I had are apparently on a fire-sale now.
HYS gets taxed worse than trading? I didn’t realize that
Dude at that rate just put 700k in a HYS account and buy lotto calls every single day jfc
No one really knows what to do right now, except maybe Trump's friends and family. If your money is in the market and you don't need it for the next few years just leave it where it is. If you pulled out a couple months ago and are sitting on cash you won't need for the next year or two, buy back into the market a bit at a time. If you're planning on making a big purchase this year keep it cash and see if there is a HYS account you can stick it.
Agree. I’m parking my cash in HYS for the near term and taking those easy CB wins.
I think for the next 3 months, I am 10% gold 10% international 25% bonds (mostly treasuries) 30% Us equities 25% remaining cash & HYS Maintaining some liquidity for if things get worse before they get better (which is my base case)
If you think the 4-5% yield guarantee is more than you would make in a year in the market then yeah. HYS account rates are also prone to going down in market down trends so you might be guaranteed 3.5-4% instead. Depends on how risk adverse you are
I have been unable to find the equivalent ETF of a foreign MM/HYS account. Would love to find one!
For an emergency fund, high-yield savings (HYS) is the way to go—easy access with better interest than regular savings
I won't downvote you. Most people here sit on cash, but likely not a lot on a macro level. I personally don't have a lot of money in terms of the macro and don't expect to become rich in the stock market, statistically most people don't. Cash is a tool and everyone should use it for their priorities. I park money in stocks similarly to how people park money in a HYS account. sometimes I am long, sometimes short on my investments. This is just my personal money. I am still contributing 12% to my 401k and have 4 pensions for retirement that I don't plan on touching
4-5% HYS is the play right now
Figuring he would have had to pay capital gains taxes, which an article I found said they're no more than 27% in Canada, he'd be left with about $303M. I probably wouldn't park all of it in a HYS but probably a mix that's similar to that. Mix of HYS, treasuries, SPY/VOO, and live off $1M or so and reinvest the rest.
I'm in this boat. Pulled like 80% of my money, took out a large chunk as straight cash, and moved the rest into HYS. A little bit of money to play around with but I'll just sit back and take the 3.8% on my liquid. This type of market movement is what gets you put in blood pressure meds.
Jesus that’s regarded. $415m parked in a conservative HYS @ 4% annually is $16.6m. Just park it there and trade with your new Fortune 500 CEO salary…
I'm pretty parked in my HYS and am not looking at my 401k and the other positions I have. I consider whatever I have in the market is in a "probabilistic" cloud of uncertainty. It could be alive or dead, at this point I don't care... I knew he was gonna fuck shit up, I didn't think he'd be this bad so quickly. After two months, what does the next 3.5+ years entail.
I don't play shorts, I'll do calls occasionally if I'm feeling frisky. I make plenty of money with very little risk and live quite frugal for my income level. Most of my capital has been put in HYS and money markets since the election. Trump's sweeping executive orders from his first day in office was the canary in the coalmine for market volatility. Serious money to be made, but just as easy to get hung out to dry. I did have some money in VIX but that's about it. My father always told me you don't live above your means and not even at your means, you live below your means. That simple advice is why I have a modest paid off house in my mid-30s and zero debt. When I bring up the market I speak from my personal knowledge of import supply chains and corporate retail business. I'm a buyer for a fortune 200 company that's is well beyond negatively impacted by these tariffs. Unless there is a complete 180 by Trump there is only one way the market can go, regardless of some bounces. We just watched a supply economy propped up on cheap imports have cheap imports killed in a matter of days.
Tomorrow Monday Drop 20K in VTI at the market open or close Drop 10K in VGT at market open or close Then 1K per week or bi weekly in each of those two ETFs Until you have 50K in the market The other 20K just keep in HYS or CD , MM, bonds Buy more of those etfs with a percentage of your income every month That's it.
Retirement: IRA up to 6k a year. Low Risk: HYS or Bonds at least 4% Moderate to High Risk: VOO and/or VTI, international DIVI globe large cap mostly excluding North America. Normally, VOO or VTI would be the goto, but Trump Slump could last years or decades. Right now, it is hitting all the markets, but likely, someone will come out ahead.
How many years do you think it might take to get to ATH again? Even if it’s five years (I think fewer with the AI revolution), if you put money in the market now, it would be better off than sitting in a HYS account. Impossible to predict the exact bottom, but if you invest steadily as it’s dropping, you won’t get fomo or make emotional decisions on the way back up.
SGOV is always higher than HYS accounts
Parked most of my non-401k money into HYS. 3.8% ain't really making money, but not getting clapped raw by inflation. 401k money is whatever, if the market doesn't bounce back by the time I need it, that money will be the least of my issues. Some money to play in the market for short term stuff but hell no on serious investments. Too many factors right now for me to be comfortable, but there is serious money to be made if you are optimistic. We aren't even 6 months into this admin so I'm not optimistic. International trade relationships have been hit hard. If it gets bad enough where the service sector tanks we are in DEEP trouble considering we haven't been a manufactering economy for like half a century now. People keep talking about a depression like it would suck but we'd survive. The Americans that went through the depression were already use to hard living. Now imagine throwing conditioned cheap consumer modern society Americans into a great depression when they haven't had to deal with hard times in literally generations. It would be unimaginable levels of unemployment (rip service jobs) leading to be mass civil unrest and societal decay. Imagine 25% unemployment rates in modern NYC for example then remember it would be even worse as we are a majority service economy now.
I sold end of January because I needed cash to emigrate and I’m feeling swell in a HYS lately