Reddit Posts
What is the best way to invest 300k without significant risks?
What should I do with the money I have and what are the next steps in my financial journey?
What should I do with the money I have and what are the next steps in my financial journey?
Experience with Private Alternative Funds and P2P?
Assuming interest rates will come down in the 2024/2025 time frame
How do I convince my wife that she is keeping too much in HYSA?
HYSA Or REIT not sure which one is the better option. Please see description below.
I have an infant and two year old and want to take the family on some sort of awesome vacation when they are old enough to appreciate it, say 7 and 9. Would creating a brokerage account for a specific ~6 year goal make sense?
What to do with $300,000 just sitting in my checking account?
I feel like I’m leaving so much money on the table. Talk some sense into me.
Choosing between a CD or HYSA to allocate 15% of investments..
Thoughts on 31yo investment portfolio - big pay raise next year and questions
Is it worth holding money or paying off an auto loan?
Short term investment/ saving options to financially support parents
Maxed Roth IRA 2024.... invest or save money held for 2025 Roth IRA?
What "asset class" has the lowest IQ investors?
Where to invest 10k leveraged from CC cash advance (5% fee)?
400K investing advice with keeping it safe as only condition
Any HYSAs that are still offering 4.5-5.5% APY other than Marcus?
I have 60K sitting in my bank account and my salary is 60K. HYSA vs ETF vs ??
Reinvesting $30k in HYSA - are T-Bills my best option?
Reinvesting $30k from HYSA - are T-Bills the best low-risk option?
Looking into CDs, but I need an explanation on if I am understanding this correctly
Can a non-guardian set up a savings/brokerage/HYSA account for minor?
Possible opportunity of a lifetime that I'd like an opinion on.
42M - Seeking Insight on My Investment Strategy
British expat living in the US. Thoughts on my investing and saving strategy
Is my retirement outlook reasonable or is this out of sight?
Starting first "real" job after graduation soon and plan on maxing my Roth IRA Contributions and enough to get my employer's 401k match yearly. I'm looking at possibly buying a house around next spring and am contemplating whether to do something safer like a HYSA or throw it in index funds/etfs.
I am afraid to stop contributing towards my investments to build 6 month emergency fund because of my portfolio manager
British expat in the UK, want to run my logic past some 3rd party people
Where should invest $125,000 as a 25 year old in 2024?
Back in 12/31/1999, I was short YHOO.......then this happened
Back in 12/31/1999, I was short YHOO.......then this happened
Where to park money for a down payment for about 1-1.5 years?
SPAXX (MMF) vs Marcus by Goldman Sachs (HYSA) Which one should I use?
Investing When Young is Always Suggested, But How Do We Know Market Will Be Strong in The Future?
Dump in large amount or slowly add into holdings?
What are your views on moving out of cash investments and into bonds, etc. at this point in time?
Investing advice for moving around 100k into ETFs
Schwab vs E-Trade vs SoFi vs Robinhood for Trading Stock
Is maxing out my Roth IRA towards the end of this year worth it?
One Year Rolling “Escrow” Investment Strategy Feedback
Max out 401k, pay off debts or keep in HYSA for down payment on a house?
How to DCA a large sum of cash? How long is too long to space it out?
If you were gifted $50,000, how would you divide it up between S&P500 and HYSA?
If you were gifted $50,000, how would you divide it up between S&P500 and HYSA?
SGOV a good place to hold cash for liquidity?
Mentions
These get asked a lot. You’ll want at least 6 months of money marked for emergencies in a HYSA. After that, you can invest in a 401k/hsa/roth/retirement type funds. Then, you can do a brokerage, but skip the managed accounts. You’ll get further with something less fancy like an ETF tracking the SP. JP Morgan will likely do the same but charge you fees.
Why do you say that ? I agree you should have an emergency fund in a HYSA worth 3-6 months of expenses for rainy days but I believe everything you put in your investment or retirement account should be invested.
Leave your money alone in that HYSA and just start at 0 in an investment account. Job market is tough these days and anyone is prone to being laid off at any point without warning. $5k isn't much investment wise, and it'll likely bring you more piece of mind having it "extra". Personally I believe in holding 1 year worth of expenses in an emergency fund because you just never know.
450K in HYSA out of about 2M investable. That’s mostly because we are in the process of building a house though moreso than a reaction to market conditions.
I'm 30% equities, 40% fixed income, and 30% HYSA (ie. cash). But what's right for one investor may not be right for another. Like I track the markets, so if it starts to dump I'll exit my equities in a day/week. And it also depends on how long you've got and what your cost of living is, etc. All I can say for sure is don't trust anyone on reddit (including me). The internet is a ceasepool of assholes nowadays.
Lmao I keep an emergency cash fund in case of unexpected personal expenses that couldn’t wait t+1 for trades to settle. I have never stopped investing the rest of my money. Not in 2008, not in 2020, not in April of this year, and not in any other downturn. Im always buying - on green days, I buy more on red days, and I only sell if/when I need the money. I’ve also been branching into BTC and it’s been doing well for me too. Anyone who’s so terrified of a crash and is trying to time it should just exit the market and put your money in a HYSA or something.
I hold about 12 months’ of expenses in cash (HYSA/SGOV) regardless of market conditions. I do think that a crash in the next few months the or years is likely but I also know that I’m shit at predicting such things. I’ve thought a serious crash was coming for over a year. I’m glad I’ve stayed invested through it and through COVID and through the financial crisis, etc etc.
If you were me would you bail at even money and go back to CDs or HYSA?
Any advise on how to pick the HYSA?
Take 3-6 months of your expenses in a HYSA then invest the rest
was in similar spot last year (but with less saved). learned these things helped: • calculate actual house price + closing costs first • keep 6 months expenses on top of down payment • HYSA only for anything under 2 years 12 month horizon is way too short for market risk. speaking from fintech experience here
Yeah. Open an investment account and put 5k to start in a high yield fund like JBBB. Its over 8 percent and very stable. People say Roth ira but I would recommend building an advanced emergency fund that produces income you can use when laid off. I have 160k in an income portfolio and 40k in emergency HYSA. The income portfolio is diversified and pays a mix of high and low yield.
8-10 years is a long time to just put money in a HYSA. The risk is you might not want a house in 10 years, and you've lost growth and real purchasing power to inflation. I would treat the 'savings' as part of my overall investment strategy and as I got 1-2 years out from buying house then start to move it to cash. Who knows where rates will be in 8-10 years, but I tend to lean towards putting down the minimum required to avoid PMI. Use the leverage offered.
Invest in a better HYSA. I am getting 4.5% fir 6 month CDs at Marcus, by Goldman Sachs.
HYSA is the ONLY answer here. Based on how you asked the question this is likely your first home purchase. A lot of things can go wrong during and shortly after buying a house. Even if it's a new construction you might be surprised by a random large expense. I have learned to stop min maxing my life. Would tossing that extra cash into your 401k give you a better life 35 years down the line? Probably, maybe, who the fuck knows.
Straightforward advice is HYSA, or a money market fund if you're willing to mess with a brokerage account. If the downpayment is large and you're in a high state income tax state, a t-bill fund's dividends will be exempt from that tax so may be worth it. If you've got a decade to work on this, you've got enough time to deal with turbulence. I might do an FSKAX / FTBFX combo starting at 80/20 and gliding to less equity via new contributions as the timeline approaches.
You're making it way too hard on yourself. First off, forget the options trading. Once you have a foundation down, maybe you can pick it back up with some fun money or whatever. Have a baseline. Mine is 6 months of household expenses in a HYSA. After that. 401k Match (if you have one through work) HSA ($4300 for a single person; again, if you're eligible) Roth IRA ($7000 /yr) Remember, you don't have to max out everything. Just start using these tools at your disposal. Get rich quick shit seems to always blow up in your face. It's a marathon, not a sprint!
For me a bank account is for paying bills. Honestly, Fidelity account is better to receive direct deposit than most banks. The budgeting and historical performance is better than any bank. The expense tracking is better. The automatic money market (even though you should use SGOV) is better than any bank. A bank is useful for like linked credit cards, maybe Zelle and ATM? I find clients spend HYSA money easier than SGOV money. That might be my anecdotal experience, fine. But just that little obstacle of liquidating SGOV helps fend off needless spending. You want to pile on little habits that are designed to help you. Set an auto, if you forget it, at least it was working for you auto. Use SGOV with dividend reinvestment. If you forget it, at least it is not expiring CD that relies on you following up. The little things add up. Structure is strategy.
I would probably put half in a low cost 2035 target date ETF such as ITDC and half in an S&P 500 index ETF or MF such as FXAIX or VOO. This would require me being comfortable with either an outcome where my money stays safe and I missed out on some gains by not going all in on or FXAIX, or there is a market downturn within a couple of years of my projected home buy, the market crashed, and I have to wait some additional years to buy a house. But for me, either of those options is preferable to the risk involved in going all in on the market, or the guaranteed anemic growth/stagnation of having the money in a HYSA for ten years.
Can only speak for myself. I saved about 450k in a HYSA between the years of 2017-2023. If I had to do it again, I’d allocate something into the SP through an ETF. I’d set aside just enough where there was some upside, but not so much that I’d lose a house without being able to sell my shares.
Hi all, Asking the typical question of where to plant money aimed at being a down payment for a house. For context, my wife and I are in our mid-20s with no debt, a fully funded six month emergency fund, and own both our vehicles. We plan to buy a house in the next 8-10 years, but are deciding where to start saving towards a substantial down payment (aiming towards as much as possible). I guess the gist of my question is, would it be wiser to place our monthly savings for the down payment in a HYSA for the estimated 8-10 years, or invest it in a single index fund such as FXIAX or FSKAX in that time frame? I know that historical returns show that the investing would likely bring substantially more money, but more volatility especially with this current administration. Also, would FXIAX or FSKAX be the better single investment? Thanks!
I realize this is late, but I've had a pretty good experience with moving money to my BofA checking account out of a Forbright HYSA. Getting the account connection set up with microtransactions was a bit annoying, but once that was ironed out, I can move money and have it show up in my checking account the next day. They say they may need to verify it, but I've never actually seen them do that.
I’m essentially just using them as an HYSA to park funds while waiting for market conditions if I don’t have any trades I’m actively wanting to make. Otherwise it’s buy UNH and APPL for now haha
A HYSA right now is a decent option. After 30 years of investing, I looked back a couple years ago and found I would have been better off in 100% equities except in 1994-95. And it wasn't by a small margin. Even in my early 50s, I really don't see the point, abd only keep about 5% in bonds to appease my wife, and financial advisor. Just my opinion, but until you’re 35-40, balls-to-the-wall is the way to go. 50% S&P, and 50% tech, etc. Slightly more conservative in your 401K, and much less conservative in your Roth.
You are doing great. In your shoes I would do the following: * Calculate your living expenses and increase the money market to 6 months, probably 12. * Calculate your estimated retirement expenses. Determine if further retirement investing outside of 401k matching is needed anymore. * Migrate that money market to a HYSA * Start saving for a non-emoloyer income stream. Landlord, your own business, FarmTogether, your favorite food truck getting their own building? Up to you. * Invest in yourself. Rather then a degree or certification I recommend attending conferences of industries you are interested in to build up your network and also help you find that outside investment. Now everything I've said to do above is pretty conservative but here is why I recommend it in your case: * You and your spouse are both in Tech, a volatile industry where if you do get laid off it will take a long time to find another job right now. * I expect an 08 style market crash soon. * As an example above I recently met a 28 year old who had been promoted 5 times at Amazon, had an engineering degree, started a successful healthcare non profit at 17, and was wrapping up an MBA at a healtchcare university and wanted to work for our company. I told several leaders about not only their impressive tech skills, but their empathy and focus on patient delivery which I feel is the most important part of working in healthcare. You would think I spat in their face. They had zero interest in hiring a "dime a dozen Amazon layoff". Instead they found funds for a local kid who graduated with a generic B.S and MBA. The cost savings of hiring the local kid was only $2k. So I doubt it was even about that. It's just an unfortunate reality that the press around the layoffs leads people to assume you are damaged goods or not worthwhile if it happens to you.
How is the pece of mind of having a paid off house different than having the pay off amount in HYSA and always available to pay the mortgage off while on auto payment? There is zero difference and actually you have better piece of mind that if something happens and you need the liquidity, you dont need to refinance or sell stocks. If your bar is piece of mind, then even more so, do not prepay, earn more risk free money and have excess liquidity. Up to $250K is FDIC insured so if someone is afraid that goes away, then all bonds also default, and stocks are worthless if that happens.
It is an incorrect choice no matter how you slice and dice it. You are focusing on S&P 500. HYSA are paying over 4.3% and not lose value. Put the money in HSA if you want and collect the difference if you do not want to take any risk whosoever. You are literally earning 1.3% extra on that money. The yield covers the payment and than some. There is literately no difference as opposed to paying the mortgage off from the security perspective, except you have to keep making the monthly payment. And if something really bad happens, you dont have to sell stocks and have liquidity if needed. If there is appetite for a higher risk/reward, you could instead put a portion in stocks. Additionally, depending on the time horizon, you could put some in bonds ladder (e.g 5, 10. 15, 20 year chunks), or CDs to squeeze more yield and not invest in stocks. Treasury Bonds/CDs are as risk free as you will get. It is always personal choice to do stupid things, and paying that mortgage off is a stupid thing.
As one of the ones with less money and stays away from options--there are still tons of ways to make money, and many of them take very little understanding and work. A guy like yourself would do well with a High Yield Savings Account, or HYSA, an easy 4-5 percent per year returns on your liquid. Certified deposits are another route if we're talking banks. In stocks, a similar avenue would be something like dividend funds, an SCHD if you will. The returns fluctuate more but you have more potential with growth. I don't sweat these people talking high returns in good years because when I ask them how 2022 went for them they shut the fuck up. Also, advice for everyone: Mind your own business and it becomes harder to mind other's.
If you have a big nut 7% is pretty good. I have a HYSA that makes 10k a year doing nothing. Reinvest that 10k into an ETF and maybe once in a while buy a stock (feels like buying a scratch off ticket sometimes)
Nothing a 2.5 loan shouldn’t be paid off when CDs are paying 4+. Even if you wanted to make it feel like it was paid off just put the money in a CD or HYSA.
No, because in the grand scheme of things $5k isn't very much, and it can take you longer than 6 months to find another job (especially in the current market). I would just leave the money that is in the HYSA alone, and invest any disposable income above that amount.
Which HYSA gives 2% per week?
Lmao, OP made 600 bucks on 25.6k collateral..investing in HYSA or CD would have given bettrr returns 🤣🤣
I would never use a HYSA but that's just me. I'm not a fan of using HYSA bank accounts for savings - a taxable brokerage account will always offer a more flexible way to generate cash yield than a HYSA. Search through the subreddit on this question - it comes up daily and the answer is usually the same. There are plenty of fixed income investment which have the same risk profile as a HYSA and can generate a higher yield. And some assets like US treasures are exempt from state taxes. This is a common question - look in the subreddit wiki 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) And if you want to take on a little more credit risk and duration - you can use target maturity funds for your 4 year timeframe to generate a higher yield and potentially lock in rates.
# Where to invest $25k for max 4 years for future home I have a CD going as well and put 4k into Tbills recently. Should I put some into a HYSA? Looking for short term profit as you can tell.
Isn’t there a hefty chunk of money that gets invested via 401ks every pay period? I mean where else you even park your money besides stock and crypto right now. Property and land have high entry barriers, and a lot of your HYSA have gone away.
Open a Roth IRA account and max the contribution for 2025. Either buy split the investments until April 2026 or do a lump sum into $VOO or $VTI. The remaining should be emergency fund in a HYSA.
4 million and I'll semi retire (I'd continue my career in the national guard because it's fun to me) if I had it, 1 million in the market and 3 million in a HYSA and live off interest. This way my wealth will continue to grow in the market and my other 3 million is put away with 0 to no risk earning me enough interest to live well enough without working
More HYSA. More COST. more Brk.b. More international.
It’s complicated but roughly speaking I plan to sell around 3% each year at the beginning of the year, every year and move it to SGOV or a HYSA starting the year that I retire. You’ve also got to sell RMDs which could put a kink in that. I say 3% but that’s just an estimate. I’ll also partially be living off of rental income and social security and I may be in a place to make it more like 2% ~. I’ve got 24 years ~ left until retirement though. I’m about 20 years into my journey and haven’t sold anything yet and don’t plan to sell anything (except RSUs to convert to index funds and some index funds in tax advantaged accounts to convert to bonds when I get closer to retiring, if you count that as “selling”) until I’ve retired. Trying to time market peaks and valleys is mostly a fools errand. I sell based on my timelines and goals, not based on market performance.
in a similar boat. I have 27k in a HYSA and wondering if I should take some out to invest in. my expenses are generously around 3-4k a month. translating to about 24k i should have in my savings. I'm thinking of whether i should just make it an even 25k and invest the other 2k or wait until i hit 30k and never save after that
Good HYSA's are fully liquid and currently paying up to 4.4% (https://zynlobank.com, also see https://roger.bank and https://www.briodirectbanking.com).
They offer: Full checking accounts A debit card with 2% cash back on groceries and gas 3% match IRAs 3% Cash back on everything credit card Home Mortgages Buying Power is a HYSA at 4.5 APY The absolute easiest way to get into investing Saying they are just another trading platform is hilarious. They are going to have a total stranglehold over young GenZ and GenA.
Always inverse reddit. Ironically the most intelligent investors on this website seem to be on wallstreetbets. Crass as fuck degenerates but they'll explain the detailed inner workings of complex options strategies better than the average investment banker, meanwhile most of the other investing subs are full of polite but utterly clueless individuals. In the r/stocks sub yesterday someone said that high fed interest rates make inflation worse because people collect more interest in their HYSA which is just printing money and it got 60 upvotes. I mean... the level of utter cluelessness is truly unparalleled and I wouldn't take advice here for a second unless it's to do the opposite.
Yeah, you have to consider taxes (saving interest on your mortgage is effectively a tax free gain, non-tax-advantaged investments aren’t). But that rate is so good, if I have it, I’m dragging it out as long as possible. Mine is at 4% and in a high tax bracket sometimes I do get in the mood to put extra money in (it’s equivalent to earning almost 8% in a HYSA), but still it feels pretty borderline compared to other opportunities. Just look at it this way. Even if the stock market risk scares you, you can do something like buy some muni bonds for tax free, near zero risk gains, and yield something like 50% more than paying off your house. Also, if you find yourself needing money for some expense or investment opportunity in the future, it’s easier to cash in some investments than it is to sell your house or apply for a HELOC and pay interest.
I keep money in various places for different purposes - checking for monthly bills, emergency savings, and an account for major bills that only come up once a year (taxes, insurance). I put all my extra above that into my Roth. Then, if you max the Roth, you'll need to decide between HYSA and starting a taxable brokerage account (which will make you much more than the HYSA).
If you open an individual, taxable brokerage account, you will owe taxes on things like: * Investment interest, like your HYSA * Qualified dividends, at (potentially) a long-term cap gain tax rate * Capital gains distributions from investments that generate them * Selling investments for a net gain There are investment vehicles like municipal bonds, especially in-state municipal bonds, which are exempt from federal and state tax. It's still possible that your net return is higher on a taxable bond than a tax-exempt bond; you have to do the math on this for your marginal tax rate. Depending on your investments you might expose yourself to foreign taxes, Alternative Minimum Tax, a schedule K-1, or whatever else. > Also, if I do need money, is it easily accessible? Can I just sell some and transfer it to my checking account? Depends on the liquidity of whatever you buy through your brokerage; some things are easier to sell at the snap of a finger than others. But fundamentally yes; you sell something, there's a period of time for cash to "settle" and be available for withdrawal, and then do whatever with it.
I have $20k in an emergency fund in a HYSA and my portfolio is up 60% and I’m not gonna exit any positions. I’m thinking of pulling the fund and putting it into a safe-ish stock. Is this the top?
I invest 25$ a day into Roth already. My thing is I have 5k “extra” after my emergency fund. Feel like it’s being wasted in a sense even though it is in a HYSA.
If it’s in a HYSA that’s good. You can take the amount that you’d be ok with losing and start there with investing maybe a roth IRA?
I usually go with "time in the market beats timing the market". No one can ever predict the highs nor the lows; volatility is just a given. Btw, I don't know where your HYSA is, but you can do much better than 3.6% at other HYSAs or in a brokerage cash account. Ultimately the question is not an economic one, but really what gives you peace of mind.
Also don't forget the investment potential of the down payment you would have had for a house if you rent instead. i.e. investing the $100,000 in a HYSA or even a stock index fund.
this is precisely #1 reason why most investors can't even match S&P 500 indices - either keeping resources on the sidelines (to keep "powder dry") and/or trying to time the market (wait to "buy the dip", selling because "the market is at the all-time high", or not entering the market in the first place). Meanwhile cash, and even bonds (and CD and HYSA and similar vehicles) are considered by many 'safe', at least compared to the stock market (especially if looking at individual stocks or speculative stuff like crypto), but they suffer from their own risks - such as inflation. And real estate has an under-counted "irrecoverable" costs which many investors don't take fully into account.
Not only that, but let's say something came up where you would be better off paying off the mortgage (like if the HYSA drops down to 2%. You can take the money and pay it off any time and walk away with the extra cash you earned by not doing so earlier. This is one of the few risk free investment decisions anyone can ever make.
If you want to be super conservative just keep an amount equal to your mortgage balance in a CD or treasuries paying 4% or more. If you pay off the mortgage and need to borrow money in the future, odds are it will be for a much higher rate. I would probably only look at paying off early if HYSA and other no-risk vehicles dropped well below your mortgage rate.
Considering that you're close to retirement increasing the funds in your HYSA is a safer choice especially as it helps maintain the security and liquidity of your money As for the Vanguard ETF account, you can consider increasing it moderately, but avoid taking on too much risk to ensure you have enough emergency funds for retirement Maintaining a stable asset allocation is more important at this stage
Being in a country like the UK, where mortgage interest isn't tax-deductible while savings interest is taxed at up to 45%. I'd need to be getting over 5.35% just to break even with a HYSA and no-one's offering that much. And sure, I could put it in equities and get bigger average returns (cap gains taxed at 24%), but I'm close to RE and really don't need the SORR. The best I could do is low-coupon gilts (CGT-exempt) which return about 3.6%, and that's a lot of hassle just to gain 0.6% (besides, lending money to Rachel Reeves is arguably *not* risk-free). (My mortgage is at 4% and I will *definitely* be making the maximum allowed overpayment, because that's equivalent to a 7.25% savings account after tax!)
Yes I understand how it works. And I fall into the camp of, if your interest rate is low enough, don’t pay it off and, instead, make minimum payments and put the extra aside to invest or earn interest. I’m just saying I understand the other perspective. You may want to think it’s very simple (just save the money in an HYSA or whatever and you can put it to the mortgage whenever you want), but for many people it’s not that simple. We’re not all perfectly rational creatures. For some people, investing and carrying debt is stressful. Maybe they had some bad experiences. Maybe they had to live out of a car for a while. Maybe they went to bed hungry sometimes. Maybe having a paid off house is worth more to some people than an extra $2k a year in investment returns. Again, I’m in your camp. I’m just explaining how I can empathize with folks in the other camp.
I was doing extra each month until I broke down and realized I should put it into a HYSA dedicated as a payoff fund and it would grow faster. I still do make bi weekly payments
When were mortgage rates under 3% and HYSA interest rates greater than that at the same point in time?
Man this is so smart - my mom passed recently and my dad lives in the house that is paid off. If we ever see that rate environment again I should do the same thing. He also doesn’t need the money so putting half in an index fund tracking the total stock market and half in a HYSA would probably be fine.
unless you need all 70K in the next 5 years youre going to be fine. Thats why people have a 6+ months emergency cash fund if you lose your job or get into an accident (your total food and rent bills for 6+ months). Lets say that you put 30K to be generous to your emergency fund of bond indexes and HYSA. 40K USD is still ALOT of money to be able to put into VOO/VTI/VT (i would personally recommend VT since global diversification is always recommended by actual academics)
I handle my elderly mother’s finances and when mortgages went sub 3% I took out a mortgage on it and just stuck almost all of it in a HYSA. The spread pays her taxes and insurance and of course I could retire the mortgage at any time. A few relatives knew I did this (that was a mistake) and thought I was nuts. “But it was PAID OFF!!!!” Yeah, it still is. I’m not letting free money pass her by….
Kinda feels like you're stuck between wanting growth and needing safety, right? with only a few years to go, the fear of losing money hits diffrent, but letting too much sit in HYSA might mean inflation quietly eats away at it. do you feel more anxious about mssing potential growth or seeing the market dip right bfore you need the cash?
You can have both. Put it the additional cash flow into a HYSA, your downside hedged, liquid, and collect a spread.
If the only options were cash under my mattrass and bitcoin, you may have a point. However like most people with any money to save I invest it or at least keep it in a HYSA. I know that my dollars will be worth a little less in 5 years, but am reasonably sure that it will be only a little less. With bitcoin, it may be 30% or a 100% more but it also could be 70% down, who the hell knows. Having my money be predictable is worth it to me (since my actual savings is in inflation resistant assets). As for the environment, lots of people are adopting EV's especially in china and europe. In norway they are over half of new cars sold. The US will take longer but it will happen eventually. That is not the adoption I am talking about. it is not used to do anything other than an investment, The vast majority of bitcoin "users" are in it for line goes up. If that ever stops happening they will be out--nothing else is keeping them in. For bitcoin not to crash it REQUIRES near infinite growth. $120k is a crazy high valuation, for sure, a lot of money is tied up in it so there are a lot of vested interests that may prop it up for a while; but dont kid yourself, there is no equilibrium state possible for bitcoin over the long term because there is no reason to own it other than to make money. Thus it is in a perpetual inflating cycle or deflating cycle. If people lose confindence in it, it could drop extremely fast and never recover. people could move on to an alternative cypto coin that is cheaper, faster to move or more private. There is literally nothing actually special about bitcoin that would prevent that from happening. in our society if something gets a reputation for making it easy to lose your life savings by participating in something, most people stay away. It does not matter that you want to blame the victims of bitcoin scams. It is bitcoin's problem if it wants to expand. Unless it is dealt with, most people will simply not own any bitcoin ever. that is the hard cap I am talking about.
Payday a few months prior from promoted interest in a deal. Chunked it into a HYSA and glad I did
I would only ever say you're "nuts" to the extent that VTI is risky. You're in this sub, I think you're fine with that, and it's definitely an acceptable play for the financially literate. However, even if you're a financial illiterate, an HYSA is paying 3.5% at Ally. You could put every dime of what you owe in there, set up auto payments to pull it out of that account, and that account will have a positive balance after paying off your mortgage. There's absolutely zero reason to pay if off early unless it somehow lets you sleep at night because you're financially illiterate and can't contemplate a risk free rate of return.
Nothing could make me do that. You are quite literally getting free money if you even hold the remaining balance in a HYSA at 4%
When you sell you oay taxes. For most people with any point in selling, this is 15% fed and 5-8% state. Let's say, 20%. Now if you can guarantee you time the market, you can take your non-taxed money and buy more. But if you miss the perfect timing, you can easily lose money. For instance: 100K total. 50K cost basis, 50K profit. Taxes = 10,000 taxes. Now you have 90,000. Market drops 14%, you are waiting for 20. If the market drops 20, your original holdings will be worth 80K. So you secure an extra 10K. BUTT, if the market hits that 14% and then goes 13, 12, 10, 9, 8% and you buy, you now buy your 100K of stocks for 92,000. This can very easily go worse if you balk and you could see a skyrocket and need 120K to get your assets back. Problem is, you only have 90,000. And thus, you need to come up with 2,000. BUTT, the whole time you wait, you lose on dividends. If we assume you do this and sit waiting for exactly one year, here is the rough math: 100K S&P on avg = $1,500 90K HYSA = $4,050 So if you can perfectly time the market and your assets across a year, you could do this: 100K becomes 90K. $1,500 becomes $4,050. Or +2,550 (albeit taxed but I'm not going down every rabbit hole). Buy your assets back at 75K, meaning you get another 20% of your assets (120K value today). When the market rebounds to where your 100K would have = 120K, your portfolio is actually now = $147,060. So you make essentially $20,000 and then compound it faster later etc. If you screw up, if you miss the timing, you could end up paying out of pocket, ending up with your 120, less the 10K out of pocket for taxes. Or you could end up with 120K, after needing to pay the 10K + the 20K you didn't think would happen. Moral of this story is, if you can time the market, you make fucking bank. If you fail, you lose.
Stay safe to me means: Making sure you're diversified in your investments. So, as an example, VTI+VXUS, or VT, plus some (possibly) bonds to risk tolerance & age. If you're 25 or 30, you probably don't need bonds. If you're 50 or 55, you likely want some. Make sure you have at least 20% equity in your home and an affordable mortgage payment. Make sure you have six months to a year in emergency funds, i.e., you can make your mortgage payment, food, property taxes, etc, if you're out of a job for an extended period of time. -- Keep this money in a HYSA or some such. That's about all you can do.
Since everybody else has already covered what bonds are, I just wanted to remind you that money needed for short term purchases (i.e a house) should not be in the market, and IMO that includes bond ETFs. If you decide to buy bonds, instead of just leaving it in a HYSA/money market fund, then I would just buy the bonds individually, and keep the money as safe as possible from market volatility simce bonds ETFs can lose value too.
If you’re saving money to spend over the short term, like to buy a house in a few years, SGOV is where I’ll typically put it. Maybe an HYSA or a CD or T bills. Equities only really make sense long term (IE consistent buying over multiple decades). The stock market is too volatile for short term savings when you’re gonna need the money in a few years.
How can I do that? Just send cash from check into a HYSA?
The timeline for withdrawals is going to be slightly longer as compared to a HYSA since the trade has to first process before you can request a cash transfer.
HYSA account / Wealthfront cash account
What are some things you do in practice to help that mindset? Bond allocation? HYSA? Just generally not being too attached to the numbers going up?
The rate definitely will change. Also look for a HYSA option, my bank still is paying almost 4%, but it continues to go down with rate changes
HYSA, JAAA, or JBBB. I hold most of my money needed in the short term in JBBB. It pays about 7-8% with a monthly dividend, and the prices stay very stable. JAAA is the less volatile of the two, but only pays about 6%. Rate cuts are incoming, so those yields will go down as the loans in the portfolio mature.
HYSA until you have more than a 3-6 month emergency fund. Then consider investing a percentage into a SP500 or total US market fund.
We are launching a HYSA with around 10% liquid. Would be interested to know what are your requirements for such a tool.
Don’t put short term in equities. Stick it in a HYSA, CD, treasury bills, money market, etc.
Im sorry but im not "gambling" on options, I only put in what im willing to lose, and have targets for the day where im ready to stop. I want to attain financial freedom, not buy 300 long calls just to lose it all. I understand investing in SPY or even just putting the money into a HYSA but I want to retire my mom and buy her a house, im managing risk and making good money.
Note that SGOV doesn't count as "bond exposure" in any meaningful way and is basically equivalent to a HYSA.
No one ever said put all your money into a HYSA.
Consider SNSXX, but almost certainly splitting hairs at that point. I used it as my HYSA with a very small emergency savings fund in my regular Chase acct
Put another way - what would be your alternative? Hoard cash under the mattress? Hoard cash in a HYSA and lose money to inflation? Buy gold? Bonds - which by the nature of things will usually approach HYSA rates?
Put it in a HYSA or short term tbill ladder until you have a plan of action.
Currently paying 4.24%, compared to 4.13 for SWVXX (money market) and under 4% for HYSA. So, why not? Just keep an eye on it so that if the return drops, it doesn't catch you by surprised months later.
I'm by no means an expert, but maybe don't think about it in such a "lump sum" fashion? Maybe you take 1/3rd and put it in a total market fund like VTI, 1/3rd into SGOV for bond exposure, and keep another third in HYSA. Or any combination thereof. Maybe split it into 25% and put a chunk in a 529 account for your kid's education. All of the above will not require active management on your part so you don't have to worry about "doing something wrong".
Yes - a money market fund can be as safe as a bank HYSA - see the wiki entry on the topic 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)
Fellow 0 DTE put bag holder, thank god I pulled most of my money into my Roth and HYSA before gambling with what remains
thank you man, really appreciate the congrats! yeah once all of the dust settles, I will for sure start hammering away back at the HYSA (for a 6 month emergency fund) and then start their 529, and then hopefully start getting back into the Stock/Crypto/EFT game, but feel good about selling my crypto & stocks right now at ATHs (for most of them) and turning it into something REAL that my family can live in and enjoy.
Congrats dude! You are setting your family up for success and now you’ll have income from the rental. Are you planning on making an emergency fund for the rental in an HYSA? Then you can hit a target level and invest or fund your kids 529s 🤑 I’m hoping to be like you in the mid term, I have a 16 month old
Just put it in SGOV or an HYSA or something else less risky then. If you don't know options, puts isn't where you start. Also, these days the markets have changed a lot in comparison to the financial crisis. Banks do stress testing (and pass), they plug up any liquidity crisis very quickly - see the regional banking crisis from 2 yrs ago, market buys dips ultra fast now. The Great Recession was not your average recession. And nobody wants to go through that period again. The people who are LIVING right now, (everyone), who was around in 2007-2009, DO NOT want to go through that again (even the richest people).
No it’s a first home savings account. I can invest into stock/etfs or HYSA. It’s like a Roth IRA you could say
To state the obvious: don't do ***anything*** with your life savings except maybe a HYSA. Keep your position sizes small so that one bad trade is just annoying not crushing. Also, I think you should spend some time educating yourself on investing in general and options in particular. You don't need to become an expert on either but you need a firmer grounding. Here are some ways I manage my risk- 1. Small position sizes. Most people reccomend 2-3% of your acct max. This means limit the number of contracts and if you're doing spreads, the size of the spread. You will make less but you are also risking less. 2. Diversify *what* you are trading. If you have one trade with NVDA, do another with WMT. Yes there are macro events that will affect both but to a lesser extent than say NVDA, AMD and SMCI. 3. I tend to avoid earnings events and fed meeting dates for obvious reasons. The premiums are tempting but it's dangerous. 4. Get comfortable, especially at first, with one strategy and underlying. Study them and get a feel for how they work. 5. Pay attention to the strategy, underlying and what you think is going to happen. Yes the premium matters but if you focus on the premium size you are going to have issues. The premiums are good for a reason.
Open an Account ay Vanguard. Deposit money. It will go to your settlement fund which is a fantastic MM (HYSA equivalent). From there you can open Roth IRA and invest in the S&P500 or others