HYSA

dope-a-meanie

I use SGOV and a HYSA for emergency funds. A years net salary across both.

Swred1100

I have an emergency fund (HYSA) with about 6 months of expenses, and another fund (also HYSA) for short/medium term big buys (wedding ring, travel fund)

theblindness

While checking accounts lose about 3% of spending power per year from inflation, a HYSA or CMA earn just barely enough interest to keep pace with inflation. The CMA functions similar to the brokerage account with a debit card and some additional checking features, similar to what you’d get from an online bank like Ally or Capital One. Unlike the normal brokerage which can only select between a couple money market funds as the core position, you can choose whether your core position in a CMA is swept into FDIC-insured accounts at partner banks like a Fintech, or a money market fund like your normal brokerage, insured by SIPC. You can also manually purchase into other funds eligible for auto liquidation like FDLXX, in case you live in a state with state income tax and prefer a 100% treasuries fund. Debits will draw from cash balance, followed by core position, followed by other funds eligible for auto liquidation, like FDLXX. Pros are online banking like a checking account with funds automatically sweeping to an interest-bearing core position like a brokerage account. The CMA is technically a type of cash-only (no margin) brokerage account with checking features, so it can hold the same stuff as your brokerage account. They have early direct deposit, so if you deposit payroll to it, it should be available about the same as any other bank checking account, with early direct deposit, about 1-2 biz days early compared to a checking account without early direct deposit. Also unlimited ATM fee reimbursement, even international ATMs. Cons are the mostly same as the brokerage account. If you pull from another bank via ACH Debit, there’s a 10 biz day settlement times, but funds still sweep to your core position the next trading day to start earning interest right away. You should probably keep a local bank account for teller services, but the CMA can cover just about all of your online banking, using a single account for checking and savings.

BarryMannnilow

I pulled out 60k cash cash during COVID when everyone was panicking around toilet paper. It's still sitting in my safe. HYSA about 50k plus revolving checking accounts. The rest is invested. About 5% or so of my investments

Seref15

No kids no wife, ~$35k, enough to pay property tax, homeowners insurance, and car insurance for the year -- plus enough for general expenditures for like 8 months without too much tightening. Thats just emergency money. Never looked at or touched for any reason, have never withdrawn from it, hopefully never will, sits in an HYSA. Then I have other spendable cash. About 2 weeks ago sold ~15% of my portfolio plus reducing my DCA purchasing by ~30%; sitting on that cash in another HYSA for a little bit.

JRshoe1997

Agreed that financial choices will change based on a person and their own situations. However that doesn’t change the fact that choosing to pay off a 3% mortgage versus putting it in the market and getting a 73% return over the last 5 years is a bad decision unless you’re absolutely drowning in debt and need to deleverage. Choosing to have a higher amount of money in a HYSA because you have kids versus someone who doesn’t have kids is a “personal finance” choice. Choosing to not invest in something because you prefer whole shares versus partial is not “personal finance” choice and is just someone making bad choices.

dogs_gt_cats

My budget is broken up like this: 1 month of bills in a HYSA. I also have a HYSA account that accumulates cash for our non-monthly bills (things like insurance premiums, yearly memberships, quarterly bills, etc). I also keep 6 months worth of bills in a position in SGOV in my brokerage. The rest gets invested.

abeBroham-Linkin

Accessible: $500 + a credit card (low limit). This is meant for immediate emergency; car related mostly. Everything else goes to emergency fund, would be in SGOV or HYSA, which I can transfer the same day and have access the next. My emergency also funds my Roth.

Gloomy_Locksmith_362

Amazon is the easiest and safest 2x from here, HYSA type of safe

D3AtHpAcIt0

friend full ported TTWO calls so hard they not do "HYSA only"

pr1onedad

Fidelity Cash Management is good. I don't think HYSA necessarily lack the cash management features mentioned since it's purpose is savings that should not be accessed regularly. Definitely keep checking and savings as separate money management tools. For HYSA I have used Marcus, E-Trade, SmartyPig, PNC Bank.

Optionsmfd

I would have 3 years spending in short term treasuries or HYSA Then rest in my golden triangle SP500 NAQ100 Charles Schwab 300 equally Roth would be the best I think eventually government will raise taxes and reduce spending once they can’t afford the interest payments

Informal-Lime6396

> My only problem is that brokerage is taxed How is that a problem? Everyone gets taxed in their taxable brokerage account. The alternative is to let inflation eat it away in a savings account or barely keep up in a HYSA.

4thshift

I'm not great at investing, but had I simply put my money into an S&P 500 index fund (SPY, VOO, IVV or similar) and reinvested the dividends, I would probably have a lot more money today than I do from chasing 3x leveraged funds or trying to guess which healthcare or technology companies are going to be the winners. Those winners certainly exist, but they can fall just as dramatically. Nobody can tell you whether today is the best day to invest. There will be dips, crashes and periods where the market goes nowhere. But an S&P 500 index fund gives you ownership in 500 large U.S. companies rather than requiring you to guess which individual company is going to succeed. Dollar-cost averaging is one way to deal with the "is the market too high right now?" problem. Instead of trying to time the market, you invest a set amount at regular intervals. Sometimes you'll buy high and sometimes low, but you're not relying on yourself to predict the next dip. Most people aren't very good at doing that consistently. I'd also keep an emergency fund in a HYSA rather than putting every dollar into investments. An ETF is an investment, not cash. You can sell it during market hours, but the sale has to settle before the money is available to withdraw, and the market could also be down substantially at the exact moment you need the money. A HYSA is much more appropriate for money you may need in the short term. If you're in the U.S., I'd also look at retirement accounts before putting everything into a regular brokerage account. A Roth IRA lets you contribute after-tax money, and qualified withdrawals in retirement can be tax-free, including the investment growth. Traditional retirement accounts generally give you a tax deduction up front and you pay income tax when you withdraw the money later. There are contribution limits and rules for both, and retirement accounts aren't quite as flexible as a regular brokerage account. So if you're building money that you may need before retirement, a regular brokerage account can make sense too. And don't overlook taxes. In a regular brokerage account, selling investments can create taxable capital gains. How long you held the investment can make a substantial difference to the tax treatment, so constantly buying and selling is not necessarily your friend. In a regular brokerage account, holding an investment for more than one year can substantially change how the profit is taxed. And you need to keep track of your activities for tax reporting, which is a pain. I am not going to tell you what company to use, and there are many, but an well-known example like Schwab, offers retirement and simple brokerage accounts. You open it like any other internet bank account, basically. Send in the funds and then it just sits there, until you go in and select a Ticker symbol, hit the \[Buy\] button and decide how many shares and how you'd like it to go through ... LIMIT to a certain value, or just accept the MARKET of that moment, for example. Someone accepts your offer, mostly within a couple of seconds and then you are a stock/ETF owner. When you want to sell, you go back in and hit the SELL button and say how many shares you want to sell. If you want to get into the more high-stakes stuff like OPTIONS, that's beyond me. Do your homework. Consult with a professional at some point: Internet opinions are not very believable.

octopus_serenader

Check with your current bank or credit union. My credit union offered to switch my regular savings account to a HYSA and it was that easy.

2pearsofjeans

Don’t be messaging people out here, you gonna get scammed lol That said, I’m looking for a good HYSA too. But Robinhood has been good for my Roth IRA. That’s my main retirement/investment vehicle for stocks and EFTs.

Scotinho_do_Para

For HYSA? I'm assuming you're from US, if that's correct then just shop around. You should have several options.

Indescribled

I opened one up with SOFI recently because you can have a regular checking account and a HYSA with 4% per year. Easy to transfer between and I just decided to use them as my main bank, but there are a ton of options and you can also just use it for the HYSA Wouldn't put anything into the stock market until you have a few months of expenses saved up

mattronimus007

I'm aware the S&P rises and falls like every market but it's what I hear most in personal conversations. Along with HYSA ( which is an acronym I just learned) When I say I know nothing I mean it.

Scotinho_do_Para

Build up an emergency account. HYSA.

Lucifers-Reprieve

Every investing reddit or any size has some wikis.  Your country is going to have a sizable impact on some of your options.  Government bonds, CDs are also good options if an HYSA itself isn't.  Fidelity money management account is around the same range as some HYSA if that's a possibility for you.   Day trading....don't. Avoid individual stocks if you are new and don't have a long time to let it ride.  I like vflo lvhi vymi for less volatile etf options with some respectable gains.  Just don't invest it regardless if you need it soon (under 3 years).

Beginning-Pangolin63

Since HYSA in my country isn't really a thing, that's out of the question. Putting it into a savings account is also another option I'm almost certain I'll do, but since I plan on investing money into the stock market in the future, when i have a steady income I think I'll go with this. Do you recommend good sources I can learn about stocks and all of that before I invest?

_FierceLink

As it's a sum of money you will need in the next couple of months or a year or two at max, put it in a High-Yield Savings Account (HYSA).

Foreign-Put1361

For long term - I track the 200 day SMA and buy within 5% of it or ideally below it for strong entries and otherwise just keep in a HYSA or USDC before entry

InvestingNerd2020

Trading is short-term and has a bad history crippling financial losses. Most people who do are legitimate gamblers, infrequent strategic traders, or work at a hedge fund. They rarely beat long-term investing in 5+ years. For investing (5+ years of buy & hold), get with Charles Schwab. They are an excellent investing broker with tons of educational material and have well informed customer service. The order of investing operations for full-time working adults are: - Contribute your pre-tax income to your company 401k/403B plan up the employer match. Usually between 3-6% if they offer it at all. Easy way to double your money. - Build up 3-6 months of emergency savings in a high yield savings account (HYSA) or Treasury fund with after tax dollars and after your survival monthly spending. Make sure you are getting 3% or higher interest rate currently. This will keep you from touching your investments if you lose a job or something you own breaks. HYSA examples: Marcus, Amex, Capital One, or Ally. Treasury fund examples: SNSXX, SGOV, or VBIL. Treasury funds are tax protected from city and state taxes, but you cannot access the money on the weekends. - Once your emergency saving have been built up, start investing into a Roth Individual Retirement Account (Roth IRA) if eligible. You need to have a legal tax filing job and earn less than $153k as a single tax filer. Less than $242k as a jointly married tax filer. Great for the middle class because the gains are tax free at 59.5 years old! Max annual contribution to the account is $7,500 according to the IRS for 2026. Invest into SWTSX at 80% and SWISX at 20%. Setup auto invest and focus on staying employed. - Anything extra, throw into a taxable brokerage account. Work bonus, tax return, credit card cash back, or lawsuit winnings. Invest into exchange traded funds (ETFs). Basically a group of stocks that trade like an individual stock together, and are tax efficient. SPYM or SCHB are great long-term choices. Pick one of those not both of them.

myspamaccount007

I apologize. I was only looking at your chart so didn't realize you've been at this for a while. Honestly, a million in a year is still very high risk and most people lose it all again with options. I would say set aside 30% for taxes and with the rest, have a different strategy. With the other 70% ($140k) you have multiple options. Invest $138k in a diversified portfolio, more aggressive since you sound younger. Put $40k in a HYSA. Do options with the rest which is just a couple thousand, should be enough to scratch the itch. I have a plan B. It would be a wise investment strategy but you'd have to hear me out first. DM me if you're interested.

gizmole

6 months' expenses in HYSA or something like SGOV. The rest, if for retirement, put in VT, VTI, or VOO. Depends on how much you want to divesify, and your investing beliefs. VT will give you world exposure, including the US. VTI/VOO is just the US. You can always change things up the more you learn. You may want to dabble in individual stocks (more risk/more reward), but learn how the market works and how to evaluate single companies first. Otherwise, you're just gambling. Don't trade. The majority lose. If you still want to consider it at some point, make sure to paper trade first for a while to learn what system works for you. Then, when you start with real money, risk management is the most important factor. Start with very small trades you can stomach losing until you can see if it's something you can even be good at. Psychology will be your biggest barrier to overcome.

OrdinaryLatter

Yeah those HYSA rates always offer a temporary high before returning to actual return, it’s meant to draw you in in hopes you forget about it when apy drops dramatically. Remember that everyone trying to sell you a HYSA is getting paid. No one is getting paid for money market funds.

OrdinaryLatter

Chasing HYSA bonuses is a lot of risk for not a lot of reward. I used to do it too, money markets are better options.

OrdinaryLatter

With HYSA’s your usually investing through a 3rd party into a bank that you’ve never heard of that is putting everyones money into a single account and relying on the original service to keep a ledger, because your not directly banking with that bank you’re not FDIC insured. Even Wealthfront uses GreenDot. At that point in this multiparty scheme it’s less risk and more consistent/better apy to use money market funds.

AdGuilty7139

Ça se comprend d'être perdu à 28 ans. Mais doubler 5000 balles en un an c'est pas un plan, c'est un pari, et le day trading est exactement ce qui te fera perdre le reste. Comme tu as un Roth et un HYSA je suppose que t'es aux US, donc PEA oublie, mais un simple ETF S&P 500 ou World dans ton compte taxable fait le job, à 7% par an tu doubles en dix ans environ sans rien surveiller.

OrdinaryLatter

Get a Vanguard account, start auto investing with VFIAX (VOO equivalent), do the same with VUSXX (money market fund). Figure out an amount for both, consider it part of your bills, set it and forget it. Don’t do HYSA, they can collapse and you might be SOL. See More Perfect Union’s report on HYSA. Also: influencers recommend HYSA not because they’re good but because they get referral bonuses.

kinetic_honda

Keep 6 months living expenses in the HYSA. Regularly buy index funds with your income. Keep doing this for 10 years and then watch compounding start to show it's beautiful self

Dr_Zoonotikstein

Risk tolerance varies wildly, but I'd probably put $70 in HYSA and restart with $5K for options play.

thorn960

Oops, I meant high yield savings account. I guess that's HYSA.

lean_drumming

You got the basics right, rate hike makes borrowing more expensive so companies slow down expansion and spending. That usually means less growth and stocks dip, at least short term For your savings, HYSA rates follow the fed pretty close so you'd actually see better returns there it's one of the few bright spots when rates go up Treasury yields are connected, they tend to rise with rate hikes cause investors want more return for lending money when inflation is hot

SallyShortcakes

You could easily keep monthly needs in a HYSA or SGOV

Sensitive-Exam649

People tend to think of an emetency fund as just cash. But your investments can also be your emergency fund. And using you investmnent this way can work better in in real emergency. For example instead of cash you can hold an assets like the S&P500 index funds. and must sell toff in an emergency. Now yes youmightsell it at a loss. But the same time when you don't need it is growing faster than High Yield Savings Account earning 4%. But if you compare an index fund to dividend or coperate bond funds. you will find dividned like CLOZ that stays within =/- $1 price rang and pays 7%. Yes it don't have growth but the yield is higher. So the risk selling at a big losss is quite small when compared to growth index funds. And then there are funds SPYI with has a little bitof growth and a yield of 12%. So if you sell this fund You will probably sell at a small profit. And reinvesting 12% yield is better than any savings account. But the you have 12% yield do you really need cash savings. SPYI also pays in its dividend montly. so 100K invested in it is 1K a month of income. So all you have to do is turn off dividend reinvesting and the money cash will show up in a money market account which is similar to HYSA. You could hold onto 6 moths of dividends in the money market account. And if that isn't enough you still have 1K a month comming in. If you cash build s to more than 6 moths you can reinvest it in the dividned fund. You could easily use thedividneds to growth this emergency portfolio over time until the dividned is more than 3K a month. Without adding a dime of work income. With several K a month coming in you could also start coverneidn regualrexpeneses with your dividend income which will allow you to save more work income. I have a taxable account with QQQI13% yield, SPYI 12% , KGLD 12%, EMO 8%, UTF 7%,UTG 6.8%, PFF6% Thisaccount today These funds today generate more than enough to cover my 5k a month living expenses. And it allowed me to retres about 10 years earlier than i wasorinonally expecting And I have stated some money a S&P500 fund thatI can tap for big expenses if need or if my dividned income is reduced in the future. And this is in addition Tony 401K and my roth. and age 60 instill several years away. I started out with 401K and maxing out the deposits every year and built a a small growth index fund for emergencies. And generally only had about 3 months in banks savings. Fortunately I worked 32 years at one company and never got a layoff notice. I didn't know anything about dividned until about age 45.

SeveralScorgasms

Idk man, HYSA make the most sense. Mine just increased today to 3.55 so that’s cool I guess.

DoinIt4DaShorteez

Other than checking account, I basically keep the rest of my free cash in the BIL etf in my brokerage account. If I have to sell some for an emergency, the cash is available the next day. I have Merrill accounts linked to my BoA accounts. There's advantages to me to keeping that money in Merrill vs some sort of separate HYSA, that are worth more than a few basis points of interest. Insured vs not doesn't concern me. It's not worth sweating a few basis points until you're talking $100k+

user-namepending

Sure with this rate hike and yields catapulting to the moon our HYSA and MMA will also see greater yields? R-right?

Over-Computer-6464

When looking at returns be sure to take into account state income taxes. T bills are exempt from state income tax. SGOV and VBIL T bill ETFs are mostly exempt from state income tax. So the post tax returns are higher than an HYSA with the same interest rate if you are in a state with income tax. I

InvestingNerd2020

If you are already using HYSA (assuming 3% or higher currently) and T-Bills, you are already in a great situation. Time to focus on moderate diverse growth investments. Total USA ETF: VTI, SCHB, or ITOT International ETF: VXUS, IXUS, VEA, or SCHF.

Im_Still_Here12

This. I keep my corporate cash reserves in VMFXX and have done so for years. Six figures worth. Beats the breaks off the crappy interest rate my bank was offering for their MMF and HYSA.

JimmyKur128

The piece that is easy to miss is not another product. It is how fast the money has to become spendable cash in a bank. Split the emergency fund by access time, not by the headline yield. The slice you might need this week (rent, a deductible) stays somewhere you have already tested: the HYSA, or Cash Plus if a small withdrawal actually landed in checking next day. A tenth of a percent is cheap insurance against a Friday problem. The rest, the money you would not touch unless income stopped for a month, can sit in VMFXX, SGOV, or short T-bills. Those are not bank deposits. You own a fund or a bill, you wait for settlement, then you transfer. Fine for a known expense, awkward for a same-day one. Two checks before you move the whole HYSA. First, pull $100 out of whichever Vanguard option you pick and time it. The yield on the page is not the same as money in checking on a Friday night. Second, state tax. Treasury interest, and a high percentage of a government money market in most years, is often exempt from state income tax. A HYSA is not. On a large balance that gap can beat the APY difference, but only if the fund's latest government-income percentage actually supports it. I would not park an emergency fund in long bonds or equities. Duration and drawdowns are the opposite of what this pile is for.

Thermogenic

I basically have monthly needs in checking, quarterly in HYSA and the rest of my cash equivalent in $USFR. It’s an ETF that holds floating rate US treasuries that are easy to get out of if needed.

Tricky_Ordinary_4799

Keep emergency fund in HYSA

Sensitive-Exam649

Cash is never a defensive position. If you need to tap and spend it it is gone forever. And if another bear market happened a few years later you will have less cash available. You are better off adding dividends to upper portfolio. Dividend fund produces steady stream of income. i took growth in my taxable brokerage account and and invested it in QQQI 13% yield, SPYI 11% EMO 8% UTF 7%, KGLD UTG 6.8%, and PFF 6%. Today my taxable brokerage account generates 5k of cash per month. Dividend reinvestment is off and the cash aqumulaqtes in a Money market acount. Money market accounts are brokerage equivalent to to HYSA. I keep 6 months cash available in the money market account. Any excess money I can spend. It generates enough cash to cover my living expenses. Now it does take time to build this account. But if you start building QQQI and restrict you HYSA to 6 months and putty excess money into QQQI you could start using the divine income to keep your HYSA or money market account and eventually cover regular month bills and expenses. Anid if you loose your job you can live off the dividend income indefinitely. And you still have cash available for the unexpected expenses.

ra__account

*I am trying to balance long term investing with the reality that some parts of the market can get expensive or fragile.* On my timeline, the market will almost certainly keep going up by the point I need to tap the vast majority of my investments. People have been trying to time the market for the past decade+ and those that sat on the sidelines have largely missed out on some massive gains. Almost all of my investing is automated to the point I can't change it even if I wanted to until the next year. I have a pot of gambling money cash in a HYSA that I'll throw into short term swing trades like the Chewy crash a week or so ago or into long term investments if companies I invest in for the long run take a 5% dip that I don't think is justified. Like some others, I have money in BRK/B with the theory that they'll do well with their cash reserve if an opportunity opens up but frankly they blew some good opportunities in the past few years.

Shadowrunner138

You could invest in a bond fund and it would do better than a HYSA.

JustARegularGuy

No. I invest in the market and keep like a years worth in HYSA. But even if I was super conservative I'd rather have a half million in a HYSA than a paid off house.

hkeyat

Hello! Absolutely agree with you. I’ve been harassed with financial advices videos lately telling everyone to put their money in HYSA and SP500 index fund. Do you think it’s a paid marketing campaign from banks or is that genuinely a good advice? Considering what op is saying in regards to the crisis that seems to be arriving and your comment on how having no return on investment for +13 years is huge.

anonnnnn462

You have half a million sitting in a HYSA?

calimota

$480k balance at 2.65% Even a simple HYSA gets me 3.8% Comps not as cool as ours are selling for $1.5M+ Around our house, we say that the only thing getting us out of here is something really really good, or really really bad.

OkInitiative2915

My bad, I didn’t see your updated comment. I currently have enough funds to pay off my 15-year mortgage as well, but I’m earning more interest from my HYSA than I’m paying in mortgage interest, so it makes more sense for me to keep the money there.

Round_Context_146

Why my HYSA didnt raise yet?

ChaseballBat

I sold everything after cashing out on some huge puts from "liberation day". Everything is in HYSA, I've only missed out on like 9% gains since then in index fund. The risk of lost gains to avoid risk of added losses is a viable risk strategy especially when you have this fuck in office

Either_Librarian7238

See my update comment above. Low interest rates also meant HYSA and CD interest rates were also low back in the days. If 2.75% was the average for loans and borrowing, HYSA or CD rates would have been below that. We aggressively paid off 50% of the loan in the first year while we had the savings, and another 50% of the remaining balance over the second to third year, until HYSA interest rates went above our locked-in 2.75% interest rate. Thats where i change course. By that time I only owned like 60k left.

OkInitiative2915

Why pay off the mortgage when you can earn more interest with a HYSA or CD?

Either_Librarian7238

I agree. It was a different time; COVID was still rampaging, there were a lot of layoffs, and there was uncertainty regarding job security. My wife was working remotely, and I was in a manufacturing job that, even though it was essential, left us unsure of how long it would last. So, we were aggressively trying to pay off our debt as fast as we could in case of a worst-case scenario; with our savings, of course, we also had family support. When things settled down and interest rates started going up, making HYSA interest above 4%, I thought, "Wait a minute. Why are we paying off our mortgage so quickly if we can use those supposedly extra principal funds to earn interest and use that interest to pay off our mortgage?" So, by 2023, we stopped paying extra principal and started accumulating savings in an HYSA. Then I started to learn about stock market investment. That was when I became more conscious about making money work in a way that gives us a higher return. Since then, we have paid only the minimum requested; no more, no less, lol. Truth be told, we could have probably paid off that loan by early 2024. Looking back now from a 2026 standpoint, I totally agree with you that I should have kept making minimum payments and invested the money elsewhere. We all know we can't predict the market or the future, and I can only go by what we knew and could do at the time.

loiwhat

So how should one protect themselves especially if they're not as financially smart? Limit investments to just foreign? To all US? Focus on HYSA? What is a good move here?

Commercial-Resort501

my HYSA better not conveniently forget this happened

Training_Baker_4758

The blackjack framing in the template always gets me. Nobody actually has blackjack risk tolerance, they have 'VOO is down 12% this quarter so I moved it all to a 5% HYSA' risk tolerance.

Better-Advantage7290

rate hikes usually mean higher HYSA yields but stocks take a hit since borrowing gets expensive, growth sectors like tech feel it the most

ImpressivePea

That's right now... check back in a month or two and SGOV will be comparable. And when rates go the other way, HYSA's will drop immediately and SGOV will maintain its rate for a month or two as it has a maturity averaging around 40 days.

TheOnceAndFutureTurk

Raise rates, you must. Purchase more ketamine with additional interest from my HYSA, I shall. https://preview.redd.it/repjb9mn81qh1.jpeg?width=1080&format=pjpg&auto=webp&s=1b535a4d3f00cf9e1ce0a959990a5d58b054b968

soscribbly

Rate hike but my HYSA % hasn’t changed wassup 🤨

JaredMechanical

If anyones looking for a HYSA (high yeild saving account) referal link lmk. Im currently saving 3.55% and we can earn 4.3% for 3 months if you use my link!!! [https://www.wealthfront.com/c/affiliates/invited/AFFC-YK0J-MYIY-D5QQ](https://www.wealthfront.com/c/affiliates/invited/AFFC-YK0J-MYIY-D5QQ)

JaredMechanical

If anyones looking for a HYSA (high yeild saving account) referal link lmk. Im currently saving 3.55% and we can earn 4.3% for 3 months if you use my link!!! [https://www.wealthfront.com/c/affiliates/invited/AFFC-YK0J-MYIY-D5QQ](https://www.wealthfront.com/c/affiliates/invited/AFFC-YK0J-MYIY-D5QQ)

soscribbly

Where’s my email saying my HYSA % is going up???? HUH?? WHERE???

ConstantShitting

My HYSA is beating my account. Ouch

10thflrinsanity

HYSA goes to 3.5% Fri, and rest of dry powder in SNSXX baby. 

General_Leader425

The craziest thing to me is the biggest company in the world, NVIDIA, is run by Jensen Huang, one of Trump's biggest Stan's. Huang believes that Trump is a highly intelligent person that works 16 hours a day. This is one of the things that gives me great pause and why I sold EVERYTHING today. I get a $15,000 disability paycheck and with $80,000 in debt, I am going to throw it all into an HYSA and appropriating $2000 of it for lap dances at the Strip Club since I need a lap dance. I just need a lap dance. 100%. This ship is clearly going to hit an iceberg, and I just think with $2000 at the strip club, in the VIP, with these Cali Strippers that I could have one hell of a weekend vacation. I actually know the strippers, we send each other reels on Instagram. We are friends in real life.

00abjr

Wouldn't mind my HYSA going back to \~5% ...

-IQ200

HYSA = 3.55% Mortgage = 3.1% Interest free money glitch unlocked.

PugsAndHugs95

*puts on sunglasses* HYSA, CDs, Vinted, and Facebook Marketplace (always bring a safety buddy). You’re in Bartertown now. Welcome to the Thunderdome.

NickMc53

There are a handful of HYSA paying an APY of 4.25%+ right now that beat SGOV unless your state income tax rate is like 10%.

artificial_organism

My credit union's HYSA gives the same return but I don't have to put an extra line into TurboTax for every time I move money in/out of it. 

wlaxboy1

is my HYSA account rate gonna go up

-IQ200

Cash gang we thrive! HYSA cooking.

Last-Worldliness7351

24M, making about $95k/year in the US and looking for some advice on how to position my taxable brokerage account for the long term. Current situation: * Roth IRA + Roth 401(k): \~$35k total, 100% VOO * HYSA: Usually keep around $10k-$15k * Schwab taxable brokerage: \~$23k * About 95% of the brokerage is currently in QQQ * No major debt that is affecting my investment decisions I'm comfortable with risk and market volatility. I don't see myself panic selling during a downturn, and I'm generally looking to invest for the long term. My main concern is that I'm probably too concentrated in QQQ, especially considering my retirement accounts are already 100% VOO. I like the growth exposure of QQQ, but I'm wondering if having almost my entire taxable account in it is taking on unnecessary concentration risk. The one thing making my time horizon a little difficult to define is that I may want to buy a house in the next 3-5 years. That's definitely not set in stone, though, and I don't necessarily consider the entire $23k brokerage account to be my future down payment. If you were in my position, how would you think about diversifying the taxable account? Would you keep some QQQ and start directing new contributions toward something broader like VTI? Add international exposure? Actually sell some QQQ and rebalance now? Or leave the existing position alone and diversify with future contributions? I'm mostly interested in hearing how others would approach the concentration issue and what kind of allocation you would consider for someone my age who is comfortable taking risk.

Whole-Reserve-4773

It always takes weeks or months to raise, but banks always cut the HYSA rate immediately

Aggravating_Storm835

Interest rates go up, costs of short term borrowing go up, borrowing gets more expensive, spending/investing cools, economic growth slows, inflation slows. A HYSA return is likely to increase. This is a big reason why stocks are likely to go down. If you can guarantee 3.5-4% in something like a HYSA, you’re less likely to take more risk buying stocks. Fed doesn’t directly control treasury yields. 10 year treasury yields are a reflection of future rates/inflation/growth.

ImpossiblePromise363

The easiest way to think about it is that interest rates are basically the price of borrowing money. When the Fed raises rates, borrowing generally becomes more expensive. Mortgages, business loans, credit, etc. tend to get more expensive, which discourages borrowing and spending. Businesses may invest less, consumers may spend less, and economic growth can slow. That’s largely the point: the Fed raises rates to cool demand and inflation. The flip side is that savers generally benefit. HYSA and money market yields tend to rise because short-term interest rates are higher, although banks don’t necessarily pass the full increase on to customers. For stocks, higher rates are generally a headwind, but they don’t automatically mean stocks go down. Companies have higher borrowing costs, and investors can suddenly earn attractive returns from relatively safe assets like Treasuries. That makes risky assets less attractive by comparison. Growth/tech stocks can be especially sensitive because much of their valuation depends on profits expected far into the future, which are worth less today when rates are higher. Treasury yields are connected but separate. The Fed directly controls a very short-term policy rate, while Treasury yields are determined by the bond market. Short-term Treasury yields are heavily influenced by expectations for Fed policy, while longer-term yields also reflect expectations about inflation, economic growth, government borrowing, and other factors. The biggest thing to understand is that markets are forward-looking. They don’t simply react to “Fed raises rates = stocks fall.” They react to what happened relative to what was already expected. If everyone expects a 0.25% hike and the Fed hikes 0.25%, there may not be much reaction because it was already priced in. If they unexpectedly hike 0.50%, that’s different. Likewise, they could hike 0.25% and stocks could rally if the Fed signals that future hikes are less likely.

Non-mon-xiety

Dunno about you but I’ll at least be happy to see interest rate in my HYSA go up after the rate hike tomorrow

DanTaude599

Fwiw, take the 401k match, then build the 3-month cash fund in a HYSA before ramping investing back up. One lighter year out of 35 probably matters less than being forced to sell stocks during a layoff or car repair.

Big-Instance-7750

Assuming you have around a 20% savings rate which is very strong for a younger saver, there are some strategies that you can incorporate outside of the typical rule of thumbs. First of all, I would at least have a month's worth of expenses in a HYSA so that every little unexpected expense doesn't make you go into debt or into your investments and make sure you are saving enough into your 401K to get your employer match. After that, you could prioritize your Roth IRA and keep the funds in safer assets like money markets since contributions can be withdrawn tax/penalty free. Then whatever is left can be added to your emergency fund until it's the size you want. You only get one chance per year to contribute to your Roth and those early years are so valuable. If you don't have an emergency, you've taken advantage of the Roth's tax free growth. As your emergency fund grows, you can start investing more aggressively inside the Roth.

These_Country_7689

You have lots of runway to take on volatility and risk but always keep some liquid in something like a HYSA. It can serve as a emergency fund while still getting 3-4% to mitigate inflation

Longjumping_Iron8826

I never had an EF when I was young. Didn’t make much back then and wanted to get started compounding. If you need to sell some equities in an emergency so be it. If you need to sell at a loss, fine, it will help your tax return. As long as it’s in an account you can access (post tax), start investing now. My daughter had a good amount m HYSA earning 3% for her some day house. I’ve pointed out how much she’s passed up doing so. But she also puts money in her 401K and Roth, so at least she’s doing both. Maybe try that route

Massive_Charity_7198

This is why I full port HYSA. I beat the average Nvidia investor 😎

Silly-Interest1977

What should I do with $600? Hey all, I have $600 saved from random income, gifts, extra money I had, etc. I have a roth IRA and standard savings account with Citizens (through my account). I want to invest this money into the best way possible. As a recent college grad who is finally not broke, yes this is a decent amount of money for me and I want to allocate it in the best way. HYSA? For reference, I'm a year out of college, living at home working full time with some hefty monthly student loan payments, and of course gas, groceries, etc. - I would love to move out into my own place within a few years, which is my main savings goal right now. Need advice, TYIA

Stonk_Trader69420

i'd like to see 5% HYSA again...

No_Presentation9490

an HYSA yielding 4.5% or similar on a 1.8M balance is not the same as your average joe with only 250-300k in an HYSA In 10 years that risk-free 4.5% on 1.8M is 1 million dollars. If fed cuts interest rates you can start looking at equity markets but if you have 1.8M I'd be looking at capital preservation, not aggressive positioning, right now.

cmmargulis

Hey Dummy, maybe I have money and don't want it eroded by inflation or would believe a higher yeild on my HYSA and CDs is long overdue

dope-a-meanie

If I’m understanding your argument, you’re saying money is money. Why not just keep it growing? You’re not incorrect in your thinking, in my opinion but the point to an HYSA is ease of access in case of an emergency. If you decide you can get the same effect using credit cards and maybe a small savings account for that odd check writing situation, yeah go ahead and just use the market.

Departure_Fun

Let's see, we have wars driving energy prices, circular economy between hyper scalers and chip/memory guys, impending AI labs IPO, Elon holding 1T, midterms, AI bubble and AI related layoffs, high inflation, Tarriffs - no matter how you see it, we are screwed. Best is to go back to fundamentals, raise cash and have it in HYSA for a 12 month cushion, sell off risky bets or minimize and stay the course. Just close your eyes and pray all this is over in 1-2 years, so we can get on with our lives.

Sensitive-Exam649

The brokerage equivalent to HYSA is money market account. Money market accounts are insured like HYSA. But since a money market acount is in a brokerage you can use a dividend investment to fill your money market account. For example you can put money in your taxable brokerage into a fund like QQQI 13% yield and it tax efficient. . So you could gradually build up QQQI so that is has 57K invested. At that level the yearly dividend is 8K. Which is enough to deposit into the Roth without using your work income to make the deposit. To get enough interest from a HYSA to get 8K you need to invest 200K. So with QQQI in your taxable account you you could turn off dividend reinvestment so the sad dividned are not reinvest and show up as cash in a money market acount. Eventually the taxable account could be also used as your HYSA. with QQQI filling the money market account. And at that point you won't need to put your work income into your Roth or your HYSA. And if you count to build up the dividned income with QQQI or other dividned funds you could eventually get enough taxable income to cover all of your living expenses. And you can have growth investment in your Roth I have QQQI, SPYI, BTCI, KGLD, EMO, UTF, UTG, PFF. to maintaning 6 month cash emergency fund and enough income to cover all of my living expenses (about 5K a month). It allowed me toretire early.

BugHistorical1614

For comparison: We have a very small 6mo, late June purchased CD @ 4.0% apr, at local regional bank. We have laddered 3 & 4 yr MYGAs, 5.0-5.2%. Last purchase July. Low band, A,A- rated. HYSA @3.3%. I'd like to move this to brokered MM to get 3.9%. However, it's not a worthwhile battle, at this time. CDs and MYGA are principal and interest guaranteed. However you lose liquidity and incur interest rate change risk. Retired. 76/79. Multiple income streams.

Cultural-Ad678

There’s no difference in tax treatment with bonds and a HYSA there is with treasuries and munis tho

__redruM

At the very least 100% SGOV, but some portion in index funds really makes sense. SGOV is basically a HYSA without state taxes. VT or VOO, at even 25%, would be safe, as in never go to 0, and would demonstrate what stocks return compared to a HYSA. A good HYSA does 4%, at best. VOO is up 11% this year so far and 16% on the 1 year. That’s 4 times the return for a low risk index fund. Baby boomers and GenX know this trick and how to make generational wealth from index funds.