HYS
PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund
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Reddit Posts
What to put 10k into Monday morning for a weeks ride?
How should I time / invest an extra 4K/month and 50K sitting in HYS?
Best way of navigating current market conditions to reduce stress?
Now that I have the money for it, it seems as if it is a poor time to be investing (in indexes). Am I missing something?
Should I put my money in stock account or HYS?
Advice Needed: What is an investment equivalent to Whole Life Insurance?
Weekly investing strategy. Any advice or suggestions?
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
Yes but the emergency fund could be in a HYS account. Not a standard BOA checking account.
Hey, OP. I lost a little more than you did around your age. At first I thought the world was ending. I couldn’t sleep. I had terrible anxiety. I couldn’t believed what I had done. Instead of soaking in my horrible mistake, I broke my stock gambling habit and started over by investing in things that are safe(er). HYS with a good yield, S&P & Blue Chips, etc. for mine & my wife’s retirement accounts. In my trading account I’ve gained a little over $30k of my losses back and our retirement accounts are up 35% all time. Take it as a lesson and start thinking about the future. Slow & steady wins the race. In a few years it will make for a great story to tell to your friends. “Dude, I can’t believe I gambled & lost $100k. What was I thinking?” as you all laugh at your idiocy and take a sip of a an ice cold beer. 🍻 9/10 successful people that I know have a story like this. Congratulations on completing your first step to success…. Failure. 🫡 https://preview.redd.it/79mwjj5hyb3h1.jpeg?width=1320&format=pjpg&auto=webp&s=d62b0c7df9dd0bcb0d1d3cab184ff090648fcc6d
And he will be paying taxes on interest earned, which would decrease the profit. Maybe doing the 200 in a ROC (SPYI, QQQI, IWMI) with a higher yield would help offset taxes on the income, and using the funds to pay the loan down quicker. Putting the rest in a HYS
I mean, I only got money in a HYS for basically my wedding and property taxes at the end of the year
Yes, there's a middle ground, but you have to budget for it. The 401k route is one way for the next 30 years. I'd max out to any match. If no match, 15%. Money for bills (plus pay-period shares of semiannual or annual bills) goes to Checking. How tightly you buckle your belt depends on how you're willing to live day-to-day. What's left, maybe in HYS or a taxable brokerage account, is what you have to work with. Some years, you'll be saving for a new car. Or a home. Or a wedding. Or a rental property. Or a trip. You'll probably have to juggle with other, unavoidable, expenses. It's not black or white. In reality, you have some say over what shade of gray you live in.
I have 11,000 in a vanguard ETF account, 14k in a HYS at my bank, and 5 grand in a checking account. I have about 44 grand in student debt, averaging around 5-6.5% over five loans. I save about 1800 of my 4k monthly after taxes paycheck as a first year teacher in California. This is the first year in my adult life i’ve had any money at all to speak of. I’m 33.
look up the prime directive on r/personalfinance , they have a flowchart to follow. No one on here can tell you if stocks or owning a home is a better investment with no info, but you shouldn't invest it if you are planning on using it for a downpayment in a year. Just leave it in a HYS account .
Does anyone have advise on going dividend accumulation vs index growth fund. Like SCHD is doing +3% and JEPI at 8% vs broad exposure voo, or spy, etc. I understand what they all are and how they work but long term can anyone in their 40s or 50s say they should have gone one way or the other? I get mathematically tech heavy index funds would have been the grand slam choice here but something about the cashflow certainly that could replace my lifestyle income in 15-20 years and have FIRE at 45-50 years old vs 50-60 years old just feels like a better bet with the way things are going… *the David Ramseys keep telling me to pay off the house with the 5.25 rate first though. $375k left. $800ARV. No other debt. I’m 31 with $200k in HYS/jepi shares /private placements. Thoughts? Thanks 🙏🏻
“The thing is the market has just been so all over the place lately and it makes me nervous to move a big chunk of my safety net there and watch it drop. I know that's probably not the right way to think about it but here we are.” Sounds like you already know the answer then. Keep your emergency fund in HYS but start regular contributions into index funds regardless of what’s happening in the world. There will literally never be time when you won’t potentially have to “watch it drop.” You’re young and make great money, it doesn’t matter if the market drops temporarily.
Dawg you’re already out of the tax burden. Fucking sell and put 1.75M in a HYS or something and then buy LEAPS with the rest if you wanna keep gambling? If it shoots up and you have 500K in LEAPS I promise you’ll still make your 10m within the next year or two
I always invest as much as I can as soon as I can. In your position I would up it to $500/wk until I hit whatever my goal is for the house then stop adding to HYS entirely. Also add VXUS to your portfolio
Turn off reinvestment soon. From now to retirement, shift new savings to bonds, HYS, or MM. Accumulate at least one year's worth of expenses in cash or near-cash. The tax year after you've retired, start selling off at whatever pace seems reasonable to you. But make sure you've always got a year or two's expenses in cash. (I keep two.)
Only invest for long term. Put money in regularly into low cost stock index fundsand dont touch it for +20 years. If you are looking for short term gains, stick with HYS, a CD, or money market.
VOO down about 2%. QQQ down over 2%. 4% CD or HYS gives just under 2% in 6 months. So cash outperformed by 4%.
Mid-30s. 401K money isn’t real until I’m retirement age and I don’t touch what goes into HYS or investing accounts. I keep enough to pay the bills and emergency expenses. When I say so be it, I mean if the market actually bottoms out versus a recession, we’ll all have much bigger problems to worry about.
Hard to say, especially with you taking a year off and the geopolitical risk we are all facing right now. You are very exposed to US tech stocks given that the mag 6 are around 20% or VTI plus your AAPL position. You also have no non-US investments. I like to keep 35% of my equities position ex-US. VXUS is mainly what I keep. If it was me, I’d probably keep what I might need in for my sabbatical in the HYS then I’d dollar-cost-average into VXUS to get more diversification.
Dividend payiing cash value whole-life insurance is the best way to store liquid cash by far. It can be used as collateral unlike your HYS and its growth is never taxed if kept in there. Read this book... "Live your life insurance" by Kim Butler to learn more... Don't listen to anyone in here talking about things they don't know.
Most of my investments are set-it-and-forget-it. About 6% of my individual net worth sits in accounts I am active in. * I inherited a small Roth conversion account (2%) and I'm actively trying to grow it with issues that have been particularly volatile lately. That's kicking my butt right now, but I have 9 more years to make something of it. * The other 4% sits in a taxable account that I call my sandbox. It changes composition about every 12-15 months. Right now, it's got a little stock, some shares of an equal-weight total market fund, a muni bond, a bunch of CDs, and some cash in HYS. I have only a few problem children that all together make up maybe 2%. When I get really frustrated, I remind myself how little those issues matter in the grand scheme of things.
High yield savings. The banks aren’t going to fail. If they do, cash isn’t going to save you. At that point if banks fail you better have some land and skills to grow food. 99% of amateur investors trying to time the market lose money. Cash devalues faster than anything. Keep liquid money in a HYS. 6-12 months of living expenses. The rest - buy some assets. Guns (I’m not a gun person but they are a good hedge against inflation), land, equipment. There will always be companies and businesses that profit and perform better in economic downturns. Liquidating assets and paying taxes and losing money to inflation is reactive out of fear and most likely will have the opposite intended effect.
I went to HYS too lol and we are def in trouble. The replacement will be slow at the top for many reasons (the CYA nature of law, law firms living off associate billables, etc.) but there isn't a chance I'd be ENTERING law school today knowing what I know now. I try to tell my friends it's not worth it anymore, but many don't believe me. At my firm we are being told that we NEED to be using "Al." We can't rely on it ofc, but even the older bigwigs at my reserved firm recognize that it's coming.
It depends on how much you rely on the market for operational expenses. If you can pay bills with SS or a pension, 6 months' worth might be good enough. If you are actively drawing down, keep a couple years' worth in HYS or one year in cash and one or even two in CD.
Stop looking. Give it a month, at least. Maybe even a quarter. Divert any near-term investment capital to HYS while things shake out. While you're waiting, consider your overall investment plan. Diversification can be a decent buffer: some of your portfolio tanks, some stays more or less unchanged, and some might even gain market value (trust me, that does happen). Overall, the damage is partially mitigated. For you to see that benefit, your portfolio needs more diversification. Geo alone can work against certain economic disruptions, but it was not enough to counter the disruption of a global commodity. Now you know. Consider your next move.
I take cash that Is not invested in ASTS and sell weekly puts at the market when I think it is at its the low for the day. Then if I get put, the next week I sell calls on it for what I paid for it which might be at the market. Right now I have sold calls with $85, $95 and $106 strikes expiring on Friday. I just do weeklys. I also have puts out their at $80 expiring Friday. If my $85 or $95 strikes get called this week, I will sell puts next week close to at the market. The $80 puts expiring Friday, I sold for $7 last Friday when the share price was $78. This works really well when the stock is trading in a range. I don't worry about missing out on the up side because this is capital in addition to my long term ASTS investment. And, I earn so much premium treading in place, as it is actually a better investment. Based on the premiums I am getting I can easily double $100K into $200k in less than a year. I was inspired to do this strategy when I was looking to put some cash in a HYS account and realized that in one week, I could make twice what a HYS would pay me in a year.
I have 2 months worth of bills / expenses in my checking account which all the credit cards get auto paid off in full from. Then I have 6 months in a HYS. Every dime after that goes into a Roth RIA or my standard brokerage account. So I have 5% in cash, 95% in the stock market.
Currently investment plan: $100/wk VOO - Split between ROTH, Regular Brokerage $100/wk QQQM - Split between ROTH, Regular Brokerage Currently have \~$32k split as: \~18.7k CD - Matures in May \~13k - HYS Current income: \~$3-4k/mo - As a student \~4-5k/mo - In May once graduated My main question is how I should continue investing? I believe VOO & QQQM are too concentrated (and overlap within that concentration) and have been looking into other ETFs. I am looking for something to balance out my portfolio, as well as am looking for any suggestions. You may be wondering why I am so cash concentrated, and it's because I am planning on attending law school this Fall. Open to suggestions regarding how much cash I should keep on hand, considering I won't be working while in school.
It is a bit different. I still need to preserve capital, but I can afford to take more risk if I want to. I retired two years ago and am living on a pension, supplemented with annuities. I will start SS by the end of this year at FRA. Otherwise, my portfolio is roughly 60/40, spread over taxable, retirement, and inherited retirement accounts. * My inherited IRA (16%) contains Treasuries, brokered CDs, and a dividend stock. I have to take RMDs on the account over 9 more years. I've set up bond maturities to support doing so for the next 5 to 7. I expect some will roll over into short-term issues to support the final few years, if I don't just bite the bullet and empty the account early. It's pretty much set for the foreseeable future. * My inherited Roth (2%) has higher-volatility and growth equities. It's taking more of my attention than I would like, but I've got 9 more years to make something of it. I will migrate the positions to generate less drama as I can do so without realizing too much loss. * My IRA (58%) and one taxable account (20%) have a mix of equities, equity funds, bond funds, and cash (HYS). Regular rebalancing is pretty much it for the next several years until I have to start RMDs for the IRA. * My other taxable account (4%) is what I've set aside for annual investing. It varies in allocation and balance from year to year. In 2025, it held sector ETFs and cash (HYS). Right now, it has a mix of CDs, cash (HYS), municipal bonds, and stock. The munis and stock are fixtures. The CDs all mature this year - unlike what's in the inherited IRA, these are all <= 12-month maturities - so I'll consider a 2027 allocation in the fall and then use the appropriate amount of cash to set it up to run for another 12 months.
Depends on your risk appetite. Mine is somewhat low so I’m staying the course. Max 401k, additional money over my safety fund goes to index funds. Looking for the best options to move my savings into an account with some upside (like a HYS) now that I’ve amassed around $100k liquid. Then I’ll hope for the best.
SPX is up 40 points since close on October 31 (.5%). 6840 - 6881 DXY is at the exact level as it was on October 31 (97.72). So even with our shitty dollar, a basic HYS account is outperforming our primary capital market by nearly 1% over these five months. I know, I know... the DOW as at 50000. DOLLARS. But I'm tired of winning.
anywhere from $5-$10k in checking, that then gets moved to HYS which sits at around $500k-$800k, any thing over that gets moved into investment accounts at around $2m that can be liquidated if needed, then $10m+ in non-liquid assets.
I feel disgusted but thankful for my 4% HYS account which has only lost 9% of value over the last year due to the crumbling dollar
S&P or a HYS acct if you don’t want to manage it.
6 months living expenses in a HYS, fully funded Roth IRA/Roth 401k
This, if the market crashes within the next 3 years, being in the market could derail your plans. Invest in the stock market for long term goals where if we have another "lost decade", it doesnt matter since you dont intend to withdraw any money soon. CDs, HYS, or money market will be safe options for short term goals.
28F Is putting in around 2k into the stock market worth it? Currently have a lot of Tesla stock cause I work there. Just planning on leaving that there for a while, still waiting for part of my stocks to vest as well. (60k currently fully vested still have another 40ish to vest)I plan on buying a house in the next 5-10years years with that. But I have a random 2k in my individual brokerage account that I’m looking to just put back into the market rather than cashing it out. Something other than Tesla. Hope for it to grow in the next 5ish years as well. Im willing to take a moderate risk. Unless maybe going safer is a better option considering most of my money is in Tesla. Other info, I have a 401k, HYS, no credit card debt, about 20k in student debt, I have a car payment but loan is at 0%. It’s about $450 car payment. I’m employed making about 63k-66k depending on how much OT I get. And also get stock based on performance too. No kids. Current rent/utilities about $850 a month. Main goal is just financial stability in the future with a home and funds to fix anything that might break in the home. And still travel occasionally since I don’t plan on having kids.
Any principles on how much should I *not* invest? I am very new (roughly 4 months) to the investment game. It’s my understanding that any money beyond my monthly expenses, not invested, is essentially not reaching its full potential. This makes sense to me. I have a HYS account where I am working on a decent emergency fund of 3-6 months of expenses. I am automatically contributing every paycheck to a number of etfs and bonds. My question: Once I complete my emergency fund, how much should I have on hand? Should it all be invested, and when the time comes for vacations, car down payments, home renos, etc, I just sell off some of the stocks?
Is this true? If you have money sitting in HYS accounts, banks are investing that money rather than you. I’m in the same boat, no shade.
I went through something similar 5 years ago losing half my net worth over a stupid stock play. You’ll be fine. I recovered in 2 years and now am far past where I was. Change your philosophy and invest smart. ETFs, SPY, MAG7, CDs, HYS, just areas where the risk of losing is much lower. Time in market for most beats timing the market.
If I have money sitting in a money market account and I decide to invest it in stocks, that is money on the sidelines coming into the game. If the seller takes that money I brought it in moves it out of the markets and into another asset class, then sure, its a net-zero impact. But there is a lot of money sitting in money market accounts or HYS accounts that, if and when interest rates come down, will be looking to get a higher return on their money.
If my only debt is a mortgage locked in at a low rate, wouldn’t I personally prefer higher interest rates so my HYS gets a good rate?
My 2 cents...$20-$25k physical cash (in case of an emergency or if banks close and you cant get money), $20-$30k in HYS (still fairly liquid but makes a return that keeps pace with inflation and can transfer to checking in a a few days. The rest mostly in index funds and for me personally a little bit of physical precious metals such as gold, silver, platinum though these are not technically investments, they are more like a preservation of wealth/store of value because they are always constant. 1 oz of gold 100 ueads from now will still just be an oz of gold but the USD will likely be history by then (so maybe 10% of your portfolio).
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.