HYSA
Bondbloxx USD High Yield Bond Sector Rotation ETF
Mentions (24Hr)
-55.56% Today
Reddit Posts
Ditch that savings account (if its a HYSA ignore me)
I freed up $80k because I will most likely need it in 12 months. I put it in FNSXX mutual fund. Is this a better option than a HYSA?
Just quit my corporate job at 31 with $140k saved.
60 VTI/ 30 VXUS/10 VMFXX. Should I (33) rebalance to include bonds?
Sitting on $250K in HYSA. Nervous about putting in the market right now.
About to get an inheritance. Don't wanna screw it up.
Short-Term Investment Options for $10K/under
3.5% a year seems more appealing than being in this market rn
After 200% gains - i’m out. (B-B-BUBBLE!)
Automated investing for retirement accounts (fidelity/schwab) vs picking your own distributions. The good vs the bad. Discuss
Am I On The Right Track For Retirement? 29yo Portfolio
I’m tired of watching the market. $200,000 in my HYSA - I’m ready to join the squad!!!
Is Wall Street Bets a legitimate strategy what should I buy besides VOO ?
Next years Roth contribution sitting in HYSA
What my "trading" habits have been reduced to. Roast me.
21M, $-22 in the bank but i will reach my goal by 30!
Where should I park emergency saving HYSA or SGOV
I am at a crossroad in my mid 20s of what I should do, I'd be very appreciative for some advice
HYSA account closing. Where should I invest USD 1.5m cash?
F30 with $100k in cash just rotting in savings accounts. Help me actually do something with it
Felt hopeless in life and turned it into a miracle.
Help me re-balance my portfolio: 31F, single, hoping to buy a home in VHCOL area in near future but also work as little as possible?
A $337K Bet on the Future: The AI Stack + Space Thesis
When buying a house, good idea to sell stocks to help with a larger down payment?
31 Sharing Investments - Need Advice on Balancing
Retiring in within 2 years. Short-term bucket strategies?
Have another $200K to invest in. Should I put another $100k all in VTI right now?
Different accounts under different brokerages and banks
Edelman vs ?? anything else for investing $300,000 sitting in a Wealthfront HYSA plus $240,000 in an old 401K at Vanguard (2045 fund)
What to do with $15k? CD? HYSA? Dividend Stock like KO?
What to do with 25k cash and 2-3 year time horizon?
What's the best investment allocation for monthly leftovers?
27, decent income. No clue how to invest properly, what would you do?
It's perfectly ok to feel lousy about losing money and it's also ok to still feel lousy after you've heard all the typical responses
Is there any safe way to escape dollar devaluation without gambling on crypto?
Would your capital allocation change if you had access to 8-9% risk free time deposits?
i posted earlier asking what % of funds you put into stocks. Now I want to put more in the market...thinking of going big into msft.
23F – Roth maxed, 6% to 401k, $200/month from HYSA… should I open a brokerage and invest in S&P?
Inherited half a million in stocks. What would you do with it?
Looking to move 95% of savings out of HYSA to market fund for long term hold. Which one do you suggest?
VTINX (Vanguard retirement fund) as a medium term investment in a taxable brokerage account
Savings During Capital Rotation and the War On Globalism
Schwab money market fund, what I am not understanding?
Can someone help me understand what the hell I’m doing with my cash
Hierarchy of Risk in Terms of Different Accounts such as Roth, IRA, HSA and Taxable
What percentage of your investments/savings do you keep in a HYSA compared to stocks/funds?
24 y/o trying to get off to the right start. Suggestions?
Moved HYSA funds to brokerage for investment towards a down payment, medium term length at about 7 years.
Asset allocation for continuous USD devaluation
I don't really know what to do with some of my money due to the current political climate where Should I put it?
I don't really know what to do with some of my money due to the current political climate where Should I put it?
Mentions
Shut in a HYSA it will pay you enough interest as a minimum wage job while still having liquid cash or maybe he got a dividend portfolio who knows man
Think I’m better off sticking to a HYSA
Definitely HYSA but nothing is really safe these days.
I like SGOV as an alternative to a HYSA. Maybe not to a 40% of my portfolio degree but as a good Emergency Fund stash.
Lmaoooo, even just a few percent from a HYSA would be more than the median Joe's salary 💀
Look up the money supply growth of your currency and compare HYSA after tax
The answer to the question depends on howling the money will be invested or placed a HYSA. If you invest the money for under a year and then sold it you could get capital gains or a capital loss. If instead you had it in a HYSA there would be no captial gain or loss. and the effect pt inflation depends on the difference e of the rate of inflation and minus the interest earned which it likely going to be a very small number. However if you hold the money for 10 year you would likely get capital gain when you sell while money in a HYSA will suffer 10 years of inflation losses.
this is literally my thesis. I was earning 4-5% in my HYSA of 20k for a few years. Last year once inflation started going crazy and HYSA interest fell to 3 I decided to invest 10k and using the other 10k as spending money. Going to ibiza in 2 weeks. At this rate it’s better off being spent than losing value
Logically yes, max out your Roth (if you are eligible) max out your 401k contributions. Throw 10% into a HYSA. But… this is WSB.
“Safest” is not a defined term Government bonds are all but guaranteed to be paid back, and will generate interest, but inflation can grow faster. The same applies to HYSA’s, and I think a LOT of people don’t realize that the awesome 5+% HYSAs they opened in 2023 are not still paying that rate. There are still some 4% out there, but that’s generally the max, and not guaranteed either. But if inflation is right around 4%, and potentially higher, that 4% HYSA or bond isn’t really doing much. if you’re in an HYSA, you’re more liquid to move around if the rate falls, where bonds you’re not as liquid, especially if you want higher rates. All that said, neither of those options really does anything other than hopefully pace inflation. And that’s all they’re supposed to do, really. That’s not really an “investment” to some people, unless you think inflation will be lower than returns…that’s just savings (I know it’s technically an investment, but colloquially people think about investments making them money, not just keeping them flat)
What's the time horizon and what is the money intended for? House down payment in < 5 years? HYSA Retirement > 5 years? S&P500
really? inflation grows that fast that HYSA is completely voided?
What time frame? What conditions? What constitutes an "investment" for this purpose, because I wouldn't typically call an HYSA an investment in the first place.
Is the money for less than a few years? HYSA. Is the money for years from now? Index funds
Risk and reward are always correlated. So if you literally want to find the "safest investment" then you are trying to find the lowest-ROI investment that doesn't have a negative return. Historically people would say bonds, these days they'll say HYSA or CDs. I think the question you maybe actually had in mind is "which investment offers the best balance of risk and reward for a small account" but the answer to that depends entirely on your circumstances and goals. S&P500 is a decent answer, but even that won't be a positive return every single year.
SP500 has been giving returns of up to 11% for the past 5 years, even with tariffs, COVID, and the war. HYSA, largest I seen was 4.5%, for 9 month trial.
*Safest* is HYSA or US Treasuries. But it could depend on the agreed upon definition of "safest" and "investment". To me, those aren't investments, but rather they are places to keep cash safe. For an actual investment, I'd say a low-cost total market or world market index fund. VT & VTI would be examples.
SGOV. Three month duration US treasury bonds. You'll get the same rate as an HYSA without state taxes on dividends.
HYSA would be the safest, but I would open a brokerage with vanguard and put it in VUSXX. It's safe enough
Whats safe when inflation runs 4% and HYSA returns 3%?
Safest is HYSA, but it entirely depends on their goal for the money
useless in today's america I don't even see the point for retirees. Just port into HYSA or something like a dividend stock if you're in need of safety.
My strategy is to stash and slowly invest all my side hussle money like I've never earned it. The bigger my HYSA stash the more Im comfortable investing in Etfs.
How is that even possible? Two years without profit, get a HYSA dude.
Why put money in a HYSA to make 3% a year when stocks make 10% per day?
Holding MU🐏 for one hour outperforms every HYSA
I'm generally not a fan of using bank products such as HYSA and CD's as savings or investment vehicles. They are tax inefficient in many states and tend to lack the ability flexibility. See the FAQ here [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_are\_low\_risk\_investments\_with\_liquidity\_that\_can\_be\_used.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_are_low_risk_investments_with_liquidity_that_can_be_used.3F) and here [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_is\_a\_money\_market\_fund\_and\_how\_safe\_are\_they.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_is_a_money_market_fund_and_how_safe_are_they.3F)
Bond funds (USFR, SGOV and similar) are fully liquid. Similar to HYSA rates and state/local tax free.
You are better off putting your money in a HYSA than that shit - imagine putting money into that shit during the biggest bull market of all and losing while everything else goes up as fuck
Are you going to need the money in two years or is this for retirement? If you need the money when you get back, put it all in an HYSA, CD or SGOV. If it's for long term investing (retirement) put 100% of it into VT or VOO or whatever index fund you desire. What is the money going to be used for in two years? Start there.
those etfs are barely over 3% now and not likely to go up much from here. if you can get 4%, then it's a matter of whether whatever the restrictions on it are are worth the extra 1%, given the amount of money you're going to put in. I've never used a HYSA so I don't know what the liquidity situation is if you want to plunge into stocks during a correction. I have money in BIL in my brokerage accounts and I can sell some of it and instantly buy something else with it.
I think the rules of the game for the average Joe are pretty straightforward. 1: maintain a cash/savings cushion in a money market or HYSA. 2: minimize bad debt (credit cards, unnecessary purchases). 3: invest in a standard portfolio via tax advantaged funds (401k, IRA, Roth IRA, HSA, 529, etc) to maximize compounding while minimizing taxes. 4: build up assets or invest in a non tax advantaged fund like a brokerage. Do this with the goal of someday retiring with enough money so others do not have to support you. You might retire with $1M or >$10M net worth depending on what you do for work and how much you can save. It is just math and patience.
this guy coulda put it in a 5% HYSA and he coulda been solid living off it. and even a part time job to raise his income..
You will always have a positive total return, accounting for dividends and capital gains/losses. If you reinvest dividends you will come out ahead. It's extremely safe. There is no need to use a HYSA in any bank which will return less. If you are even more paranoid you can buy an actual named CUSIP t-bill to mature at your future date. Schwab and fidelity let you. I just did that, bought a bill at about 3.73% out to october/november. SGOV is about 3.50% (with short duration). Market is pricing in some possibility of a rate hike as you can see.
but HYSA rates fluctuate with short term interest... that's the beauty of going with a HYSA when you have $0 to invest.. tho, in times of low inflation and strong economic expansion, you might want to invest in CDs to lock in the interest on your $0 investment, so you can maximize your returns.
2% in August is over a 4% annual yield. That's better than a lot of HYSA right now.
A gain/loss ratio of 1.32% means you should stick to a HYSA, even mutual funds and ETFs are too complicated for you!
1.) HYSA, Monet market accounts, etc. 2.) it’s a SAVINGS account brother it’s used as a means for emergency situations and liquidity in a time of distress. Not to be exposed to market and drawdown risks. “Economics 101” yet you’d fail an economics class with that ideology.
Yeah but SGOV essentially is almost the same as a HYSA .
This is where you park money into a HYSA imo
Cash gang counting down the minutes for that 3% interest to hit their HYSA account
Hi! 20F in California, just started making real money for the first time and just started investing. I have a CD that expires next month and i’m deciding what to do with the money. Would love some advice from someone who knows very little about investing and didn’t come from a family that invests. Current breakdown: -Around 2000 in checkings -15000 emergency fund in savings (ever bank HYSA, just opened last week. this was in the same bank as my checkings before. i’ve probably lost a couple hundred on inflation on this the last few years). I put 70% of my paycheck in here. I’m making good money ~4000 a month at my internship, but that’ll slow to around 500 a month soon, untill I start work full time again fall 2027). My 500 all gets spent on basic living expenses. -45k in a CD (grandparents inheritance, sitting at around 3.40%. it seems silly that a hysa makes more and i’m putting so much into this CD and using it as my main investment. i’ve had it for 2 years and put all the interest last year back in. i’ll eventually use this money or a house down payment or car but not in the next 5 years) -Almost 2k in Roth ira (opened last year at around 1000, been putting in 50 a month, has been making like 2 dollars a month interest) What’s next: So, the CD expires next month. I’ve done some research I think i’m going to take 7500 out and put it in my Roth, leaving me with about 37. I’m thinking about putting 17k of that in a brokerage account with Merrill. That’s the investment i’m most scared of! The other 20k will go back in a new CD. What do you guys think of my plan? I’m most scared of putting 17k in a brokerage. I don’t know much about Merrill’s plans, but that’s where my CD is now. should I self manage it? I’d just buy common ETFs, maybe 75% VOO and the rest i’d invest something like VXUS to diversify. Biggest expense in the next few years will be rent! Right now living at home still and commuting to college. Looking to move out next year. Am I making a dumb decision? Help!
Right. I just can’t do it. I’m the type who has a shit ton of cash as a security blanket sitting in HYSA. Is it making me a lot of money? No. But, that’s what we need to feel comfortable. I have more invested in the markets and it’s fine. If I want more investments, I’ll earn it trading, not gonna borrow. Can’t stand the taxes especially since my wife and I earn over a quarter mil a year. All this to say, fuck no margin
HYSA would technically be the best investment of the year
My HYSA interest is hitting my accounts. Finally some green.
We do have a HYSA that’s funded pretty well and was a thought of ours to put it all in there. Thank you
You can put that cash in some HYSA so it can at least do something while you're thinking on it more. Sounds like you have a low risk tolerance. Maybe invest in some short terms with principle guarantees while you research other options. I wouldnt do that longer than a year though. At some point you miss out on opportunity. You could always get with an advisor if you're not confident in investing yourself, no shame in that
Withdrawing first thing tomorrow into a HYSA
I mean anyone with a brokerage account can buy short term treasury funds. I own some myself And ultimately most HYSA are essentially a short term treasury with some APY shaved off
How much risk can you personally handle? Stocks are risky. Bonds are risky too but simply put, less risky. Me personally, I’m 100% equities + an HYSA that guaranteed 3.5ish %. I’m 31 and have no kids so this is fine for me, for now.
Point B is better because your capital could be earning elsewhere in the meantime (if even just a HYSA or bond) if you had this level of clairvoyance.
Point A is better because your capital could be earning elsewhere in the meantime (if even just a HYSA or bond) if you had this level of clairvoyance.
He has a better chance sticking his money in a good HYSA account and thats it. It's to late for him
1. I set my 401k contributions so I will hit the annual contribution limit ($24,500 in 2026) by the last pay period of the year. 2. I try to hit my Roth IRA annual contribution limit ($7,500 in 2026) by June-July by depositing \~$1k/mo into that. 3. Pay off ALL my bills for the month so there's no CC interest accruing, while keeping enough in my checking acct to cover any automatic deductions like my electric bill or bi-annual car insurance payment. 4. Dump everything else into my taxable brokerage account, which is currently invested in 3 ETFs: VOO for growth (\~75%), SCHD for dividends (\~20%), & VXUS for international exposure (\~5%). I think I currently have too much in SCHD, so going forward I will only contribute to VOO & VXUS until I'm about 75/10/15. I'm in my mid 40's, so in another \~10 years I will switch more to Income rather than Growth ETFs. I'm not too concerned being 100% into ETFs currently, as I have a couple years worth of living expenses in a HYSA that I can depend on if the market tanks or I lose my job for a period of time. Also - I'm no expert. There's probably a better way to invest, but this is just what I've been doing for the past few years.
I bought bitcoin in 2022 averaged around 28k, sold at 95k, put that money in a HYSA for a year, a month ago I yolo’d that money into NBIS, lol, now I’m down more now than if I had just held bitcoin. I’m probably just gonna go back to bitcoin in the fall to catch the 4 year cycle train again
I could have legitimately just left all my money in a HYSA with a dwindling rate from this time last year to today and made more money
High risk: Majority of portfolio in individual stock pickings and sector-specific or thematic ETFs like MAGS. You can gain or lose considerable percentage of your investments on any given day. Moderate risk: Well-diversified ETFs. Unlikely to move up or down quickly but may see major movements during global events like Covid or the start of the current Iranian war. Low risk: Majority of money in cash, HYSA, MMFs, bonds, and the like. Comparatively lower returns and may not beat inflation. Ask yourself if you're a betting man. If the goal is simply to grow your wealth and have enough for retirement as opposed to getting rich, there is no need to play individual stocks. There are lots of winners and losers in this game and nobody knows which side they'll end up on.
I put 17% into my 401k + 3% employer match I have weekly auto deposits of about $135 that go into my Roth IRA on Robinhood. Whatever the math is to hit the max by Feb. There I have 2 tiers of holdings. Tier 1 is my backbone, and I have about 12.5% of my portfolio each in 4 stocks. I have another 10 or so making up the remainder. Those are between 4.5 and 7% depending in performance. I balance things out from time to time and it's usually the smaller positions I'll trade with. I have a taxable account as well that gets $65 weekly, also on RH. This just holds VTI and QQQ Lastly I have a RH checking/savings account and 1k from each monthly paycheck goes there into HYSA to give me liquidity in case of emergency. Once that hits 50k that 1k will instead go to my taxable brokerage Edit: I guess I'm a RH stan. It's also one of my smaller IRA holdings
KORU is considered a HYSA in Korea
no - paying off any loan with a 2.875% rate is criminal. If you simply put the cash in a money market fund or HYSA you will come out ahead. even if you have a psychological aversion to debt you should never pay that down early.
no - paying off any loan with a 2.875% rate is criminal. If you simply put the cash in a money market fund or HYSA you will come out ahead. even if you have a psychological aversion to debt you should never pay that down early.
Panels 1-6 are for a HYSA. But just panel 1 is a WSB member’s account that does not see the other panels.
I think I'm just gonna stick to the HYSA until the next preseident
This is the correct answer. A down payment for a house that is going to be purchased in the near term should be in HYSA or bond ETF.
if we lower the rates to -10% like taco says, does that mean my HYSA will pay me 20%?
A HYSA would be a better investment vehicle than the stock market this year
1) Any super quick success stories are done with plays that are akin to gambling. People have lost their bank accounts on these types of plays. 2) We recommend investing in index funds. You're not gonna wake up and see your portfolio increased 10x overnight, but put in the time and in a few decades your $2M portfolio will be returning an annualized $200k a year. 3) TBH I'd keep your house savings in a HYSA (or SGOV to avoid state taxes). Investing is great and pays off in the long run, but in the short run ANYTHING can happen. Look up how long it took for the S&P 500 to see progress after the dot com crash of the 2000s. That entire decade is known as the lost decade. But anyone who stayed investing during that period would have seen an insane surge from 2010-present. Investing is long-term.
Oh what will this week’s excuse be? Let me guess… “Investors are spooked ahead of this week’s fed decision” - just get a HYSA 😂😂
Why are you limiting yourself to an HYSA?
When you have lost a job, that is exactly the time you keep as much cash on hand as you can to cover a possible long time to find work again. On top of the fact that your mortgage rate is lower than you are earning in the HYSA, there is absolutely no valid reason to pay it off now.
Fair point, there is some nuance. I'm not saying everyone with a large emergency fund needs a HYSA. I'm just saying some people value simplicity and easy access more than squeezing out every bit of extra return. It all depends on the person, their goals, and their situation.
I am saying there might be some nuance here. If you are starting out and 24 years old and have a 5k emergency fund absolutely keep it in a HYSA. If you are 40 and have 6 months of salary saved as an emergency fund meaning you may have 80k+ as an emergency fund there is zero reason that amount needs to be instantly available.
Brosef you are probably young since you live at home and only work part time. You have one advantage and it is you have time on your side. Make sure to build more on your old man pile with some index ETFs such as SCHX, schf, sche,scha.DCA into them robotically. The exit for old man port is never (goal to hand over to kids and use in retirement) therefore when you can have an open line of credit and/or funds in HYSA so you are never forced to sell Your degen pile can hold your options and inverse/leveraged ETFs but should be way smaller than old man pile. Single stocks can exist in your old man port or degen port but should not make up a big portion if in old man port
If $20k is all your $, as opposed to just your investment money, selling it and putting it in a HYSA to have a safety fund and starting fresh later isn't the worst idea.
That's like telling a gambler to put next month's rent in a HYSA until it's needed instead of bringing it to the horse racing track.
SGOV etc are SIPC covered which is as good as FDIC. The assets are covered if the brokerage goes down and you'll still own the assets. Unless you are saying that SIPC won't cover you if the federal government can't make good on treasuries? Which I guess is true but if that happens then your HYSA is equally in jeapardy and we all have much bigger fish to fry because we're all cooked at that point.
Those are great too, but I don't think everyone should ditch a HYSA for emergency cash. because here are the trade offs- \- an emergency fund needs instant access. selling an ETF during market hours or waiting for settlement takes days. If you need the money immediately at an unexpected time, youre cooked. \-HYSAs are FDIC insured. MMFs and ETFs have coverage for brokerage failure, but the assets itself aren't protected. \-Also, you don't need to deal with bank games. Just choose a good bank or credit union that doesn't use those promotional bait and switch tricks. T bills, etfs and MMFs are great too, but I feel like HYSAs are the most convenient in cases of an emergency.
3400-1300-300=1800 of take home left after those expenses. What about other expenses - food, clothing, car gas, car maintenance, insurances, phone bill, vacations, etc.? Do you need a budget to understand how much disposable income you have to save for the down payment? The answer to that is yes. Saving for goals of less than ten years is best done in fixed income investments - HYSA, broker money market fund, short term bond fund. Right now you can expect to earn about a 4% yield on those. Using the 1800 a month disposable income (which is unrealistic) and 4% yield that could grow to $117K in five years. It is highly unlikely that you actually have 1800 a month to invest. To get to $40K in five years with 4% growth you need to save/invest about $625 a month. You actually need somewhat more than that because you will have to pay income tax on the income from the investment. $625 a month saved probably isn't unrealistic if you live frugally, but not miserly, with mindful spending on needs, not wants. $40K is 20% of a $200K home purchase. Are there homes in your area in that price range? There are not in many areas. Look into home prices. Understand what your disposable income is or could be. Use a compound growth calculator to understand how monthly savings will accumulate with growth. [https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator) Also understand that as a homeowner you will be responsible for all maintenance. The mortgage payment will include property tax and home insurance. Everything else is on you. A roof or HVAC replacement needs to be taken care of right now. Those can easily be $15K each when they happen. You will need to be able to save for home maintenance in addition to the mortgage payment. Good luck
pretty awesome dude! so you've been carrying forward capital losses all this time and so the first $500k is tax free for you? cash that out! and like at least 100k more! do X months of emergency savings, get a couple CDs just to flex on your banks and get better relationships with them (or HYSA), do a maximum 'after tax' contribution to your 401k plan, its like $72,000 and just keep using salary to populate your moon bag account, you ran up $15k once, do it again
Sell. NOW! Be happy. Keeping it any longer is gambling. Do something safe, even if its as low as parking it in a HYSA or S&P500. You are set for life if smart.
I would go one step further ; ditch a HYSA and just hold your emergency fund or long term savings on a money market mutual fund or something like vbil/sgov even hysa banks play games, in theory a "good" HYSA will pay somewhere around the fed funds rate or short term interest rate. However banks play games, they will offer an introductory rate that then falls under the fed funds rates Or maybe they will have their HYSA match the fed funds rate today, but in 1 year it will start to diverge. If the fed fund rate goes up they may not raise their rates Just use a money market mutual fund or something like VBIL/SGOV , you will always get basically the short term interest rate. No games , no offering good rates then dropping them. They will essentially always track the fed funds rate minus a small expense ratio And added benefit VBIL/SGOV is state tax exempt, a treasury money market fund will be as well but not all money market funds only hold treasuries
You have time on your hands. For the love of baby Jesus just DCA robotically into an index fund(s)such as SCHDX. It’s boring and slow but you will be way better of for it if you learn/keep that discipline. Long term you will probably be way better off financially too. I am not saying don’t be a degen, but limit being a degen to a smaller isolated pile. Work on your old man pile first then when you have enough to lose and you know how to be disciplined then start a degen pile. For future: Also make sure to have enough in HYSA and/or in a line of credit to never be forced to sell from your old man pile.
I used to be in the same boat as you, constantly scared to put money in the market because of the “what-ifs”. Every month I’d look at my savings funds and research stocks for hours looking for the next “big hit.” I’d open my brokerage account to buy, get scared, and instantly put it all in my HYSA instead. The way I got over this was forcing myself to invest. I’m not sure how much money you’re ready to invest, but for me $50 a week felt like enough to get my feet wet comfortably. I set it up to instantly withdraw every Monday to my broker, and each Monday I put $50 in either VTI, VWO, or VEA (75% of the time it goes to VTI, the other 25% it goes VWO/ VEA.) I went from being scared to invest to having $400 in my broker in less than two months, because once I started the recurring purchases, suddenly it was no longer scary to put an extra $50+ in one of those funds every now and then. Tl;dr - set up recurring deposits and pick a basic broad market fund to invest in and forget about it. Once you get your money in the market, you’ll feel more comfortable putting more in. Best of luck to you!
Check out the sub called Personal Finance. They will tell you the steps are basically: staring with HYSA -- High Yield Savings for the close-to-you-liquid-assets. And then pick your favourite broker and purchase some VOO, VT, VTI which are vanguard index funds. Stuff your money and your grandfathers money in there and then let it mature.
I would just say it's important to set some to the side and keep it in mind it's coming so have it prepared. Easy enough to throw 20% gains to the side in a HYSA and just grow it over time adding more in than quarterly payments
That is a lot of pressure. Considering his age and your admitted lack of knowledge you should keep things conservative. To keep things simple and easy I would suggest to open brokerage account (Fidelity, Schwab, Vanguard) and invest the money if their respective S&P 500 index fund or total market fund. You could also move the money to a HYSA or a CD until you've had some more time to research it. Best of luck to you and your grandpa!
The issue to me is that too many people follow narratives and talking points promulgated by individuals and end up making sub optimum investments. They react to the fearmongering, which keeps them from truly being successful. Most novice investors think they know investing, because they react to headlines and corporate marketing. I can buy a stock, or a HYSA based on what I've heard, that makes me an informed investor. That's like saying, since the light goes on when I flip the switch, I understand the properties of electricity. There are so many quality investments available that people overlook.
Should be conservative because he is already at retirement age. The first rung would be an HYSA or something like Fidelity's CMA (Cash Management Account) where his money would at least keep up with inflation. Then, bonds or CD's. If he really wants to mess with stocks, at least avoid individual stocks and invest in a stable mutual fund that, say, contains a stock he is interested in. Spread the risk.
Is the money in an HYSA or MM savings account? If not, you've been losing money by not getting the most interest you could be getting. The interest rate on a normal savings account is trash.
For the average person, this is spot on. I would like to add: 1) when investing into the roth, for the love of god don't let the money sit in the money market account. That's why OP said put it in VT. Money market account is pretty fancy way for saying HYSA, so make sure to move it to an index fund (VTI/VT/VOO/etc). 2) if you're young enough, check what your 401k money is going to. Usually they set it up automatically to deposit into a lifecycle fund depending on when your projected retirement date is. I would look into the breakdown of that lifecycle fund and maybe consider switching to a stock fund that tracks the S+P. At a young age, you don't really need the diversification (bonds) yet.
Empower used to be a lot better - but I agree it's become less useful. Fidelity's "FullView" - I notice one of your accounts is with Fidelity - isn't bad. It doesn't tend to do much with the discreet holdings in non-Fidelity accounts, but does at least track them and does let you incorporate balances/contributions for the planning options. But -- it does synch my non-Fidelity accounts (Wealthfront taxable brokerage + HYSA + Roth IRA; Chase checking + savings; Cap1 CC + MM; mortgage + CCs) pretty well without issue. It take a bit of time to set-up to use optimally -- i.e., you have to flag/allocate accounts to purpose -- but it's probably my most robust "Personal Finance Tracker".
Why would you need help with money just because you have more of it in your account? It's more, but not any more complex. An advisor *might* make sense when you have a business or 2, a pension coming, a few homes in different states, a 401k, 403B, significant after tax pension, HSA, HYSA...you get the idea. But at that point what tou actually need is just a decent tax advisor
You should have a 3-6 month emergency fund that is kept in a HYSA. Stocks should not be your "I need money on a Saturday night" funds.
Thank you. I wish it was more but I’m proud of myself of actually earning that much. I wish I knew more about finances and investing. I think I need to start with a HYSA for sure.
Until I understand investing, would you recommend moving it to SoFi for their HYSA? Thank you!