HYSA

markbraggs

Fun fact $1 million sitting in a HYSA will yield you about $35,000 per year for just sitting there, which is what someone who works full time makes in California minimum wage.

charleswj

If you've already maxed your Roth IRA for the year, say on Jan 1, any money you save/accumulate until next Jan 1 has to go somewhere, so your choices include brokerage, HYSA, mattress, etc. It has to go *somewhere*. On the next Jan 1, you take it from that somewhere and contribute it. The only other option is to not contribute Jan 1, which is ok, but OP doesn't want to wait.

SnS2500

Next year you can take money from your brokerage account just as easily as a HYSA. Assuming you have emergency cash, there is no reason to put money into a HYSA that you want to invest.

DoinIt4DaShorteez

is the Roth at the same place as the taxable brokerage? if so, just put it in the brokerage account so it's ready to go on Jan 1. buy SGOV in the borkerage if you want and sell it on Dec 29 or 30. whaddaya gonna get on $7500 in a HYSA the rest of the year? $70? if the Roth/taxable accounts are in the same place, put it in the brokerage and take a nap for the rest of the year

Vegetable-View-5114

For saving specifically to max out a Roth IRA next year, a high-yield savings account (HYSA) is generally the safer bet. The primary goal here is capital preservation and liquidity, not aggressive growth, because you'll need that cash relatively soon. While a taxable brokerage account offers higher potential returns, it also carries market risk; I've seen years where a 12-month investment horizon in the market would have meant less capital at the end, not more. The tax implications on short-term gains in a brokerage account would also eat into your principal more than the interest from a HYSA.

Worry-Mountain

If the Jan 1 Roth contribution is a hard requirement, I'd keep that slice in the HYSA. The taxable account only makes sense for money you can leave invested through a drawdown; otherwise a bad December can force you to sell at the exact wrong time. I’d separate the buckets: earmark the Roth amount first, keep the emergency fund distinct, then invest any surplus that's genuinely long-term. Since you're already maxing the 401(k), the main tradeoff is flexibility vs. giving the Roth cash a few months of market exposure.

Realistic_Farm_3558

If the goal is definitely to max the Roth on Jan 1, I’d keep that money in the HYSA rather than investing it in taxable.

Ok-Spell-6812

I’d lean toward keeping enough in a HYSA for your emergency fund, then investing extra cash if you have a long enough time horizon. It really depends on when you’ll need the money.

Direct-Stuff-2469

Not saving a ton after setting aside my fixed monthly stream of investments into taxable, maybe $3-600 of excess money from undershooting my expected monthly spending I budgeted. I have some money in an HYSA already (not an emergency fund) but setting aside some more would allow me to max out Roth on Jan 1st. I am currently maxing out 401k. Any reason you suggest putting excess into taxable and just process to start fresh on Jan 1st? Thanks

ahighkid

Half into a HYSA, half into $SPY

PossibleConclusion1

This is true, but I have enough in a HYSA at any given time that I can pay my bills until a CD matures and then I can use that until the next matures. It's not going to make me rich, but it gives me peace of mind.

Nugggggyo

Keep that in a HYSA account or brokerage money market as part of your emergency fund. That might get you 3%. Choose your emergency fund amount (3 months/ 6 months). Everything over that amount start to slowly invest. As your emergency fund grows keep taking the extra above your number into your investments. I wouldn't jump into throwing it into one fund right now at once. A little bit at a time over months.

Macktologist

I’ve recently looked into where to park money with little to no risk and found the option for a broker held money market savings in lieu of a bank HYSA. Slightly higher interest, and no state income tax on the interest earned. Main difference is how they are backed. HYSA by FDIC and the broker account by federal government. Not sure how those differ and still deciding. I’m currently considering VUSXX instead of Capital One Performance Savings. Another positive is having the money more directly available to sweep to my cash fund with MS/Etrade should I be buying positions. OP may also want to look into this option. I think the minimum deposit is $3k.

Puzzled_Capital_5592

$45k? Put $10k into a brokerage and leave the remainder in a HYSA or SGOV as an emergency fund, and feed the interest into the brokerage.

FreshDiamond

The absolute bare minimum is that it should be in a high yield savings account not your regular bank account. I personally would keep 15 -20k in a the HYSA and dump the rest into an index fund, or etf all at once. Some people will tell you to DCA, either is fine but it’s just as likely that you will cost yourself gains by doing DCAing as not. Again in the long run either will work out fine but I would just lump sum it

MaddRamm

Are you planning on any big purchases soon like a house? If so, don’t risk it losing value in the market and put it into a HYSA. Those are typically earning 3.5-4% right now. Also, if you wanted, you could put it into the taxable brokerage account and just invest in SGOV. It’s an ETF that invests in short term bonds/treasuries and holds its value and pays about the same as a HYSA, maybe a little more. But if you don’t really see yourself needing it within the next 3-5yrs for a down payment, by all means, invest it in the market.

Austanator77

20k in HYSA for an emergency fund 6 months expenses+2k for any emergency repairs. Then invest the rest

NTP2001

Keep 30k as emergency. Make sure it’s in am HYSA, not checking account. Move the rest you investments (preferably low risk broad market etf).

HaiKarate

Pay off all credit card debt Put some in an HYSA for emergencies; quick access if you need it while earning a decent rate. Open a Roth account if you haven’t already and contribute the annual max ($7500 if you’re under 55). Put the rest in a brokerage account. In both accounts, invest it all in a reliable long-term ETF like VOO.

FactorDad

Not financial advice, but you are in a fantastic position. With $2,200 in monthly free cash flow and a low-interest car loan, you have the perfect setup to accelerate your compounding. ​Here is exactly how I would optimize that idle cash: ​Keep the cheap debt: At 2.9%, do not pay off that car early. You can earn more than that risk-free in a standard High-Yield Savings Account right now, and significantly more in the market. Let inflation eat that debt for you. ​Right-size the emergency fund: Your baseline expenses are $3,000 a month. Carve out $15,000 (a solid 5-month runway) from that $45k and park it in a HYSA. That protects your downside. ​Deploy the remaining $30k: You now have $30,000 of pure investable capital. First, max out your Roth IRA for the year to lock in tax-free growth. Push the remainder into your taxable brokerage account. ​Avoid cash drag: Since you don't have any big purchases planned, keeping excess cash on the sidelines is just losing purchasing power to inflation. Get it working in broad, low-cost index funds. ​Once the capital is deployed, the next step is optimizing your asset allocation for long-term growth. (I actually document the granular math and trade-offs behind building a multi-fund factor portfolio on my channel—feel free to check my profile if you want to explore the architecture!) ​Is your current $20k invested entirely in a standard taxable brokerage, or have you already opened and funded a Roth IRA?

MayaIsSunshine

HYSA can beat 2.9% with no risk at all

siuzy

Well a HYSA is risk free, so your advice is simply incorrect

MyWorkComputerReddit

Is it at least in an HYSA? If not, I would put it there.

loIll

Rather than make a bunch of assumptions, give actual investment advice in the investing sub. OP could throw half into the SP500 half into a high yield savings account for 3.5%. Or even throwing it all in the HYSA is a better idea than yours.

PossibleConclusion1

I have my investment accounts, but I keep about a years worth of expenses in a few CDs. It gives me a relatively liquid asset that earns more than a HYSA. It personally helps me feel less stress than having everything tied up in investments I would be even further stressed out having to sell if I were to lose my job or something.

galvinb1

Is it on a checking account? My emergency fund is in a HYSA so it at least keeps up with inflation. I keep 6 months of my current take home pay in there.

hymie-the-robot

diversification depends on your age and risk appetite. I'm old and I need to preserve what I have, so I hold multiple asset types (in portfolio theory, we look for assets that have low or negative correlations). this is safe, but return is low. as a young person, you want to grow your wealth, and you may just look to hold different kinds of equities. if I were young, I would probably want to moderate my exposure to IT, but you wouldn't be wrong to just hold the market. if you want to ensure funds are there within 18 months for property, it's a good idea to use something like a HYSA, because you never know if the stock market will decide to shed 25% along the way.

BatCleanUp

Got it. This changes things for me. It also may be in an area you may not be interested in living. I'm kinda on the side of selling now. You can always reduce price in accordance with the buyer fixing these things. If the house is otherwise good all around, this isn't much of an issue and saves you the hassle of managing projects away from where you live now. TBH I think I'm 70/30 in favor of selling the house. Maybe keep $200k of proceeds in HYSA/emergency fund for a few years until you figure kids/job/house out.

Dr_Zoonotikstein

$9M capital at today's rates generates an easy $350K per year in HYSA or CDs, without tapping into principle. Any further risk-taking action explains why you are still posting in WSB.

booyah474

If you have any extra $ just sitting there, why not look at some long shots or penny stocks? I have a HYSA, 401k, and individual IRA. I usually have some $ left to play with after bills are paid and my “savings” accounts are funded. I enjoy going to the casino from time to time so I see nothing wrong with taking a few hundred just sitting in my brokerage and looking at some long shots. It’s how I managed to snag AMD at \~$2, I just wish I got way more but at the time I spent what I felt comfortable losing. I’ve had some dogs (SPCE from several years ago, ouch but fortunately not that much). I don’t see what I do as particularly risky.

LoveIsOnlyAnEmotion

Yea my personal portfolio is strictly my extra money that I don't want sitting in a HYSA. I also have my Roth IRA and 401k at work too. I'm actually any to backdoor my Roth too.

chronicpenguins

There are people out there who don’t understand how people have such “high” risk tolerances for people who buy index funds/stocks  in general? Why risk it in the stock market? Put it in bonds instead. Then, there are people who say why bonds?  HYSA much safer. Then there are people out there who say HYSA from shady neobank, normal bank less risky.  Then, there are also people out there who don’t think banks should be trusted with money at all. Put it in a shoebox, under your bed, much safer. No one else’s touches your money but you.  So once you ask yourself why you put it in the stock market at all, instead of in a shoebox, and accept that people have different goals, emotion response, and personalties, maybe you will understand. 

RuleSafe6767

2.5% in a day? I'll take it bro. At a bank HYSA, that same $800 only earns 1.3 cents every two days.

VarietyLocal

HYSA at cit bank is 4%

UpstairsCheetah235

No they’re not. They have t-bills or a HYSA that pays more than that.

MetalCharacter8431

Lot of options you could go with and there isn't a right answer. If you like playing it safe, park that money in a HYSA through midterms. Midterms historically cause the market to decline quite a bit from uncertainty where policy and agendas can lead us in the future, while on the other hand, many large gains and increases are seen in January with annual filings and sales/purchases made along with tax season. I'd recommend letting it safely build then entering late November /early December.

ap1618

How do people build money in their 30s? By saving bro. You are deferring a lot of cash to the market for tax advantages that would otherwise be creating that savings stack. The plan you have is smart but the answer to your question is to save as much as possible of what’s left of your take home now and chuck it into a liquid vehicle like a HYSA.

SurpiseCurrencyDebas

full port into cash 3mo/6mo cds at the bank and HYSA loaded

silverfisher27

The S&P is up 250% in the past 10 years, so it's not really helping your point for investing in dividend stocks when your own example is lagging behind so much. I'm sure they will be fine as a company, but I'm just not sure how I feel about recommending that stock as an investment just because there's a 3.5% dividend (which is basically the same as putting your money in a HYSA).

GailaMonster

even the 26-week Tbill is over 4%, and that is free from state tax as well. I'm not saying that's making money (that's basically just an inflation hedge), but my HYSA pays 5%, and I frankly suspect the market is set to absolutely tank in November (if the GOP eats shit - and they should if there is election integrity, just based on public sentiment - they will encourage a severe downturn on the markets and immediately try to blame the other guys, because that's a classic move in their playbook). I am not a "time the market" person, but I do have dry powder (growing my family and looking to sell/buy a house in the next 18 months) and i'm not feeling terrible about it sitting in HYSA/Treasuries these last few months...

No-Improvement3164

Leg and Thigh day at KFC. I’m taking my HYSA interest and getting a couple buckets of original recipe.

InvestingNerd2020

In your 401k with pre-taxed money, one Target date fund with an expense ratio of 0.30% or lower. Hopefully, a 2065 fund. After employee benefits and taxes, try to put some money away into a high yield savings account (HYSA) for emergency savings. Make sure it has 3% or higher interest rate. Try to shoot for 3 months of your routine monthly expenses. This will keep you from touching your investments during hard times. Examples: Marcus, Amex, Ally, or Capital One to name a few. An Alternative emergency savings option is a Treasury bond fund that protects you from State and city taxes on interest earned. The only downside is the money isn't available on weekends. Popular options are SGOV and VBIL. After building up emergency savings, start investing into your Roth IRA. Assuming it is with Fidelity, invest into two index mutual funds. - FZROX with 80% allocation. - FZILX with 20% allocation. These two funds offer zero expense ratio and a good track record since inception.

mehdizare

Since the settlement is allocated "for social security purposes" at $880/month, SSA usually just offsets against that number rather than the lump sum, so ask them in writing to confirm the offset amount and the months it covers - having that on paper saves fights later. Timelines for processing are slow and uneven; keep a copy of everything you sent with dates. Park the lump sum somewhere boring (HYSA or T-bills) until the offset is settled, then invest what's left.

BarefootMarauder

Using the 4% rule as a general guideline (NOT a hard & fast rule), you could safely pull around $11,200/year from a portfolio of $280K without fear of running out over a ~30 year period. If you need to spend $1500/month, and you get $410/month from SSDI, you're still pulling more than that (~$13,080/yr). The 4% was recently updated to something like 4.6% now, which definitely gets you a little closer. The 4% rule is also based on the assumption that your portfolio is invested in the market at roughly a 60/40 split stocks to bonds. There are a lot of other variables and nuances to it, so I'm speaking generally. Putting all the money in CD's, HYSA's, or other cash-equivalent investments isn't going to cut it because you'd essentially just be keeping up with inflation. Growth comes with a certain amount of risk. If I was in your situation, I'd probably keep ~3 years worth of living expenses in cash-equivalents (a good MMF or a decent ETF like SGOV), and invest the rest in low-cost total market index funds such as VTI/VXUS or similar. Something like an 80/20 or 70/30 split -- that part is up to your comfort level with international investments. If the markets continue to do well, you can pull profits off the top for living expenses. If we go into a bear market, you can live off your cash bucket until things start to recover. But it gets a little dicey if we would go into an extended bear market that takes longer than 3 years to recover.

enigman83

Usual recommendations is as follow: 1) emergency fund, 3,6,12 months of expenses. HYSA or the like. 2) Tax advantage investment. 3) brokerage account for flexible expenses, but beware of tax obligations when trade. You don't need best portfolio, or at least not yet. Point is, no one can say what really best base on your situation, risk level, or other concerns (house payments or insurance or family to name a few) I would suggest a relatively simple investment, such as 60 stock 40 bonds. You can adjust to be more or less aggressive depending on your risk tolerance. On stock side, go with VT or VTI+VXUS. Is there a better choices? yes there could be, but starting with something simple doesn't hurt. You want to grow your assets with the market, then learn more if you want to take more risk.

Spiritual_Plum581

At 22, I think your biggest advantage is time, not your ability to perfectly time the market. If the money is truly long-term retirement money and you already have a sufficient emergency fund in the HYSA, I wouldn't spend too much energy trying to decide whether this month or six months from now is the perfect entry point. One thing I would think about, though, is the allocation itself. VTI already gives you substantial exposure to the large tech companies that dominate QQQM, so adding QQQM isn't really adding much diversification — it's intentionally increasing your concentration in those companies. That's not necessarily wrong, but it should be a conscious decision. At your age, consistently funding the Roth, keeping costs low, staying diversified, and continuing through both bull and bear markets will probably matter far more over the next 30–40 years than whether you lump sum or spread this particular contribution over a few months.

OkBeat2138

The ETF (non US) I'm invested in has 15% exposure to tech, all of which isn't AI. The rest is financials, energy, health care, manufacturing, real estate, industrials, spread across over 13,500 stocks in ~35 countries. Not sure you can get more diversified than that. I also hold rental real estate, precious metals, Bitcoin, and best of all, a healthy cash reserve on a HYSA. That being said, I do plan to move my equities into a 60/40 equity/Bond ETF this year as retirement is planned for 2027. But either way, I've been through multiple market crashes, didn't attempt to time those and I don't plan to try to time any future ones. You aren't doing the Lord's work, your advice sucks and is tailored based on a couple comments I made which are a tiny sliver of my financial position and life.

TheCheez-It

They know rate hikes won't happen and inflation will remain above the HYSA rate.

__redruM

Ok, so do $10k a month? Or $5k a month, but at the very least get started. Is the money market account giving you over 3%? If not then there are HYSA that can or even SGOV that does over 3% with some tax advantage, depending on state. I’d move it all to fidelity, stick the bulk into SGOV, with $10k in VTI, then slowly migrate from SGOV to VTI until you’re happy with the allocation.

Nope_______

One for expenses, one for savings, one for my spending money, one for wife's spending money, an HYSA, another HYSA because they had a promo deal, another HYSA because I haven't bothered to consolidate them. One for house maintenance savings,one for pet expenses savings. Brokerage for our investments, brokerage her pre-marriage investments have just stayed in, brokerage for my play account. I'm not even rich rich. I don't think this is at all weird or suspicious in the US, I guess it's different in the UK.

ejunior1234

He wants you to stick it in bonds or a HYSA.

daygo449

Listen to the Rich Habits Podcast. I think it would help you. One thing I was going to say is keep 3-6 months for your emergency fund in your High Yield Savings Account. I’d pay off any debt you have assuming it’s high interest debt or really anything over 5%. Take the rest of the money, and dump it into index fund ETF’s in a brokerage account. This way you can still access the money if need be. I’d look at VOO, VTi, QQQM, VXUS, or something like that. Continue to put money into your URA and max it out and continue the custodial account as well. You might want to look at a 529 Plan to help with tax burdens too. I’m not sure where you are with your retirement account, but if you’ve hit $100K at your age, you probably want to start diversifying as well. It might make sense to get a CPA to help you with tax advice, and maybe look at doing an hour or two discussion with a financial advisor to help you with structuring everything. You don’t need to invest with him, but just to get guidance around what to do and where to put things. I think it’s worth a couple of grand, probably less, to figure out where you stand. They can help you get on the right path to hopefully get your net worth up without risking anything or spending too much. I’ll end by saying there’s nothing wrong with leaving your money in a HYSA, but your money is at best gaining a 3-5% interest rate vs something like VOO which will land you 10%+. You are young enough that any investments you make, even if the market dips bad, it will probably never hurt you. You have time to recover. If there are dips, you keep buying because you know it’ll go up again, and you’d have bought while everything was cheap.

Flying-Bulldog

I use Fidelity and Merrill Edge. Have a Roth with Fidelity and use Merrill just as a place to stash any extra investments. Keep an emergency fund and anything needed for a large purchase like a house or car in an HYSA. Invest everything else

Pristine_Fix_3047

I see the BIL average return is 3.6-3.8%, at that rate aren’t I better off in the HYSA?

Dramatic-South-6236

I had 50k and I asked a financial advisor who, given my inexperience in stock market, suggested me to put it into a 3% HYSA. I decided to invest it myself instead and I lost 50% of it in 18 months because I couldn't stomack the downtrend when Trumpnstarted talking about tariffs. I finally learned my lesson and now I am just 30% down. However, once you lose money it is very hard to recover. I suggest you put it on a HYSA and wait tonsee what happens in November after the elections. It may go down and give you a good opportunity to enter the market. It is not true what they say about "time in the market is better than timing the market". My opinion is the opposite: "Timing the market" is gold, if you start going up from the beginning, you will be able to make a lof ot money.

MarkofCalth

Everyone says dump it, but there’s some things to consider: \-do you already own a house? If not and u plan to buy in the next 1-2 yrs, leave it in the HYSA as a down payment. \-do you have emergency savings? Not talking a couple thousand, but 4-6 months of true all expenses covered in the event of an emergency/lay off? If not, build that first. If you already have both covered, then invest the remainder.

InvestingNerd2020

As others have mentioned, invest into an ETF within a taxable brokerage account. My recommendations would be VT or VTI (not both). Leave $50k in the HYSA and the ETF choice you want with the extra $50k.

Pristine_Fix_3047

Local credit union HYSA, it may be 3.9% actually

ArkaneFighting

Seems you understand that a HYSA is not going to give you the best return but is a worthwhile trade off for your peace of mind. Its respectable, HYSA isn't bad necessarily, and you're not actively hurting yourself, but you are leaving a lot on the table. Money makes money. And your money could make you more in a brokerage. Statistically it could give you 2x the return. So it's a little silly to get 100k and then park the bus in a HYSA. It's like getting a free Ferrari but refusing to drive it over 40mph.

gopoohgo

I have a bond ladder + HYSA.  My longest date is 6 years out: I don't see much improvement on yield v duration risk past that. I'm older than a lot of you, though, and am slowly derisking as I approach retirement.   We are about 80-20 stock-bond.  And I'm thinking about lowering that ratio EOY.  

fred_cheese

Keep what you realistically would need to cough up immediately or within 4 days in a regular savings account. The rest in a HYSA, or short term CD/Money Market.

LTdesign

So...now what do I do with my Discover/soon-to-be Capital One HYSA...?

Soberishhh

I do the same thing basically you listed, minus I’m invested heavily in VOO, use the HYSA/checking for liquid cash, Robinhood is the best system I’ve found that encompasses everything to the degree of bank account/credit card/ match on Roth, plus I have my investment accounts there anyways, plus free wires, plus it feels great to use. Anything bad people have to say doesn’t matter when I enjoy basically every aspect of it, and the stuff they complain about has never affected me anyways, I’m not a gambler For context, $3m+, 32M Unless someone else matches them, nobody as a single entity is touching Robinhood atm on as many fronts, it’s so easy to use I tell all my friends about it, and I genuinely can’t believe more people don’t do it.

OrdinaryLatter

Note that most of these HYSA’s are tunneled through other banks and your cash is piled into a massive account with everyone else’s with just a ledger recording of how much you put in. There are stories of how these go poof and the FDIC does not step in. Put your cash into a money market fund, VUSXX is good.

bofoshow51

Robinhood is designed to make you want to try risky investments. It’s like walking into a casino and saying “hey I just want to keep my money in your safe, I don’t plan to play any games” and then inevitably you play a little, then a little more, and all of a sudden you are 3x leveraged on margin in options and lose it all. Also keep in mind the fees associated with Robinhood Gold technically shave away at your returns. Open an HYSA with Western Alliance Bank, they offer 3.8% interest, have stayed at that rate for over a year, and are IMO very good about processing your money.

Hoosier2016

Looks guys ChatGPT just discovered that HYSA’s exist!

zegota

I keep 6 months of spending + all the money for short term goals (which could be abandoned and converted to emergency spending if it came to that) in a liquid HYSA

coaa85

I keep 40k in a HYSA for emergency. It won’t grow like stocks, but you don’t get penalized accessing it up to a few times a year if needed.

seabass_goes_rawr

3-6months expenses. depending on your living and debt situations. Keep it in a HYSA and you’ll get pretty close to money market returns

sanderjl

Hello, My wife (27) and I (31) are reaching some good financial milestones this year and I would appreciate any tips, tricks, and advice on some of our next steps to start saving for the big stuff in the future (house, car, etc.) Right now we are each fully funding our Roth IRA's to hit the limit by the tax deadline, are hitting the match on my employer's 401k plan, she pays into a pension, and this month we just hit $10k in an emergency fund in a Marcus HYSA. Immediate next steps are to pause saving and aggressively pay off her car by December. After that my tentative plan is to open a joint Fidelity JWROS account and start putting all of our savings into SGOV to hopefully maximize tax advantages and gains. With that are full financial picture in 2027 would consist of: \- Gross Household Income of \~$200,800 \- No credit card or student debt \- A $10k emergency fund HYSA in Marcus Account \- 2x fully funded Roth's IRA's (currently $26k and $74k invested in index funds, ETF's, and various stocks) \- My matched 401k (currently $11.6k) \- $114.8k total in rolled over IRA's from previous employer retirement accounts \- 2x paid off cars (one is over 200,000 miles and might need replacing in the next couple of years) \- A Joint Fidelity account invested in SGOV for all of our savings (treasury bill ETF that should be mostly exempt from local and state taxes). Planning to contribute $2400 monthly starting in 2027. \- I also have an individual brokerage with Robinhood (up 17.1% over the past year, up 10.44% YTD) and M1 finance (down 4.54% over the past year, up 0.34% YTD) that have about $12k sitting in various stocks that I have basically left sitting with no deposited contributions for the past couple of years since getting married. Any thoughts on consolidating, reinvesting, etc. are welcome. I'm a big cost cutter so I am pretty sure that our bills/subscriptions are as optimized as possible on things I can control ($25/month for streaming services, $40/month internet, $200/year for cell service, $150/month gym with a $250 annual rebate). Total Bills (rent, utilities, insurance) are about $3100/month. We have considered an HSA and 529, but have decided that these would not be the right fit for our needs as we are unsure if either of use would really like or need to go back to school, and I have chronic health issues so I feel that a lower deductible health plan with an FSA is more cost effective for us. Sorry about the length, would appreciate any advice or input, thank you!

era_2000

That moment when your HYSA outperforms your brokerage

era_2000

HYSA and forget

slimangles

M37. I have ~$35K in my main cash account that covers all expenses with some buffer. Don't really believe in keeping an emergency fund during the accumulation phase. My cash account can weather most unexpected expenses, and I dip into my margin account for anything larger. The likelihood of a large unexpected expense is very low in my opinion, so it's not worth letting cash sit idle or in an HYSA.

maps-and-legends

$50,000 in a HYSA. Whenever that amount gets meaningfully higher, the excess goes into equities.

W_Edwards_Deming

It isn't about agreeing with me, it is about the subreddit's culture. You and a few others have been pleasant, one guy gave me useful advice about comparing the earnings yield with the 10 year treasury bond, another gave me some ETF suggestions. Most were rude an did not engage with the information I presented. It isn't burying my head to walk away from that. I didn't say I will never have an index fund, I simply don't prefer them. Why have 300 stocks in an index fund when I can carefully select 30 myself? I am not the one sneering and I have already generated a "salary." If I were the target audience of this group I'd have done what my finance text suggested and being an obedient retail investor putting 10% of my money into SPY or similar from my first job till today. I didn't, and what did do worked rather well. I may not have beaten the market for four years but I did make about double what the interest on my HYSA provided. Now I am doing far better than that, and importantly I don't want exposure to google, meta and so forth. I don't trust tech, expect an AI bubble burst and believe Gold will rise. My instincts have proven right this year, paired with the screening strategy in the OP. I am not sneering not burying my head. If you were the norm I'd be ok with that, if the guys with the usable advice were the norm I'd be a regular active member trying to provide value of my own. I am the one who has been sneered at by those burying their heads (rightly or wrongly, I can accept that I am seen as a dubious source despite my evidence). In short: What I am doing has been working and it *should,* as it isn't simply something I made up but rather an approximation of Buffett's approach. I am willing to have a German ETF (I used to have Korea fund as well but sold when the Iran war began) to have some exposure to their market but my stocks are overwhelmingly small value / blend. I will grant you that your advice would have been better than what I did for the first few years, but I may not have learned as much. In any case I appreciate your engagement and entirely understand your aversion to what you see as the stress of my approach. I actually enjoy it, hence my desire to discuss it with others who might know more.

W_Edwards_Deming

> The turn to index was a desire to get away from individual stocks. Seems to be the theme in here, at least you are polite about it! Thank you for that. > Buffett did very well for himself and his shareholders; he also said that retail investors should buy broad, low fee index funds. Correct. I am no Buffett purist, I simply take inspiration from his methods (if not his advice to retail). >are you overall matching (or nearly) the market? I did very badly the first 2.5 years or so and overall am at +7.54% per year. The difference is what I posted in the OP, I wasn't doing that until about three months ago. I made my decisions based on a variety of factors. I heard there would be high inflation and decided to move my money out of the HYSA. I saw that Gold was down and was confident it would go back up. I saw that shipping was important. Above all I used the metrics in the OP (ROE above all, dividends least) to screen and discarded anything Chinese and most tech. I predict an AI bubble, rising Gold and continued demand for container ships. So far so good. Notably +22.20% occurred in the last month. I was happy about that until I posted here, the replies from most meant unsubscribing from the subreddit. You and a few others have been pleasant but it seems near unanimous that you lot prefer ETFs and Mutual Funds (as I do not). I research my current stocks and screen for new options nearly every day, generally first thing when I wake sometimes last thing before I sleep. The pay isn't great for the past four years (adds up like a minimum wage job) but is rather good for the past year and amazing for the past month. Even if Gold goes back down briefly I should be ok, this is regarding CMCL: >Standard Bank (July 10 report) used a 20% effective discount rate and a $4,000/ounce gold price assumption for Blanket mine, and a 25% discount rate for Bilboes, arriving at a fair value range of **$23.13-$29.78/share**, with a midpoint of $26.46, representing a premium of over 25% over the then-current share price. Current Gold value is 4,618.90 USD and I expect $5,000 and beyond any time.

The_Catalyxt

6 months minimum. Essentially single family income with 1 kid + I work in sales. So I’m going to increase it to 9 months or a year. HYSA is mandatory, not a low % bank like you’re currently doing. If I worked in a less volatile field maybe I’d be fine keeping it at 6 months.

BarryMannnilow

2m net worth. I keep about 60k cash HYSA and checking accounts. Far more than 6 months of emergency funds but it makes me feel comfortable

jeon2595

The money in my HYSA.

Itsamegunship

Married 2 kids house and car paid off, 20k in a HYSA, and 20 in JAAA 10 in SATA waiting for market downturns or additional needs IRL

WorldlyWar2143

2.5m in my HYSA

Popular_Song3371

let me out of these positions and i promise i will put it all in a fuckin HYSA!! fr this time

oneWeek2024

figure out core survivability need. rent/mortgage. car/gas/insurance. food. critical utilities. times that by 1 month, 3 months, 6months, 9mo, 12 mo. pick a time frame that aligns with your risk tolerance/employment stability. in my mind it's 3-6 months. And honestly. I only keep 3 months in a HYSA. because there's no universe where i need more than 3mo worth of money at any given time. I keep the rest in a brokerage in simple ETFs/broad market etfs. to try and earn more than the dogshit 3-4% of a HYSA currently. IF i were to face a crisis/laid off or whatnot. I would have enough time with liquid funds to make decisions on the stocks. and any online savings acct/HYSA is going to take 1-3 business days to get that money to a reg checking acct. a stock brokerage is probably only an additional 3ish days to process a sale/get the money out to a checking acct. so to me... the long term risk of letting too much money rot at low % interest is to high. I don't have SO much money that i can just let 20k fucking rot

AdhesivenessGreen474

Hello. Dad of 5 here. Like the others, I would recommend moving on from Acorns and definitely not keeping a 401k there. 2 of my sons are about your age and they started on Acorns when they got their first jobs at 16. $12/m is the higher tier account, I believe. They had the $5/m. Yes, it's expensive but at their age and knowledge level at the time, it taught them the basics. They have both moved on to Public accounts (public dot com) which has low fees and drip investing. Honestly most of them do. Robinhood is fine. My oldest has a 401k through Principal at his work. I have large accounts with Fidelity (taxable & HYSA) & Vanguard (non-tax) and pay $0 in monthly/annual fees. Good luck.

MaddRamm

SGOV for HYSA rates with no risk of fluctuating principal.

CosmosMasterMan

At least park it in a HYSA

hangster

This is exactly that. Been laid off numerous times, has always taken so long to find new work etc... I keep a good chunk, just incase. It doesn't take long for things to flip around. Is your healthcare, salary, life insurances etc... and even your partners/kids/etc also tied to your work? One board room decision changes all of this for you. Typically for me, I've seen this come during a market downturn... so I'd rather lock up my money in a HYSA or SGOV or something vs thinking I can just take it out of the market. Clearly - its a conservative view, but it lets me sleep better at night (which is worth a whole lot).

henrytbpovid

You need a HYSA immediately

animalinstinct10m

Buffer ETFs are a good supplement. A 100% buffer from Innovator gives you S&P upside (up to a cap) with 100% downside protection. That way, you earn more than SGOV or a MM mutual fund, have liquidity, and don't pay taxes on income (like you would with a HYSA, CD, MM mutual fund, or Treasury ETF). The tax impact is when you liquidate but it will be at the capital gains tax rate rather than the ordinary income tax rate. Didn't answer the question of amount as that depends on many of the risks that others have already addressed.

oliguacamolie

Capital one offers HYSA with savings over 3%

MagisterVerde

And as someone below said, most isn’t literally in cash; my emergency fund was entirely in a HYSA, but I recently transferred most of it to a brokerage invested in SGOV. Why? HYSAs invest in short-term treasuries and take some basis points off the top as their fee, so why not skip the spread and invest directly in the same underlying risk profile. The tradeoff is T+1 rather than immediate liquidity, which is why I left 10K in the HYSA to cover me if I get laid off on Friday at 4:30pm of a long weekend 😂

Natural_Barnacle_892

I keep $100k in T-bills to guarantee two years of travel and vacation if I ever quit my job. I keep $30k in a HYSA as a sinking fund for major home repairs on a paid off house. I keep about $600k between IRAs, a 457b, and brokerage account. Have a pension banking for 12 years so far as well. Raised by sick, poor, and now dead parents. Never inherited a dime. I’m a 42 year old confirmed bachelor. Life is good.

RobertPooWiener

I'll probably just sell it all and put it in a HYSA or money market. It looks like all the indexes are down too. I would have made more money up to this point if I had just left my money in SPAXX in Fidelity CMA

MainDark3321

I pay all my bills out of 1 checking account. I total up every dollar that has come out of that account over the past 6 months. Divide that by 6 to get a monthly average and make sure the emergency fund in my HYSA is in that 3-6 month range.

Yourlocalguy30

As a homeowner who just shelled out $10,000 for a roof replaced and another $14,000 to have our dilapidated deck refinished (both in the same year), $40k goes pretty quick. Fortunately I had an emergency fund north of $50k, but just watched half of it get vaporized in the first 6 months of this year alone, and theres still a possible car replacement on the table in the next 12 months. I'd keep that $40k in a HYSA so that at least it's going with a decent interest rate.

Seref15

There's no single answer. My property tax is paid lump-sum annually, my car insurance is paid bi-annually, my homeowners insurance is paid quarterly. I keep enough cash on hand to be able to pay 1 year of all the above, plus ~6 months of typical monthly spending. The location of my emergency fund has changed over the years. Currently it's in an HYSA. In the past I've used CDs, mutual funds, and bond funds, usually picking whichever vehicle has the most advantageous rates at the given time.

sidewinder787

I'd say keep somewhere between 10-50k as liquid cash in a HYSA.

tomgreen99200

At least keep your cash in an HYSA to earn interest. Don’t keep it at your bank. You earn nothing there.

dogs_gt_cats

Transfer from HYSA -> checking, ATM or write check. Ally bank.

Ethanop1a

Where do you have an HYSA that you can withdrawal the cash same day?