HYSA

secretlyadam

I had planned to build up that HYSA to about 6-8 months of emergency fund and then slow down my contributions to it and invest more into my roth and individual. Thank you for the advice!!

Same-Brilliant2014

I do my own escrow throw it into a HYSA. Made a couple hundred a year just holding it

Michigan-Magic

If OP can find a CC / bank that would be willing to offer them a 0% card with no transfer fees, OP would be better off sticking the 8k in or whatever into an CD for a year and picking up the internet income, while having a fully covered debt obligation. Either way, OP doesn't have readily accessible cash. OP's likely issue with this approach is two fold: 1) They may not find a CC willing to offer such generous terms. 2) Resisting temptation to treat the cash in the CD / HYSA as available to be spent. Due to #2, most people are better off just paying down the CC.

Independent-Cress382

I'm the guy who made the Nana meme, pretty sure he sold. He was active and suddenly deleted his account one day. It lined up with a drop in INTC's price. He definitely paper handed. I told him multiple times to hold and sell covered calls. The only non-retarded move he made was putting 100k into a HYSA.

KingOfTheAnts3

Fuck yeah I would if it were guaranteed return. If bonds or HYSA could get me almost seven I’d be in pretty significantly. I had a sizable chunk in an HYSA back when they were like 5%.

Ok-Kaleidoscope-4808

Having both TOPT and QQQM is diminishing returns. You have a Silver, Gold and Platinum fund you are hedging hedges it’s like portfolio inception. Your in college and have a dividend fund a bond fund. This makes it a 1 out of 5 you’re paying fees on all those holdings.. I can understand the SGOV because you want to keep money safe for loan repayment but your money market should be making 3% without a fee that’s a waste of money you’re destroying your wealth. I will not give you advice, you should do your own research. If it were my money I would keep the money for loans in a HYSA or money market whichever is paying more. I would make my top tier 2 companies undervalued big moat companies, that entry level now is enough that if the market pulls back I am comfortable knowing I got in at an undervalued price, then id choose 2 growth companies that are riskier. 1 smaller cap company would get a 2% investment and id have the rest in a broad index that is equal weighted, not market cap weighted. That’s just me though. I’m sure plenty of people would disagree with my portfolio just as I disagree with yours. I’m not a financial advisor and this is not financial advice.

carbsaredangerous

Why is a money market fund better than a HYSA?

taplar

Consider moving a portion of your emergency fund from HYSA into a money market fund, especially if you can find one with a higher return rate.

Beneficial-Ad-7771

OP, I’m 28 and I paid off my mortgage early. The only debt I have left is on my Lambo, which I’ll have paid off in the next few months. It took me a little over four years to fully pay off my house, and I did it very aggressively. The biggest benefit of being debt free, especially if you can plan it over a defined period like four years, is the flexibility it gives you afterward. Once your fixed obligations are gone, you can invest as aggressively as you want for the rest of your life without worrying about short term market swings. Right now, I have over $2.5M invested across the market, HYSA, and CDs, a portion of that is set aside for taxes. Even if we were to see a 30–50% market drawdown next year, it wouldn’t materially affect my lifestyle or decision making. If you have the financial means to pay off your house early and you’re earning strong income, it allows you to take everything you earn after taxes and deploy it aggressively into the market going forward, without the psychological or cash flow pressure of debt. At a 6.8% interest rate, and based on the $1,400/month figure you mentioned, you’re looking at roughly **$67,200 in interest over the next four years** alone. Personally, I’d pay the house off early, eliminate the guaranteed loss, and then go all in on investing from a position of strength.

Lindycrush

In 3 years, at 7%-10% CAGR, you’ll be around 2.4-2.6M. Looking at $73-$79K @3% withdrawal rate. You’re more than fine as far as your budget and will even grow your portfolio in retirement. That’s what I would be aiming to do, with such a long time horizon. Put 5 years expenses into safe assets (bonds, money market, HYSA) and grow the rest. Reassess every 5 years based on your portfolio appreciation and life goals. You’re retired, not dead, and you will change over the coming years. The one thing that won’t is your need for money to accomplish your goals. Congrats!

Inevitable_Pin7755

You’re honestly doing very well for 19. Most people your age aren’t investing anything, let alone hitting retirement accounts consistently. You’ve already checked the big boxes. Emergency fund in progress, Roth IRA contributions, 401k with a match, and still leaving room to actually enjoy life. That balance matters more than people admit. If the goal is maximizing long term growth, the biggest lever for you isn’t some fancy allocation, it’s income growth. At 19, increasing your earnings over the next 5 to 10 years will matter far more than optimizing where that extra $150 goes. Investing in skills, certifications, or moving up faster in your field will compound harder than any ETF choice. On the investing side, I’d keep things simple and aggressive given your age. Broad equity index funds are enough. You don’t need bonds, and you don’t need to overcomplicate with stock picking. Just make sure your Roth and brokerage are actually invested and not sitting in cash. One thing I’d double check is whether the $500 a month into HYSA is still necessary once you’ve built a solid emergency fund. After you hit something like 3 to 6 months of expenses, it might make sense to redirect more toward investing. Other than that, the main advice is boring but effective. Stay consistent, avoid lifestyle creep when income rises, don’t panic during market drops, and don’t try to get clever too early. You’re already ahead of the guys saying they wish they started earlier.

AllenSmithee59

A HYSA would net you $45 million a year.

beautiful_my_agent

I think this is my point. What are you doing with the other cash that is sitting around, HYSA? Why not just put that cash to work now? OP, help me understand what you would gain by doing this, I’m curious to see what I’m missing.

SirGlass

>When that account gets to $100k can I just take it out and use it? Yes >Should I be putting my money for a house in a different account? I have a HYSA but the returns on it are only like 3.5% (Amex) so I try not to use that one, thanks. You can use a brokerage account as a savings account, it depends on what you invest the money into. You could invest it into a money market fund or some ultra short bond fund (VBIL/SGOV) and those will effectively act like a HYSA, meaning no real losses and some lower but somewhat guaranteed return Or you could invest in some high risk investment that could gain 100% but could also lose everything So saving in a brokerage account isn't good or bad, its entirely what you buy in that brokerage account. For anything under 5 years I would simply do something like VBIL or SGOV

No-Improvement3164

Head over to SCHD and tell them HYSA is better and you’ll get banned. Would be the top of the morning to you. 😂

GrimReaper606

Hi I’m 23 my income is $105k and climbing yearly. I have $12k in my individual account and 20k in my personal Roth IRA not including my work accounts. I’m having trouble saving money since I live off in expensive area (California). My bills are expensive, my only debt is my car which is only around $3-400 a month including insurance. I try to put my money into my individual account as I found keeping the money away from me stops me from using it. My question is, can I used the money from this individual investment account whenever I want? My main goal now is saving for a house hopefully in around 5 years. When that account gets to $100k can I just take it out and use it? Should I be putting my money for a house in a different account? I have a HYSA but the returns on it are only like 3.5% (Amex) so I try not to use that one, thanks.

Bubbly_Lynx2308

45% - a mix of HYSA, Roth IRA, 401K, HSA and leftover money into an individual brokerage. Very nuanced because I have multiple jobs and live in a HCOL area

Historical-Tax-7833

I graduated from high school this year and am studying accounting at a community college. I still live with my parents. I don't have big expenses, and I've saved up a little over 10k, which I currently have in a HYSA with American Express. I'm looking to invest in something that is safe and will give me a decent return. I understand it's not a lot of money, but do you have any suggestions?

Life_Knowledge_5806

My younger sister has 10K in a cd that will be finished maturing soon. She’s 21 and in college, has had a part time job but won’t be working at the start of 2026. We’re trying to figure out what to do with the money. We thought about Roth IRA but she’s in school and won’t be working next year since she’s finishing school. What’s the best investment move for this kinda of money. It’s money she’s saved from part time jobs over the years and gifts(holiday/bday) money saved. Brokerage? Traditional IRA? HYSA?

stupidber

Full port HYSA r/smolppinvesting

AllCapNoBrake

You would have made more money just putting your cash into a HYSA. Well done, regard. Well done indeed.

Easik

I would build up a year emergency fund in a HYSA account to protect what I've built. Once the emergency fund is good, then I'd modify my 401k contribution to add an extra $1000/mo to be added to a retirement date mutual fund. I'd take another $400/mo and put it into a 529 plan and invest it into VOO for my son. And anything left I would use to make sure myself and my son had the best time together.

SucculentCherries

This is absolutely me. Fresh out of college I actually didn't know enough when it came to my 401K allocation. I did fine. I learned better over time. I added a Roth, a brokerage, a joint brokerage, a HYSA. Then I had kids and it became a hassle to handle everything. My financial advisor charges a flat rate per account. They do a world of help in my busy as hell life. I might go back to my own management when my kids are old but this is so nice

ConsiderationKey1658

5% ? This a HYSA?

Unusual_Advisor_970

Probably over 25%. Of gross. Mostly 401k. ESP. Was doing even more but I’m moving money into HYSA for new home purchase next year.

pink_ego_box

Put your money in an HYSA if you're not making money in this market

jsmithx__

I invest about 25% and save 25% into a HYSA

MachoCamachoZ

5% 401K 6% employee 6.6% Roth IRA 20% HYSA

Knee-Awkward

30-40% of after tax salary. But this includes cash/HYSA savings too, not everything goes into stocks yet. Although once I have around a year of emergency savings in a HYSA, all of the monthly savings will be going into stocks and mostly an all world ETF or all world ex-us

ApprehensiveMush

Why have so much in your checking? It's an account that literally gets no interest. The goal of my checking account is to have as near zero as possible before my payday. All the money I'm saving goes in HYSA or brokerage where it's earning interest. And there's really no risk of it going negative because I pay for everything with credit cards.

BoltyMcSpeedy

44% of gross 17% to 401k 10% to hysa (temporarily) 17% to brokerage Started this year, will move out of HYSA and into Roth IRA after funding for emergencies

BabaThoughts

I no longer do HYSA. Instead, spread out treasury bills. California does not tax interest earnings from them.

bk_321

Which HYSA do you use?

RecycleYourMoney

ou’re already doing a lot of the right things, so this is a good problem to have. A common way to think about it is separating **“job money” vs “purpose money.”** Not all liquid cash needs to be invested the same way. Typical order looks something like: * **Emergency fund** (3–6 months of expenses) → HYSA like Ally is perfect for this * **Short-term goals (1–3 years)** → still usually HYSA or money market funds * **Longer-term money** → taxable brokerage account If you’re already maxing Roth + contributing to your Simple IRA, then yes, opening a **taxable brokerage account** is usually the next step. That’s where people put excess cash they don’t need soon and want invested for long-term growth. In taxable accounts, a lot of folks keep it simple: * Broad index ETFs (total market / S&P 500 / etc.) * Focus on tax efficiency since you’ll owe capital gains eventually Nothing wrong with keeping some cash in Ally either — it’s more about *time horizon* than maximizing returns on every dollar. One other thing to consider is whether you’re already at a cash level where adding more to savings doesn’t really change your risk situation anymore. That’s often the signal to start shifting extra into a brokerage. You’re in a solid spot — just comes down to goals and timeline more than “right vs wrong.”

iloveartichokes

Yep, in my mind I consider money market as a type of HYSA but you're right, they're different.

markgriz

I keep a couple months expenses in a HYSA. 6 months worth in a 4 week T-bill ladder, though I think SGOV would be almost as good

nicolas_06

You have to first define your life priorities and what you need for your life goals. If for example you want to buy a home soon, maybe investing in the stock market isn't the best advice. Usually for most people the plan is around theses lines in the US: * have at least 1K$ emergency fund. * get rid of high debt like CC if any * grow you emergency fund to 3-6 months of expenses depending of your situation. * invest in your 401K or equivalent up to the company match to lot let money on the table. You might also invest in your company stock plan or other investments plan where you get free money basically. * save for things like a new car, down for a home and others specific objectives you may have * max your tax advantaged accounts: 401K/Roth 401k, IRA/Roth IRA, HSA... * invest what remains in a brokerage / real estate On top you likely want to define for yourself what is your ideal investment portfolio. There day people are all the rage about stocks because stocks had great return for a very long time. If we were in 2008, people would have quite different view on this and of 100% stocks portfolio. Personally my portfolio is 60% stocks (40% US, 20% Intl), 25% bonds, 5% gold, 5% managed futures, 5% cryptos. For financial assets. But out of my net worth, more than 50% is in real estate and maybe 35% in in various investments. A significant share is cash in HYSA for emergency + future down for my home.

hipsterasshipster

Put $25k in HYSA as your emergency fund and the rest in index funds. Build up a normal savings, grow emergency fund, keep contributing to index funds.

PTTCollin

Money market will have better returns than HYSA.

iloveartichokes

3-6 months in a HYSA

tcxny

Be a boglehead. Options aren’t for you right now until you get more educated. Don’t chase what you lost, build it back up responsibly. Keep your money in an HYSA and invest in broad funds

LurkingInTheDoorway

I would have cashed at like +50k and put it all in a HYSA and never bet again.

cjorgensen

I keep an emergency fund as well. I have mine in a bon ETF in my taxable brokerage. I used to have it in a HYSA, but psychologically that feels like money I can spend. So I lock my funds up, but I can still get to them in an emergency. I also have a margin enabled account, so I can transfer money into my checking, then sell bonds without having to wait for transactions to clear. I haven't ever really had an emergency, so I end up cash flowing anything that would normally draw on those funds. I'm lucky in that I haven't had anything major in years.

OnlyKey5675

The last 20 years I've contributed to my roth and I've bought the s$p 500. Held money in CD, HYSA. I don't think I've ever sold.

financiallythriving

Put it in HYSA or Money market. Anything but cash bro

Successful-Tea-5733

Holding cash isn't just about timing the market or just about an emergency fund. It's also about other opportunities outside the equity market. I have been holding $100k in HYSA looking at vacation investment properties. Sure, I could have invested it and it would have done better than 3%, but I didn't know that at the time. And if we had a 20% dip I would have either had less money, or would have sold at a loss. Now with that, I haven't found anything so I bought an extra $10,000 on the recent dip. I wans't chasing a dip, just the vacation real estate market has been flat so there's no urgency to buy anything and I haven't found anything I like. TLDR sometimes holding cash is about your overall financial goals.

quuxquxbazbarfoo

Imagine gaining 3.75% in HYSA this year when you could just buy ASTS right now and sell at 10am tomorrow for double the gains.

Lokoto123

Just found out my HYSA interest is also taxed as income, they can’t let even let me have my 3 dollars huh?

DrGrabAss

It sounds like you're almost thinking like Warren Buffett. Almost. He sat on tons of cash (technically bonds and cash equivalents) many times. What he's said in the past is what you just said: things feel expensive. But for him, he doesn't "feel" anything. He does analytical analysis and studies fundamentals of companies. He determines through data analysis what company shares are actually selling at a discount, and then he buys. So when he sits on cash, it means he doesn't see anything worth buying or hedging against a worsening economy. Long story short, stop looking at the market as a whole and start looking at fundamentals. If your cash is sitting in \~4% MMF, HYSA, or some bond fund, your fine. You're not losing money (yet). And yes, I DCA no matter what. I adhere to old school long-term buy and hold strategies. And I also keep about 10% in cash, partly as an emergency fund and partly if there is something on "sale." I never time the market. I just fire and forget. i have lived through three market crashes I didn't even know happened, I just kept buying, and it's turned out well. That FOMO is a result of looking at the broad market and freaking out. Stop that!

RagnarokWolves

Does he have his own separate emergency fund for emergencies? Stocks are likely to grow in the long-term but in the short-term, anything can happen. You could throw the money in and tomorrow there could be an epic 30% crash. He needs to be able to wait around for the recovery if a crash happens. HYSA if this is part their emergency fund. If they can let it sit there for 10+ years, VOO or VT.

BugHistorical1614

At 75/78, adequate Income, we don't need to invest. Moving some HYSA cash to MYGA for yield. I figure why take Market risk if I can get +5% near risk free savings. I have some $ in CEF but yields will reggae rapidly.

HyperPunch

Yep, every Monday $100. IRA I lump sum $2000 every quarter. Just pull from my HYSA I add to monthly. Works great.

Applepyes

It’s fun. You get to “gamble” a bit and feel like you earn the money when you’re green (vs just sitting in HYSA)

Anik71

So I actually “take profit” on my LEAPS throughout the year because I do a strategy called PMCC when we experience a massive run up. By doing this I’m able to lock in gains while not needing to sell and it effectively makes my position “free” because my initial principle was recouped and then some via the selling of calls. Taking profit depends on what I’m holding and timeframe, for $GOOGL I’ll ultimately take profit in Jan so I can defer the tax money for another year and shove that in some bonds/CD’s/or a HYSA, to generate income while I wait to pay taxes the following year.

DoesntUnderstandJoke

6% barely outpacing a HYSA

Background-Scene-359

I was given bonds when I was a child and they matured when I was around 20, a decade and some change to go from 50-100. Compared to a HYSA where if you put enough in you can definitely make more than that. Or if actually investing not focusing on the bonds or savings account and instead using that money to actually invest and doing your research can make much more than 50$ in 15 years. However the percentage on it can be nice but when looked at what you could’ve done with that money in the same amount of time its an easy choice

TonyzTone

I just buy stuff every single week. Additionally, I’m sitting on cash reserves in a HYSA as part of my emergency fund, but also with buckets dedicated to larger “goals.” Well, if the market collapses, that cash is going to be bargain shopping for some companies instead of savings for a trip to the Maldives or whatever. I was too young for 2008. I was too unprepared for the COVID crash. I’ll be ready for the next one (while still buying every day).

svmmerkid

I invested some money in personal brokerage when I was in college. Individual stocks that did quite well- $35k in NVDA up 800%, MSFT/AAPL/GOOGL $10k each up 115%. I plan on selling $20k in NVDA to help fund a down payment on a condo, the rest coming from HYSA (will still have 6 months emergency leftover). Does it make sense to sell even more shares (probably a mixture of what I own) so that I can max a Roth IRA in 2026, which my budget otherwise wouldn't fit?

CherryRoutine9397

If you already have a true emergency fund, then SPY makes more sense long term than parking excess cash in a HYSA. A HYSA is great for liquidity and peace of mind, but over decades it almost always loses to equities after inflation. What I would personally do is keep a fixed amount in HYSA that actually matches your risk and job security, maybe 6 to 12 months of expenses, and invest anything above that into SPY or a broad index. That way you are not forced to sell in a downturn, but you are also not letting long term money sit in cash. Trying to time a crash usually hurts more than it helps. If you are worried, spreading entries over time can help psychologically, but staying invested is usually the winning move. Just my perspective, not advice.

zonk84

I check daily, but I only make moves once a month -- I make a monthly transfer into my investment account on the 15th and then distribute the transfer to stocks on my watchlist. I rebalance my 401k quarterly. I rarely sell - though, Q4 every year (usually Nov/Dec) I do undertake an assessment of my existing holdings and cut my weeds. I have a separate spreadsheet I keep listing every buy - my reasoning, my expectations, some spitball guesses. Yes, checking every day is overkill.... but it's just a habit of mine -- 30 minutes over coffee every morning, I review *all* my financials (banks/CCs/HYSA for suspicious activity; investment accounts to check earnings calendars and news).

anon10751075

I'm dealing with this currently. I was doing well trading options in my main account (well being up 45%+). I took most of that profit and purchased some ETF positions, transfered 50% of it to HYSA and then put 500 into a new "options" only account. As of today my small options account "win" percentage is 66.7% (defined as a trade that ends in the green). However my account PnL is negative because I was dumb and doubled down on two positions and had oversized losses (think 50% plus). Because of that my average win PnL % is 11.89% but my average loss is over 45%. My struggle, I feel like, is knowing proper SL and profit taking ranges to have set. I try to be liberal with my SL because I've had instances where a position may have been down 20%+ but the charts was telling me overall trend was correct and I ended up profiting 20%+ on the position. Mentally, outside of the two regarded losses, there was more room to run on my winners and definitely positions I could have closed earlier for reduced losses. However I sometimes let my emotions override my brain.

Commercial_Seat_3704

AMZN continues to underperform my HYSA

Ok_Willingness2174

Quick glance at it maybe 3 times a week. Every quarter, I take stock of net worth and track all account balances in a spreadsheet. Mainly to check on checking and savings accounts and HYSA. All my investments are either buy and hold until I die / retire / or 5 years minimum.

Specialist_Pay_1510

Does toro understand the intention is to go up!? Pretty much you lost cause you didn't make any money from your money, and could have by just keeping it in a HYSA and gotten back more!? It's like Ricky Bobby used to say, "If you're not first, you're last"

CoralieMist

i think you’re doing everything right tbh. if you’ve got a true emergency fund already, you could ease a chunk of that 40k into SPY and just DCA it over time. that way you’re still earning from your HYSA while slowly investing. i use BankTruth to make sure i’m not missing out on better HYSA rates.

rtd131

I'm not a financial advisor. But if I were you I'd take 3 months of expenses and keep that in an HYSA (So like $2k) and invest the rest into VOO, FXAIX (if using Fidelity) or similar. If you can continue to invest $1000 a month in that account, in 20 years it should theoretically be worth about $500k.

audrikr

I mean this very genuinely: if you need to ask that you should not be investing and should just put your cash in a HYSA. The answer is always index funds. 

rtd131

I understand that $10k is in a checking account and $40k is in a HYSA generating interest. Sounds like they are keeping the $10k available in case they need the money today and can't wait for a 3 day transfer. Which seems like a bad idea because they could at least be generating a tiny bit of interest from the $10k, and if it's a real "oh shit" that you need that money instantly, just use a Credit Card and immediately pay it off from the HYSA.

Various_Couple_764

For retirment accounts you cannot withdrawal money until age 60. So between now and when you retire they cannot help you with day to day expenses. You taxable brokerage account can be used to invest in dividend ETF for passive income that you can use to help cover day to day bills and expenses. Most HYSA today earn about 3.5% and the interest rate is expected to drop as the government reduces interest rates. But A fund like CLOZ has a 8% yield and is very safe reliable dividend payer. IT will take years to build up the dividend but eventually the income from this fund could be enough to cover half of your living expenses. This would provide you with reliable income even if you loose your job or for medical reasons cannot work. . But if you don't need the income you can use the income to cover the 7000 a year roth deposit or simply reinvest the money. Investing for dividend could eventually allow you to retire before age 60.

brianborchers

It depends on your HYSA but SGOV should be competitive.

thethrifter

SPAXX and FDLXX are money market funds. They act like a HYSA except they are SIPC insured instead of FDIC insured. (Both up to 250k) The 75k principle is not affected unless there is a "breaking of the buck" event. From AI search... ​In the 50+ year history of money market funds, "breaking the buck" has only happened three times across the entire industry and Fidelity has never had a money market fund break the buck. ​1978: A small fund fell to $0.94 due to rising interest rates. ​1994: A fund fell to $0.96 because it used risky derivatives (which are now largely banned for these funds). ​2008: The Reserve Primary Fund fell to $0.97 because it held debt from Lehman Brothers when the bank collapsed. Although SPAXX is invested on US treasuries, the value does not fluctuate like TLT or other bond funds and is pegged to $1usd. SPAXX is considered the safest money market by most standards.

BagPristine4040

Will SGOV give you the same amount (percentage) of money that HYSA is offering?

nicolas_06

If serious **What are you supposed to do** Well I'd say for most people, you want the only free lunch in investing that is diversification. So you want world stocks, most likely an index because most of us are not are as not beating the market anyway over the long run. You are likely supposed to have some bonds, some real estate and maybe a tiny bit of alternative like cryptos, managed futures, gold and precious metals. For example: 60% world stocks (or 40% US, 20% Intl), 25% bonds, 5% cryptos, 5% managed futures, 5% gold. Of course you adapt to your liking. You could reduce maybe also include 10%, max 20% of stock picking or playing with options/future, whatever if you want to play. You could nuance depending if things are expensive or cheap. Like more stock in the middle of crash, less when thing are going well and are already expensive And of course you can nuance depending of your time horizon if you have 40 years, maybe you target more 80% stocks, if you have only 10 years, you take 50%... And you take all these factors into account. **When you are young investment is not maybe that critical and whatever you do it will not change things that much whatever they say.** So you are 23, you maybe saved 50K. You are just starting. So you do 100% stocks instead of 80%. So you expect 10% instead of 5% on that 20% of your portfolio you didn't invest in bond like it's important. And so if all goes to plan, you get an extra 500$ a year. An extra percent of perf. But because you don't have 1 million, it's pocket money. 500$ change nothing. And all that is if you have already 50K. Most would have more like 1K or 10K and all should be kept on an HYSA for an emergency anyway. Next you need a decent car, some furniture in your home, get that downpayment. So sure you put 10% of your pay maybe on your 401K and forget about it. And this isn't that much. Maybe it's 5K a year or 10K if lucky. But you could get a raise of 5K at your job, that 10X more than the extra 500$. If you do some over time that might also be 5K extra. If you move to another region, your rent might be 500$ cheaper. Per month. Another 6K saved. Even if you are some winner with 300K salary at Google and you already have 200K saved, it's the same story. Later you'll make 1 million per year and would have 5 million saved. Whatever the 200K is making is irrelevant. This is still the same, your career, your life priorities, all that matter much more. Think big, invest in yourself, make more, do not waste money and live your life. These are the big game changer especially when you are just starting to invest. You don't become rich by investing 10K over 40 years and having to sell after 10 years because you had an emergency anyway and when you finally have something you are old and die 10 years later. You do not care to have 80% or 100% stocks. you don't care if there a crash except if that may mean you lose your job.

Sad-Debt789

Yup, was looking for this answer and the one about this being personal finance. SGOV is around 3.85% right now? Plus, no state tax on dividends for most states. HYSA still gets taxed on on gains. Dude knows not to time the marjet but still tries to time the market lolol.

SirGlass

As long as the company has value there will always be someone there to buy it Like imagine a company , the company is simply one million dollars sitting in a HYSA . Right now that savings account has exactly 1 million dollars in it It pays no dividends and also has no revenue or expenses IF the company has 1 million shares, well each share will be worth around $1 , even though the company is rather useless If the share price falls to like $0.95 someone would just buy the entire company for 950k then get 1 million in return making a quick 50k As long as the company has real value , meaning it has assets , land, buildings, cash , it also has future cash flows, it will have value There will always be a buyer , as in my example if someone sees a company and value it at 1 billion but its trading at 900 million valuation they will just step in and buy the entire company

thethrifter

I would park your full 50k "emergency" fund in a fidelity brokerage account, as it will earn slightly more APY with SPAXX or FDLXX than your current HYSA (FDLXX can save on state taxes too) Your 50k will earn $145-$150 per month in dividends. Use those dividends to buy $150 of SPY each month. That's the only way I can think of diversifying without risking any of your existing $50k.

brianborchers

Do you live in a state with income tax? If so, you might consider moving your long term emergency fund from a HYSA to a short term treasury fund like SGOV. This should get about the same interest rate without the state income tax.

rabbonat

Robinhood cash interest rate is now below Local Main Street Bank HYSA, how the mighty have fallen.

Inevitable_Ad6868

HYSA yields less than SPAXX?

reaper527

For the long term, spy is definitely the right answer (and adding to it regularly). There will be bad years at some point, but the gains from the good years will vastly outpace the losses from the bad ones when you zoom out and look at the big picture. HYSA is for money that you will need soon and need it to be risk free. You just need to decide if a 10k emergency fund is big enough (or alternatively, if you’re willing to pull from your SPY at an inopportune time if the 10k emergency fund isn’t enough when you need it and you need to tap into your SPY). The long term gains with SPY aren’t the question, the short term value at a given time point is.

foulpudding

It’s like this: HYSA is basically your money, with the same buying power as it has today, but in the future. Your $100 buying power that nets you 4 large Pizzas today will still only buy you four large pizzas in the future, they will just be more expensive. S&P is your starting investment but also with growth into the future. The growth will be sporadic and rocky, but it will almost always outpace a HYSA, and certainly outpace it over a long enough period of time.

AwkwardClassroom

So this is more of a personal finance topic, but.. You have to think about your “rainy day” fund as insurance. It’s not there to get 10%+ returns, it’s meant to maintain its value in the case you actually need it. You don’t want your rainy day money to sustain a drop in value (if the market does not perform well) at the same time you need the funds. Now, your post is unclear. You first say 10k is your oh shit fund and then $40k is your “in case I get laid off” fund. To me, those are both emergencies. If you’ve determined you need $50k saved for emergencies, then that’s it. You keep all $50k in a HYSA like you’re already doing. You also haven’t provided any other metrics for us to go off of you (your salary, your expenses, your debt, your net worth, etc.) but based off of your post, it sounds like you’ve saved what you needed, so from Here on out start investing your additional funds.

DiegoMilan

Investing is quite personal, so at the end of the day you know your risk tolerance and have an overall investment philosophy. The biggest thing is to make decisions that help you sleep at night. A couple of concerns you’ve raised in this post: 1) You’re in tech and have the thought of being potentially laid off in the future (though that’s a risk for all of us in tech) 2) You have concerns about the US economy in the near future 3) You like having money in the bank for oh shit moments. Based on this, I’d personally keep money in my HYSA, enough to cover 6 months if possible, and take out maybe 1-2k and put it in an index fund like SPY and start slowly contributing to it every couple of weeks. That would give you the best of both worlds - you’re in the market and contributing + you aren’t risking the farm if the economy goes to shit (or if you’re ever laid off.) This is a long-term game as you know and no need to put yourself unnecessarily at risk since having a HYSA is always a safe option.

TheoryInttro

Good thing I'm not using the majority of my port for the gambling, am barely beating the HYSA with the emergency funds for returns.

kadam_ss

Do you anticipate you will need a lot of cash in the next 2-3 years? Like buying a home? If yes, take that out of the market and hold it in bonds/HYSA. Let the rest ride and don’t look at it every day. It’s nearly impossible to time the market. But if there is a crash, remember there is a generational opportunity on the other side.

CoralieMist

you’re doing awesome! i’d just keep it simple same broad index funds across all accounts is perfectly normal. the only difference i’d make is maybe keeping bonds or more stable stuff in tax-advantaged accounts. also check your HYSA’s rate, i switched after seeing better ones on BankTruth.

Dry_Shoulder_8405

Inflation going up could be good for calls too though. What i'm really trying to say though is that low inflation is good for bond, HYSA holders, and consumers, but does not always translate into a predictable bull market.

rocketplayer2025

Please share what HYSA is paying you 4% as maybe 2 are since the last teo fed rate cuts?

snack-ninja

Roth: 28% Total investment not counting HYSA: 18%

AllenSmithee59

In January I opened four self-directed brokerage accounts to earn bonuses the brokerages were offering ($150-$300 each), intending to park the money in SGOV for the 90 days that the brokerages required. Eventually I had $40,000 to $60,000 invested at any one time. That quickly got boring. The money was earning slightly less than it was in a HYSA, so I decided to speculate with some of it to see if I could beat the rate of the HYSA. I poked around the web and on X for information about what stocks to buy, settling on AppLovin (APP), Nvidia (NVDA), Aris Water (ARIS), Robinhood (HOOD), Iren (IREN), Hims & Hers (HIMS) and possibly some others. Since then I've bought and sold all of those stocks many times over, along with dozens of others. I was guided by the following: * Lots of reading about undervalued/underweight stocks. * Focusingon quick-profit/quick turnaround possibilities. (The bulk of my investments is in date-timed IRAs, so I'm well covered with set-and-forget long investments.) * One rule: If the stock lost me 7% or more, I sold it all. If it made 20% or more, I took the profits, usually by selling off stocks that were performing less well. (Looking at you, Amazon.) Today, just about a year later, I'm up $73,755. I intend to keep every penny of it, so I'll probably cash out the self-directed accounts at the end of this year. I'm retired and have other things I'd rather do that don't have me sitting in front of a computer all day.

cjorgensen

Emergency fund and budgeted items are in a HYSA. I don't chase percentages.

greytoc

Yes - that's a good reason to use a brokerage account instead of a HYSA. Also - if you have state taxes - interest from treasuries - interest from funds like USFR are generally state and local tax exempt - whereas interest from a HYSA is generally not state tax exempt. And depending on your tax status - even muni money market funds may generate a higher yield on a post-tax basis.

scruffy-hugger

I Don’t see any significant value /connection with my HYSA. I have an account at a brick and mortar bank also , enough to cover recurring bills and a buffer. No big purchase planned. $ is just parked in a safe account earning some interest. My thought is that USFR or GSST would provide a slight bump and also make it easy to invest if I see an investment opportunity.

greytoc

This is one of those common questions that come up every week. It really depends on your own relationship with the bank and whether you get any additional value from keeping your cash in a bank. For me - I don't get any value from a HYSA and I have never used one. It's a lot simpler and more flexible for me to use a brokerage account.

vcpowerlaw

Your $50k HYSA emergency fund covers ~8 months expenses, which is plenty, so invest the other $80k in low-cost index funds or ETFs for growth (expect ~7% long-term). Skip mortgage prepay now, since rates are low and investments beat that return.

grosvenor22

Yes I have 6 months saved in a HYSA. Sadly my job doesn’t offer coverage after I retire

Engi-near

Serious advice: either return the money or put it into a HYSA and do nothing with it. Do not spend it. Legally the money is still theirs. If they ask for it back and you don’t take action to repay them you can get into a lot of trouble.

NDSU

The opportunity cost of putting that money into a HYSA is so painful. Might as well be setting money on fire

miraiyuni

Always have 3 accounts 1. ROTH/401K - long term (>40+ years investing) 2.HYSA - short term (Housing, expenses) 3. Third party brokerage like Tiger - for medium term investing

momijidream

i’ve used wealthfront for a while too and totally get the appeal the ui, automation, and all that. as a stock though, i’d be cautious. fintech’s great until the market decides to punish it for slowing growth lol. i’d prob let it stabilize a bit post-IPO before buying heavy. also yeah, their HYSA is nice but not always the best rate i check BankTruth for that.