HYSA

P0pSm0ke91

I HATE working. YouTube taught me everything like most things I have to learn. Experienced the power of compound growth pre-investing through HYSA. Grew that to 165k before I knew anything about stock market. Took me 21 months to build to 100k invested. I’m bound and determined to live life on my terms someday and not answer to any boss.

Capital_Tiger8306

Maybe a slightly different perspective, but can't afford not to. How many employers out there (over the past 5 years) have handed out 9+% cost of living increases? People say "yeah, well, inflation rate is now down to 4%, and sometimes my employer gives me a 4% merit". .. and you never hear the news say 9% RATE is different than your purchasing power. Our purchasing power has eroded over 27%. (Bureau of labor statistics) We are to the point where you can't save yourself into prosperity(by sitting on cash). This year you go out less, next year you sell one of the two cars, the next year you don't go on vacation.... But ultimately - it's not gonna be enough. Somehow you have to generate returns on what you have to keep your purchasing power. HYSA means you're only falling behind a few percent a year- but your still falling behind. Prices aren't likely to fall 20-30%. Houses are less affordable - yet to investors, they don't care- it's an investment with an annualized return over and above appreciation. The "K" shaped economy is a real thing, and it'll be harder, and harder, and harder to maintain if you didn't take the upward sloping trek 5 years ago.

Illustrious-nductxn

Put all on a HYSA and pay with the interest collected until the tax is paid.

HiMyNamesEvan

A HYSA may work wonders for you. I don’t know your monthly expenses but 20k sounds like a lot to have sitting in a checking account

taplar

I personally would encourage you to look into Money Market Funds. These funds typically end with "XX", such as VUSXX. Use their Trailing Twelve Month (TTM) percentage as a comparison to any HYSA you are looking to open.

Logical_Stranger4889

I just am aiming for cash to support 6-12 months of emergency funds in HYSA and then the rest is going into the stock market.

robobarra

Hey all! I’ve been lurking on subreddits like this for a while and am looking for a little advice. I’m working on saving for a new car - my current one is completely paid off and so I’m “paying myself” a car payment so that, in 10 years, I have the full amount needed to buy a new one. I’m trying to add a little more security to my overall financial situation so I’ve been setting up a few savings goals for higher ticket items that I know I’ll need to replace consistently (car, phone, smartwatch, etc.) I’ve read that for <5-year savings goals, a HYSA is the best bet but was wondering if there are any suggestions for something that feels longer-term than the usual savings goals. Any help would be appreciated!

Richard_Cromwell

First of all, OP has $450k in investments shown in this post. Second, you can live comfortably on ~$1,500/month in a few places around the world, Thailand being one of the most iconic. On paper, that'd get you by for 25 years without any additional side work or interest on current assets. Lastly, some modest investing or a HYSA and 4% returns (admittedly, a not-so-likely outcome given the sub we're in) you could theoretically just live off interest/returns without ever depleting what OP has saved up. So, to sum things up, OP could totally retire comfortably in a low cost of living country if he was fiscally responsibly and savvy. Because he's on this sub, I think it would end poorly and OP would end up having to learn the way of the ladyboy because Thailand does not have Wendy's.

Kazz330

Howdy! I am in the US, and have a fun/side investment account that is separate from my long term savings retirement accounts that I have been using to save for a house over the past 3 years. It is currently up just over 50% over this time period, and I am thinking of cashing out into a HYSA to prepare for us to use it as our down payment next year. Is this sound logic? Or should I continue to gain and add to it? I realize it would trigger a taxable event, but I am just trying to preserve what I've been able to achieve over the last 3 years. Thanks so much!

Majestic_Republic_45

You’re not an investor. Park it in a HYSA or a CD.

Dr_Zoonotikstein

Man, I hope your fears are unfounded. Besides being an atrocity that might trigger WWIII, such an act might possibly tank the entire world economy. Even "VOO and chill" or cash in HYSA would be precarious positions in such a scenario.

account-names

HYSA to let the nerves calm down before making a rushed move

Puzzleheaded_War6102

If you are 1 year from retirement and 100% equity portfolio. You are the greatest regard and belong here. At least 6-8 years out you should be 80:20. And move 5% from equities each year to blend of CD, TBills, and GLD until the ratio is 60:40. You should also have 2 expenses stored in HYSA or CD 1 year prior to retirement.

firesquasher

Maybe 50 years ago. Pensions went most away save from government work. 401ks were the mass migration from companies having to deal with any of that. If you were getting a steady 10% return, you think youre *really* gonna move it over to bonds or an HYSA? Especially because of the massive tax hit you'll get by withdrawal? All whole inflation is steadily eating away at your money if you park it somewhere that doesnt at least cover that? Shame on those that themselves in high risk tolerance investments, but *most* people in that era didnt even know about where their money was parked. They were just told "here, pay into this for your retirement for 30-40 years and youre straight"

Substantial-Task-112

27M, about $291k in total assets. Looking for advice on my portfolio. I make about 65k a year and my risk tolerance is high. Not married no kids and no debt. I'm trying to save for retirement. I currently have about $75k in my Roth IRA (80% VFIAX, 20% VGT), $129k in my TSP (75% S Fund, 25% C Fund), $2k in a brokerage (VTI/VGT), $10k in a HYSA, and $75k in crypto. My current plan is to leave the VFIAX I already own, but put future Roth contributions into VGT and possibly make the Roth 100% VGT over time. For my brokerage, I was thinking about just buying VTI going forward instead of adding more VGT. I would keep my TSP at 75% S / 25% C. I'm 27 and investing for the long term. I know I have a pretty aggressive portfolio, especially with the crypto and VGT. Does this allocation make sense? Would you change anything, especially the VGT/VTI/Roth strategy or the amount I have in crypto?

chronicpenguins

Here’s something to consider: the contributions to a Roth IRA can be withdrawn whenever you want without penalty, it is only the earnings that cannot be withdrawn early without penalty. So let’s say you save that  2,000/month through your employer 401k, you’d need your employer to allow for after tax contributions.  Since you already plan on using half of it.  Once you hit your goal in contributions, you can withdraw it into a more accessible account or keep it in your Roth, but either way whatever earnings you accrued will continue compound, tax free.  This is only a smart idea because this contribution wouldn’t have gone to your retirement anyways - it was a seperate savings fund. The downside of this is that you can’t use those earnings on things you might have if kept them in a taxable account, although some would argue from a retirement perspective it just means more in retirement. Or you can adjust your base 401k retirement savings accordingly, or worse case you pay the 10% penalty.  I’m shifting more of taxable account funding into my Roth, because for me the idea of paying taxes  on earnings makes me hold onto some assets longer than I should have.  I’d prefer to be able to rebalance or reposition my portfolio tax free.  this is after I’ve created a sizable, accessible taxable account, but I would’ve put more into my Roth had I known this.  The other thing I would consider depending on your risk tolerance is being more aggressive in your emergency savings account. For me I used sofi’s automated investing set to moderate aggressive for simplicity of automatic contributions. I still had about 2-3 months of spend in a HYSA, but my real emergency fund that I have only needed to touch once grew 147%.  Since you have a long time horizon, compounding at 6-8% vs 3.5%, after a couple years even if you took a 20% hit at the exact time you lost your job and needed it, you would still be ahead. Again, riskier, but allows you to build wealth faster.  Last but not least, sure your rent is 3,000 a month and you get free food from the office. But is $125/week really how you want to live? Enjoy being a young adult.  San Francisco is a great city, and give yourself some more money for hobbies and traveling! 

RickDick-246

I would lock in those gains and probably put it in ETFs. And I have. I don’t necessarily want it in SGOV. If I were just going to try to beat inflation and needed that cash in the near term, I’d probably just stick it in my HYSA. If it’s going to remain investment money, I’d de-risk it and go 80/20 VTI or VOO and VXUS. There are a million ways to cut it. You could take half and put it in ETFs, you could take a % and put it in SGOV or an HYSA, you could leave half in individual stocks. Just depends on your risk tolerance.

DistributionFun9623

You're 22 and have a fat savings rate, but a house down payment isn't a retirement account. Even with the flexible timeline, one bad year at year 4 will wreck your plans. Keep it in Treasuries or a HYSA, maybe a CD ladder. If you want some upside, put a small slice in VTI and leave the rest safe.

wlphoenix

One thing I haven't seen mentioned from all the people saying HYSA is FDIC limits. If you're above $250k at a single establishment, _technically_ there is additional risk to the account because it's above the limit. Now practically there's minimal risk, but it is worth being aware of. I personally kept my down payment money in my brokerage account in an interest earning settlement fund, which typically going to be a MMF. Rates are typically comparable to a HYSA but contribute toward any brokerage thresholds for better rates/margin/etc.

culdnthinkofanything

SpaceX employee here. 25k shares at \~$200k cost basis. I have the privilege of seeing all the amazing things we work on daily. I’ve been here for quite some time, and I’ll continue to work here regardless of the long hours and high stress/pressure environment. I see that same drive in all my peers, who are objectively some of the best engineers/technicians/planners/specialists this country has to offer. Can I sell? Sure. Will I? Nope. My net worth is 95% SpaceX, and that isn’t getting smaller anytime soon. Whenever I need cash, I get a loan against my shares and park it in a HYSA. I withdraw whatever I need. It’s pretty cheap and easy access to cash. A lot of my peers do the same, and will likely continue to do so. Good luck, shorts. We’re privy to info that you aren’t. Hope this helps.

PiBolarBear

I mean based on your comments you seem like you know what you want to do, but don’t forget you can park them in different places. Maybe setup 20% of that downpayment (100-150k) in a HYSA or bond ladder and then the rest in the S&P500. If you’re looking to be aggressive and think you’ll need more money but aren’t afraid of a few more years then throw that extra 250k into some more aggressive funds like a Large Cap Growth ETF. 

ohstoopid1

Inflation depreciates straight cash over time. I know it's only 5 years but assuming 3% inflation over 5 years for this kind of money adds up. I'd go with a HYSA, SPAXX, or SGOV to at least offset inflation.

MaddRamm

Put the max you can in a HYSA at your local credit union/bank and maybe have accounts at a couple different institutions. Mine only give me the high interest rate 3.80% on the first $50k and then it drops back down to .05%. They want you to put it into CDs and such if you really have a lot. Beyond that, I put it into SGOV, a treasury/bond ETF that’s like owning short term treasuries and pays out around what HYSAs do, so just under 4%. Its value doesn’t fluctuate like an S&P ETF would. What happens if the market happens to be down 10-30% in a few years right when you are looking to buy a house and your down payment has taken a huge hit. But SGOV pretty much maintains a value of $100.30-$100.70 per “share” and pays monthly so it can accrue faster on the earned interest.

BirdNose73

Unless rates skyrocket there’s really no reason to save that much of a downpayment. Having more than 100k in a HYSA or CD’s seems silly and would leave a lot of cash on the table

MarkofCalth

Make yourself a budget sheet in excel. Tweak your numbers to allocate money for investing, HYSA, all your bills, and then assign yourself some “fun money” to spend on going out / buying yourself something you want. If you want something big, save up your fun money each month and then buy it. You can adjust the amount from month to month to meet your needs. That way, you have money to spend - guilt free. It’s not an impulse purchase if it’s in your budget. Investing is important, but also invest in yourself through hobbies and fun things with friends/spouse. Those factors are just as important as having a lot of money when your old

EKingJames

If your timeline is <4 years I would recommend a HYSA.

benchplayer3

From what I understand, you have minimal savings now, but in 5 years you expect it to be around $400k? I would probably do something like 80/20 S&P/VOO for 3-4 years. Around the 1.5 year mark before you buy, you're going to want to start taking money out of the market to keep in HYSA to stay liquid. You're also going to want to minimize capital gains for tax reasons, so structure it in a way that you know the money you take out has been in the market for at least 2 years.

MegaWeinerFarts

> would it be best to put this money in a generic brokerage account invested in the S&P, an HYSA, or somewhere else? Short answer, HYSA or better yet CD's or even Treasuries, making sure they mature before you're ready to buy. As to why people don't generally recommend brokerage: What if the economy is in a full on recession in 5 years? Stocks down 30%. Would you be willing to sell at such a loss in order to buy your home, even if home values might be down a bit too? Probably not. 5 years though, that's usually the cutoff time between investing needed money and saving it in fixed income (HYSA, CD's).

No_Hamster_6615

It depends on where you live, but for a first house: If you have $400k just buy the house. You can get a boujie first house where I live for way less than that. Why mortgage? Also if you are 22 and able to save $400k in 5 years, you've already won. I was scared and did HYSA saving for my first house and lost out on tens of thousands if it was in S&P or bond ladder. S&P could be more, but could affect your timing and force you to wait a couple of years if the market timing is poor.

Odd_Papaya8305

Yes, I’ve been away from options and putting money into my HYSA and roth IRA!

Marcush214

Shut in a HYSA it will pay you enough interest as a minimum wage job while still having liquid cash or maybe he got a dividend portfolio who knows man

GalacticPlutoBear

Think I’m better off sticking to a HYSA

SkillFine9793

Definitely HYSA but nothing is really safe these days.

StinklePink

I like SGOV as an alternative to a HYSA. Maybe not to a 40% of my portfolio degree but as a good Emergency Fund stash.

Paul_Robert_

Lmaoooo, even just a few percent from a HYSA would be more than the median Joe's salary 💀

jyoung1

Look up the money supply growth of your currency and compare HYSA after tax

Various_Couple_764

The answer to the question depends on howling the money will be invested or placed a HYSA. If you invest the money for under a year and then sold it you could get capital gains or a capital loss. If instead you had it in a HYSA there would be no captial gain or loss. and the effect pt inflation depends on the difference e of the rate of inflation and minus the interest earned which it likely going to be a very small number. However if you hold the money for 10 year you would likely get capital gain when you sell while money in a HYSA will suffer 10 years of inflation losses.

CSMATHENGR

this is literally my thesis. I was earning 4-5% in my HYSA of 20k for a few years. Last year once inflation started going crazy and HYSA interest fell to 3 I decided to invest 10k and using the other 10k as spending money. Going to ibiza in 2 weeks. At this rate it’s better off being spent than losing value

shanus94

Logically yes, max out your Roth (if you are eligible) max out your 401k contributions. Throw 10% into a HYSA. But… this is WSB.

mazzicc

“Safest” is not a defined term Government bonds are all but guaranteed to be paid back, and will generate interest, but inflation can grow faster. The same applies to HYSA’s, and I think a LOT of people don’t realize that the awesome 5+% HYSAs they opened in 2023 are not still paying that rate. There are still some 4% out there, but that’s generally the max, and not guaranteed either. But if inflation is right around 4%, and potentially higher, that 4% HYSA or bond isn’t really doing much. if you’re in an HYSA, you’re more liquid to move around if the rate falls, where bonds you’re not as liquid, especially if you want higher rates. All that said, neither of those options really does anything other than hopefully pace inflation. And that’s all they’re supposed to do, really. That’s not really an “investment” to some people, unless you think inflation will be lower than returns…that’s just savings (I know it’s technically an investment, but colloquially people think about investments making them money, not just keeping them flat)

dwntwnleroybrwn

What's the time horizon and what is the money intended for? House down payment in < 5 years? HYSA Retirement > 5 years? S&P500

ImxTrash

really? inflation grows that fast that HYSA is completely voided?

InUrFaceSpaceCoyote

What time frame? What conditions? What constitutes an "investment" for this purpose, because I wouldn't typically call an HYSA an investment in the first place.

InvestInTwinkies

Is the money for less than a few years? HYSA. Is the money for years from now? Index funds

kokanee-fish

Risk and reward are always correlated. So if you literally want to find the "safest investment" then you are trying to find the lowest-ROI investment that doesn't have a negative return. Historically people would say bonds, these days they'll say HYSA or CDs. I think the question you maybe actually had in mind is "which investment offers the best balance of risk and reward for a small account" but the answer to that depends entirely on your circumstances and goals. S&P500 is a decent answer, but even that won't be a positive return every single year.

abeBroham-Linkin

SP500 has been giving returns of up to 11% for the past 5 years, even with tariffs, COVID, and the war. HYSA, largest I seen was 4.5%, for 9 month trial.

BarefootMarauder

*Safest* is HYSA or US Treasuries. But it could depend on the agreed upon definition of "safest" and "investment". To me, those aren't investments, but rather they are places to keep cash safe. For an actual investment, I'd say a low-cost total market or world market index fund. VT & VTI would be examples.

Skippy989

SGOV. Three month duration US treasury bonds. You'll get the same rate as an HYSA without state taxes on dividends.

Fibertad

HYSA would be the safest, but I would open a brokerage with vanguard and put it in VUSXX. It's safe enough

jyoung1

Whats safe when inflation runs 4% and HYSA returns 3%?

samuelj264

Safest is HYSA, but it entirely depends on their goal for the money

WorldlyWar2143

useless in today's america I don't even see the point for retirees. Just port into HYSA or something like a dividend stock if you're in need of safety.

xsquintz

My strategy is to stash and slowly invest all my side hussle money like I've never earned it. The bigger my HYSA stash the more Im comfortable investing in Etfs.

New-Sink-9089

What’s HYSA

TomEpicure

How is that even possible? Two years without profit, get a HYSA dude.

pain474

Why put money in a HYSA to make 3% a year when stocks make 10% per day?

visionarymind

Holding MU🐏 for one hour outperforms every HYSA

greytoc

I'm generally not a fan of using bank products such as HYSA and CD's as savings or investment vehicles. They are tax inefficient in many states and tend to lack the ability flexibility. See the FAQ here [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_are\_low\_risk\_investments\_with\_liquidity\_that\_can\_be\_used.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_are_low_risk_investments_with_liquidity_that_can_be_used.3F) and here [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_is\_a\_money\_market\_fund\_and\_how\_safe\_are\_they.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_is_a_money_market_fund_and_how_safe_are_they.3F)

WasteProfession8948

Bond funds (USFR, SGOV and similar) are fully liquid. Similar to HYSA rates and state/local tax free.

Mrsir300

You are better off putting your money in a HYSA than that shit - imagine putting money into that shit during the biggest bull market of all and losing while everything else goes up as fuck

JoeRidesBikes

Are you going to need the money in two years or is this for retirement? If you need the money when you get back, put it all in an HYSA, CD or SGOV. If it's for long term investing (retirement) put 100% of it into VT or VOO or whatever index fund you desire. What is the money going to be used for in two years? Start there.

DoinIt4DaShorteez

those etfs are barely over 3% now and not likely to go up much from here. if you can get 4%, then it's a matter of whether whatever the restrictions on it are are worth the extra 1%, given the amount of money you're going to put in. I've never used a HYSA so I don't know what the liquidity situation is if you want to plunge into stocks during a correction. I have money in BIL in my brokerage accounts and I can sell some of it and instantly buy something else with it.

RjoTTU-bio

I think the rules of the game for the average Joe are pretty straightforward. 1: maintain a cash/savings cushion in a money market or HYSA. 2: minimize bad debt (credit cards, unnecessary purchases). 3: invest in a standard portfolio via tax advantaged funds (401k, IRA, Roth IRA, HSA, 529, etc) to maximize compounding while minimizing taxes. 4: build up assets or invest in a non tax advantaged fund like a brokerage. Do this with the goal of someday retiring with enough money so others do not have to support you. You might retire with $1M or >$10M net worth depending on what you do for work and how much you can save. It is just math and patience.

Eastern_Turn6677

this guy coulda put it in a 5% HYSA and he coulda been solid living off it. and even a part time job to raise his income..

DrXaos

You will always have a positive total return, accounting for dividends and capital gains/losses. If you reinvest dividends you will come out ahead. It's extremely safe. There is no need to use a HYSA in any bank which will return less. If you are even more paranoid you can buy an actual named CUSIP t-bill to mature at your future date. Schwab and fidelity let you. I just did that, bought a bill at about 3.73% out to october/november. SGOV is about 3.50% (with short duration). Market is pricing in some possibility of a rate hike as you can see.

garnersgoats

but HYSA rates fluctuate with short term interest... that's the beauty of going with a HYSA when you have $0 to invest.. tho, in times of low inflation and strong economic expansion, you might want to invest in CDs to lock in the interest on your $0 investment, so you can maximize your returns.

EmergencyFair6786

2% in August is over a 4% annual yield. That's better than a lot of HYSA right now. 

niwmo

A gain/loss ratio of 1.32% means you should stick to a HYSA, even mutual funds and ETFs are too complicated for you!

Boring_Aardvark_9463

1.) HYSA, Monet market accounts, etc. 2.) it’s a SAVINGS account brother it’s used as a means for emergency situations and liquidity in a time of distress. Not to be exposed to market and drawdown risks. “Economics 101” yet you’d fail an economics class with that ideology.

SirGlass

Yeah but SGOV essentially is almost the same as a HYSA .

planes01

This is where you park money into a HYSA imo

Frequent-Hat-5260

Cash gang counting down the minutes for that 3% interest to hit their HYSA account

PsychologicalDay2852

Hi! 20F in California, just started making real money for the first time and just started investing. I have a CD that expires next month and i’m deciding what to do with the money. Would love some advice from someone who knows very little about investing and didn’t come from a family that invests. Current breakdown: -Around 2000 in checkings -15000 emergency fund in savings (ever bank HYSA, just opened last week. this was in the same bank as my checkings before. i’ve probably lost a couple hundred on inflation on this the last few years). I put 70% of my paycheck in here. I’m making good money ~4000 a month at my internship, but that’ll slow to around 500 a month soon, untill I start work full time again fall 2027). My 500 all gets spent on basic living expenses. -45k in a CD (grandparents inheritance, sitting at around 3.40%. it seems silly that a hysa makes more and i’m putting so much into this CD and using it as my main investment. i’ve had it for 2 years and put all the interest last year back in. i’ll eventually use this money or a house down payment or car but not in the next 5 years) -Almost 2k in Roth ira (opened last year at around 1000, been putting in 50 a month, has been making like 2 dollars a month interest) What’s next: So, the CD expires next month. I’ve done some research I think i’m going to take 7500 out and put it in my Roth, leaving me with about 37. I’m thinking about putting 17k of that in a brokerage account with Merrill. That’s the investment i’m most scared of! The other 20k will go back in a new CD. What do you guys think of my plan? I’m most scared of putting 17k in a brokerage. I don’t know much about Merrill’s plans, but that’s where my CD is now. should I self manage it? I’d just buy common ETFs, maybe 75% VOO and the rest i’d invest something like VXUS to diversify. Biggest expense in the next few years will be rent! Right now living at home still and commuting to college. Looking to move out next year. Am I making a dumb decision? Help!

_rockthemike

Right. I just can’t do it. I’m the type who has a shit ton of cash as a security blanket sitting in HYSA. Is it making me a lot of money? No. But, that’s what we need to feel comfortable. I have more invested in the markets and it’s fine. If I want more investments, I’ll earn it trading, not gonna borrow. Can’t stand the taxes especially since my wife and I earn over a quarter mil a year. All this to say, fuck no margin

nordik1

HYSA would technically be the best investment of the year

No-Improvement3164

My HYSA interest is hitting my accounts. Finally some green.

sitintent

We do have a HYSA that’s funded pretty well and was a thought of ours to put it all in there. Thank you

Adventurous-Suit-662

Into a HYSA yea

Significant-Ice3387

You can put that cash in some HYSA so it can at least do something while you're thinking on it more. Sounds like you have a low risk tolerance. Maybe invest in some short terms with principle guarantees while you research other options. I wouldnt do that longer than a year though. At some point you miss out on opportunity. You could always get with an advisor if you're not confident in investing yourself, no shame in that

opsqttt

Withdrawing first thing tomorrow into a HYSA

multiple4

I mean anyone with a brokerage account can buy short term treasury funds. I own some myself And ultimately most HYSA are essentially a short term treasury with some APY shaved off

Beantowntommy

How much risk can you personally handle? Stocks are risky. Bonds are risky too but simply put, less risky. Me personally, I’m 100% equities + an HYSA that guaranteed 3.5ish %. I’m 31 and have no kids so this is fine for me, for now.

Redfield11

Point B is better because your capital could be earning elsewhere in the meantime (if even just a HYSA or bond) if you had this level of clairvoyance.

Redfield11

Point A is better because your capital could be earning elsewhere in the meantime (if even just a HYSA or bond) if you had this level of clairvoyance.

CokeBoiii

He has a better chance sticking his money in a good HYSA account and thats it. It's to late for him

OdiesBalls

1. I set my 401k contributions so I will hit the annual contribution limit ($24,500 in 2026) by the last pay period of the year. 2. I try to hit my Roth IRA annual contribution limit ($7,500 in 2026) by June-July by depositing \~$1k/mo into that. 3. Pay off ALL my bills for the month so there's no CC interest accruing, while keeping enough in my checking acct to cover any automatic deductions like my electric bill or bi-annual car insurance payment. 4. Dump everything else into my taxable brokerage account, which is currently invested in 3 ETFs: VOO for growth (\~75%), SCHD for dividends (\~20%), & VXUS for international exposure (\~5%). I think I currently have too much in SCHD, so going forward I will only contribute to VOO & VXUS until I'm about 75/10/15. I'm in my mid 40's, so in another \~10 years I will switch more to Income rather than Growth ETFs. I'm not too concerned being 100% into ETFs currently, as I have a couple years worth of living expenses in a HYSA that I can depend on if the market tanks or I lose my job for a period of time. Also - I'm no expert. There's probably a better way to invest, but this is just what I've been doing for the past few years.

Bobbybobinsonbob

I bought bitcoin in 2022 averaged around 28k, sold at 95k, put that money in a HYSA for a year, a month ago I yolo’d that money into NBIS, lol, now I’m down more now than if I had just held bitcoin. I’m probably just gonna go back to bitcoin in the fall to catch the 4 year cycle train again

WallStreetThreats_

I could have legitimately just left all my money in a HYSA with a dwindling rate from this time last year to today and made more money

BearyYawny

High risk: Majority of portfolio in individual stock pickings and sector-specific or thematic ETFs like MAGS. You can gain or lose considerable percentage of your investments on any given day. Moderate risk: Well-diversified ETFs. Unlikely to move up or down quickly but may see major movements during global events like Covid or the start of the current Iranian war. Low risk: Majority of money in cash, HYSA, MMFs, bonds, and the like. Comparatively lower returns and may not beat inflation. Ask yourself if you're a betting man. If the goal is simply to grow your wealth and have enough for retirement as opposed to getting rich, there is no need to play individual stocks. There are lots of winners and losers in this game and nobody knows which side they'll end up on.

BoltyMcSpeedy

I put 17% into my 401k + 3% employer match I have weekly auto deposits of about $135 that go into my Roth IRA on Robinhood. Whatever the math is to hit the max by Feb. There I have 2 tiers of holdings. Tier 1 is my backbone, and I have about 12.5% of my portfolio each in 4 stocks. I have another 10 or so making up the remainder. Those are between 4.5 and 7% depending in performance. I balance things out from time to time and it's usually the smaller positions I'll trade with. I have a taxable account as well that gets $65 weekly, also on RH. This just holds VTI and QQQ Lastly I have a RH checking/savings account and 1k from each monthly paycheck goes there into HYSA to give me liquidity in case of emergency. Once that hits 50k that 1k will instead go to my taxable brokerage Edit: I guess I'm a RH stan. It's also one of my smaller IRA holdings

GuwopGOAT

KORU is considered a HYSA in Korea

sharp315

no - paying off any loan with a 2.875% rate is criminal. If you simply put the cash in a money market fund or HYSA you will come out ahead. even if you have a psychological aversion to debt you should never pay that down early.

sharp315

no - paying off any loan with a 2.875% rate is criminal. If you simply put the cash in a money market fund or HYSA you will come out ahead. even if you have a psychological aversion to debt you should never pay that down early.

jerm2z

Panels 1-6 are for a HYSA. But just panel 1 is a WSB member’s account that does not see the other panels.

rbnprd

I think I'm just gonna stick to the HYSA until the next preseident

jetpilot6969

This is the correct answer. A down payment for a house that is going to be purchased in the near term should be in HYSA or bond ETF.

OrdinaryMix4013

if we lower the rates to -10% like taco says, does that mean my HYSA will pay me 20%?

Ok-Acanthisitta9247

A HYSA would be a better investment vehicle than the stock market this year

RagnarokWolves

1) Any super quick success stories are done with plays that are akin to gambling. People have lost their bank accounts on these types of plays. 2) We recommend investing in index funds. You're not gonna wake up and see your portfolio increased 10x overnight, but put in the time and in a few decades your $2M portfolio will be returning an annualized $200k a year. 3) TBH I'd keep your house savings in a HYSA (or SGOV to avoid state taxes). Investing is great and pays off in the long run, but in the short run ANYTHING can happen. Look up how long it took for the S&P 500 to see progress after the dot com crash of the 2000s. That entire decade is known as the lost decade. But anyone who stayed investing during that period would have seen an insane surge from 2010-present. Investing is long-term.

0201037464793921170

Oh what will this week’s excuse be? Let me guess… “Investors are spooked ahead of this week’s fed decision” - just get a HYSA 😂😂