HYSA

ETP_Queen

At 20 with no steady income yet, I’d think in “buckets” rather than chasing the perfect product: 1. Safety first: 3–6 months of expenses in a boring HYSA so you’re not forced to sell investments if life happens. 2. Long-term you: whatever you *know* you won’t need for 40+ years, Roth IRA + broad index fund. Future-you gets the tax break. 3. Flexibility: if there’s anything left after 1) and 2), then a simple index fund in a taxable account for medium-term goals. That way you’re not “locking everything away”, but you’re also not treating long term money like a checking account. How many months of expenses do you have saved right now?

iWesTCoastiN

And for some reason it's not applicable for state taxes? Interesting 🤔 I noticed you said stock so it's not like a HYSA or MMA in the sense that there's no risk involved? For the SGOV there's risk?

WarmCan3034

Amazon is up 4.6% this year… u could have made more money with a HYSA

hopfield

I have no idea, seems like there is no middle ground between HYSA yielding like 3.5% with zero risk and stocks yielding 10%+ with high risk. I just want to park my money somewhere for 3 years but no one wants it. 

burntoutCFI

You have until April to max out 2025 ROTH IRA. You can just put an amount that youre comfortable with to let go for a long time. For example 5,000 into Roth IRA, then the rest, you can put into a HYSA. (Make sure that before anything else, you have at least 3 months of emergency funds in HYSA already. Its usually the first step in the finance recommendations in case you need cash upfront someday)

The_Spoils

Don't get tunnel vision on other people's supposed gains. Lots of people who are aggressive lose money, they just don't post it to the internet.  Not sure what your overall portfolio value is but 30% cash seems kinda insane to me.  I only keep about 6 months expenses in cash, the rest is invested. If that requires 30% of your portfolio then so be it for now but be sure to keep it in a HYSA. With that said 18% gains in one year is a great return. It means you're outpacing the total market by like 6%.  Curious to know what stocks you've allocated 30% to though. 

generalright

Sounds like you would have done better just putting it in an HYSA

Substantial-Dirt2233

It is crazy to me how many people don't bother looking at competing banks. Guess they just don't know any better. My credit union has a money market at 2.6% and Paypal/Synchrony HYSA is still at 3.65%. They have been steadily declining this year, but it's still not a terrible place to park some emergency funds and handle the large monthly bills.

brute-forced

If they have no other retirement accounts, you should definitely not be advising them to invest this unless they can withstand up to a 50% drop in value in case of a massive downturn in the S&P 500… If they can withstand a 50% draw down at 65 then you could do it… Might be better to put a quarter of that into the stock market and keep the rest in HYSA

TheP4rk

Plenty of huge banks/financd companjes have HYSA if your concerned about smaller players being shady. If you put 25k of that in at ~3.5% its still $875 a year in interest. If you don’t have an IRA look i to that you can still max 2025’s contribution too. You could put it in money markets or CD’s or Bonds or the actual market whatever you are comfortable with. Better than .01-.5% interest in checking

Sorry-Society1100

This hits closer to home than I’m comfortable with. I probably have more than $40k in my checking accounts right now because bank savings accounts have been trash for nearly 20 years, and I haven’t gotten round to finding a HYSA provider that I’m comfortable with. Thanks for the reminder—I’ll get on this this week!

Ok_Strawberry_2764

Good question. We move the maximum into our Roth Ira’s yearly to invest. We’re retired, Social Security provides us with an additional $4000 monthly so we’re only withdrawing around $800 a month from HYSA and investments we don’t touch.

Ok_Strawberry_2764

Probably not normal but my wife and I have just north of 460K in HYSA and almost $750K in stocks, ETF’s.

NOPALEME

The funds are currently in cash in a 4% HYSA. We worry that if we put all 500 in at once then that’s that. If the market goes down 20-30% boom they’ve lost 20-30% and now have to wait for the market to improve to be where they’re at today. If they DCA over 16 months yes they’ll miss out on gains potentially and likely, but they’ll feel a hell of a lot more secure along the way and can buy dips as they come.

WhoGotDaKeys2MaBeema

Im literally just all in on U.S. Total Stock Market when it comes to my investment accounts and only use money market accounts for my emergency fund because the rates are higher than every HYSA I could find, so far. The only thing beyond my control is a 529 plan.

Various_Couple_764

I would put that money in SPYI. This fund has a dividend yield 11%. So this would generate $1100 a month you can apply to your mortgage or other bills or use it for your roth depoist. You could also put it in your HYSA to keep it full.

TheSleepyTruth

Well you said you wanted to "reliably" make money by 1 month, suggesting you will need the money 1 month from now. Best way to guarantee that is money market / HYSA / SGOV etc. If you buy stocks... you might have more money in a month, but you might have less money. In fact there is a decent chance it will be less money, certainly not a "reliable" way to make money in 1 month.

TheSleepyTruth

If you will 100% NEED to use that money any time in the next 3 years i would keep it out of the market and put it in a money market, HYSA or bonds. Any shorter of a timeline and you are gambling imo

BeneficialQuality899

I wouldn’t put money in the stock market for 1 month. I’d put it in HYSA

Actual_Stranger_1766

what HYSA account do you have that they’re paying 4.1% right now

Heyhayheigh

I think you’re right. But that HYSA won’t beat SGOV for long. And what state do you live in? Do they have state tax? Because SGOV would be better for that as well. Brokers also allow you to know historical performance and compare to a benchmark. So you would know what you gave up by not being invested in VOO and chilling (sp500 for example). It is a slight tweak. But a great habit for you guys being so young. I find people spend HYSA way easier than liquidating SGOV to spend. You would think it shouldn’t make a difference, but I can tell you anecdotally it does. Either way best of luck. My comment was meant to help. Take with grain of salt.

Heyhayheigh

Use SGOV instead of HYSA. Buy whatever of those ETFs you like, just do it auto and weekly if you can. The best plans don’t rely on self discipline. Sell only when you have an urgent expense to pay for. If you want to switch the auto, that’s fine: VOO to SCHG to QQQM or whatever. Just never remove the auto. Always have an auto. Work to increase the auto. The longer you do this, the richer you will be. Best of luck!

Sufficient_Winner686

Open a brokerage with Fidelity, they have no trading fees and it’s free to open the brokerage. From there, you’ll transfer the balance into the brokerage. It will automatically go into what’s called a money market account, which is basically a HYSA that pays like 3.5% APR. What you’re going to do now is buy SGOV. It’s a stable 0-3 month ETF that holds bonds. Low risk, money pay, roughly 4.5% annual return. You’ll hold here and watch the market. You’re waiting for a day where SPY drops by around $10 per share. It happens every few months just by folks taking profit. This is what’s called your buy-in price. The next day or two, the price will recover and continue up. This is a pattern I have followed for a while now. SPY is an ETF that tracks the S&P500. It generally returns somewhere between 15-20% on average years and 25-30% on good years, and of course it can be negative on bad years. You’re looking at a 30 year investment horizon. If you just do this and add to it, you’ll retire a millionaire.

Heyhayheigh

Use SGOV instead of HYSA. Buy VOO auto and weekly. Whatever you can afford after having emergency fund. Sell only when you have an urgent expense to pay for. That’s it. That’s all you really need to know. Your 401ks should be sp500, your Roth can have some stocks if you want a little more spice and have super long time horizon. All bluechips, don’t trade in and out. Spend less, invest more, automate. Don’t panic sell. That’s all anyone needs to know. You probably should find a trustworthy pro and delegate these tasks. They will soon not be worth your time to keep up with. Best of luck and sounds like you will do great!!

Ready_Piano1222

Agreed. The amount you earn from a HYSA would certainly be less than any mortgage you might find. However, this does mean you would lose liquidity.  Increasing your down payment and opening a HELOC would address that though. There would be some origination fees. Just don't touch it unless you need it.

elinordash

The first move here is a HYSA. Ally, Discover, and Amex are popular options. The interest rate is close to a CD with more flexibility. Beyond that, what is your retirement savings situation? A good rule of thumb is one year's salary in retirement accounts by age 30, three years by age 40.

bam2350

Minimal risk: HYSA, SGOV, Treasury Direct, CDs Historically dependable but has risk: VOO, DIA, VTI, ect. Plow money into saving while you can -- establish your emergency fund, max those tax advantaged accounts, pay yourself first, save for your next car, save for a down payment on a house

Valvador

[This is a good starting guide.](https://www.bogleheads.org/wiki/Managing_a_windfall) As others have said, put it in a high yield savings account while you figure out what to do. Since you are in CA, (depending on your income level) buying T-Bills would actually be beneficial over HYSA/CDs because you do not pay state income tax on T-Bills.

Good_Ride_2508

Better now to CDs or HYSA until you learn about proper investment. Do not blindly do anything, learn through some investment books

PalpitationSmooth992

HYSA is now 3.75 - 3 for inflation = 1% annual gain might as well buy corporate bonds and senior loan etfs for better yield

Happy_Discussion_536

HYSA with taxes and inflation you might be poorer too.

AllCapNoBrake

BTC YTD -7% FDIC HYSA w/ no taxes or volatility +4%

AllCapNoBrake

HYSA FDIC ins w/ no taxes is +4%

AtXrt

It's more for people who are retired and living off of their portfolio without an income. Bond funds function like cash in the portfolio, but generate income through dividends. If you are retired and there is a crash and you need money, you can sell bond fund shares instead of selling stock and locking in losses. Bonds usually are comparatively stable during a crash. When you draw from the portfolio in retirement you draw 1. Checking account 2. Cash from the cash sweep/HYSA/money market 3. Sell bond shares 4. stocks only if you have to. You keep DRIP off in retirement, so your yearly rebalance has a sell high buy low effect. For example if you keep a 70/30 stocks to bonds split with 50/50 VTI/VXUS you would first use unspent cash to buy bonds, VTI, or VXUS to reach your desired allocation. If you don't have cash, you would sell high on whatever had a good year; VTI, VXUS, or bonds and buy whatever is under your desired allocation.

the-real-batman3

Thanks. Yes mostly VTI but have some stock that have done 200% so not bad. Have good chunk of $ past 2yrs in HYSA for down payment on house…wish it was invested but oh well. 4% no risk

Yogurt_Up_My_Nose

old people use Apple as a HYSA, so you're likely right.

SammyDavidJuniorJr

They aren’t even close to what a HYSA would’ve given them.

UnfazedBrownie

Buddy, you need to pull that money out and at least park it a HYSA or move it into a money market fund to start with in order to stop the bleeding. That $113k should be worth over $200k by now (suboptimal 5% rate of return).

stupidber

DCA into HYSA r/smolppinvesting

SGMaricelli

Thank you all for your comments you’re all right. Everyone has given me a clear head saying effectively the same thing. I’m overthinking it I need to chill out and just do it. My mistake was slowing down monthly contributions. I plan to automate investing $625 each month next year for both our accounts with zero reason to change that. Seriously thank you everyone for the comments. For stuff like this it feels easy to get caught up in it all. I just need to not overthink it, pay our future selves today and save the rest for our short term perspective. It’s hard when we want this or that now… so thank you guys, sometimes it takes a whole lot of people saying the same thing to snap yourself out of it. I had a comment or two on my financial situation and so to try and answer those now and here: we have a bit over $40,000 in a HYSA after transferring $9,500 to my local bank to send the above and cover some other expenses. We live on 49.5% of what we make (as long as we stick to the budget). I know this detracts from the topic of this sub but it definitely impacts our ability to invest. If anyone had tips on how they avoid the desires of consumerism that would be helpful as it feels we are starting our life we want all the things. Not necessarily frivolous things but things like nice tools for working on cars/landscaping, clothes, photo albums, hobbies, food splurges, gifts, etc.

Numerous-Stand-1841

That's 7% gain over 2 years. That's terrible. Even a HYSA would have been better.

dankappledrank

I noticed that for whatever reason SGOV pays twice in December and has 0 dividend payouts in January. Does it make sense to move that money to a HYSA/another bond ETF for the month of January and then back into SGOV before February's Ex-Dividend date? Or am I missing some important detail here that means it makes more sense to just leave it in SGOV for all of January, e.g. the underlying price of SGOV will dip enough after December's 2nd Dividend payout that exiting SGOV in early January will negate any potential gains.

Perry_cox29

This is one of the few times where if you just stuck everything in a HYSA, you would’ve done better. Oof. You have enough advice on what went wrong. Lesson learned. You’ve lost 207k-ish on returns in what most young people would consider safe-ish index investing (as long as you didn’t need liquidity in any specific time frame for that money). I would recommend a financial advisor, but that’s what got you here in the first place. This subreddit and Bogle-focused subreddits are a good place to find literature on what to do to avoid this going forward. More importantly, though, you will have to define specific return goals and specific risks (that said, a “0 risk” portfolio would’ve still performed much better than yours over the last 10 years).

AllCapNoBrake

If you think you're having a bad day, take a moment to think about ALLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL of the regards that thought DJT was going to pump their bags to 150k+ this year and took out 12% loans using their BTC as collateral. They are now be both FIAT & BTC poor. They could have just invested into an FDIC HYSA and made more money w/o the volatility and taxes. L M F G D A O B B Q https://preview.redd.it/my39g8abam4g1.jpeg?width=32&format=pjpg&auto=webp&s=00a00e19fabe99e50f39e45b969482fa1249ebb4

Over-Computer-6464

It is impossible to make a reasonable recommendation with the little info available. What the OP should be asking is what is her plan when she stops working, Age along does not determine the optimal asset allocation. I am the same age as the OP's mother in law but have 88% allocation to equities. The primary determining factors are expenses and the ratio between expenses and liquid assets. If she has little in the way of liquid assets, then yes, she should be putting her SS pension into HYSA or other cash-like assets.

ETP_Queen

You’re actually in a good spot: big HYSA, lot of Vanguard, no obvious disasters. Main issue is you bought US large-cap like 5 different ways + a chunky NVDA/AMD tilt. I’d separate things: – “House in a few years” → keep boring (cash/CDs/short-term bonds). – “Retirement” → 1–2 broad funds (target date **or** VTSAX/VOO + some intl), not 6 overlapping ones. – Stocks like NVDA/AMD as a small side bet if you enjoy it. You don’t need a genius strategy here, just simplify and match each bucket to its time horizon.

FrostyGhosttt

Do a HYSA too high yield savings account and some CDs are good my gpa invest in them too has done really really well for himself with investments and diversity so they aren’t all bad

stabbedintheback900x

I would max out your 401(k) and HSA contribution and invest in low cost funds (such is VOO and or similar instruments) given your age. I would also increase the amount in your HYSA. Stuff happens like an auto accident and you may need to the get a new car (that can drain your HYSA fast). If you have any debt or carry credit card balances month to month, I would not do that and pay those things off. But overall you are doing ok.

supercuiller

"I'm tempted to put as much of my salary into the policy as possible and borrow to invest and pay bills!" This is what I'm trying to decide for as well. From your comment and others it sounds like WLI could be used as an emergency fund (after maxing out all other tax-advantaged options) instead of keeping cash on HYSA which yields half of that pre-tax.

fbour

HYSA have better n returns that CDs... :)

letzseeifthisworks

Do what you have to do now. Next time, consider building an emergency fund in a HYSA account so that you give yourself some buffer before having to dip into your investments.

UnitedElderberry

Yeah I do agree about the compositions. I wasn’t initially going for a HYSA. Just a place to park funds for a while and let them compound. Idea initially was to capitalize on mag7 growth while the gettings good.

UnitedElderberry

I definitely see your point with assuming way too much risk if I’m more or less trying to get the feel of a HYSA. May pivot to just buying VUG and let it ride.

Heyhayheigh

Bwahaha cd ladder. For what!? Did you not read OP, she doesn’t spend… cd ladder is for spending. Predictable income for spending. HYSA would be suitable for what you describe, which is the same as do nothing. My clients are great! They invest more for longer. Sell when they have something urgent to pay for (which I encourage them to do a lot of). That is called building wealth and enjoying the fruits of it. May god have mercy on your soul.

Heyhayheigh

And you know she doesn’t already have this emergency fund how? You’ve obviously never talked to someone who is 77 and still working. So your answer is invest nothing. Got it. Perhaps you should go to the r/notinvesting sub?? I’m making assumptions about her, sure, but they are from years of talking to these folks. The OP is not very knowledgeable. He speaks as if Roth is inherently a risky account type. This is all a mental exercise, if the actual 77 year old doesn’t seek help it doesn’t matter. Read what OP says. She does not spend. Money not spent should be invested. I don’t care if you’re 85. Set your beneficiaries, move on with your day. If she needs assisted living, and needs state assistance, they will make her burn through the accounts, whether they are VOO or HYSA. You don’t know what you’re talking about. Best of luck to you all.

StretcherEctum

Waaaay too much in your HYSA.

D74248

Again, she is 77. Average life expectancy is another 11 years, during which she is likely to have increasing medical costs and need some form of assisted living. She needs a financial plan focused on that. The last thing that she needs is to be invested during a deep bear market. >Or what suggestions are you making? First, I would have enough in a HYSA or money market to cover 12 months of in-home assistance. Then, if there are additional funds, ladder CDs to 2029 then TIPs (the actual bonds or defined maturity ETFs) 2030 to 2035.

DistributionBroad173

SPAXX is Fidelity's HYSA Money Market account. I believe it is actually the Settlement Account and Fidelity just makes it so your money earns more than 1% like many other brokers do to you. Vanguard, Fidelity, or Schwab are all good brokerages or account holders. I use Vanguard and our Settlement Account is VMFXX and it pays 3.9% yield at this time, which is better than Schwab or Fidelity by a little.

DistributionBroad173

Just making sure. She is collecting Social Security and just puts it in the bank. Her SS payment is no longer increasing in amount paid, that stopped at age 70. I would think at age 77, it would be better to take the tax deduction of doing a traditional IRA and putting that cash in her pocket now. At age 77, there are not many years left to grow. This might be a case of, the bird in the hand is worth more than two in the bush. At age 77, I do not think there is a right or wrong choice because the longevity timeframe is pretty short at this time. IRA, Roth IRA, HYSA, or a stock like O. Depending on how much money is in the 7 year old SS account, she could invest it in a dividend paying stock like O. She could have $65,000 in her SS savings account. $65,000 invested in O would pay her monthly income of around $270. 1000 shares at a $0.27 monthly interest/dividend payment.

LeftTesticleOfGreatn

OP is planning to buy a house within just a few years, he needs that down-payment *safe and secure* which means bonds, CD or HYSA. Throwing it into he market means risking a 30-50% loss at any time and thus not being able to buy

Illustrious-Duck-822

I don’t know your monthly expenses, but 170k in your HYSA seems like a waste. I keep 20k in mine personally. This ain’t advice just my opinion

taplar

An added note being that an investment like SGOV, which invests in federal bonds, is exempt from state and local taxation. So if you reside in a state with high capital gains tax, this is also an important factor with comparing it to something like a HYSA which gives you pure income.

taplar

What's the rate of return on your HYSA?

Stock-Ad-4796

You can drop the HYSA to a 4 to 6 month buffer and put the extra into a taxable account so more of your money grows. Keep maxing the HSA and leave the investments alone.

SteevieJanowski

If she’s still working at 77, either she really loves her job and does it for reasons other than money, or she can’t afford to pay for regular living expenses without it. If it’s the former, then a Roth is fine. She can be as conservative or as aggressive as she wants within it. If it’s the latter, she needs a HYSA. 

PourLarryaCrown

50 years ago was the time for her to be all in in the market, not now. Get her setup with a nice, safe HYSA at this point in her life.

IHadTacosYesterday

Question for Fidelity and Schwab users.... When you sell out of a position and it goes to cash, isn't that cash in some sort of HYSA? Like I thought if you have Fidelity and you sell out of a position, the cash automatically goes into SPAXX or whatever it is. I'm assuming that Schwab would be the same way. Yet, I've sold out of some positions in mid October, and the cash amount is exactly the same. Shouldn't I have earned some interest already? I know it'd be a small amount of interest, but my cash amounts are literally the same. At Fidelity, I have some cash in an IRA BDA (basically it's an IRA that inherited from my Mom who passed). At Schwab, I have some cash in a Roth. I'm not sure if those accounts are treated differently, and you need to manually put the money into some sort of money market account, they don't automatically do it for you? I just want to kind of have my cash just float right now. I don't want to put it into a specific hedge, nor do I want to invest it any anything. I just want my cash to be dry powder that I can use if need be, but otherwise I'm just hedging my risk on positions for a little bit. But if I'm not going to earn any interest at all, that's bullshit. Even the measly 3 percent yield that they're paying now (or whatever it is), would be better than nothing (NOTE: I'm retiring at the end of this year, so I don't mind having a bunch of cash temporarily. I also think this market is overdue for a 15 percent drop, so I'm anticipating that in the very near future. I'd be absolutely shocked if we get to June 2026 without a 15% crash in the SPY between now and then. At the same time, I'm not trying to actively short the market. Just want a little bit of interest on the side)

supercuiller

You misunderstood let me recap: - HYSA: ~3.5% interest today and you pay taxes annually. So if you have a tax rate of 40% you effectively get 2.1% net - WLI: 3.5% over 30 years, tax deferred, meaning you dont pay taxes on interests every year. You access the cash value through loans against cash value. Loans are not taxable, their interest may be covered by interests earned on cash value, and you get them any time. Inflation is not relevant to the conversation.

supercuiller

No you pay taxes on the HYSA returns, annually.

__redruM

Doesn’t a HYSA pay more than 3.5% currently with 0 risk?

supercuiller

SkylineDrop got my point correctly. This returns level should be compared to lower risk assets, even HYSA in my opinion given the cash value is accessible anytime without condition, tax implications, and is not volatile. In my original post I hypothesized you'd have a lot invested in stocks already, suggesting you're not willing to add more to stocks (let me edit and clarify).

Mantissquirrle

For RMDs, safety is key. A bond-heavy portfolio (70-80%) with some equities is a solid foundation. Consider breaking this into: 1. Cash buffer: 1-2 years of distribution needs in money markets/HYSA/short-term CDs 2. Core portfolio: Bond ladder (individual bonds or ETFs like BND, SCHZ) plus quality dividend stocks or ETFs (VYM, SCHD) 3. Inflation protection: Small TIPS allocation and possibly I-bonds (annual limit applies) Since they have expenses covered by pensions/SS, this money can be more preservation-focused. Tax considerations are crucial - if they don't need all RMDs for expenses, consider Roth conversions or QCDs to charities to manage tax impact.

CrumbBCrumb

100% this. Also, with that kind of money I would probably take advice from a number of places. I might meet with multiple financial advisors and see what they all say. Also, how old are you and what is the goal of investing it. Do you want some short term gains to put as a down payment for a house or something else? Are you only thinking long term for retirement and how long away is that? I'd probably put a certain amount in a HYSA, Bond, or CD. Boring but consistent. And a certain amount in a Roth IRA. And a certain amount in an ETF and a small amount in individual stocks. The percentages would be discussed with a financial advisor because my percentages would be different than yours based on my age and desired outcomes

Bobba-Luna

I already pulled out of the market and am making pretty good returns with a HYSA. Interest rates will likely be cut even more, though.

XoriaChoke

For something only 3 years out, keep it simple: HYSA + CDs. No stock market. Your main “investment” right now is getting your income up and saving every month. That’s what will get you your own place. I keep my short-term savings in a HYSA I picked after checking comparisons on BankTruth so it earns something while I wait.

Sweetycherryx

Nothing here looks off. You’ve got retirement covered, you’ve got an emergency fund, and your HSA is invested. If you want a “next step,” open a taxable brokerage and start putting a bit in every month. That gives you freedom for stuff before age 59½.Your HYSA size looks about right too maybe keep checking the APY once in a while. I only switched banks after looking at BankTruth and realizing I was leaving money on the table.

moyoyoyo1

Hi everyone - looking for some grounded advice on how to allocate a $40K lump sum. I recently made an investment in real estate and will have about $40,000 to distribute into other areas. My initial thought was to split it three ways: 1. High-yield savings 2. Low-cost index funds 3. Bitcoin / ETH For context: 1. I already have at least one full year of living expenses saved in a HYSA (I live in NYC). 2. Starting in January, I also plan to save $1,500/month toward emergency funds, travel, and general sinking funds. 3. I bought Bitcoin back when it was around $10K and definitely regret not putting more in at that time. 4. With the recent crypto dip, part of me is tempted to put a large portion or even all of the $40K into BTC and ETH. Some additional honesty for full context: I’ve taken risks in the past. i.e. I put about $10K into Sundial and couldn’t exit when I wanted due to my account being temporarily blocked. I also bought and turned around a restaurant, but ultimately sold it at a loss after realizing the business wasn’t for me. So I’m not risk averse but I am trying to be more intentional now and take smarter and less chaotic risks 😅 My goal isn’t to get rich overnight. I’m focused on: 1. Gradually building wealth 2. Creating long term stability 3. Making sure I (and eventually my family) can live a comfortable life About me (If it helps): 1. Female, late 20s 2. Not married, no kids 3. Moderate risk tolerance (a little FOMO with crypto, but trying to mature) 4. Salary: $127K/yr 5. 401k total: $65K My questions: 1. Is it reckless to heavily overweight crypto right now? My plan is to just park it there? 2. Does a 3 way split between index funds, crypto, and HYSA make sense given my situation? 3. Are there any allocations you’d recommend instead for someone in this phase of life? I’d appreciate any insight. Thank you.

AverageAngling

Don’t invest the money if you’ll need it in 12-18 months which you will if you want to move out in 2027. Better off putting it in a HYSA or T bills The market is too volatile and while you could double your money by ‘27, you could also cut it in half. Investing is an important tool but needs to be done only after you have 6+ months of living expenses set aside AND know you won’t need the money/have to sell low and liquidate if things get bad.

pink_ego_box

Love NU, made me like 5K in interest in their HYSA over the last two years and now I'll make the same amount in two weeks with calls LMAO

Foundation2Give

Amazing factors for a professional your age! Only giving a general viewpoint to your questions without knowing more.  1. Are you actively contributing to the Trad IRA? Typically when getting into the phaseout ranges for Trad IRA funding, backdoor Roth contributions become a regular strategy. Nondeductible IRA contributions usually should be rolled from the Trad IRA to a Roth IRA (earnings then are tax free). Though if you have a blended account there can be a tax consequence to this you should discuss with your tax advisor.  HYSA should be what makes sense for a sh** happens fund based on your personal circumstances. It should be able to cover your largest deductible. General advice from advisors may be around 3-6 months of living expenses. Beyond that, extra savings should be deployed elsewhere. About the rate, I always compare to the 4 week US t-bill rates to see if it’s a good rate. It’s very easy to have t-bills of short terms so I want any other account to at least be at that rate.  2. It seems like you’re already maxing out your annual 401k contribution or may need only a minimal adjustment to reach it. Once retirement is maxed, then the next question I ask is when would you need access to the cash? If putting into the IRA, you typically can’t touch the funds until retirement age unless certain circumstances. Taxable investing may be wanting to speak with your advisor on tax impact of trading and investment income.  3. Personal question. It’s all based on your living and circumstances. What do you find most comfortable for safety net? Keep in mind emergency funds should be very liquid, i.e. access to the cash either same day or within a few days at most. If something comes up that you need to pay for, you shouldn’t be waiting a week to get the funds transferred to where they need to be.  4. You should be maxing your HSA annually based on your income. Also check if your plan administrator allows for investing unused funds. There’re many advantages to these accounts so make sure you educate yourself on their use and tax advantages. Also save receipts! You can reimburse yourself in the future.  5. Blind spots are best discussed with your advisors. Your CPA can likely provide a lot of insight. They’ll also be able to track details year to year and highlight strategies that may be applicable with your changing circumstances over time. 

Dink-Floyd

Depends on your age. If you’re in your early 30s, then you’re doing a fantastic job. Assuming the HYSA is an emergency fund, you should keep that as-is. 401K is healthy and on-track. HSA is a bit low, the max yearly is over $3600 so you should be maxing that out more. Your IRA looks fine too. Unless you’re trying to FIRE, I would say stay the course. Could you invest more while cutting out all none essential stuff, sure…but there’s no point in accumulating tons of wealth for a future you may never see. Find a good balance between enjoying life and planning for the future and stick to it.

2016KiaRio

The fact that you even remotely believe an LLM's trading forecast, and then double down on it with a gambler's fallacy, is concerning as fuck. For your own good, take the money out of your little black and red app and put it into a HYSA. It's obvious that you don't understand what the LLM is outputting to you. The whole "betting" part of these communities is for low probability, high reward trading. Not throwing money at the random shit that ChatGPT spews out at you that you do not understand. Because if you did, you would know to not trust it.

turningsteel

Yeah that’s where I’m at, I’ve slowed down buying new shares and increased contributing to a HYSA for now. (Planning for a house in the next 2 years).

Sad_Car3155

Hello, 24M entering into a masters program that starts in january. because of how rigorous the program is, I won't be working for the next 2ish years while I study. I still live with my parents so i dont pay rent, food and transport is all covered by family. I do have a long term partner and do buy them gifts, but I've worked a decent amount at my job I had that I have enough saved up for "gift giving" or dates. My question is, should I take any excess scholarship money/student funds (they are reimbursed to me directly rather than disappearing) and invest them into something following bogle like vti/vt/vxus, or should I keep them in SGOV/HYSA as an emergency fund even though my expenses are a little less than 600/month. For reference: - this rainy day fund would be about 30k usd at the start of my program - current investments: 24k roth (maxed out this year), 6k 401k, 7k in my checking

Mean-Wafer6140

Why not a HYSA?

ImprovementMain7109

You’re overfocusing on “dividends” and underestimating how nasty some of these names are. AGNC in particular is a highly leveraged mortgage REIT that’s been a long term wealth destroyer once you include all the dilutions and price declines. I used to sit in meetings where people pitched these for “income” and the total return chart over 10+ years basically killed the story every time. If you want moderate risk, that’s not it. At 28, the big levers are your overall stock/bond split and savings rate, not slicing into 6+ buckets. Something like “80–90% broad stock index, 10–20% bonds” is already a complete, moderate-risk portfolio. You’re basically at ~95% equities if you treat REITs as stocks, so your risk is already high regardless of the word “dividend.” VNQ/NNN are fine in small size, but now you’ve got 20%+ in REITs if you count AGNC, which is a big sector bet. If it were me: drop AGNC entirely or cap it at a tiny “fun money” slice, shrink REITs to maybe 5–10% max, and keep the rest in one or two broad cheap funds (S&P 500 or total market, plus some international if you want). That gives you tech exposure automatically without betting the farm on it. And separate goal: any money you need for a house in the next ~5 years should probably not be in this portfolio at all, more like HYSA / short term bonds.

No-Improvement3164

I have been permanently banned from their chat. I said HYSA outperformed it. They didn’t like that. 😂

Known-Historian7277

*HYSA

Small-Arachnid-1959

I max out my ROTH and match my companies 401k, have an emergency fund saved, as well as a short term goals HYSA. Any extra money I put into a regular brokerage account investing in ETFs to try and build up a nice chunk of cash that isn’t locked into retirement.

Federal-Log176

Google “what online brokers offer high yield savings and equities” Fidelity, Schwab …Fidelity has money market funds that effectively act as a HYSA, or do what I do and put it in a munis ETF that’s tax friendly

CascadianSP

0.50%. - Investment Wine 0.75% - Private credit 1.00%. - Physical gold 1.75%. - Physical silver 3.00%. - HYSA 5.00%. - Private equity 8.00%. - 30 or 90 day treasuries 15.00% - International holdings 15.00%.- Growth focused ETF (Domestic) 50.00% - Broad Index EFT

510pacifist

I had been eyeing it around the same time for my Fidelity IRA (already had it in my Schwab ROTH from the past though). Wanted to put a good amount of money into it but needed to consult with wife first. Such talks kept getting pushed back, never being a priority. Finally, the stock climbed up to the $250s and I just decided to move forward with it. I had researched it enough and felt confident that it was the right move for us (just had cash sitting doing little in our HYSA). Eventually told my wife (around the $270s and she thanked me for doing the DD and taking action). We have 2 kids under 4 and there’s never really a good time anymore, such are the times. If things ever went south too, I have some other assets that could’ve been liquidated to recoup losses.  Fortunately, it’s nice paper gains atm. But yeah, sometimes you just have to trust your gut (and research) and move forward with your plans. Many times, inaction is the real L with the stock market. Congrats to you and your friend for getting in a lot earlier!

FRNAP13

$2.5M and 8 accounts with 2 brokers. 1 account is my 401K with Fidelity, 7 others with my wealth management firm Morgan Stanley: Roth IRA, Cash/T-Bill/HYSA, Direct Indexing S&P500, Direct Indexing Russell 1000 Growth, Private Equity, Portfolio Agressive, Portfolio Core.

chuckroastvalue

i have a friend who's been very successful in his business that just has $3m sitting in a savings account that isn't even HYSA and refuses to do anything with it. kills me that he's down $240k this year from dollar weakness.

polychris

Hey, you’re beating a HYSA. Most of us aren’t.

Various_Couple_764

I see two basic mistakes people are making. >Completely ingnoring dividend investments and just investing just in growth. >Focusing only on retirment and investing taxable brokerage account that can help them cover living expenses now rather than later. Dividend play an important part in the overall market. And ignoring basically leaves potential earnings out of your investments. Growth can make you rich really fast but It can vanish just as fast without you doing anything. Dividend income is much more stable an can allow your Roth or 401K add more shares of stock while you are unemployed and the market is down with minimal or no growth. Also with all the focus on retirment many ignore the advantages of taxable brokerage account. Today many only only have money market accounts (that are basically HYSA) in a taxable brokerage. Frequently you see people post they yield of the money market account or HYSA is dropping and they are looking for a higher yield. And often the ammount of money list is well over the 6 month emergency savings recommendation. Most of these I got a higher heat at X brokerage or invest in SGOV. funds like JAAA 6%yield and CLOZ 8% yield are both very low risk funds that easily earn more than HYSA and money market funds. And there are some really good dividend funds with yield in the 9% range. In my opinion once you reach the 6 month emergency fund level you should invest for divines to slowly convert your emergency reserve to a dividend passive income fund. Keep the emergency reserve but add enough passive income from bonds and dividend fund to generate enough cash for your yearly roth deposit or use the passive income for you monthly bills. Passive income from bonds or dividends never runs out it is continuous income. The 6 month emergency fund only last 6 months.

alwayslookingout

A HYSA gets you more than 2% a year. We’re talking 2% a month. It’s not even remotely comparable.

AllCapNoBrake

SOOOOOOOO, none of the KOL's in the buttcoin space are talking about how, at least this past cycle, BTC did NOT protect your purchasing power or act as a store of value. THEY ARE however moving the goal post from "Nobody who has held for 4 years has lost money" to "You have to have a 10 year horizon" (CLASSIC!). The poor (literally) people that became bag holders at the top of the 2021 cycle bought in at $69k USD. Adjusted for inflation, that is now $83k in today's dollars or $3k gains....in 4 years. Talk about opportunity costs. They could have just got a HYSA and avoided the volatility and taxes. *sToRe oF VaLuE!* https://preview.redd.it/bm8hyczbj13g1.jpeg?width=32&format=pjpg&auto=webp&s=a0c01659d1867adb3dfa79dee83c8263f56e6c8c

Nuclear_N

I am under the belief that you have 5 years of expenses in a safer investment. Be that a HYSA, or a near term target fund. The rest all in on the 500 index funds.

Sweetycherryx

Honestly man, you’re crushing it. Maxed retirement accounts, no credit card debt, a full emergency fund, and a crazy strong savings rate at 21? Most people dream of being in your position.What you're feeling is just the “I never had money growing up so I worry about losing it” brain. Totally normal. You're not behind at all you're way ahead of the curve.And if you want to make sure your HYSA is earning well, you can also check BankTruth we track the best and most consistent rates. I’m part of the team there.