HYSA

trkrjrb

UDN. It has better yields than HYSA at 4.5%. And, as the dollar is falling, UDN is going up

Stryker3414

Mostly to grow money. I know diverting more would be a waste in savings even in a HYSA (already got an emergency fund).

abeBroham-Linkin

Keep putting money in your investments, liquid accounts, HYSA, Money Markets, etc.

Slammedtgs

Why not buy some short duration TBills and roll over. I’ve been getting 30-50bps more on excess cash than HYSA doing this.

Interesting-Cap7686

Put it in a HYSA or a broad index fund VTSAX if you know you won't need it for 5 years. read or listen to the podcast "friends that invest" to learn broad specifics. You can always do small bits of money until you're comfortable

taplar

>How much should I keep liquid (just a couple months of expenses, or more)? This is a personal decision. It is recommended that your emergency fund be any where from 3-12 months worth of expenses. The more uncertain you feel your job, health status is, the larger this should be. I personally believe in having a staggered approach to your emergency fund. There's the portion of your emergency fund that is there for same day, oh \*\*\*\*, I need money right now to pay for some emergency. That amount should be in a checking account or HYSA. The remaining portion that you feel comfortable having access to not same day can go in a money market fund. >For investing, is the rule of thumb just to go with broad index funds (VTI/VOO, etc.), or should I be thinking about something more specific? The lazy, I don't have time or don't want to think about it approach, would be to put it in VOO or VTI or VT, or a different ETF that offers something comparable. It gives you built in diversification to spread risk. If you want to spread risk more, I'd suggest reading up on the [Boglehead three fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) theory. >If you were me, what would you likely do? My approach to allocations is to have a 5%/25%/70% allocation split, with 5% being in a money market fund, and the remainder split between a fund like VOO and a fund like VIPIX. The more (un)certain I am with the market I'll adjust out of or into VOO more. But that's my personal approach. For you all I will say is, given your income level, you should be focusing on maxing out pre-tax options before contributing to post-tax accounts. Income of $250k puts you in the 24% or 32% tax brackets so you're getting into the upper brackets. As such you most likely will benefit more from reducing taxes now in favor of potentially having lower taxes in retirement, unless you expect your taxes in retirement to not be lower.

lincolnwithamullet

1/3 in stocks via index fund, 1/3 in gld, 1/3 HYSA. If market crashed buy the bottom. 

badinvesta

Roth first, HYSA second, leftovers into robinhood etfs and bitcoin. The scraps can go to memestocks.

ShaneRealtorandGramp

CDs, super underrated by reddit since everyone actively promotes HYSA instead

WolverineAdvanced119

>It can be a path to wealth but you have to think of it as a business you're running or a second job. Yeah thats basically what my husband said. Why make more work for ourselves? He's also worried that I would get taken advantage of. >Investing is more hands off and worry free. A HYSA is very safe but will give you a lower return. If you don't need the money for some time, buying a broad index fund is safe. You just have to avoid checking the balance frequently and not panic the next time the market makes a big dip and it looks like you lost a lot of money. That is what the finance advisor said. He says the goal is that I'm not calling him every time there is a market downturn, and he's talking me off a ledge. Treat it like my trust and ignore.

madogvelkor

Being a landlord is definitely not a decision to be taken lightly. And with interest rates high it will be more difficult to turn a good profit on a property. It can be a path to wealth but you have to think of it as a business you're running or a second job. Investing is more hands off and worry free. A HYSA is very safe but will give you a lower return. If you don't need the money for some time, buying a broad index fund is safe. You just have to avoid checking the balance frequently and not panic the next time the market makes a big dip and it looks like you lost a lot of money.

The_Spoils

I agree, do not put the money into the stock market. Keep in HYSA.  But I'm confused.. is $50k not enough for a down payment anymore?  OP have you talked to any lenders about getting pre-approved for a home loan? As long as you have a reliable income you should easily be able to get into a starter home or condo with $50k down. Just build equity with a starter home and eventually upgrade to something bigger and nicer once you've made a few years of mortgage payments. 

PM_ME_YOUR_RMDs

If you want to buy a house within the next 3 years, I wouldn't do anything with your down payment except for a HYSA/Money Market/Treasury/ CD/ etc. The time horizon on that investment is too short to put it at risk.

only-what-matters

Still not great.  That is only 2% return on capital.     HYSA are giving 3-4%. 

taplar

Look into money market funds over a HYSA, especially if you will be having a brokerage account already

NickTheNewbie

I have a major purchase that I need to make in two years, and I am in the process of saving the 100-200k that the purchase will cost. What are my options for helping that money grow while i'm saving it? Considering the relatively short timeline, an index fund seems risky, so my instinct is to just shove it in HYSA. I'm familiar with the concept of bonds and CDs, but I don't know exactly how i'd purchase them, or what my other options would be. Any advice?

Sweetycherryx

You’re in a great spot at 22 no debt, living at home, already saving and investing. That gives you a lot of flexibility. Options trading looks tempting because of the quick gains, but the risk is way higher than what you’ve been doing so far. Most people do better sticking with broad ETFs like VOO, Roth/IRA contributions, and building cash reserves before playing with options. Since you don’t have expenses or debt, I’d set a goal for an emergency fund (usually 3–6 months of living costs) and keep it in your HYSA. At 4–5% you’re earning while staying liquid. If you want to make sure you’re getting the top APY, sites like BankTruth are useful they’re savings account rate aggregators that track banks like SoFi, EverBank, and Jenius daily so you can see who’s paying best. Once you’ve got your emergency fund solid, put the rest toward maxing your IRA each year and building up your ETF portfolio. That way you’re still investing aggressively at a young age but with a safety net in place.

StrangerVegetable831

Put $25 a week into SWTSX or its equivalent at whatever brokerage you like (fidelity or vanguard). Separately, put $25 weekly into a money market (like SNSXX), which will grow into your emergency fund (to cover a year’s worth of expenses if you lose your job or some crazy shit happens. Just leave this pile alone.). Put the rest of your savings into a HYSA (like Amex) and that is what you’ll use for current expenses. Reassess every 6 months or so and increase or decrease what you put in. Hopefully you can keep increasing. In a few years, you’ll have a healthy emergency fund that’s kept pace with inflation, a healthy position in a total market fund (poised to grow for the next 30 plus years), and if you did it right, you’ll have barely noticed.

TrustDeficitDisorder

Or put the emergency under in a brokerage account invested in a short term US treasury money market fund, or in CDs to gain a better return. If you have to break the CD for a real emergency so be it, but no reason the eat standard savings rates. Or put it in a HYSA.

LightningMcSwing

Put it all in money market or HYSA and buy a house when you can, contribute to 401k (or i guess IRA in your case) in the mean time

Amateur_tarded

🌈🐻s should get a HYSA instead of a brokerage account

i-amnot-a-robot-

Why isn’t all your money in the HYSA? I’m same age with some more saved and make and extra 100$ a month off of that. Regardless I’d put 10k total in the HYSA and the rest into VOO. That leaves you with 10k as savings which is more than enough for a year with no rent

partypantsdiscorock

IMO as a dividend king with 5% of current price I'd just hang out, collect dividends, and wait for it to return. It may take a long time to return to previous heights, but if you believe in the company and continue to invest plus receive dividends, imo it's better than a HYSA (as long as it eventually recovers). I've been considering TGT, but am going to wait a bit longer. I'm currently highly invested in PFE, although not down by as much as you. I do fully expect the stock to recover by 2030 and in the meantime I'm loading up to take advantage of the 7% dividend.

FluximonReformed

Hello everyone, Relatively new to investing. Im a 22M with high risk tolerance. Maxed out my ROTH which currently has Id say around 70% VOO 20% QQM and %VXUS and %5 IBIT. I have already have an established emergency fund sitting in a HYSA. I was wondering if it would be okay to invest into another fund that tracks the S&P500 in an individual brokerage, I dont really have an established time horizon where I would sell and would like to utilize the power of compounding. I currently have individual positions that I admit I bought impulsively but im relatively new to investing just want to dial back and start simple and put it in a S&P fund for now and branch out as I research. Would it be okay if I had an s&p 500 fund in a ROTH and my Individual? Thank you guys for reading this and would appreciate some feedback :)

ratedsar

With a 3 year headway, and worries about "this bubble popping"; your best investment is HYSA/Treasury funds.

penultimateinsight

I just bought more Counter-Strike skins. They're legitimately performing better than my house fund sitting in an HYSA 😂. Gloves, knives, good guns keep appreciating over several years.

C_B_Doyle

He just wants lower rates so rich people can borrow more money. Fuck the working class. HYSA should never be 7%.

Lethalmouse1

6 months expenses in HYSA 15% IRA.  HYSA for future housing 15% Options etc are NOT in your investment budget, they are in your hobby/gambling budget. At least for 4 years, while you learn. Even then, probably forever lol.

Shadowrunner138

"is there anything for the up to 4 year window that makes more sense than sticking this money in a HYSA?"

BonelessSugar

How is a HYSA more liquid than a MMF? It's not like you can immediately withdraw either and have the cash in hand, correct?

Intelligent_League79

When I said HYSA I was actually lying, I have it in a Money Mark Fund called VUSXX

BonelessSugar

MMF > HYSA in most cases.

Background-Dentist89

Well you’re doing great that you’re saving. Not much need for the HYSA if you’re living at home. During uptrends put it all in VOO. Up some 22,000 percent sine inception in 2010. Always have a 10% trailing stop.

LordSnarfington

I would prioritize hitting the annual limit on that IRA every year. Keep a nice buffer for emergencies, if you can do this then also make sure to treat yourself occasionally, then buy more VOO. If you still have money keep it in that HYSA. Then go gamble with options or buy coke I guess

ClimberMachinist

Personally, idk why you would do away with a HYSA. If anything do away with the checking account.

PalpitationExotic727

Don’t do options, very painful to see your hard earned money disappear if you don’t know what you’re doing. If you really are interested in learning then limit yourself to a small portion (like 1k or even less). Just keep beefing up your HYSA and investment accounts while you’ve got that free rent.

ouroboros_winding

Move the HYSA to VOO and just have a checking account. $15000 in a checking account at your age and point in life sounds a tad conservative but you would know your situation best.

Furshake

I'll try to be as politically neutral as possible. The US has been witnessing thousands of citizens, including many children, getting murdered for decades. Columbine was \~26 years ago. We have done almost nothing about it and routinely move on very quickly and forget that it ever happened. Yes, conservatives will keep Kirk in the news for as long as possible for obvious reasons, but if schools full of kids getting gunned down doesn't cause meaningful change then I doubt this will either. Also keep in mind that most Americans didn't even know who Kirk was and will never bother to learn. If you already had money sitting somewhere good then just leave it there. If you're deeply worried about a crash then park all new money into HYSA/SGOV or something until you feel more confident.

AdQuick8612

I have 6 months of living expenses in a HYSA. Other than that I’m fully invested.

peatoast

Always save 1 year of expense$ in HYSA. You need to be able to be liquid in an emergency.

No-Pattern-2890

Use them for HYSA and student loan refinance. Got a really good fixed rate with them.

PatrickBatemansEgo

Cash is a position. There are also guaranteed return options, HYSA or even bearish positions if you’re brave.

AltruisticOnes

"An HYSA is a mythical beast." ...not my Roth, with a $14k investment 7 years ago, and (wait for it)... ...$135k with no additional cash thereafter! 🥳 It's definitely not F.U. money, but it's a nice cash cushion that complements my portfolio nicely

Emiel-Regis-RTG

An HYSA is a mythical beast.

Ancient-Stock-3261

Most folks calling “bubble” don’t actually go all cash ‘cause timing a pop is damn near impossible. Safer play is trimming risk, rotating into defensives, or hedging with options instead of nuking your whole portfolio. HYSA is fine for dry powder, but staying sidelined too long can hurt worse than a drawdown.

Plus_Promotion_9510

I hope you got that HYSA in check baby

Nuclear_N

Find the flow charts that tell you where your money should be going. You already have accounts, so you know how to save... So I guess you are asking what to invest in... The SP500 is the market. this is the baseline for your investments. FXAIX is one of the Fidelity mutual funds, but there are many. Bogleheads is a standard investment method which takes a split into more safe versions. At 40ish I think the 500 is a great option. I also do QQQM which is the nasdaq and more risky. FSELK is a chip mutual fund that is one of the top performers, but with that comes risk. I would stay away from bonds, and keep the HYSA, you could look into high income bond funds with dividends...JEPI is one of them. Remember...this is long term. If you are in the 500, stay there. do not panic when it falls...which it will. Do not sell. Just hold it for 20 years.

thesupe87

What about risk-free or low-risk style investing, such as CD's or Treasury bills/bonds? Of course, if/when they announce the rate cut, these rates are gonna do down a lot. We've had the gravy train between 4-5% for the past year and a half. Kind of stinks... but obviously not the end of the world. We still have to figure out what to do with our investments, as the other CD's we have are coming due, and as the HYSA's rates drop even harder. Most of them are down to about 3.5% now. SGOV / Treasury ETF's / Treasury bills & bonds are still pulling like 4.2-4.3%, but does anyone have any speculation as to what they think will happen to these types of things? It's all a guessing game. In the CD world, Marcus is still offering 4.4% right now on a 6 month. I don't really see many great things about their customer service, as there are a lot of horror stories online. Obviously, CD's are taxed both federally and locally, whereas Treasuries are only taxed federally.

Happy_Discussion_536

Cash buys less and less every day. It really is not worth it to hold onto without investing in stocks or something that scales well with inflation. In this environment bonds or HYSA's / MMFs just won't cut it.

d0gg75

The biggest thing while you’re figuring out what to do: don’t let that money just sit there doing nothing. Find a reputable bank and drop it into a high-yield savings account. Most of them are paying around 3.8–4% right now. On $15,500, that’s roughly $600 in the first year for literally just parking it there — way better than the 0.05% a standard checking account gives you. I’ve been nagging friends and family about this for years, and some of them have way more money than you sitting in regular accounts earning pennies. Drives me nuts. At least with an HYSA, your cash is safe, liquid, and quietly working for you while you figure out bigger moves. Another easy option is opening a brokerage account and keeping your cash in something like Fidelity’s SPAXX fund (basically a money market). It usually pays anywhere from \~4.1% to 5%, and the nice part is the money’s instantly available if you decide to start investing. It takes a little more setup than a savings account, but honestly not much. Neither of these is a huge return, but both are safe, simple, and put you ahead of most people your age. The key is just not leaving it in a dead account. Even if you’re not ready to invest yet, you can at least make your money do something in the meantime.

Fantastic_Joke4645

$100K in stocks? What are you investing that much outside of a 401K in stocks? If it’s in a Roth that’s great but if it’s in a brokerage account it’s awful, you have paid taxes to invest that and you’ll pay taxes again on your gains. For example if you had put $50,000 in your brokerage that could have been $60,000 into your 401K because of the deferred taxes. That would now have grown to $120,000 instead of $100,000. Keep 3-6 months of your written budget in a brokerage account invested in HYSA, treasury ETF or money market. The rest of your savings should be in tax advantaged accounts like 401K, Roth and HSA and in equities there.

Denver-Ski

Thank you, u/analbuttlick. I’ll add: pay off any high-interest debt and start a HYSA emergency fund if you have not already done so. Then shoot for the low-fee index fund. Remember OP, your investment is not like a dick, it’s like a bar of soap. The more you touch it, the smaller it gets.

AwkwardClassroom

If you’re worried about the account going inactive and then Schwab subsequently closing it, you can essentially just use their MMFs as a pseudo-HYSA for your cash reserves.

DiamondDouble8855

Put your money in a HYSA and don’t look at it or a couple years you’ll make your money back easy

Beitasitmaybe

BDN will perform better than HYSA as rates drop. I’m putting safe monies there for now.

mere_dictum

Might consider Vanguard's VHYAX. It should be less volatile than a fund like VOO, though of course not as safe as a HYSA. The safest investments generally pay non-qualified dividends. Or, if you go with municipal bonds, you'll pay for the tax break with an extra-small yield. On the other side of the spectrum, investments that don't distribute dividends at all tend to be on the risky side.

Forsaken_City_737

You sound like you’re doing great, especially with a late start. Congrats on your success. I suggest to move your emergency fund to a HYSA for higher returns. Other than that, ETFs mostly for investments. And maybe some leveraged ETFs if you have the appetite for some higher risk. Use alphaAI Capital to manage them.

GaylrdFocker

How much are you converting each year? You'll have to keep the money invested in BOXX for a year to get long term capital gains, so you'll have to keep a least 1 years spending in a regular HYSA or similar.

GenFR13

Stock Market. I would do: $250K in private equity. Illiquid but returning around 10%+ annually. $750K in direct indexing tracking the S&P500. Ideal to generate tax loss harvesting at scale. $500K in direct indexing tracking Russell 1000 growth. $200K in international stocks VXUS. $200K in SPMO, QQQM, IBIT. $100K in HYSA, Municipal Tax Free Bonds

wiseflow

$100k Emergency Fund HYSA liquid. $50k Gold. $750k 90/10 Stock/Bond ETFs (Time Horizon 25yrs - Retirement). $100k Tech Stock/Crypto Bets. $400k Real Estate (personal home). $400k to invest in next Business Venture I'd operate and $200k in Bond ETFs to slowly pull out of to pay for living expenses until the Business Venture becomes profitable. My mantra of freedom aligns with the freedom to own my means of production.

wiseflow

$100k Emergency Fund HYSA liquid. $50k Gold. $750k 90/10 Stock/Bond ETFs (Time Horizon 25yrs - Retirement). $100k Tech Stock/Crypto Bets. $400k Real Estate (personal home). $400k to invest in next Business Venture (which I'd operate) and $200k in Bond ETFs to slowly pull out of to pay for living expenses until the Business Venture becomes profitable.

wiseflow

$100k Emergency Fund HYSA liquid. $50k Gold. $750k 90/10 Stock/Bond ETFs (Time Horizon 25yrs - Retirement). $100k Tech Stock/Crypto Bets. $400k Real Estate (personal home). $400k towards next Business Venture and $200k in Bond ETFs to slowly pull out of to pay for living expenses while I work on the next Business Venture.

Todd-The-Wraith

OP would’ve literally been better off sticking it in a HYSA and forgetting about it. To say nothing of index funds. Truly belongs here. See you behind the Wendy’s dumpster OP!

taplar

What is your timeline?  How much do you anticipate needing your investments to give you each year?  You mentioned 2 HYSA and seemed to suggests one is maxed out. What are you referring to by a HYSA being maxed out? 

MissEarn

Hoping to be a SAHM in the future, but I’m not sure how to start investing allotted money (and incoming pay checks) before then. Currently working with: • ⁠$70K to invest • ⁠1 rental property • ⁠HSA w/ employer contribution • ⁠Roth 401K w/ employer match • ⁠1 CD @ 4.25% with 6 months left (this is part of the $70K, but I am highly considering taking the money out to put in other areas.) • ⁠1 HYSA with 5% up to $25K (maxed out / part of the 70K) • ⁠2 HYSA with 5% up to $30K (not maxed out / part of the 70K) Any tips or should I invest in a financial advisor to figure this out for me?

VegasWorldwide

2.5% isn't going to help your 4 year old. shoot, even a 60 year old shouldn't be doing that. there's plenty of 4% HYSA's out there today but that's not the answer. Open a taxable brokerage account for your child and add the $5k into that. Select a few diverse growth stocks. Keep adding to it and let it grow. If you don't want to research companies, just buy Index funds. Shoot, we are 50% returns over the last 30 months. unsustainable but that's what we have all earned as of late.

parallax-aletheia

The only thing a .25% rate cute does is lower the APR on your HYSA. So yes, idiots. All of us.

Dirks_Knee

Doubtful. As interest rates fall it tends to drive people to invest money they are happy to keep in HYSA (and at an institutional level even more so). We might see a leveling out and then a slow fall driven by some portion of retail investors who need to draw down their assets, but money has to go somewhere.

startdoingwell

since you’ll need it for a house in the next few years, just keep it in a HYSA or short-term CD instead of the market. rates are around 4 to 5% right now and adding to it each paycheck will help it grow while staying accessible when you need it.

CrisscoWolf

Amd HYSA decreased

Heyhayheigh

SGOV instead of HYSA or CD’s. Banks should only be used to pay bills. A bank doesn’t show you historical performance against a benchmark. You cant know what you’ve given up by not being fully invested. Can’t know the counterfactual. Honestly paychecks should be deposited into Fidelity taxable and bills run from there. If you were serious about tracking and planning.

Lonely_District_196

I assume the HYSA is an emergency fund? Does that put your emergency fund at 3-6 months? Otherwise it looks good

Heyhayheigh

Use SGOV instead of HYSA. Plan looks fine. Start adding to VOO weekly instead of spending all your money. Work to increase the weekly. Sell only when you have something urgent to pay for. Open a Fidelity account for the SGOV and VOO. Use their planning tab to budget and track expenses. Link all banks and credit cards. Best of luck.

bdb376

Have a 6+ month emergency fund in an HYSA and then invest with future money after you have that HYSA funded

VEXOPS

Thanks! I think HYSA is more practical in case I have an emergency and need to pull money what’s some rates should I jump on they seem to be all over the place

VEXOPS

Do you have any HYSA recommendations? It seems most people are recommending this since my goal is a down payment

Here4Snow

You want to preserve principal, which is T bills or HYSA, not the market, in that short of a timeframe. You don't need tax advantaged. You need Safe and accessible. You don't use Roth to hold downpayments for real estate. You can't put that much in there at once. It's for retirement. If you're in a high tax bracket (high income), you should realize there is no need to take from your own future. Leave the Roth to cook. If you want to change your holdings, go ahead. If you want VTI, why not buy $20,000 in the Roth account and then leave it be? You're overthinking for the wrong goals.

Appropriate_Bet5290

It's sitting in the Vanguard Federal MMF which is getting a little more than a HYSA.

limestone2u

OP needs to calm down & quit reading/believing all the doom-sayers. First off there will always be rising markets & declining markets - always has been always will be. Second during all up & down markets people have to eat, live, raise kids etc so that means they have to work to provide a living for themselves. Some of those working people will write about financial issues. Unfortunately most of the time those people writing about financial issues are wrong, horribly wrong. But they keep getting paid to write those articles and releasing wrong/poorly thought out information based on their useless projections and ignorance because they sound like "experts. Did OP notice that all the prognosticators never say they are wrong or give the % of their right vs. wrong predictions? The prognosticators always tout when they are right. If OP's objective is to always be worried & scared because of a pending decision or bear market; OP will always live in fear, not trust their decision-making ability, and not realize their dreams. This includes buying high & selling low and selling everything: "....something like pulling investments and putting into a HYSA until the drop hits be worthwhile?". Both truly regrettable things that all of us have done until we wised up.

harrison_wintergreen

TL-DR -- don't pause if you're a long-term investor, because there's always some prediction of doomsday. short-term, the market can be more volatile, so it depends on your time horizon. >I’ve been reading a bunch of stuff about the shifting power balance of the world when you read info like this, you need to stop and evaluate a few things: - am I having an emotional reaction? - am I being manipulated? - who is the person writing this article? - what is their agenda? are they trying to sell something to me? - do they have any training or experience that qualifies them as an expert on this topic, or is it just some goober speculating? - what are their other predictions in the past? - how accurate have their other predictions? - are there other experts who have different evaluations of the matter? - what are the "pro" and "con" positions for this topic? slow down. think about it rationally. try to avoid automatic, emotional reflex reactions. >With the current turbulent situation, I’ve also been reading/hearing whispers of an impending recession worse than the Great Depression (the credibility of which I’m not sure). slow down. re-evaluate rationally. who is this person? what are their past predictions? et cetera. > if we are currently headed towards some kind of further downturn (writing is on the wall), but other countries are also looking to move away from the US long term, would something like pulling investments and putting into a HYSA until the drop hits be worthwhile? the answer depends partly on your time horizon. the market can be much more volatile in the short-term, than in the long-term. there's a 20-30% drop in the market every 3-5 years, for one reason or another. it's just part of the process. there have been multiple periods of 5+ years where the market goes flat. this is also just part of the process. but long-term you're more likely to have a positive result. here's a chart of the S&P 500 from 2009 to 2017. https://ei.marketwatch.com/Multimedia/2017/08/16/Photos/NS/MW-FS491_Batnic_20170816172302_NS.jpg?uuid=159b379c-82c9-11e7-9e6a-9c8e992d421e Now, this does start at the bottom after the 2007-2008 meltdown. it was a pretty steep drop in 2008. but the chart is labeled with various crisis points and doomsday predictions, yet the overall trend is positive over this period of time. >Or should the money be shifted towards foreign instead? the usual advice is to invest globally at all times, regardless of news or politics or headlines. >I know there’s no black and white answer, but I’m wondering if there are critical pieces of information I’m missing in my thoughts here. based on current market valuations, the US stock market *as a whole* is likely to have disappointing returns in the next 10 years or so. this is not some rando apocalypse prophecy, but rather a simple reality identified by professor Robert Shiller of Yale (among others). short explanation here: https://www.youtube.com/watch?v=dzYjFgdIcAM the market moves in cycles, and the returns are semi-predictable to a point. not 100% accurate, but better than 50/50 over 10 year periods. and this information tells us the US market will probably be disappointing until 2030-ish, and international stocks will probably perform better. bonds might also perform better than the US market. which is why you invest globally at all times.

VladStopStalking

I'm pretty sure when people say "cash" in the context of investing, it is implied that they are talking about short term bonds or MMF or HYSA. It would be pretty stupid to literally be holding cash.

IllBuyYourCar

I got a few bucks in my HYSA, contemplating turning into a Loan Shark

AppSecPeddler

What’s so great about them? I switched to SoFi for their HYSA a year or two ago.. now they’ve lowered the rate and I don’t see any other differentiators Maybe only the get paid early feature

DrGrabAss

This is where the mantra "time in the market beats timing the market." IF you have a lump sum, either dump it all in at once in a diversified way (not all in one thing), which is fine, it's better than doing nothing, and your money starts generating a return immediately; OR, Do a variation of DCA, which is start with the lump in a HYSA or MMF or SGOV getting around 3-4%, and you just transfer some each week or month into your main investments. That way the lump is maintaining it's value and you're DCA'ing without it just sitting doing nothing. It's kind of ideal, but takes patience and diligence. Personally, I just dump it all in, I don't have the patience to DCA a lump sum while watching the occasional spike or dip. It feels good to buy a dip, but I just can't care that much. I fire and forget.

IlIllIlllIlllIllllII

Bring on the flash sales everywhere! My HYSA is ready.

Parking-Tough3231

Why target date fund vs VOO? The target date fund will underperform the index significantly. On every 20 year timeline the index will win. I would just DCA into VOO over the next two years if you are concerned about volatility and risk. In the meantime keep the cash in a HYSA

Mundane-Orange-9799

If you do not need to the cash within the next 3-5 years, yes. Time in the market is better than timing the market is the truth. If your cash is in an HYSA making 4%, you also could just start making big monthly contributions till it is all invested, but the key is work on getting it invested.

No_Feeling920

He lost even to a HYSA/CD, the simplest and safest shit imaginable.

No_Feeling920

More like "Never start doing this shit in the first place". You would have made more on a HYSA/CD and without any effort or stress.

AnotherBoojum

Firstly, think about what a downturn looks like for you on a day to day basis. What kind of savings do you need on hand to cover 6months living expenses if there's no work? Is the money you just earned going to stay consistent regardless of the economy? Figure out whats emergency and whats spare. Emergency goes to HYSA, the rest you can diversify across asset types/sectors/risk profiles. Resist the urge to go all in on tech.

Lethalmouse1

Okay, assuming your info is correct and you have 25% on the main stuff, I'm going to get you the math: 25% HYSA/SGOV for future house. 15% into 401K/IRA. Index funds.  Seperate HYSA/SGOVs or at least tracked line items: 5% for your emergency fund. Until you reach 6 month's salary. After that, drop to 1% and allocate the 4% to house.  5% is your clothing, shoes, electronics budget.  5% is your fun/luxury budget.  5% HSA or generic Medical savings 2% gifts, Christmas/birthdays 2% charity, heloing friends, family, neighbors money.  5% in a taxable brokerage where you can play stocks and crypto and whatnot.  5% figure out the shit you missed and didn't plan for and slowly plug gaps with this. License and registration renewals, job certifications, who knows.  1% checking overflow, because we need a little human wiggle in there.  I roughly assume you make median salary+ given you can't main bills on 25%. So, the numbers are pretty close to what I would do. Though I'm more itemized and extreme. 

Heyhayheigh

Ditch the HYSA, Fidelity, SGOV. They do HSA also. You definitely should max it early. Sp500. Don’t overthink. Lower your taxes with pretax 401k. Find a trustworthy pro if you’re a business owner and make good money. Best of luck

-Morel

You're throwing $50k around in foreign brokerages for churning purposes with nothing in a stable HYSA for emergencies?

gravityhomer

While you are even deciding it should be in a HYSA getting 4%. That should just be a no Brainer step 1. Then can decide what to do a little at a time.

Academic_District224

We're at the dotcom bubble valuation rn. I would put it in a HYSA and wait for this house of cards to inevitably fall. I know you're not supposed to time the market, but I wouldn't want to start my investing career with a massive crash and buying at literal historical all time highs.

minshinji

honestly no one can really time recessions, so maybe split it up, keep some in a HYSA for safety and start DCA’ing into index funds/ETFs slowly, that way you’re still growing your money without stressing too much about timing the market

Hw-LaoTzu

Trying to time the market is super tricky – even the "experts" get it wrong a lot. A HYSA is definitely a safe bet for now, but yeah, the returns aren't huge. "Recessionproof" stocks? Hmm, I'm not sure those really exist, but some sectors might do better than others. Have you thought about what "the worst" actually looks like for you? Maybe that could help guide your decisions?

xiongchiamiov

Here's the guide: https://www.reddit.com/r/personalfinance/wiki/windfall/ The shortcut is: 1. Yep, pay off the debt 2. Then fill HYSA with about six months' of living expenses as an emergency fund 3. Then contribute to IRA and buy an index target date fund (Fidelity FDKLX, Vanguard VTTSX, Schwab SWYNX).

toothsecretary

I’d say the bulk of it was over the last 6 months or so growth-wise but no real contribution schedule. Kind of looked out on Reddit and X for which stocks had a good potential or jumping up- my biggest gains were in HOOD (over $5k now) and RKLB, MSOX, OPEN. Did have a period where it dipped down a lot but I’m proud of how much it’s went back up on it’s own considering I started off with about $9k in a Roth account and would shuffle in $2/300 a month, mainly putting money in my HYSA and separating small portions of checks to play around with on Fidelity

International-Camp28

If youre skiddish, Put it all in a HYSA now and DCA it all over a year or 2 into a brokerage account. You honestly cant go wrong though if you put it all in now so long as your expected return timeline is longer than at least 5 years.