HYSA

Deep-Bench-2016

I've been geeking out on this Powell-exit story for a few weeks and the part that finally clicked for me is that tomorrow's actual rate decision basically doesn't matter — CME FedWatch has it at 100% odds of a hold at 3.5–3.75%. The interesting question is what happens to our stuff (mortgages, HYSA yields, auto loans) when Warsh takes over in May. What I learned the hard way is that mortgage rates don't really track the Fed funds rate. They track the 10-year Treasury yield, which is set by what the bond market expects the Fed to do 1–2 years out. So the chair changing only matters to your wallet if it shifts those expectations. What I'd actually watch tomorrow: 1. Powell's tone in his final presser at 2:30 — he'll probably want a graceful exit and lean dovish. If the 10-year doesn't react, the bond market is telling you it doesn't expect Warsh to materially change course. 2. PCE on Friday — sticky inflation locks in higher-for-longer regardless of who's chair. 3. The 2026 dot plot — if any of the projection dots shift down, that's where Warsh-era easing actually shows up first. For most regular people refinancing or sitting on cash, the practical takeaway is: don't reposition based on the chair change itself. Reposition based on what the 10-year does in the 48 hours after the presser. That's the cleanest signal you can get without a Bloomberg terminal.

Ok-Barracuda39

Really depends on where you want to live. If I had $2,000,000 in the midwest, I could live more or less like a rich guy with a pretty large estate and property while just using HYSA interest as income.

icnews10

That’s fair — the distributions are still the dominant component, so you’re right that most of the return gets paid out regularly. I think the important distinction is that structurally, you can’t really get HYSA-level stability, full liquidity, *and* deferred taxation at the same time. One of those has to give. If you stay in cash equivalents, you’re effectively choosing income (and taxation) over deferral. To truly defer, you usually have to move into instruments where returns come more from price movement — and that’s where you start taking on duration or credit risk. So it’s less about finding the “right product,” and more about deciding which tradeoff you’re willing to accept.

joesmith127_reddit

So my main savings account (Goldman Sachs) HYSA APY is 3.50%. I've got a Vanguard settlement account (VMFXX) and 161 shares of SGOV in my Schwab account. Can I do better than this and/or how should i best allocate the funds between those three accounts?

Trust-Me-Im-A-Potato

Technically if you bought it at $101 and sold at $103 you'd pay cap gains but that's negligible. The dividend income is where the income comes from and that's taxed as ordinary income, so likely a much higher rate than long term cap gains but not far off short term cap gains. But that's how you'd be taxed in HYSA interest income as well. Just Google it. There are other short and long term bond ETFs that have their pros and cons. Not all are designed to keep their value flat like sgov. It's just a convenient way to hedge against inflation with basically no risk and high liquidity

nateccs

How about dividend stock instead of HYSA, ET is paying 7%

secret_configuration

VUSXX, SGOV, and also CIT bank HYSA.

nope-nik-tesla

I use VUSXX instead of a HYSA. Higher yields and the gains are state tax exempt, which makes the real return even better.

Fr0ken

Putting money on Jesus not returning is just a shitty HYSA

MarlonMcCree20

BOXX or SGOV It's a treasury bill etf so no state income tax. They often give you a better return than HYSA. It's more liquid because you can sell whenever you want. Where it may not be as liquid is the time it takes to transfer to your bank, but assuming you have a credit card, it's not really a factor for most. BOXX is basically a loophole to not pay taxes until you sell. (SGOV pays monthly which you do get taxed on). The risk is the IRS might crack down on the loophole and you'll have to do a tax ammendment for the years you held BOXX. SGOVs underlying securities are government backed, while BOXX securities are not. Minimal risk, but worth mentioning.

PSKA-2026

You’re kind of describing something that behaves like a HYSA but with tax deferral, which is tough to replicate perfectly. Most liquid options pay out regularly by design, so you get taxed along the way. Treasury-based ETFs or funds might get you part of the way there since they’re pretty liquid and track short-term rates, but they still distribute income periodically. Same with money market funds. If you specifically want to defer until you sell, things like zero-coupon bonds or certain bond ETFs that lean more toward price appreciation rather than distributions could be closer, but you’ll still run into some payouts depending on the structure. There isn’t really a clean “HYSA equivalent with full deferral,” so it usually ends up being a tradeoff between liquidity, tax timing, and simplicity.

AutisticTradingPro

Depends on your state but short term 30 day T-bills may make more sense. Rate is somewhere around 3.4-3.6% right now, but you don’t pay state taxes on income. With HYSA you pay state and federal. Both are the same in terms of liquidity.

icnews10

What you’re looking for isn’t really a different asset, but a different *tax structure*. HYSA and money market funds pay you as income, so you get taxed along the way. If you want to defer taxes, you usually need something where returns come from price appreciation instead. That’s where short-term Treasury ETFs (like SGOV or BIL) come in — they behave similarly to cash, but instead of paying everything out monthly, part of the return is reflected in the price. Same idea with short-duration bond ETFs — still relatively low risk, but more of the return is deferred until you sell. The tradeoff is important though: you’re giving up some stability and predictability of income for tax deferral. So it’s less about finding a “better HYSA,” and more about choosing between income now vs. control over when you realize it.

rainmeterhub

It is not the highest yield, but it ensures you’re being paid slightly above or below, the current treasury rate. There are almost always banks that will pay more, but these banks change over time (only raising rates to attract deposits). I’ve been tracking HYSA, money market, and treasury yields for the past few years. Let me know if there is any info that would be helpful. https://yieldfinder.app/

KumingaCarnage

And what are you gonna do next time rates drop? Just gonna look for the next HYSA? Just pick one, stick with it, and drop it

mattjouff

The EverBank HYSA sounds interesting but they don’t advertise their withdrawal limitations anywhere. I think that’s a bit weird, it’s going to be hurried in the fine print. Being FDIC insured is nice, but if the bank goes tits up, you may not get that money out until it’s been thoroughly inflated away. 

ProfessionNo698

All great points. Technically, the MM acct is in my taxable brokerage acct. What are your thoughts on SGOV to avoid state income taxes on interest? And yes. My cash savings (HYSA) have grown considerably in the last several years and I need to start working more of that cash into investments. But that’s a topic for another post.

Trust-Me-Im-A-Potato

This is the play. I keep a small amount of money in my Ally HYSA to take advantage of their bucket system to help keep track of which funds are for what (Kid's allowance, vacation savings, sports savings, etc) and the rest of my savings (emergency fund, general savings, some college funds, etc) in SGOV. SGOV earns half a % extra than the HYSA and is state tax free which in effect adds an extra few tenths of a perfect And I can't imagine a situation where I'd need more than a few grand in less than the 24hrs it would take for SGOV to settle

slevin___kelevra

Put half in HYSA bank deposit and other half in etf like VOO. Educate yourself about different financial instruments like stocks bonds etf, futures and options Open paper trading account for training. After that you could active trade. But my advice: start with small amount ( less $1000)

ProfessionNo698

I was thinking something similar. SCHD is equities. Not trying to keep most of my cash in equities…because then it isn’t cash. Right? Also, would it make more sense to DCA $ into something like SCHD or just buy a lot at one time? It isn’t a HYSA, after all.

Perfect_Ganache_1959

Conservative approach: Open multiple HYSA, smaller amounts in each. Check what your countries' bank deposit guarantees are - for example, Australia only insures $250k per person per bank. You will earn the same interest roughly; depending on what institutions offer you. $100 * 10% is the same as 10 lots of ($10*10%). Term deposits are also an option for a fixed period and rate. Obviously, 1.5 million is a lot, and you may wish to invest in other options - ETFs that track market indexes are a relatively low risk option, but unlikely a HYSA, not entirely risk free.

IllllIIlIllIllllIlll

Believe it or not, not everyone can afford the risk of going balls deep into equity. Actually, most people are way overestimating their appetite to risk and they shit their pants at the slightest correction, or whine and cry that they have nothing to buy the dip. Having 10% to 20% or your portfolio in either bonds, HYSA or MMF is a perfectly valid idea for the vast majority of investors. Also it's excess, not access.

ProfessionNo698

I understand that. I keep about $10-15k in a checking account that doesn’t earn interest for most of my expenses. Anything over that range gets moved into my HYSA. Could you explain to me what SCHD is? I looked it up on Vanguard and it shows an SEC yield of 3.41%. But it also shows annual returns of >10%. Not sure how to interpret this.

Critical-Werewolf-53

You’d be surprised dude. I see people who won’t drop 100,000 into a HYSA and keep it in a 0.01% “savings account” because they hate any form of investments

mattjouff

Capital one HYSA is 3.2% so you are not doing too bad honestly. 

ProfessionNo698

That isn’t a HYSA. Correct?

Careful-One5190

The alternative to an HYSA is to put the money into a brokerage account and buy SGOV. About 3.5% yield right now.

Dry-Path9819

I want to have be a millionaire by 40. I just turned 23 years old. I went to trade school and was lucky enough to land a very well paying job that most people retire from once they get in. My base salary is $94k a year without any overtime. I’m aloud to work 8 hours of overtime on Saturdays and occasional Sundays that’s are double time. Obviously I work as many as possible. So after OT, yearly I’m at like $115,000. Here is how I divide my money each time I get paid About $2500 each paycheck give or take $1,000 HYSA $290 Roth $300 individual stocks $50 student loan $185 bike payment $26 gym membership $200 rent $100 CC payment (I put 15% into my 401k 8% Roth 7% pretax) That adds up to about $2,151. The rest goes to groceries, gas and entertainment like going out to eat or other things. Where I stand HYSA- $18,500 Roth- $11,500 401k- $28,000 Mutual fund I’ve had since birth- $15,000 Personal investment- $1,000 (just started doing this) Debt $6k student loan $19k bike payment My main goal is to buy a house in the next 5 years. A house is between $350k- $800k in my area as of right now. My girl is going to be done nursing school in 3 years as of right now and can expect her to make around 60-80k when she graduates. I invest my money into things like VOO, QQQM, SPYM, SCHG, SOXQ. Right now I’m just throwing money into these investments and hoping. Is there anything I should try working towards first? Is my goal unrealistic? My parents were terrible with money which makes me not want to be like them.

Rez_X_RS

If you're gonna look for a HYSA alternative for the brief future, may as well buy SGOV. It's a 3 month T bill ETF, very liquid, and i think current rate is 3.55% with an expense ratio of 0.09%

WoofMeowChirp22

Doing it now, but because I'm not in my home country, the whole process might take a while... We don't have too many easy HYSA accounts here.

pain474

What stops you from just making a new HYSA? Otherwise, send 50k to me, rest into VTI.

brute-forced

Closed? Just put it in another HYSA? Like, what? Put it in a money market account… invest it.. why are you asking for basic advice with $1.5M?

evetSC

She uses this stock as a HYSA. She will sell when she has another buying opportunity for a different stock

BlueShift42

Put your savings into an HYSA. Same thing, but not devaluing. Gives you time to figure out your investment strategy.

KMPItXHnKKItZ

I saw this too a handful of months after my first go at options trading when I made $800 on my first week and had a few lucky trades of making $100 in under a minute, but then lost all of it after doing something dumb while Nvidia earnings was going on summer last year. Then I started to read about investing for retirement and read a lot of things on the bogleheads sub. Because of that, now I invest anywhere from $15-$50 a day on average into SPY, I started September last year and already have over $17k into it and 25 shares and am up +$900 in profit. ETFs and retirement investing may seem slow and boring at first, but in 20 or 25-30 years when you have $1-3 million in your account or whatever, you will thank yourself for doing that. The trick is to have enough money to lifelong invest to begin with, while still having fun money both to spend on yourself, your bills, and fun trades or meme stocks/gambling on stocks or options or whatever, while being responsible and still dumping absolutely as much as you can into your retirement/lifelong/emergency money investment. I do not want to be 60 years old working at Wendy's, so that's why I do it. My current projection using an S&P500 calculator puts me anywhere between about $2-4 million, maybe even more, in about 25-35 years if I keep up my current estimated $20k a year or so into SPY for about 30 years. I still do fun gambling cheap options plays and I always look for the next Netflix or memestock opportunities, but lifelong smart retirement investing is something that everybody that works and that can afford it should do. I saw a guy on Reddit that invested only about $7k a year into SPY from 1997-2025 and he had an $800k gain for a total of over $1 million. It is that easy. And once I get to the end and have hundreds of shares of SPY, then I could even sell losing options to regards to make even more money if I am ready to sell anyway. Then just dump that million or two or three into a HYSA, Bonds, or dividend stock and make someone's six figure salary a year in interest/dividend payments alone. That together with your social security, savings, and maybe freelance work that you enjoy, would afford you a comfy and cozy retirement in your 50s or 60s and then you would not have to be an old man looking for retail jobs or working at Wendy's like a teenager.

imrickjamesbioch

Only a broke bitch would tell someone to burn through their capital by paying $500K+ in taxes just to gamble on LEAPS… HILARIOUS! Or they should go from high-growth asset (stocks) to low-growth asset (HYSA). Killing OP shot at his goal of $10M unless he gets lucky again (no disrespect OP). Yes, making $90k surely sounds better than the $400k growth OP has seen per year over the last 5 years. An how do we know Bonerdick is broke? Broke people only investment strategy is option trading cuz they don’t have enough capital to “slowly” / safely grow their wealth over time. An in OP case, it’s not even slowly cuz he’s averaging 225% returns per year and this is with the market crashing in 2022. But back to broke ass bitches, they resort or more like chase 10x returns in the short term in this infatuation of getting rich over night. The lure of tons of money and hot bioches for the win! However even m in a bull market, clowns like this will find a way to lose their money. 90-95% of you opinion traders will lose or not make money. However Im sure Bonerdick will be different cuz of all the sound advice he’s already bless the internet with. “Turning $167K into $2.2M and being told to switch strategies is peak internet idiocracy.”

Miggysmalls801

Put 40k in your taxable brokerage, start maxing out a Roth IRA and make sure your HYSA is only 3-6 months of money needed to survive (bare essentials) The other 69k I have no idea maybe ttreat yourself to a vacation then the rest dump into a nice etf as well like VTI or VOO

AskPatient1281

This is my formula. This is what I do. Maybe it will work for you as well. 1) Emergency fund - 6 months of expenses = $29,700 This should be invested in treasury. A good option is SGOV. Ok also to keep it at a HYSA. Not a regular savings account, but a HYSA. 2) Open a roth IRA and fully fund it to the max allowed = $7,500 Everything here should be invested in broad stock ETF, something like VOO or VTI. If you want, put 20% on international stock - VXUS. So 20% VXUS and 80% VOO or VTI. Invest the max allowed every year. 3) Open a brokerage account and invest the rest Follow the same formula as #2. So 20% VXUS and 80% VOO or VTI. Invest a little every month. It doesn't matter if the market is up pr down. Just keep investing a little every month. If you can invest $50, ok. If you can go to $500, great. But keep investing. 4) Check your emergency fund at least once per year. If you conclude that your cost of living went up, top it up. Add more money to it. 5) As you get older age 45 or so, start adding Bonds to your portfolio to reduce volatility. You don't want to retire with 100% of your investments in stocks. On your Roth (and 401k, if you have one), you can sell some of your stocks and buy bond ETFs like BND or IGIB. In Roth, IRA and 401k these movements are not taxed.

stellalipschitz

I didn’t start until last year and I’m in my early forties - observed a very decent increase last year and substantially more than I would make in my HYSA so I’m happy. Staying the course!

888mainfestnow

It's more of a map of the possibly outcome if you keep gambling with the gains you just made.  First one is free Don't give it all back Take some out for taxes shove it in a HYSA or pay estimated.

RelativeWing605

HYSA is a high yield savings account 😂😂

Beloved_Mango

You think those tendies are safe because you moved them into HYSA??? Next post will be “I Blew 6 Figures in a HYSA and my Wife won’t talk to Me” You got lucky regard you ain’t bullet proof! Also you already posted this shit Congrats again and fuck you!

RelativeWing605

The comment “don’t forget about taxes” implies “don’t risk your gains since taxes…”. HYSA is safe play with zero risk.

RelativeWing605

Moved to HYSA for a reason.

Banking_on_counflips

He took the money out into HYSA. It’s stated on the description.

THATxBLACKxJEW

So you did a cash injection in July…which is the big steep line. Then in a year the and amount of value as keeping it sit in a HYSA. Amazing work 👏

atxbigfoot

no, if the doge was given to the shitty partner that invested in doge in the divorce proceedings. Imagine you are a really stupid land investor and so you force your family to live in an absolute shithole in the middle of Oklahoma, you get divorced and keep the land because you're hodling, and then ten years later it turns out the land is full of diamonds. You get to keep all of the diamonds. If it's bad, you get to keep the failure, too. Idk something like that, I only invest in my HYSA and 401k.

zonk84

Two different platforms - but same agree.... I use a RH competitor (Wealthfront) - and I like WF a lot. Have my Roth IRA. HYSA, and a taxable robo-ETF with WF. Been with them for 7+ years now. Happy with them. A lot I like about the fintechs - always read the fine print. But my taxable brokerage for individual equities? I'm still with Fidelity. I *do* think the fintechs *can and do* beat on the margins - haven't compared recently, but WF (and I suspect Betterment and maybe Robinhood and etc are similary) *does* seem to beat on the margins.... Cash yields (yes, I know all about Yotta... not every fintech sweeper is Synapse)... more transparent - and formerly cheaper - robo/algy ETF (I did recently see Fidelity has matched on fees... but the robo-fintechs still beat if you account for tax-loss harvesting and fractionals... pennies, but still). My "active"/individual equity account is with Fidelity.... and I'm happy with them. But my fintech (cash/HYSA + robo ETF)? Still slightly beating Fidelity on the margins. As has always been the case -- the stalwarts get dragged into competition. Wasn't *that long ago* that the prior (prior prior) generation: E-Trade, etc -- forced the stalwarts into zero commission fees.

MyActualWords

Just zoom out on the S&P500. What happens in the near term is irrelevant. Putting that much money into a savings account is crazy… leave an emergency fund in HYSA, dump the rest into VOO and don’t touch it until you retire.

IHadTacosYesterday

Sometimes you take the gains and then put that money into something less volatile. Just for more peace of mind. You give up continued upside for a bit more safety. Or, you take your gains, park them in a HYSA and wait for the next crash/panic

Cautious-Ad-5010

I'm new to this and this may be redundant but please let me know if I have this concept right before I lose all my money. 1. If NVDA is $200 currently. 2. I buy 500 shares for $100K 3. I do 5 covered calls 29 dte, for $5.83 premium strike $210 4. After the 29 days: A. If strike doesn't hit I collect $2915 in premiums, keep my shares B. If price drops dramatically collect $2915, but if stock tanks im stuck to lose it all. C. If price goes over $210 I get assigned and take $2915+ $5000($10*100*5)=$7915? Is my math off? This seems way too good to be true. Why on earth do I have my money tied up in a HYSA. Can this be done with SPY or ETF to lower risk? Seems like I wouldn't mind the strike being hit and just repeat the concept the next month?

MarlonMcCree20

It depends on what your goals are and where you live. If you live in a high tax state like CA, treasury bills/something like SGOV would be better than a HYSA since you don't pay state income tax on it. Are you going to need this money in the short term as in the next 5 years or so? If not and you're ok with it sitting, I would consider putting some of it in an etf(s). Regardless, you should put some into the market, even if it's not that much just to get your feet wet. You're really young and have a good opportunity. I started way later.

SorcererAxis8

Opening a HYSA is the right thing to do. Chase pays you less than peanuts in interest.

yungtunafish

HYSA is a great first step for your investing journey. Seeing interest accrue in your account for the first time helps with the mental shift of realizing how valuable it is to always have your money work for you (grow, earn interest). It was my first step to investing a few years ago and now I have an HYSA (Ally), stocks and long term retirement accounts (Fidelity). I like Ally bank for the HYSA. This is where I put my first $10k in savings for my emergency fund, and still use this account. It's an online only bank (no physical branches), so all of their focus goes into making a really good, easy to use app for all of your banking, and low/no fees. I joined a couple years ago when rates were at 4.5%, now it's somewhere in the 3's like most other HYSAs. I have BoA and Chase accounts as well for checking, business, and credit cards, but I still choose Ally for savings. They are FDIC insured like any other big bank. Definitely don't let that 10k sit in a regular Chase savings account. HYSA is a great start, put the money there and pretend you don't own it. Depending on your monthly expenses you may want to add to it until you hit $15-20k just to be safe. , then you can look into things like a brokerage account or Roth IRA for more aggressive growth strategies. You're young enough where if you start investing now, even just in index funds ($SPY or $VOO), you will be way ahead of your peers by the time you are 30. If you want to learn more about starting out, I'd suggest watching some videos about the "financial order of operations" from The Money Guy. This helped me out a ton in my early 20's.

bozobeblazed

10k is a good Emergency Fund. You want it liquid and accessible. HYSA is the move. Have that 10k making you some money why it sits there. Compare APY of different places. Discover Online Savings is a good one. You're local Credit Union might have one. Compare those rates to yours at Chase. 3.4% is a lot better than some "Savings" accounts that are only .05% or .5%. 3.5% on 10k starts add up. Likely not going to beat current inflation rates, but it hedges against the devaluation of your hard earned money. Now that you have an emergency fund, look into Mutual Funds/ETFs to invest what you can into. Leave your Emergency Fund alone tho.

EasilyGod

HYSA is better than a traditional savings account but what is your goal? If it’s emergency funds that you might have to take out within the next 5 or so years then that’s fine but if this is specifically for long term growth you really should have it in an ETF like VOO instead. For online vs physical banks the main difference is that online banks don’t have a physical location to go to if you have any issues and some online banks have bad customer service. As long as the bank is FDIC insured though you’ll be fine.

creepy-farter

My individual stock holdings are really just my “gambling” budget. And when interest rates were near zero I focused on high dividend yeild to at least get more of a return compared to a HYSA. Bulk of my investing is via broad index funds or bond funds for growth. There are tons of studies showing how even if you have an excellent gain one year, it is difficult to maintain a win streak over the long term. You eventually return to the mean (or below).

Worth-Dress-2902

Do people use this account instead of a HYSA? Seems like that would be the smartest thing to do?

DesertSnowbaru

Don’t do it. Do a HYSA or SGOV. …But if you go full regard, then RKLB RDDT or NBIS

Purple_Xenon

they have additional 500k in HYSA

Content-Assistant849

It's not about it being an investment. It's about whether she can afford it. OP wants to buy a 700k house. She's had 500k siting in a HYSA for who knows how long. Might as well buy the house. It'd be better for her longterm than what she's doing and she can live in it. A $200k mortgage on a $180k income is a sweet lifestyle.

Hot_Cap4943

You’re actually in a very strong position already, with solid assets, a large cash buffer, and meaningful upside from your business. It’s not necessarily about being more aggressive, but about aligning your portfolio with your goals. If part of your HYSA is earmarked for a home purchase within 1–3 years, holding cash makes sense. But any excess beyond short-term needs could gradually be shifted into broad equity index funds like VTI and VXUS to support long-term growth. At 31 with potential business income growth ahead, your true risk capacity is higher than it may feel today. The key is avoiding excessive cash drag while still maintaining a portfolio you’re comfortable holding through volatility. A simple framework: short-term cash, long-term equities, and your business as the upside driver.

mynamecharles

Put 1 Million in 10 different HYSA and $500,000 in VOO, then gimme $500 as commission for this financial advice

snkscore

JEPQ should perform better (less badly) in a bear market but I just don’t understand why anyone would prioritize dividends over total returns. JEPQ performs almost exactly the same as 75% QQQ 25% HYSA so even if someone wanted less volatility they could get it by holding less of the underlying stock to get the same results. But focusing on high yield dividends so you don’t “have to sell shares” is what I hear a lot and it sounds like those people just don’t understand what’s going on.

Calm-Professional103

I’m sitting in 65% HYSA, 25% Royal Canadian Mint allocated gold and 15% BTCC spot BTC ETF inside a tax-free account.  Liquidity, inflation hedge, growth sleeve. I give my financial advisor friend conniption fits.   

USAJourneyman

HYSA

Particular-Macaron35

Put in whatever amount you are comfortable with. Like invest 5k in an etf, and the rest in a hysa. If the market does poorly over a year, put in another 5k. Another strategy is to look for a “safe” fund. Like could be a dividend fund. Maybe start with a mix of 25% growth, 25% dividend, and 50% HYSA.

External-Conflict500

If you invest money, it should be long term. If you think you need the money in the next 5 years then put it in CD’s or HYSA.

letsbeoutlaws

Yes we both have maxed out roths. We have 80k in 401ks, and savings for the kids in a HYSA. I am going to have to google HSA for a family HDHCP haha thats a lot of letters. Mortgage rate is 4%.

Thunder141

It's a function of how much you plan to invest ultimately and how much concern you have that the market may go down in the near future. If you are investing 20k, but plan to have another 100k to invest next year then you may not be as worried about short term volatility. Also, if you are DCA and are sitting on 18k, I would go ahead and keep that in a HYSA while waiting so you can at least get 3.5% while waiting to put it in your index fund, etc.

Dirkredblade

Good luck, this is literally how my parents turned about 200k in 1998 to about $1 million now. Never sold their losses, but when things looked rocky, kept new contributions in their retirement HYSA equivalent, waiting for the perfect time. I guess they did ok, but if they had just kept that 200k invested in 75% VTI / 25% VXUS they would have $1,850,000- so 185% more. Hartford funds has a study showing if you miss the 10 best days in a 30 YEAR period, you cut your return rate in half and if you manage to miss the 30 best days, you cut your returns by 85%. I'm sure you won't though, you're different and smarter than most investors.

Future-Call8541

Keep dry powder Keep hedge in USO and let it go up and down without worrying about it. Hedge goes up enough it usually acts as an inverse to whatever the s&p and good tech stocks are doing. Once it makes a decent amount rotate the hedge into SPY which should be down. So basically the money you put into the hedge has made gains on whatever nonsense is happening and when you rotate it into SPY it makes gains when SPY recovers. That money has now been boosted twice by gains going up and down. It's the same money getting double gains. If USO doesn't spike hold onto your dry powder (it should be in some interest giving account so it's not sitting there doing nothing. A HYSA is an option) If everything is flat and you're bored deploy some dry powder into SPY Profit. Never use all of your dry powder Keep that hedge until it recovers from the strait of hormuz newz

Ahamadrayasbaboon

Go to R/bogleheads. Don’t seek advice here.  Read “The Richest Man in Babylon”.  Broad market, non sector-specific, non-thematic, low expense ratio ETFs. Pick 1-3 and buy every day, week, or month without looking at the price.  In order of perceived risk/reward, low to high: VT, VOO, QQQM. SGOV for “cash” position or HYSA. Assuming these are available to you. 

greenpride32

QQQI sells covered calls to generate distributions. It's very different than a company which pays dividends from profits. What is a covered call? It means you own the underlying stock (it's "covered"), or in this case the QQQ ETF, and then you sell a buyer the rights to future gains, in return for upfront cash today, the options premium. Your options premium is set at current market value, but future gains have limitless potential - or in other words, you might collect a $1 today and that's it, but the buyer of your option has potential to gain $2, $5, $10, $20. Why this is important is QQQI has limited upside gains, but has no downside protection. When QQQ goes down by 10%, your QQQI NAV goes down by 10%. But when QQQ goes up 10%, QQQI will just get a small fraction of that (in theory if QQQ goes up very slowly and below call strike price, QQQI could capture all upsdie - but odds of this happening long term is about zero). I'm not going to lookup exact numbers, but from my memory, QQQ was up about 25% in 2024 and about 20% in 2025. QQQI debuted in FEB 2024, so not quite the full stretch of 2024-2025. However, QQQI NAV only gained about 5% during that near 2 year stretch. Why such different results? Because all the upside gains were sold off in return for the immediate options premium. But if you calculate out the distributions, and even better DRIP it, it doesn't look so bad for QQQI compared to QQQ in total return. Let's look back to QQQ gains - 25% and 20%. Those are both over the historical average yearly return for QQQ. So what happens when QQQ has more muted years, or even worse, negative ones? QQQI will surely lose NAV. It looks "great" today because QQQ had 2 overperformant years. It won't look so great when it has 2 underperforming years. When QQQI loses NAV, it means the amount of underlying QQQ it holds is going to be less (this is very different than holding QQQ and riding out the ups and downs - you're losing cash to buy the equity rather than just owning the equity). Holding less underlying means your options premium and distribution amounts will be a smaller nominal amount, despite the yield likely remaining in the same high band of 13-14%. VOO is considered safe because you own shares in companies that have trended up over time. When the shares increase in value, you own every single cent of those gains. Let's say hypothetically VOO goes from $500 to $300 and the back to $750; the entire recovery is yours. QQQI is considered risky because it has no downside protection, yet the upside/recovery is capped. So you're banking on the options premium outweighting the "losses" or "missing chunks" of recovery increment that you sold off. In the short term, it seems reasonable. But as you stretch out the timeline well odds are you're going to lose a sliver here and a sliver there. If 25% and 20% underlying (which compounds to 50%) only gets you 5% NAV gain, I think it's fair to say long term NAV is flat or negative and nominal distributions have little chance to grow over time, and more likely declining. Disclosure: I own both VOO and QQQI. My QQQI is meant strictly for income. I view it as always better than HYSA return, even in the long run, and I need/want the income today. If you don't want income today, and want growth no way do I suggest QQQI. Fun fact - SCHD yields 3.5-4%. Over past 10 years, it has roughly gone from $12 to over $30 and distributions went from $0.40/share to over $1/share. That puts the returns for each at over 150%. It also means your yield on cost is over 8%. If time is on your side, SCHD will beat (crush really) QQQI in the long run with both capital appreication and yield on cost.

HeyUKidsGetOffMyLine

My guess is the income may have come more recently. He also is not counting 500k in home equity, $200k in Education funds, $70k cash and $90k HYSA in his 1.1 investment. It’s damn near 1/2 he doesn’t count.

SuUU2564

As you are in a high tax state, put the HYSA $$ into treasuries so you don't pay state income tax on the coupon. If you have an HSA, you can use that as a stealth 401K. What is your top tax rate? Is it optimal to use the Roth over the tax advantaged space left in the 410K? (max is about 25K IIRC). If your Roth is maxed (7.5k), your 401K is a better place for money than the brokerage as it is tax advantaged going in. At least put some of your play brokerage money in there, Assuming your match is 6% there is still plenty of space for you to fill. You seem to put 1200 a month into brokerage? You math is something. How much is your rent? Do you have debt? student loans? Car loans? Car insurance?

Here4Snow

Saving for a residence in HYSA is perfect. The more you put down, the better. A good goal is 15% of household income to retirement savings. The priority sequence is: maximum match at work, the Roth IRA, then back to employer plan. Consider if you should be doing Roth 401k at work and asking for your match to be Roth 401k.  To buy a residence, you want to be out of consumer debt. 

CapnCurt81

I agree with the sentiment, you don’t even need a report to know the economy is in absolutely terrible shape right now. You just have to look around. That said, it does not necessarily mean a stock market crash. I’m certainly not confortable that I have most of my money in the market but right now I think the worst thing you can do is sit on cash. I tend to be a doom and gloomer, and came very close to going cash last year but my FA talked me out of it. In the last 12 months my investments are up over 30%. That same cash sitting in HYSA probably lost 7-8% spending power/value. Buy hard assets if you don’t want to stay in the market, but you’re getting your ass kicked by sitting on cash.

AnnaSmiled2

The day before payday, I clear my balance down to $1 and move that money to my taxable investment account to put into the market. I also DCA to my Roth, HSA and HYSA.

EdgeInformal8264

i do both weekly contributions simultaniously. $150 into my roth and $150 into a brokerage. $55 in FCNTX, $55 into FXAIX, $20 into FSELX & $20 into SPXL. perfectly the same between both accounts. I also use Goldman Sachs Apple Savings for my HYSA getting 3.65% if that helps.

OddIndustry6073

In that case, they should not be in the market. Just do bonds and HYSA. The downside risk isn't worth it, if you need the money to live

Majestic_Republic_45

I am not saying this to be disrespectful, but when u have to ask Reddit this question, you probably should not do it. If u want to play “guess the market”, which is a losing proposition, park your money in an HYSA when u “think” its overvalued.

heyheyitsandre

26M. Currently I have 8 shares of DIA, 15 SPY, 17 XLK, 16 VXUS. 10k liquid in an emergency HYSA, usually leave about 3-4k liquid in checking. No type of debt of any kind for my fiancee or me. I earn about 85k gross, contribute 8%, company matches 6% and puts discretionary 2% into a Roth 401k as well. I get 100(64) shares every year plus my regular bonus so I get about 4-6k every February, too. I have a personal Roth IRA I haven’t touched in about a decade that I used to put all my money in when I was 16 working part time, about 8k in that last I checked. My fiancee and I are both in fortunate positions family wise where whenever our parents pass we should come into 4+ million dollars. So we won’t really need money by the time we are 60. I know maxing my personal Roth is probably best but I just think I should be trying to be a little more aggressive to maximize my net worth by age 40 or 45, rather than needing to make sure I can retire at 65. Should I be doing anything differently vs just pumping 2-3k into these ETFs whenever my checking acc starts to grow more than I need it to be? Are there any other ETFs I should be looking into? I feel like I tick all the industries with these but might be overlooking something. Also don’t know if there are any medium term bonds or something I’m not considering like that that are targeted to pay off in 20-25 years.

Worried-Opening-6229

Probably shouldn’t sell all at once. As you get older say within 5 years of retirement you start to lock in some profits for secure HYSA. Not all of it but you went a couple years in secure cash so if the market dips longer term you don’t have to sell. No exact right way. But definitely not all at once.

heyheyitsandre

Currently I have 8 shares of DIA, 15 SPY, 17 XLK, 16 VXUS. 10k liquid in an emergency HYSA, usually leave about 3-4k liquid in checking. No type of debt of any kind for my fiancee or me. I earn about 85k gross, contribute 8%, company matches 6% and puts discretionary 2% into a Roth 401k as well. I have a personal Roth IRA I haven’t touched in about a decade that I used to put all my money in when I was 16 working part time, about 8k in that last I checked. My fiancee and I are both in fortunate positions family wise where whenever our parents pass we should come into 4+ million dollars. So we won’t really need money by the time we are 60. I know maxing my personal Roth is probably best but I just think I should be trying to be a little more aggressive to maximize my net worth by age 40 or 45, rather than needing to make sure I can retire at 65. Should I be doing anything differently vs just pumping 2-3k into these ETFs whenever my checking acc starts to grow more than I need it to be? Are there any other ETFs I should be looking into? I feel like I tick all the industries with these but might be overlooking something. Also don’t know if there are any medium term bonds or something I’m not considering like that that are targeted to pay off in 20-25 years.

Shank_Dank

I was in the same boat as you... Im just not mentally made for this. Life is so much better without looking at stock prices everyday and feeling shitty cause im either a.) losing money stocks are going down or b). missing out cause stocks are going up and im not a part of it. I sleep better just having money in index funds and HYSA.

financiallythriving

They are slowly setting it on a fire. Hopefully they have it in a HYSA or cash sweep program that beats inflation

Ahamadrayasbaboon

Your cash position is losing $7.23/day in purchasing power if it’s not in a HYSA or SGOV though. I mean that with the most love possible. 

lolgoodone34

Good thing I moved 10k to a HYSA emergency fund and yes I do have fomo

6Vibeaholic9

good questions. tbh i think biweekly 10k is good and the rest in HYSA. This war could indeed have large economic effect, but stocks will always go up. They will just print more money 👍

Clem_Backtrex

Your financial advisor is right. If you genuinely won't touch it for 4+ years then time in market beats timing the market, that's not just a cliche it's backed by basically every dataset going back decades. The Buffett indicator has been "overextended" for like 6 years straight and the market doubled in that time. Consumer sentiment is a terrible predictor of returns, some of the best 12-month periods in market history started from rock bottom sentiment readings. That said given you're cash flow negative I'd keep 6-8 months expenses fully liquid in a HYSA earning 4-5% and only invest what's truly beyond that. DCA monthly into a broad index, don't look at it, come back in 4 years.

drewlb

HYSA means high yield savings account. Here are options https://www.nerdwallet.com/banking/best/high-yield-online-savings-accounts

Myusername468

Dollar cost average VOO and chill put the rest in a HYSA or MMF

YouMissMe

I think so, I don't need a big chunk of this money in the near foreseeable future. I already have an Emergency fund in a HYSA.

Pffffftmkay

HYSA

Future-Call8541

I'm long but tactical. If I needed money I'd cash some in and throw it into an HYSA for any good interest liquid account. So whatever fluctuations aren't really a problem as long as I didn't buy at the top. And I didn't.

Mysterious-Entry-357

Except that Buffet made billions buying down markets. Other than that, and a few million of others, it definitely doesn't work. Stay invested...yes. DCA...yes. Keep 15% in HYSA where it still earns...yes. Increase DCA at every 3-5% of decline. If you don't want to screw with it, then don't. It's your life any you will still do well, but telling OP he's wrong is a silly. Their not.

PogRoss

Don’t worry guys, your cash in your HYSA is beating the market

Independent_Bear989

The reason I’m able to have a HYSA and good credit card through Robinhood is solely because of the degens here.

Deadeye313

HYSA has only been viable the last few years. Bonds paid, almost literally, nothing in the 2010s.