HYSA

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.

stealthlysprockets

Sounds like you have fidelity. SPAXX is a core position where for each dollar you put in, you get 1 share of Spaxx which has a monthly dividend payout. If this is in a CMA account this is functionally similar to a high yield savings account. HYSA comes in roughly 3.2% interest where spaxx is closer to 3.4%.

darkskies85

Had some speculative industry wins that were becoming too big too fast for me to sit around on, so I sold them and rotated some of the cash into index funds. I’m keeping a decent pile of those winnings in HYSA for emergency fund and will be leaving my estimated taxes owed for this years filing in that account as well. I might take some of the cash and buy some calls on some of my conviction stocks so that either a)they tank and I can offset some of my taxes or b)the calls print and I have more cash which makes paying taxes easier. Either way, selling for profit never hurt anyone, especially if they are responsible enough to manage gains and leave the taxable portion untouched without getting greedy.

Pecanpie007

Set aside the cash you’ll owe for tax. Put it in HYSA or SGOV. I suppose you can put it in a broad index like VOO too but you then count on no crashing, and if it does go up when you sell to pay tax you incur more tax.

Swred1100

You can’t access any gains until 59 1/2 anyway. Given that you said you sold at significant gains, I assume that means 100% plus, but that doesn’t really matter. Just see how much you’ve contributed, invest the rest in index funds, and request to have your contributions withdrawn and put it in a HYSA

Old_Cantaloupe_7401

Exactly. If you think about it. You probably need maybe 4-5% access which won’t cause a huge issue. But the best thing is to have multiple buckets to pick from. So in down years maybe your picking money from your HYSA and in up years your investments and replenishing your HYSA.

NoMoassNeverWas

I agree with B. What would you say though put everything in HYSA, using that money carry it over into stocks once a week (for a period of 6 to 9 months) where half becomes in stocks?

ScarLNoBigD

You have the money in a Roth IRA so there’s no penalty to withdraw any contributions you made; penalties and taxes would only apply to any earnings you withdraw. That said it’s very unadvisable to withdraw. If possible try to start building up an emergency fund in a HYSA. I also never sit on the sidelines through the ups and downs of what is going on in the world; I still have 30+ years until retirement so I just stay the course (but with an emergency fund already in place.)

Majestic_Republic_45

To answer your question- “yes”, u can take profits and keep some dry powder. I stay invested through the war and added to my positions. Tomorrow, I’ll be taking some profits that I stash in a HYSA. It’s best to build up your dry powder with fresh cash if u can, but taking some profits works too.

Thurst2165

If you are very risk averse and are relying on it as your emergency savings you are better off just leaving it in a HYSA

Future-Call8541

This is one hell of a run yeah but I try and keep some dry powder for that scenario. When things hit correction I buy though. And I agree the belief there won't be bear markets is stupid, which is why I'd say park some dry powder somewhere like a good HYSA or something else with good interest.

Vilgan

Before I got into options, my approach was always roughly 90% in stocks and 10% in bonds/HYSA, then convert to 100% stocks if the market drops significantly. I was always very happy with that. These days I have more on the sidelines to support selling CSPs. I picked up some cheap AMZN and cheap META in the last 2.5 months, but obviously would have made different decisions if I could see the future.

greenpride32

> They are all in US mega caps like Google, Amazon etc. and they are rallying since ceasefire talks despite the war being nowhere near over. It just doesn’t make sense. Escalation seems the most likely outcome and the economic impact of the Hormuz issue is not realised yet. In all seriousness, what do you see as the top and bottom line impact to GOOGL and AMZN business due to the conflict and energy squeeze? So what makes more sense - these companies that crank out \~$75-125b in yearly profit, and have been consistently increasing that number every year for past 15-20 years should lose 25-35% of value or they should at least hold value? Cash does nothing but deflate over time. At current HYSA interest rates are you just pacing (perhaps even slightly trailing) inflation.

Late-Band-151

1st pay off debt 2nd take 20% of what’s left and put it in HYSA or SGOV 3rd take 10% of the remainder in individual stocks 4th, dump the rest in 5 or six equal injections into VTI over the next few weeks/months depending on market conditions 5th watch rates like a hawk and refinance when you have the opportunity. DO NOT take any cash out when you refi.

DaBay41510

B first. Then half in stocks and other half in HYSA.

wynveen

Checking their HYSA fund

ultraviolet9991

Ok grandpa. I’m a 21 year old trading on margin and have my positions highly concentrated in VWO, TSM, UUUU, DNN, USAR. They’re going to force AI to work whether it works or not and the only way we can have the power we need is through nuclear (UUUU, DNN) it’s also morally right for the environment to go nuclear! We need to stop targeting 10% and go with the safe obvious 20%+ like it honestly makes me sick when people want to open or recommend HYSA. WOW FUCKING 3%. It’s not that hard to pick a 40%+ stock it just takes a few bad picks and you’ll eventually find your forte

Ahamadrayasbaboon

It’s true, I’ve got $20 in a HYSA

RiPFrozone

I don’t keep cash in my portfolio, but I do still invest every paycheck between my 401k, HSA, and Roth about 40% of my gross income. Then I put some away in a HYSA. You don’t need cash in your portfolio if you are consistent. For people who don’t deposit every few weeks, just hold.

HasheemThaMeat

So maybe keep your money in a HYSA or CDs if you really need that money for essentials.

dataCollector42069

put 8k away in a HYSA or money market account for taxes. Have a 5k bill tomorrow rip

NatureStoof

I could save for a house. But the more I save, the more they just go up and up and up. Same with vehicles and nearly every other good/service. My money does little good to me in HYSA or CDs. So I just keep increasing my 401k contributions in a hope that I'll actually be able to retire one day. There are probably a lot of people like me. We have no where else to park the money. No other use for the money. So just keep stuffing it into the matress that is the stock market.

Extreme_Green_1708

Cash gang aka 4% interest in a HYSA so you can buy yourself a fucking gallon of gas with the gains each month. Fuck outta here

NewDay042

My bestie is 50, late starter to retirement planning (post 2020 started), but is maxing it now in S&P index fund. He has a small brokerage account, and chunk in a HYSA (money trauma, needs a lot of savings psychologically even though he knows inflation is eating it). He has a new financial advisor that told him he would NOT advise dumping a lot of cash in the market right now, but continue to DCA into index funds. I couldn’t really argue with the strategy, but it does hint a little bit of timing the market. Curious what you think - about taking a chunk of savings into the market now?

SteevieJanowski

I’d def look to put at least 20% down. I’m in a similar situation rn. 100k in HYSA + 350k in brkg account. Keeping about 35-40k in HYSA so the rest of the down pymt is coming from brkg. I’m partially splitting the difference by using 150k of brkg acct to bring the mortgage down to a reasonable level so I can continue to invest and pay a little extra on the mortgage monthly. 

Prudent_Razzmatazz31

the agrarian economy hedge 😂. if we’re actually headed for back to the land, IVF and healthcare degrees are probably the highest alpha investments you can make right now. healthcare is the ultimate uncorrelated asset lol as people get sick regardless of what’s happening in the strait of hormuz but looking at your actual buckets, that 8-week vs. 3-month split is exactly where the nominal yield trap happens. until last week, the 8-week was the high water mark, but that’s because the market was pricing in a quick resolution to the blockade. now that the navy is actually getting involved, the risk-free rate isn't actually risk-free if you account for purchasing power the problem with that second 25k HYSA idea is that it’s silly not just because of the paperwork, but because of the risk contribution. when you add more cash equivalents in an inflationary spike, you aren't actually diversifying. you're just doubling down on a bet that inflation will stay below 5%. if energy costs stay at this 40% premium because of the shipping diversions (adding 19+ days to transit), a 5% HYSA is a guaranteed way to lose 2% of your wealth in real terms every year. instead of opening a second HYSA, have you looked at the correlation between your 401k (vtsax) and your safe buckets? usually people find that their safe cash and their risky tech stocks are actually moving in the same direction because they’re both hyper-sensitive to the same energy/logistics bottlenecks. honestly, if you’re already covered on the mortgage and the kids future healthcare careers (lol), you’re in a better spot than 99% of retail. you’ve built a great defensive shell but now you just need to make sure the the cash doesn't get eaten by inflation shadow l you’re waiting for the market to stop hallucinating.

GailaMonster

I moved about 10% into 6-months, but I really want to put that money elsewhere, so i'm mostly split between 3-month and 8 week (which until recently was actually the high water mark for rates on short term). I have another 25k in a HYSA that gives me 5, which is spiffy for a savings account, but only the first 25k in the account earns that rate, and as you said - that's basically just capital preservation in an inflationary environment. I could open a second account and throw another 25k in there in the short term, but that seems silly. (like you said, a lot of paperwork to hold up to 25k doesn't solve where to put most of the money i'm trying to push someplace more productive). I'm about to shoot the moon and buy me some IVF LOL. it's a nice hedge to have more kids in case things really go south and we return to an agrarian economy (/s). I could encourage them to go into healthcare as a hedge against elimination of ACA and Medicare. hmmmm

Asclepius-Rod

At least this time I didn’t panic and move a bunch to HYSA and SGOV rather than staying the course

bhuff86

I went ahead and did it. It is a lot of money tied up, but the return is pretty good, and guaranteed. Plus you do accrue like 3.3% interest monthly from it being in a HYSA, in addition to the bonus for holding the money in the account for 3 months

JordanGoodLifeWalker

The people on the sidelines with their money in HYSA

GaylrdFocker

That's the settlement fund Vanguard uses, it is equal to a HYSA. Buying and selling whatever you want inside the IRA will not affect taxes unless they take the money out of the IRA. [https://www.reddit.com/r/personalfinance/wiki/investing/](https://www.reddit.com/r/personalfinance/wiki/investing/) [https://www.reddit.com/r/personalfinance/wiki/iras/](https://www.reddit.com/r/personalfinance/wiki/iras/)

owenmills04

Mid last week I was close to unloading XLE and buying some MSFT at $368. Didn't because I felt like this cease fire was BS. Sold a bunch of VT Friday betting peace talks would implode Everything happened the way I thought. Yet XLE has bled out every day, and MSFT and VT are printing today I'm done with this market. Just sold my entire brokerage acct portfolio and moved it to my HYSA

Jing3rbread

Not sure what to do with 100k cash lump sum. Also have 3 month emergency fund in a HYSA. No longer eligible to contribute to Roth. Current breakdown 57k in previous employer investment plan 13k in current employer 401k 3% match 23k in Roth IRA Not sure if to open a trad ira or put it straight into individual brokerage or do both. WWYD

big_deal

It entirely depends on when you *need* the money. If you won't need the money for more than 10 years, then stocks funds will almost certainly have higher expected return than the HYSA. Not guaranteed, but a significantly high probability. If you need the money within the next 2 years, then the probability that stocks will have higher returns is lower and the certainty of the HYSA yield has more value. So if you're saving money for a near term and inflexible expense (buy a home, start a family, start a business, etc) keep it in an cash like assets (HYSA, CD's, short term treasuries, TIPS, etc). If you're saving a far future expense (retirement) or have flexibility to delay spending indefinitely if the market is down, then invest in stocks which have higher expected returns over long term but very uncertain return over short term.

artbystorms

Cash is dangerous to wealth growth in an inflationary market, but pivotal to security against the 'stag' part of stagflation. If people say 'you should have 6 months salary saved' I would push that up to at least a year's salary the combination of recessionary indicators, AI, and the worst white collar job market in 80 years. Being unemployed for even 18 months will be routine in the crash to come. Since Trump became Fhuerer I actually slightly lowered my 401K contributions to put more and more into my HYSA.

NickStonk

The market is very forward looking. Despite all the negative points you wrote, the markets still believe the escalation has stopped due to ceasefire and there is a high chance of a resolution soon. Even if oil prices are high short term, markets brush that off assuming they will come down in the future. Also, there’s the backdrop of future fed rate cuts as well. There’s still a lot of money in HYSA that will gradually flow into stocks as those rates drop.

Putrid_Pollution3455

Ew…USFR instead of a HYSA

Sensitive_Judgment11

Around 138k in stocks and around 5% cash on a 4.00% HYSA

WaterReflection0521

Set a budget for the engagement. Save up that much in your HYSA or a money market account in your brokerage. You are doing very well for someone your age.

Various_Couple_764

you could take you 500k from the HYSA and put it in NAC 7% yield and SPYI 11% yeidkl with an equal ammount in each in a taxable brokerage. that would generate you will get 45K of nearly tax free inocme from your 500K HSA . And this income is payed in monthly installments. Since eat money if comming from a taxable account you can use the income to cover most of your monthly bills.

MrIntellect1222

Yes, you are correct, and honestly, I am not chasing high returns. I know 4 years is small. But your statement is a bit odd. The truth is, I would invest in a reliable index fund tracking the S&P 500, and this is not a HYSA versus 529; it’s a 529 versus getting doubled taxed on my brokerage. I’ll have to take some out of either, and the tax benefits are important. Also, HYSA are counted as a student asset, which means it’s a 20 percent deduction on the FAFSA. That sucks. Might as well use my brokerage with some stable stocks, and the whole point was to get a better situation than these nasty FAFSA deductions. Also, if inflation increases at the expected rate of 2-4 percent, my HYSA benefit is basically gone, and the financial aid deductions make it honestly not worth it. Gains are not guaranteed, but the same thing applies to HYSA because of net benefit factoring in financial aid and overall gain+ inflation.

MrIntellect1222

I respectfully disagree. My parents would make contributions, and while the benefit may be lower since they didn’t start it earlier, the tax-free withdrawals and 5 percent FAFSA financial aid deduction still make it a worthy account to open. I would not self-fund my parents do; I’m just doing the research. I know it’s not much time, but it is much better than using my brokerage custodial account to pay for college because it deducts 20 percent from my financial aid + has capital gains tax. HYSA accounts are great, and I have one, but because of the tax-free withdrawals and the ability to transfer this money into a Roth IRA if I get a scholarship at a university, it makes it undoubtedly beneficial. Its the little gains and expenses that add up over time.

Various_Couple_764

HYSA and government bonds don't keep up with inflation once you factor in inflation your total return goes from3.5% to very close to zero or even negative 1%. My Roth currently has about 500K in it and it is invested in QQQI 13% dividend Yield, ARDC 9%, BPDC 9%, EMO 9% CLOZ 8%, UTF 7%, UTG 6.5% and JAAA 5.5% yield. with funds like these you can easily get 8% on your 500K which would generate 40K per year of income. Which is enough income to cover most monthly bills and expense people have per month. You do have to pay taxes on the income but if all you have 40K you would in the US owe about 1K in taxes. IF you use tax efficient fund you could get the tax down to zero.

CCWaterBug

My pops basically tripled his retirement savings from age 65 to 80 with a relatively well managed portfolio 80% in the market  active spending, travel, RMDs, not really that thrifty, paid off two homes.  Other side of the coin: FIL had about 300k at age 62 and at 75 has under 200k and about 90k on a reverse mtge., nothing but HYSA and CD's.l, he's still waiting on 2008 to happen again.  

Riverofrhyme

Hi everyone! I'm a non US citiizen, but am a US person as far as tax is concerned now. I liquidated absolutely everything when I moved to the US a couple of months ago so the majority of what I hold is cash (minus a heavy asset allocation in collectibles that I am working on liquidating, if I legally can on my visa). I'm looking for suggestions on the best set & forget setup for the US, given I may not be here forever. Some info on me: 1. Before the US all of my cash was held in ETF/mutual funds that tracked a combination of S&P 500 & "all world all market". I'd love something similar. 2. I am in my early 30s, married with no children and no house or car. Both very healthy individuals. I am the sole worker but in a low security job. 3. Salary: \~$260k base, up to $850k with guaranteed RSUs and bonus if I keep my job (again, low security). 4. Current asset allocation: $300k cash, $40k foreign 401k, $23k BTC/ETH, $2k in Fidelity 401k, $2k HSA, $800k in collectibles (these are appraised and immediately liquid due to a buyout clause I have, but unsure if I can sell due to visa, speaking to CPA). 5. I bank with BoA, 401k & HSA with Fidelity and RSUs via Schwab. As you can see, I hold no stock/non-crypto investments apart from the small 401k and HSA I have. This is what I want to change. My knowledge gap at the moment is the existence of HYSA, "Roth IRA", "IRA", "Roth 401k". None of these exist where I am from, and so just knowing where to look first would be great. Where I'm from the general consensus was "3 months in cash, the rest in S&P/all-market ETFs". That seems too simplified here. Any suggestions/anecdotes would be great!

SerMumble

Bonds lower volatility and growth so in a sense it lowers risk. Be careful not to buy high yield bonds as they can often crash with the market. Be aware at least in the USA, bonds are not really keeping up with inflation especially with elevated oil prices so it doesn't really grow your investments on top of costing potential gains. It's best to use things like bonds, HYSA, MMF as a small emergency fund or DCA tank. If you can have a high conviction and just very little time to invest, a world index fund and chilling is very efficient. If you have time to stay current with the market, diversifying your portfolio into a half dozen etfs gives you the ability to tilt and move against the market. Take example energy etfs for example sky rocketed as pretty much every other sector crashed due to an energy trade war.

No-Improvement3164

HYSA annual return 3.5%. Groceries, rent and utilities annual rate of inflation 35%. Someone has a decimal point in the wrong fukn place.

Neither-Charm

i get why the 3.5% feels tempting because it’s “guaranteed” but over long timelines the market has historically done more, just with ups and downs. a lot of people end up doing a middle approach like keeping emergency + near term goals in HYSA and investing the rest gradually every month. i’ve checked Banktruth before when comparing savings rates but it usually just confirms the same thing, cash is safe but capped

fredismyavatar

Yoooo killdozer, didn’t know you were in San Diego, hope to see you around! But ya these guys are all correct, that is too much in HYSA. I’d move some over. You can keep future income in HYSA to save for a house but right now you’ll want to take on more risk with that 500. general consensus is that “lump sum” cash investment typically outperforms DCAing (putting money in market monthly, as you suggested in your post). I am in a similar boat, also in San Diego, also want to buy eventually. I only keep like 50k in HYSA the rest is in market ETFs. At the end of the day, it’s whatever you’re comfortable with, but I would say anything more than 25% cash is far too much.

towelheadass

you'd probably better off doing something like VOO & chill with a chunk of the HYSA. I'd probably take some as 'play dough' for riskier asset classes as well, I think you know what I mean.

Swred1100

In that case I would just say it depends on your time horizon for the house. Unfortunately, prices probably won’t come down much if at all, like planting a tree the best time to buy it was 30 years ago and the next best time is now (though not 100% of the time like it would be for a tree lol). For a $2-3 million house, I’d personally want to have around $600-800k saved for that alone. That would cover downpayment, closing costs, any immediate repairs or upgrades or whatever that you’d want to do, for the most part. So if you want to do that in the next couple years I’d keep it in HYSA or municipal bonds for tax advantages. If that’s more than 2 years out, I’d be temped to go all equities other than emergency fund.

Swred1100

I would have more in the market if it were me. Is what you do for a living stable? If so, I would only keep 3-6 months of living expenses in cash (HYSA). If not, keep 6-12 months. That would be my first mental check. Second, are you planning to make any big purchases in the next year or two? A home, a business, etc.? If so, I’d keep the 6 ish months + whatever downpayment would be needed. If not, just the emergency fund. Third, risk tolerance. If you’re fine with seeing the account value swing up and down and can stomach a 30% drop, put more in. If not, I’d implore you to put in as much as you can while still being able to stomach the dips. Your $350k at a 10% annual return is $8.1M ($3.1 after 3% inflation) at 60. Up that to $600k (half your cash) and it’s $13.9M ($5.3M after 3% inflation)

Fun_Efficiency5076

First of all, congrats, that's a crazy sum of money at your age. Second, the choice to invest or hold cash (HYSA) depends on when you're likely to need or want to spend that money. When investing, we do so to fund future expenditure, and because markets are volatile, it's generally best to invest with money you likley won't need for at least 10 years.

Wowmuchrya

Or you realize SPY is still negative ytd? HYSA or sgov still outperforming it.

Ahamadrayasbaboon

Lump sum + regular periodic contributions (payday savings) has the greatest probability of maximum success.  Lumping half and then averaging the rest (like on non-payday weeks) over like 6 months may reduce the psychological risk you’re hinting about. It’s fine to do this if that’s what it takes. It’s the second highest probability, and less fear factor. Just keep that spare money in a HYSA or a treasury bill ETF like SGOV (which is practically similar to a high yield savings account) so it’s not getting inflated away.  Don’t bother trying to time the market, though. Just pick one, or a few, broadly diversified, non-thematic ETFs with low expense ratios and buy them every week or month, with the same amount of money if you can, and don’t even look at the price. Just buy however many shares you can get, and close the app. Index funds are great for this.  Check out r/bogleheads. They’ve got low-heartburn investing figured out. 

taplar

https://en.wikipedia.org/wiki/Wikipedia:Wall_of_text My personal suggestion would be to look into Money Market Funds in your brokerage account, rather than opening a new HYSA. Money market funds generally have comparable, or better, yields than HYSAs. Same thing with CDs. I honestly don't know why CDs still exist, except it allows banks to capture money from people who are still scared of markets and are potentially uninformed. But, if you can find a CD with a good rate, compared to current MMF rates, then it could make sense to lock those rates in for a period of time. As far as finding out what your Roth is invested in, you would just log into the web portal offered by the brokerage that is associated with your bank. If they do not have a web portal, then you may have to call them up or go in person to inquire about it. As far as how hard should you push to get it into a low cost index fund? None? It's your money. If you want it to be in an index fund, you do that. A Roth isn't like a company sponsored retirement account where the company (or an advisor company they pay) determines what is offered in the account.

Crazy-Cat-Lad

Not related to investing but something i wish I did earlier was get into pet sitting/dog walking. If you have time and transport, definitely recommend. (I then put some lf those earnings into investing/HYSA) Next week I'll probably make $850 from just walking/feeding dogs.

MovieRevolutionary64

College student here looking for some direction on what to do with my money. I’m on a co-op program with about 2 years of school left and a few months left on my current work term. I’ll make a decent chunk more before it ends. The co-op covers my housing and food while I’m working, the tradeoff being a pretty demanding schedule. Scholarships cover my tuition and refund checks cover rent and food during the school year, so I have no debt and basically no expenses. I’m not really a big spender either. The degree I’m going for should land me a solid income after I graduate. Some context before I get into the numbers. My dad has been managing my finances since I was a kid and I’ve kind of just signed papers when he told me to without really paying attention. He’s done a great job and I’m grateful but I feel like at this point I should actually understand what I have and start getting more involved in managing it. I’ve also been investing a little on my own through a taxable brokerage which has been a good way to start learning. That’s mostly why I’m posting. So here’s roughly what I have. There’s about mid five figures sitting in commercial CDs at one brokerage. My dad originally set those up to help pay for college but since scholarships ended up covering everything that money is just mine now. I don’t actually know what the rates are or when they mature, I need to ask the advisor. It feels really conservative for someone my age though. Then there’s a Roth IRA at a bank. My dad maxed it out for me every year when I was younger, and a few years ago when I started getting internships I started maxing it myself. It’s been getting contributions for a long time so there should be a decent amount in there. The thing that worries me is that since it’s bank-managed I have no idea what it’s actually invested in. It might just be sitting in a money market or something super conservative instead of actual equities and I don’t really know how to check or push back. The taxable brokerage I manage myself has about 8k in it. Around 5200 of that is in a total market index fund which is the part I’ve been adding to most consistently. Around 2000 is in a single stock for a major entertainment company, currently down about 3 percent, which was kind of an “I like this company” pick early on. The last 1100 or so is just sitting in a money market from cash I haven’t deployed yet. I know the single stock isn’t ideal and the cash should probably be invested too, that’s part of what I’m trying to figure out. And then I have around 20k in my checking account which is the part that’s been bugging me the most. That’s basically what I’ve made so far from the current co-op plus a part time job I had back at school. It’s just sitting there doing nothing. I know I need an emergency fund but this feels like way more than I need liquid, and I have more income coming in over the next few months on top of it. So I guess my main questions are. Is moving most of the checking into a HYSA and keeping a few thousand as a buffer the right move, and does anyone have HYSA recommendations. Is having that much in CDs at my age way too conservative especially since I don’t actually need it for school, and is the plan of checking the rates and rolling them into index funds when they mature a reasonable one. How do I actually find out what my bank-managed Roth is invested in and how hard should I push to get it into low cost index funds if it turns out to be in something conservative. Should I just sell the single stock in my taxable and consolidate everything into the index fund or let it ride. Where should the income I have coming in over the next few months actually go, HYSA, more into the taxable, save some for next year’s Roth contribution. And big picture given that I have no debt, no expenses, a 40 plus year horizon and a degree that should pay well, am I missing anything obvious. I know I’m in a really lucky spot and I just want to make sure I’m taking full advantage of it. Any advice would mean a lot.

KangarooPouchIsHome

Don’t, you’re going to trigger me. My weekly DCA has been consistent for years, but I’ve had six-figures in “dry powder” in a HYSA waiting for the imminent collapse that the media has been promising is around the corner for 5 years. At this point I’m holding out on pure spite and mulishness.

Put_Er_There_Sport

What i would do with 100k in my hands right now is get my life in order; pay off all my debts (18k left), put 10k aside for a more reliable car while fixing the one i have up, sending my mom 10k for being my mom (whole basket of reasons in there), 50k into a HYSA, 5k between my checking/regular savings account and 5k for degenerate gambling.

Tboogie1

That’s actually a really nice position to be in. If it were me, I’d probably think less about maximizing returns and more about keeping flexibility over the next year. Since there’s a chance you might use the money when you move, I’d be a bit cautious about putting all $50k into the market right now, just because the time frame is relatively short and volatility can work against you. A split approach could make sense: keep a good portion in something stable like a HYSA or short-term CD, and maybe put a smaller piece into the market if you’re comfortable with some risk. That way you’re still getting some upside, but you’re not putting your near-term plans at risk. Especially since your home equity might already cover most of the down payment, it really comes down to how much flexibility you want to keep.

slowpoke2018

As scary as it is, seems like there's also a play to be made here for all of us "commons" Not sure what it is, but it seems like do the inverse of anything the orange one does and you might make out well I don't day trade given I have 2 kids to put through college, but I do have a 50K slush fund in a HYSA I've been debating to throw at some trades....talk me out of it!

gunslinger_006

Thats a short time span, roughly a year. Its risky imvho to try and grow money substantially in a year. Any investment that could grow a lot in a year is almost certainly risky and volatile (like bitcoin or individual stocks). So i guess the idea is to just not lose value to inflation. If you can get a good HYSA, that might do 4% which would beat inflation on paper (assuming you believe cpi-u is calculated and reported accurately). Otherwise the suggestions from others to potentially split it between “safe” diversified funds is probably a good one. A hysa with an fdic insured bank is likely the absolutely safest route.

jbourne0129

i guess it depends how complicated youre investments are. i think if you have multiple properties and/or buisnesses to handle it definitely gets complicated. but for just dealing with stocks sales, dividend tax, taxed interest in any HYSA, the free versions are simple enough. anything more complicated than this honestly probably benefits from hiring an actual CPA

USAJourneyman

Only buy the dip on individual stocks when you have absolutely researched & studied that stock and sector And you do that with cash dedicated towards that “moment” sitting in a HYSA

greenpride32

Currently retired, but when I was building NW, I would have a HYSA/emergency fund I always kept full. My budget wasn't locked/strict; some months I spend more than others. The way it worked was at end of month, excess money from paycheck that went to checking account, went to HYSA. Then excess HYSA went to brokerage. Then I invest the brokerage money on a regular basis, I never let it sit in cash. So investing regularly, but not on a strict/fixed schedule. When big market collapses occurred, I would dip into HYSA/emergency and buy more (2008/09, March 2020 and April 2025 I did this - other times as well but those are dates everyone can recall). I guess I viewed "big market opportunity" as falling loosely under emergency. I then just replenish the HYSA/emergency to my desired level. Still had my 401k at work.

PeaceOut957

Yeah that's about what I'm getting. 4.1% 6 month cd  and 3.3% HYSA. Just demoralizing knowing I got 4.1% this year and the rest of the civilized world got 15% with spy. I am not sure when I will need the cash though. 

888mainfestnow

Good for you don't blow it all and do something nice for yourself along with staking some in a HYSA for taxes. 

damandamythdalgnd

The real problem with your statement (if you live in an income tax state) is you’re in a HYSA and not SGOV or SNSXX

Useful_Intern4114

Just calculate what you need for taxes at 40% put that in a HYSA, then put the remainder in a diversified portfolio heavy on SPY and maybe SCHD for the dividend. You win lol fuck you

Hegecoin_Rules

Same. Put it in a HYSA for now. Will wait til trump and MAGA dies

PeaceOut957

So I have to go 100% HYSA ands bonds. Just sucks. I have 200k in cash but I might need all - or none - in the next 2 or 3 years. No clue what the fuck to do. 

Tigglebee

My HYSA are at 3.4% right now. SoFi and One. But I’m pretty sure that’s pretty common.

bubblemania2020

HYSA and US Treasury bonds are in this range.

RagnarokWolves

keep an emergency fund and whatever you need for day-to-day in a HYSA. Start investing 15-25% of every paycheck into a well diversified ETF. (Either S&P 500 or VT to capture global diversification)

networkwizard0

I have a HYSA as an emergency fund it’s got like $150k sitting but the rate went way down to when we opened it

F47NGAD

At 10-20 years might as well just put it in HYSA. Let's accept it when Gold was breaking aths it's th worst possible time to get in.

888mainfestnow

If I cleared something huge I would literally just make an estimated payment of 50% of profit or shove it in a HYSA.