HYSA

DaemonTargaryen2024

HYSA, money market fund, etc [https://www.investopedia.com/terms/c/cashequivalents.asp](https://www.investopedia.com/terms/c/cashequivalents.asp)

Vlisa

cash is a position, but I swear it is all HYSA only people

mwam22

If you can’t deal with risk, put your entire portfolio in safe debt securities. If you need this money liquid, put in a HYSA. Otherwise shut up and hold until the market rebalances

redditpossible

Transferring from ETF’s to HYSA now would secure a 3% loss during this downturn?

RealAlexJonesTM

Buy a multi-family piece of property with an FHA loan, put down a decent down payment, invest a few hundred grand in Vanguard ETFs and then keep 50-100k in a HYSA for your spending money. Or buy a ton of SOXL/MU/NBIS calls at the top and blow it all and ruin your life.

Geng1Xin1

I put 10% of my total account into SGOV, but I didn't do it because of any market winds, it just has a higher interest rate than my HYSA at the moment.

CosmoSein_1990

Keep a safety fund in a HYSA to have cash on hand when you need it in an emergency. If a recession does hit I would increase the amount in that safety fund to an amount that gives you some piece of mind. For your investments, keep the money invested and buy the dip.

RickDick-246

I haven’t pulled back, but I have slowed down my investing to have a larger HYSA. I’ve got some personal things going on where I’d just be more comfortable having extra cash on hand. Once I make it through the storm, I’ll dump it all back in but I’m fine missing out on 10-15% gains if that happens over the next year or so on the cash I’d be putting in.

br_k_nt_eth

Yeah, you’ve got a long road ahead. When you’re planning things out, plan for 20 years or so unless you want to retire early or something. That really changes one’s perspective.  Also, you remember what 2011 or so was like, right? It was mostly extremely shitty days and then a lot of stagnation, but it didn’t last forever. It never does. Do you have an emergency fund? Having 6+ months of cash in a HYSA or something similar that’s less exposed to the market isn’t exciting, but man does it help me rest easier. 

VisionQuest-3000

Statistics show the median IQ is about 100. Way too many below the median IQ act like they know everything and everyone else knows nothing. The stock market historically goes up with periods of time when it declines by a large amount. Simple facts on numerous investment sites. The stock market has been unstable for several months. Large or perceived large swings in either direction have occurred and are somewhat unsettling to see. My portfolio is still fairly diverse. A portion was recently moved to the TSP G Fund aka HYSA because of the 5.375% rate that has the potential to increase in November. Will that occur? Who really knows. Same for bonds.

RagnarokWolves

I have a six month emergency fund setup in a HYSA. This allows me to invest without worrying about market swings downwards. I invest 20-25% of my gross income from each paycheck into the S&P. (I built to that over time) I have accepted that I will leave this money invested for decades until I retire. If there's a market crash, that's an opportunity to get more shares on sale.

kingallison

Suitability and risk tolerance. How old are you? How much money do you have to invest? Can you afford to lose that money? It's pretty simple. If you have enough money that you don't need to use soon and find stocks that you think will increase in value over your time horizon, it probably makes sense to invest in stocks. If you're older and can't risk losing money for the reward of maybe getting substantially higher gains in stocks, it makes more sense to invest in bonds. It's also common to mix between both. Sideline money always in at least HYSA or Money Market, bonds are fine too. Bonds are also not the same as CD's. You can sell them if you change your mind. I'm 35 and am heavily allocated to stocks over bonds. But when I'm not buying stocks, my uninvested dollars are either in Money Market, SGOV, or short term bonds.

jdsmn21

And how upset would you be if that $8700 was now $7500 after 6+ months. If you’d be upset - find a CD or HYSA

Historical_Low4458

If you just need to park money for a short time before invrst8ng it, then a HYSA is the way to go. If you are actually looking to invest in something longer terms that is relatively safe with minimal taxes, then you probably want government bonds.

JaredMechanical

IF anyones looking for a high yeild savings account (HYSA) refferal link lmk. but i would do an ETF fk stocks

Round_Context_146

whats the best HYSA?

LockedOutOfElfland

First, know how much you have to set aside for taxes and put that amount into an estimated tax payment for the upcoming filing season. If you have any loans or debt, pay those off immediately. After that, either invest, like you're saying here, or put the amount in a HYSA you never touch until retirement.

fighting_gopher

My company also does a 5% discount…not worth the risk. Market tanks and the stock goes down by 1% from the purchase price and now it’s less than a HYSA

URMomPaysFirMyCalls

I think some of you are so regarded you use margin to buy into a HYSA.

Level3pipe

50k in an HYSA. This is your life emergency fund. The remainder: 10k a week over the next 45 weeks. There is no “timing the market” you’re young enough to not need to worry about that. Growth ETF + some dividend + Small Cap USA. I’d recommend 50% VTI 40% VBR 10% MPLX or SCHD mainly for the energy diversification. Although you may elect to put that 10% wherever you wish. After 45 weeks if you feel like you want to reduce that from say 50k to 20k or 30k you may consider investing in other things for diversification. Gold, Art, or investment in yourself (enjoyment/business/material/skills/schooling/medical/etc). Investments into the market is important ofc but don’t forget to invest in your well being too :)

i-amnot-a-robot-

What do you even mean - HYSA don’t lose money lol

Sensitive-Exam649

In my opinion you should: INvest în yura taxable account for dividned income. Enough to cover all of your living expenses. This will cover your living expenses if you lose your job or cannot work for any reason. plus 6 months of living expenses in cash for the occasional large bills. And eventually work up to maxing out your roth and 401K contributions. Now it looks like you living expenses are about 2K a amonth or 24K a year. You HYSA currently if invested in IWMI would generate about 1K a month of income You want 2K and you are half way there. Now this doesn't abandon your dreams of owning a home. but it may be delayed. Right now you don't have enough to income to cover the cost of owning a home or small condo. But building up dividend income can help making that dream a reality. Once you have 2K a month of dividend income you can use that income to cover your rent and food bill and desert the work income. Continue to build up the work income so that it eventually covers your your your brokerage deposits as well At that point you can increase your 401K deposit to the maximum. From ther keep building your income and eventually your income will be enough to get you a place of your own. funds I would recomend you use for dividends are qqqi, iimi, KGLD, EMO, UTF, UTG, and NAC (municipal bond fund for CA that is exempt from stat taxes.

RobinJeans21

My advice, which I’m sure is wrong. Pull out. Put it in a HYSA. Live off interest and still work.

imzadi111

HYSA went up at all my institutions. My best HYSA went up to 4.2%. Looking at CDs today as well. Saw one for 2 years a 4.6% and a bump up one for 20 months at 4.35%. I had not seen these rates for a couple years now.

SirGlass

Very common . The difference in yield is not the only benefit, if you live in a state with income taxes the yield on treasuries is state tax exempt what can make a bigger difference. That and you never have to chase the best HYSA. Banks play games if they need deposits they will offer competitive HYSA ; if they do not they won't. Meaning you great HYSA today might not offer an competitive rate in 1 -2 years from now. The great thing about short term bond funds like VBIL or SGOV is you always get basically the short term rate.

Dr_Zoonotikstein

Serious question from a guy who's happy to make $700 a day: If you can easily turn $7K into $70K, why don't you just stuff $63K into HYSA each time you do it?

TheImpPaysHisDebts

Treasury BILLS (TBills) are very short term (less than a year) government "backed" investments that pays you interest, but how it works is you buy the TBill at a discount and get paid the full amount at maturity. So FOR EXAMPLE you purchase a $1000 26 week TBill for $950 and in 26 weeks, you get $1000 (you made $50 interest that is not taxed at the state or local level, but is taxed at the Federal level). This sounds like what you want to do. Treasury BONDS are very long term (20-30 years) government "backed" investments that pays you interest every 6 months. So again, FOR EXAMPLE, you buy a 20 year BOND for $1000 and it pays you $5 every 6 months in interest (taxed the same way as TBills). At maturity, you get the face value of the bond back (in my example $1000). Treasury NOTES are medium term (2-10 years) government "backed" investments that pays you interest every 6 months. They are basically the same as Bonds, but they typically pay a lower rate - so in my example maybe you get $4 for a 10 Year Note or $2.50 for a 2 Year Note. Tax treatment is again the same. Normal interest in a bank account is taxed as regular income levels at the federal, state, and local levels. All 3 types of treasuries GENERALLY pay slightly higher interest than a high yield bank account, but your money is much harder to access and liquidate in an emergency. For example you can sell that $1000 BOND before it matures, but you may only be able to sell it for $925. In a bank account you can get the money essentially immediately - and it is all there. If there's a chance you need the money before 6 months, pick a high yield savings account (likely a hair over or under 4%). You can also look at something like an ETF - WisdomTree Floating Rate Treasury Fund (USFR) which is slightly less than a HYSA (and has an expense ratio), but it is state and local tax free - so if you are in a high income tax state, it may make sense.

Financial-Seesaw-817

1. Maximize TSP contributionsFederal employees get one of the best retirement setups in the country.Why this matters:The last decade before retirement is where contributions compound the fastest.TSP C/S funds historically grow far faster than G/F funds.Reddit consensus strongly favors aggressive allocations until within ~5 years of retirement. Target:At least 15%–20% total contribution if cash flow allows.Keep C/S heavy (80/20 or similar) until ~60, then gradually shift to L funds. 2. Max the Roth IRAHe already started one with ~$900. He should make this a full $7,000/year contribution if possible.Why:Roth withdrawals at retirement are tax‑free, which pairs perfectly with taxable pension + SS.Gives flexibility for early withdrawals if needed (contributions are penalty‑free). 3. Eliminate the $26K loanThis is the biggest drag on his retirement math.If the interest rate is >6%:Paying it down aggressively is mathematically better than investing.Reduces monthly obligations → increases retirement survivability.If <4%:He can pay it slowly and prioritize TSP/Roth. 4. Build a 6‑month cash bufferHe only has $2K in HYSA, which is dangerously low for someone nearing retirement.Target:$20–25K by age 60.This prevents tapping TSP during market downturns (a major retirement killer).Reddit TSP users often keep $100K liquid for bear markets. With 5–10 years left, the biggest wins come from: Increasing TSP + Roth contributions Staying equity‑heavy Eliminating debt Building cash reserves Lowering expenses Delaying SS

srfdriver99

Full benefits for Social Security in retirement don't kick in until age 67 for you, and Social Security will be insolvent in 2032-2033 or so, and will automatically cut benefits by around 25% the minute that happens. In 5 years, you will be 62, so you will be getting partial benefits - which will get cut further - if you take Social Security then. 232K in the TSP will be maybe 350K in 5 years. 4% rule gives $14,000 a year. Let's be conservative and say that the TSP plus your pension gives you a combined $2000/mo. You didn't say how much is in your traditional and Roth IRAs, just the contribution amount. The HYSA is too small to bother discussing, and the same is true of the Roth. How much is in the traditional? You need to zero out all your debt and get to the point that 4% of your own retirement funds is enough to pay the bills, considering that people tend to pick up higher medical bills as they age.

SuperiorStagnation

you’re already on a better track than most people i see posting on here, you’ve got the TSP humming and the pension is a nice safety net even if it’s modest after insurance. the on-call pay not counting toward retirement is such a classic fed move, my uncle dealt with the same thing at a VA up in Ohio. i’d be a little worried about that $26k loan though, what’s the interest rate on it? if it’s high that might be eating you more than the extra mortgage payments are saving you, depending on your mortgage rate. the HYSA balance feels a touch thin for someone with monthly expenses in that range, i’d try to nudge that up to at least three months of bare-bones costs before piling more into the roth IRA. the Roth TSP contributions are smart since you’ll be tapping that in a window where taxes could be higher, just keep an eye on the fees in the TSP funds compared to what you could get in your IRA. you’re not in a dire spot at all, just a bit of tightening on the debt side and building that cushion could make the next five years feel less like a tightrope walk.

0201037464793921170

One of those days that makes you just want to have a HYSA. Nasty.

spilledonwhite

cause bonds lose you money unless they are 1-3 month (basically HYSA)

Ozqi

Why use a HYSA if you can just buy 10Y bonds?

EaZyMellow

Tax is tax. Sell some, put whatever % that your taxes on it would be into a HYSA, then the rest is yours to do whatever. Or close all positions & YOLO on 0DTE’s like a true champ.

UncleTio92

Someone who has a small business and uses the HYSA for a small business loan if need be. Be he honest, how quickly can you transfer money in and out? I will say PNC does have brick and mortar stores that I can go get a cashiers check if need be

rhino369

Sgov is a short term treasury etf. While it’s not risk free it’s essentially the same risk as your HYSA. Because the FDIC is funded by treasury bonds.

tech01x

A lot of this depends on your tax situation. HYSA is obviously straight up income, taxed at ordinary income progressive rates. You might want to lower your taxes by seeking investments that have tax equivalent yield, but lower taxation. Stuff like SGOV. Or you might take a small portion of that and expose it to principal loss (even if it is temporary) like municipal bonds of your state (completely tax free) or TLT. Of course, HYSA interest rates adjust relatively quickly to changes in interest rates, so if you believe these interest rates won’t stay here, and will drop, then things like CD ladders and treasury/municipal bonds might make sense. Especially if you don’t expect to have to pull from all of this all at once.

NuanceEnthusiast

HYSA. It needs to be liquid. If it’s an emergency fund, it needs to be there if today is the emergency

Crazytreas

Majority of SGOV is state and local tax exempt while HYSA's would be entirely taxed by the state and localities. The higher your state taxes are, the better SGOV will be.

Plus_Persimmon_2521

Your second sentence reads "This is Have 6 figures in HYSA @ 4%. Change? our rainy day account", looks like the title got pasted in there by acident. Also worth noting the image attached is a TabPFN ad, not anything to do with savings rates.

__redruM

It could be argued that stretching the truth about the state of the economy serves the purpose of getting liberal and centrist voters to the polls for the midterm elections. This includes the last two years. But past that point it’s too late for the rhetoric to be useful. And it’s not like a bunch of republican voter go to reddit for investing advice. It’s young liberals hoping to learn investing. Telling those people that 2007 is going to happen any moment now and they should sell everything and move their funds into a HYSA is very much friendly fire. It’s gross, but luckily there are other subreddits the political operatives have not yet found.

Brilliant-Rise3097

if the hold is only a month, a one‑month fixed‑rate or short‑term gilt‑edged security is basically the same as a HYSA but with a guaranteed rate; just bump the issuer’s credit score on the picker

agusus

That's not really true, the Fed funds rate indirectly affects banking consumers for sure. It sets the interbank lending rate range, so it sets a floor on the rate banks can earn off of the money consumers lend them. The OP is right to think that the greater the delta, the more their bank is short-changing them. It's worth picking a bank with the most competitive rate \*and\* most consistently prompt updates when the Fed funds rate changes (in both directions, not only prompt on the downwards). I'm not sure there's a list of which banks have the best track record on that. I deal with it by only giving my checking/HYSA account the minimum (just the current month's bills basically, sometimes 2 months worth) and keep the rest in Vanguard MM.

agusus

People with a lot of money in MM care. A 0.25% delta on $60k is about $150/yr. That may or may not be worth your time. But some people's HYSA's under deliver by 0.75% (3x that) or more. 60k or more in cash is reasonable for many people's \~6 month emergency funds, or retirees. And if you're holding a lot of cash you don't want to underperform the Fed rate by a lot because then you have a negative real yield - literally losing money.

RingoFreakingStarr

I have a HYSA with American Express and within the last month or so I've been notified that my % has gone up twice.

SnS2500

She could just put $6000 more in the Roth in SGOV, and then not pay taxes on the interest she would in the HYSA. No need to invest it now... small benefit of interest income in the Roth instead of the HYSA... she can take it out if she needs it... but in future years she may want to invest more in the Roth, so it would make sense to max it each yearly contribution now when you can, even if for time being you just have it in zero risk SGOV or something similar.

rvanasty

Are you planning to combine finances after marriage? She should keep 3-6 mo of bills in cash (HYSA) "emergency fund" and the rest should be invested.

EfficientExit4422

Fixed rate 5% HYSA

Straight-Annual8687

Auction going to be a nothing burger........the rates are not impacting the market, and are far too low to impact the market. Seriously, who's going to dump out of the market for \~5-6%? You can just about get that in a HYSA. Those that are in the market will remain in the market.

DONNIENARC0

If you actually think it's going to crash, then probably just hold cash, bonds, or throw it in a HYSA.

AcrobaticTurnip171

HYSA is solid for preservation, but the rates today are usually less than 0.5% p.a., so you barely beat a normal savings account. If you want a few extra pennies you could try a 1‑month Treasury bill—it's also risk‑free and the yield is a touch higher. Just make sure the account has no exit fees in a month.

mspe1960

You have never needed to send money via an EFT? How about you want some cash from an ATM*?* I am retired and the way I fund my entire life is by automatic monthly transfers from my HYSA to my checking account. As needed, a few times a year, I transfer accumulated dividends and/or capital gains to the HYSA to keep it funded for that purpose. And yes, some of those are SGOV. But I cannot use SGOV for cash flow. It does generate cashflow but I have to sell it and wait for funds to clear before I can use it,.

Medium-Pollution2643

Sympathize with the anxiety, everyone holding cash right now has run this exact math. But the signals you listed, overbuilt housing, the dollar, people cutting back on fun spending, are all things you can only really name after the fact, and 4% in a HYSA is taxed as ordinary income so your real return is thinner than it looks. If the money is truly untouched for 10 years I'd still put it in, maybe spread over 6-12 months if that helps you sleep, and if it's 5 years and you might actually need it, the savings account is a perfectly reasonable place to park it.

AlternativeKick5225

I totally hear your point about the short horizon – the extra few basis points from a 3‑6‑9 month T‑bill ladder are usually dwarfed by the hassle of setting it up and the risk of the office shutting down. For a 9‑12 month purchase I’d keep most of the $75k in a 4.5% HYSA and maybe keep the $15k SGOV as a quick‑access safety net, but otherwise skip the ladder.

mspe1960

They are saying they use SGOV as a replacement for a HYSA. I am saying, correctly so, that it is not a one for one replacement.

unpluggedcord

You got downvoted because nobody said it was as an HYSA

B_P_G

A HYSA account doesn’t have same day liquidity either.

NobodyOk1556

yeah, banks aren’t required to pass fed hikes straight through; they weigh depositor inflow against loan demand, funding costs and competition. feds bump the base rate, but your bank’s 3.4% is still around the market average for a while. i see most big online banks (Marcus, E\*Trade, SoFi, Capital One) raise their HYSA to 3.5‑3.75 around a week or two after a fed move. if you’re comfortable switching, moving a chunk to one of them will give you a few extra bps. or keep whatever you need in a brokerage money‑market or Treasury‑bill fund (SGOV, IIQA) if you don’t need instant ATM access. in short, the fed sets the tone, but each bank decides how fast to echo it.

Over-Computer-6464

HYSA and CD rates take a month or two to adjust to rate changes. That is why in 2020 I sold a lot of treasuries and bought CDs. The CDs remained at higher interest rates for a month or two after treasury rates dropped in March/April 2020.

mspe1960

SGOV is a good place to park cash, but it is not equivalent to a HYSA or MM fund. It is not as liquid. You cannot do an EFT from it, and you cannot write a check. If you don't need same day liquidity, it will not be an issue. But many people do.

__redruM

Index funds give next day liquidity, including SGOV which returns as much as a HYSA and lets you skip state taxes. But imagine you had your emergency fund in VOO for the last year. It’d be up 15% and could handle most normal dips without losing money, and after 5 you’d be approaching almost double your principal. This is a real risk, but would accelerate someone who started retirement savings late, and once you’re well into 6 figures, the market would have to really dip for you to sell at a loss. I still keep $20k on hand, but can’t leave much more out of the market.

Insulaner

I agree, I have my emergency fund in a HYSA for the immediate liquidity. I'd only use a money market fund/Treasury bills for cash I know I won't need right away.

redhill_qik

Both Marcus and ETrade have increased their HYSA interest rates 

sharp315

1. set aside emergency funds in a CD or HYSA 2. open a taxable brokerage account and invest what you can in VOO 3. later, once you have income, you can open an IRA account and sell down your taxable positions to contribute to the IRA. try to maximize your IRA contributions each year.

SarlaccJohansson

Well no, equities (say S&P500) outpace inflation in the long run. HYSAs do not. Inflationary risk dominates assets returning near the risk-free funds rate. HYSAs carry no price volatility or credit risk. You're right that they are good for liquidity and are certainly better than standard banks. I'm getting into "ackshually" territory lol but my opinion is we shouldn't describe HYSA as "zero risk," it costs nothing to be particular about the risks they do absorb.

Imaginary_Tie4218

I’m 23, nearing 24. Same boat background wise, Just decided to buy my first ever stocks (just some S&P 500 and similar). I’ve been working for years just keeping money in the bank making pretty much nothing (not even a HYSA). After working my first full time job this past summer and having more money than I’ve ever had before, I decided to invest and also open a HYSA. Feel like I’m taking baby steps. Also just got my first credit card so I can start building credit and make some cash back on purchases I would be making anyways. I used to use apps to scan receipts for gift cards and etc. feel like there is so much to this money game and I will never catch up or wrap my head around it all. Don’t even want to think about all the trading terms and tax terms that I’ll never understand. Baby steps

bam2350

SGOV or treasury direct or HYSA

SpookyKG

HYSA.

SarlaccJohansson

Sure, but price volatility is not the only kind of risk. Even for their "security," HYSA carry inflationary risk.

Active-List6373

Thank you! The same day I posted this I ended up opening a regular Roth, connected it to the HYSA, and transferee $7.5k to max annual contributions. Invested it into various S&P stocks. 

cheezweiner

So … not CDs, not Bonds, not treasuries, and not HYSA then?

Informal-Lime6396

Whatever you do, make sure it's in some interest bearing vehicle while idle e.g. in your broker's default money market cash position, HYSA, or bonds.

VolSurfer18

You should flip the numbers on your HYSA and IRA. No need to have that much in an HYSA when you can invest in the S&P and average between 8-12% per year versus HYSA yields which underperform inflation.

cheezweiner

So … not CDs, not Bonds, not treasuries, and not HYSA then?

boredinbabylon

HYSA exists as a liquid way to hold money instead of through a traditional bank account which is like 0.05%.

PeteDub

Plenty of HYSA are 4% right now. My CIT Bank is paying 4.1%.

spinz89

$170k in a HYSA with a 3.7% return will get you $6k a year with zero risk.

koalaification

i just turned 30, been in grad school for all my 20s, so the money ive invested is all my savings (before i had most of it in my brokerage in VT, but now most of it is in my HYSA (~100k) and ~50k in brokerage, and around ~23k in my roth ira (just started maxing that out 3 years ago). i was really scared to see it go down a lot during that feb 2026 dip, so thats why i pulled out and went towards the HYSA, though im sure it would have grown much more if i just hadnt touched it. lesson learned i guess but i grew up poor, my parents filed for bakruptcy during the great recession and lost our house, so im a bit more risk averse than most. i have no safety net so i didnt wanna see the one i built start to diminish.

koalaification

i sold my nvda from my roth ira at 222 last week, then it spiked up to the current price u see today (234). i regret it a bit but i did think the price was gonna come down again to the 199s/low 200s figured ill buy in when it goes low again. (cost basis at the time was 210 which i felt was too high) i did the same w my VT back in march, sold everything at the bottom and the stock skyrocketed the next day. i didnt buy back in, thinking itd crash again. foolish foolish foolish. i was scared id lose what i started out with, i couldnt bare to see it go negative so i sold but if i had just stayed it would have been an incredible run. i put all the money from that VT sell in my brokerage into my HYSA (it was getting 4.25% at the time, now it's 3.6%) the roth ira money from nvda i placed into SGOV. i figured the low gains would be preferabld to a negative year or stagnation but i was wrong, things can really turn around and u dont wanna regret missing the gains bc u pulled out

kurai-tsuki

HYSA doesn't adjust for inflation though, just moves somewhat in the same direction of interest rates. I stopped using my HYSA because it only was giving 3.3-3.5, nowhere near enough to cover inflation today

Sensitive-Exam649

fidelity money market funds do qualified for FDIC insurance. HYSA and Money market funds are essentially the same thing so they are FDIC insured. With ETF, mutual funds, and CEF don't qualify for FDIC insurance but eh brokerage do have insurance so this if they make a mistake or there systems get hacked and stock is sold the insurance will replace the shares at the current market price. The only catch with a Hack sells your funds you may have a hard time convincing the brokerage that the Hack occurred on there systems and not your laptop.

hammock62

The only ETF’s I own are in my separate 401k. My portfolio has 24 individual stocks. Over 33 years I’ve grown it for nothing at 17 to $4M and an additional $264k in HYSA earning close to $900/month

KaleidoscopeOnly2699

Exactly, but while you’re still in school and not getting earned income, the only tax‑advantaged vehicle you can tap is a Roth if you’re under 50 but need earned income—so you’ll still have to wait. In the meantime a taxable account (VOO or VT) is the next best thing, especially if you keep a solid emergency fund in a HYSA. That way you get in the habit and start compounding early.

Salty_Professor007

A HYSA is no safer. Who do think is insuring it up to $250,000?

MarkTheShark89

41k in a HYSA is excellent for your age.

InclinationCompass

Openbank HYSA is 3.8%

astrawberryandakiwi

It’s HYSA rn

enigman83

Depends on your goals. In your situation, consider these points 1)have yoru emergency fund available separately in HYSA. You may need it in time of surprise. 2) brokerage account will serve you where tax advantage will not, such as house, car or any big spends before retirement. 3 start investing early, even in boring setup, will get you to familiarise with investment, both good and bad. Hopefully you will not loss sleep over potential drops, but learning early is always good

Shadowrunner138

If you don't have access to a tax advantaged account, what other option do you have? You're not in to risk, so keep money in an emergency find somewhere. A HYSA, a money market fund, short term treasury ETF's, etc. Sounds like you might be a teenager who hasn't hit 18 in order to get a job yet. Build the emergency fund so you have the option of not depending on your family when things go wrong. Then open a tax advantaged account when you can.

Appropriate_Walk3862

I think if I was still in college only a couple years away from a taxable income job I’d stick to a HYSA until then. Not to make assumptions on your age but if there’s a chance you’re still claimed as a dependent? Also I’m pretty sure student owned investment accounts affect FAFSA.

GatorBo69

And you’re not “dumb stupid poor”, they actually say some of the most wealthy people make smart and conscientious decisions when it comes to being frugal and not wasting money. We have a strict monthly budget, so that 90% of what I take home is invested, I have 15% of my portfolio in physical precious metals (actually had to just get a second safe in the floor of my basement installed for such a reason) and yes we do take two 4 week long vacations every year so that we enjoy life. While always keeping $100k in a HYSA, and live in a very nice home in a gated community at the end of the cul de sac but it’s not super pretentious. We live well below our means, and I think that’s the key to a happy and successful life. Many ppl you see driving around in expensive cars are in massive debt sometimes and can’t hardly keep up with their payments. Bc most people don’t see people’s bank accounts but they can always see their car! 🤦‍♂️

URMomPaysFirMyCalls

Buy more Tbills and collect 5.2% or sell the DRAM January 2028 40p for 10% and collect 3.5% in HYSA at same time. Greed is a powerful thing.

OddDescription4523

I've been drawing back to cash in bits and pieces since the first of the year. The drop has definitely taken longer than I expected (it always takes longer than you expect, even when you account for the fact that it always takes longer than you expect), so I've definitely missed out on some gains, but I'm now sitting with 70% of my portfolio in a HYSA ready to gobble up on the cheap when these insane valuations finally snap back to reality. Pretty much all I've got left in securities are dividend yielders and a few holdings that I decided to just ride through the choppy waters.

Flokithedog

etfs and stocks are all down since mid summer. get into a HYSA until its settled

twnbay76

Take your money and start investing. HYSA torching you rn

ireallylikewatches

You're doing great. You've got a good cushion in the HYSA. Put your savings into the SEP and start a Roth. If you're worried about needing access to more than the hysa start a regular brokerage account also. Having access to both tax deferred and tax free assets in the future will be very valuable

br_k_nt_eth

Truly and sincerely, you’ll be amazed at what you can catch up on once you hit your highest earning years. I went from where you are right now to $100k in savings in 3 years just from regular contributions to IRAs, HYSA emergency fund, and some basic ETFs.  Have you considered how much you want in your HYSA emergency fund? 6 months of expenses is a good cushion. You could even go to 9 months since you’re contracting, just to be totally safe. Once you hit that (or before), you can increase your IRA and ETF contributions comfortably. You’ll see a big change. Remember, it snowballs. 

Otherwise-Road7137

i found the biggest shift for me was nothing fancy—just zeroing debt, locking in a 3‑month buffer, and then slamming the rest into a low‑cost total market ETF. i keep about 6k in the HYSA because the contractor side stream feels a little shaky. once that’s covered, every extra paycheck goes straight into a VTI/VOO basket and i let the comp do its thing. the fact that you’re already debt‑free means the math is on your side—just keep the 15‑30% haul and grow. at 70‑80k a year you can hit 100k in a few years if you stop treating the account as a “savings” and treat it as “investment”.

Active-List6373

OP Here, Thank you all so much for sharing your stories! It was neat to hear so many different perspectives. It has certainly helped me reframe my little self imposed crisis. As somone in a career where the whole premise is to "trust the process," it really seems I ought to take my own advice. I've gone ahead and pulled from my HYSA to max out my annual Roth IRA contributions in one go. I've invested it largely into the S&P. Additionally, I had a rollover IRA from a prior job with little bit of assets that I've gone ahead and merged into the regular roth. Finally, I will also be looking a bit more into a Self Employed 401k where I will likely begin re-allocating the $600/month that I've been sending to the HYSA. Going to make some lifestyle adjustments to try and save some money, look for expansion opportunities at work, and really start hamming up the 401k contributions to the best of my ability.

__redruM

You have 10 months of expenses in your HYSA, that’s a bit more than you really need. If you already know you’re behind, then you know some risk is needed to catch up. But you don’t have to stick the HYSA money in an IRA, drop it in a brokerage account in VT or VOO. That way it’s still available if you need it in an emergency. Keep 12-15k in lower risk like SGOV, and the rest in VT or VOO. **If you really want bold lifestyle anectdotes, /r/personalfinance has you covered better than /r/investing**