HYSA

Nice_Scratch5525

Dude you're sitting on a fat $115k cash pile at 26 after just 4 years working? That's baller status already. With $100k in HYSA you're earning decent interest but tbh that's like 40% of your net worth in cash heavy af when you've got stocks, 401k, crypto, AND property equity. Emergency fund? 3-6 months expenses is the reddit gospel (figure your burn rate, Taguig solo probs 30-50k PHP/mo so $6-10k USD max). You're way overkill there which is smart for RE (vacancies/repairs eat cash quick). But past that? Deploy some into index funds or more property deals cash is trash long-term with inflation. I'd trim to 6 months + $20-30k opportunity fund, invest the rest. What's your monthly spend tho? Calc that first.

deadhead9mmsig

You got it right. I'm 52 now and just retired, doing what you explained. I would take a percentage, say ten percent and throw it on something you like, researched, and don't mind if it's a loser. For my funny money, I threw it in United rentals, Google, waste management. I still consider myself a rookie investor lol. But it worked for me and I don't have a boss or alarm clock to wake up to. Mortgage paid off, three 2025 trucks paid off cash. Emergency account. The emergency is in HYSA. Good luck

hellohi3

I wonder is Goldman Sachs will do the same with their Marcus HYSA.

i-love-freesias

I would buy I-bonds for two years (the max per year is $10,000) on treasurydirect.gov.  They are tied to inflation, you can’t touch them for one year, then you can redeem them and just lose 3 months interest until they are 5 years old, then there’s no penalty. You could use the difference to buy t-notes or t-bills, and/or HYSA.

0raegano

Hello! I am new to investing and am looking for advice on growing my brokerage account. Context: * I just turned 26 * I have $45,000 in my 401k, and I contribute roughly $14,000 per year to this (this is including my employer match) * I started a Roth IRA last year and maxed it out. I also have 2026 maxed out already. I would like to build on my brokerage account for more accessible funds. I have $90,000 in a HYSA earning 4% APY. This is my down payment fund (70k for down payment and 20k for an emergency fund) I use Fidelity and my brokerage account has $10k in it. This is what I currently have: * FXAIX - $4,600 * FZROX - $2,500 * NVDA - $1,300 * IDMO - $1,000 * FZILX - $700 Like I said, I am new to investing but know some basics. I really don't want to have to monitor this daily, so I'm looking for more of a set-and-forget. Thank you :)

1burritoPOprn-hunger

Fidelity for retirement accounts, Wealthfront for taxable and HYSA, Robinhood for a small 5% chunk of my portfolio so I can lose money and remind myself why I buy index funds.

zonk84

Meh, setting aside *managed* options -- The key is that your brokerage platform should be a member in good standing of SIPC and FINRA. That guarantee nothing except reporting compliance of course. Personally, I have two different platforms: Fidelity and Wealthfront. The former because they service my 401k plan - so all things considered, I chose to use them for "taxable individual investment account". I like the platform generally and everybody is no fee nowadays on pure buys. I have Wealthfront because they're my HYSA - I also have a taxable robo-ETF and more recently, I use them for my Roth IRA. I like it a lot. Regardless though, it's more "type of account". WF recently started handling fractionals, FWIW. I see zero reason to have more than 2 -- and I think 1 (assuming SIPC/FINRA) is fine. I only have the two because I don't have a choice with my 401k and I just liked the robo options with WF more than Fidelity

carbsaredangerous

Investing is for long term. Investing short-term is gambling, you can just go to a nearby casino instead, if that is the case. Put this money in a CD and/or HYSA.

IlVeroStronzo

Can you recommend any good HYSA?

RealPennyMuncher

If you’re trying to save for a house use a HYSA me and my wife opened one up and are contributing similar amount. 3-4% and NO risk which is key for your house saving.

D74248

The stock market can -- and has -- given negative returns over long periods. For example the "lost decade" 2000 to 2010. 3 years? HYSA. CDs. US Treasuries.

FortyYearOldVirgin

Step 0 is to accept you cannot have it both ways. If you want a safe return that’s guaranteed, a high yield savings account or treasury bill is the way (and even that HYSA isn’t absolute - the APY can drop at any time). If you’re willing to take risk, you can invest in an SP500 index fund or a Total Stock Market fund (VOO or VTI). That _can_ mean loss of capital - you can wind up with less than you put in and if you’re only doing it for three years, there’s a greater than zero chance that will happen.

cashRb

If you want to guarantee that you have a good chunk of money in 3 years your best bet is a high yield savings account. No one knows what the state of the market will look like in 3 years. A rule of thumb is that if you're going to absolutely need the money in 3-5 years then a HYSA is your best bet.

yes999vt

Industry standard is that you keep your savings for a down payment on a home in a HYSA especially if the time horizon for the money is 3 year. If you want to take the risk then you can invest in a S&P 500 ETF. Being invested in a single stock is very high risk for your money even if it’s in a Mega Cap tech stock. You never know what will happen.

GamerHaste

Hi everyone. I have a stock vest coming up which will be around $40k before taxes in MA. I'm 25 and single with no dependents and pay rent. I have a car with a 6.1% interest loan on it that has $20k left on it. I'm wondering if I should immediately take the proceeds from the stock vest and pay off the car? Is 6.1% APY high enough where it's worth it? I pay around $550 per month on it. I have a 6 month oh shit fund already in a HYSA and around $50k in the market (can be seen as a house down payment fund also) in SPY, URA, and gold. I'm really debating on these three options: 1. Sell all shares, pay off car loan, put the rest in SPY/URA/Gold. 2. Sell all shares, put all into SPY/URA/Gold 3. Hold company stock and hope it keeps going up (been doing good lately... up 5% on the week) Does anyone have any input? Looking for opinions I was leaning towards paying my car loan off and investing the rest and then setting up a $550 per month auto buy on SPY but I don't know if it's more worth to just put it all into the market. I'm not stressed about the loan so "peace of mind" doesn't really play a part (I have more in student (80k at 5.1%) loans already so it's not getting rid of debt for me)

Tayler_Ayers

Index and relax. This shit too long. Emergency fund in an HYSA. Have a good one

Odd_Helicopter_7545

Hard to say. 40k emergency fund in HYSA. About 10-20% in cash in my brokerage so I to take advantage of opportunities as they arise. If I find a stock I want to buy, I sell shares elsewhere to ensure I maintain cash on hand for any corrections.

chindef

You’re doing everything you need to do.  You can move your HYSA into a taxable brokerage account and buy a money market like SGOV. Slightly higher returns by 0.5% to 1% and depending on which state you live, likely does not have state income tax on it. Overall minor, but worth doing since you’ll probably always have an emergency fund just sitting there. Might as well increase returns.  Also, does your employer offer an HSA? If so, be sure to max that out and invest however much of it you can. Mine has quickly grown to $15k, plus I’ve gotten some medical things done that I otherwise wouldn’t have - which is a much better way to live. That $$ is designated for medical, so there’s no reason not to take advantage of it.  When you say IRA, are you contributing to a traditional IRA then backdooring it to Roth? If not, you should be doing this 

jimmothyhendrix

I wouldn't suggest an IRA for a young person. Cash savings in a HYSA are better.

cheddarben

When fear strikes, *that* is the time to look at your high conviction stocks. When people are gnashing their teeth and in the movie theater after someone screams fire, *that* is the time to be on the prowl. > And what if you need to withdraw money for an emergency during these conditions? For me, part of the magic of being able to take advantage of downturns is getting your shit in order when things are good. Make it easier to make moves. Good, solid, personal finance. For a young guy like you, you have time on your side. If you are DCAing in -- keep on keeping on. Consider upping your contributions a percent or two or whatever you can afford. There will be drops. You will see drops. It is very, very, very likely that you will see a lost decade in your lifetime. That is a super power for you. As to needing money for emergencies, yes, things always will come up. Anybody can get ruined any given Tuesday. You should have some liquid runway in the form of a HYSA or short term or whatever before you are looking at liquidating your regular stock investments. If you are investing in stocks before a 401k or ira or emergency fund or if you are running a balance on credit cards, you should reevaluate your personal finance basics. Re: timing the market. Rule says you will lose. I don't care what you do and I do occasionally time the market. Im an idiot, I guess. A lucky idiot maybe. Know what you are risking and live with the gambles you make. Otherwise, VTI and chill.

Deionize_Deionize

Bro you are at 75. Cash out and get an annuity, with some in hysa, Put an amount in the stock market you are comfortable with, like lets say you have 1 million now: 300k - > annuity pays around **$2,300 to $2,500+ per month** forever. Or maybe half it for a a good base line livable income. 500k -> treasury bonds/ HYSA/ liquid cash 50k. 200k -> stock market (this crashes to 100k, you are still good). 75 is too old to be worrying. Enjoy your next 20-30 years peacefully and forget about the stock market!

stupidber

HYSA up 0.01% ytd r/smolppinvesting

neo-7

Wealthfront $WLTH. I use it as my primary checking account, even tho it’s not actually a checking account. I got 30 bucks in interest last month. Used to get nothing using Chase. I don’t even need a HYSA. It’s an awesome product but I’m not familiar with their other features. They only recently started advertising too

wspnut

About a quarter of my safety net in a HYSA. The rest goes in the market.

lam-da-man

I have a part time job yeah that makes sense I think utilizing the HYSA would be a good option right now for stuff I'll need sooner I'm not gonna be touching the stuff I've already invested

SirGlass

There is nothing safe that will give you a meaningful return above a HYSA.

polychris

Get a HYSA

boringreddituserid

1. Have an emergency fund in a MM or HYSA 2. Are you buying individual stocks or index fund/ETF? The approach is different for each one. - Index fund: at your age think in terms of number of shares, not account value. If for example, we have a lost decade, similar to dot com crash, you will be buying shares for less money for 10 years and will only be 36yo. When the market recovers, and it eventually will, you will be better off than if the market had kept going up and you were buy expensive shares. - Individual stocks: you would need to evaluate each stock/company to determine if it is worth holding, selling (maybe have stop loss orders), or buying more shares. Or maybe other companies are more attractive now. But if you are buying individual stocks you should already know this, if not stick with index funds.

SirGlass

Well a CD or like a 1 year treasury would be the safest with no chance of losses Stocks probably would not meet your requirement as they could lose more then $1000 If you are ok with a little risk and maybe a 20% loss you could do something like A) corporate bond fund however I would keep it on the short term corporate bonds. However corporate bonds really do not yield much more then treasuries so IMHO the risk/reward B) just some split between some bond fund and broad index fund. Like 50% broad equities index fund and 50% short term bond fund Honestly though , for 1 year if you want to get higher returns then just saving it in a HYSA I would just buy a 1 year bond or some 9 month bond

Happy_Discussion_536

SOFI: We'll give you a great return on your HYSA. We bring banking back to the people.   ^^^^We ^^^^may ^^^^or ^^^^may ^^^^not ^^^^buy ^^^^the ^^^^shittiest ^^^^subprime ^^^^auto ^^^^loans ^^^^in ^^^^existence ^^^^with ^^^^it. ^^^^FDIC ^^^^only ^^^^covers ^^^^$250k, ^^^^beyond ^^^^that ^^^^you ^^^^are ^^^^probably ^^^^fucked.

Happy_Discussion_536

SOFI: We'll give you a decent return on your HYSA. We bring banking back to the people.   ^^^^(We may or may not buy the shittiest subprime auto loans in existence with it. FDIC only covers $250k, beyond that you are probably fucked.)

made_in_bklyn_

Lending Club is offering 4% for it's HYSA (called level up). Put your money there so it's at least beating inflation while you figure things out (and also don't have it locked up in a CD). Personally, I would open an account with Fidelity and invest the money in VTI & VXUS or you can simplify your life and invest in VT. If you don't have a Roth IRA, open one now and dump $7500 in (the max contribution this year) and let that settle. Maxing out a Roth is a good idea no matter what you ultimately decide. With an individual brokerage account, you can take the money out at any time (don't have to wait until retirement). This is where my house find is and it's doing well. If the market tanks, which is always a possibility, I won't buy bc I'm happy/comfortable where I am. If you're set on buying a home in 3 years, then just keep that money in the HYSA and don't invest in the stock market. I happen to be up 17% since I started but it's always a risk.

WeirdlyHugeAvocado

If you plan on putting all of it towards the house, put it in a HYSA or CD. If you plan on putting half towards it and would put the rest towards retirement, then do the same with half, then put the other half in an S&P 500 tracking ETF with very low fees. 3 years seems like a long time, but it's a very short horizon for investing. If the market has a major downturn because of political or geopolitical turmoil, there's a recession, or the AI bubble pops, there's very little chance that the market crashes and recovers in those 3 years. But if it's in a CD or HYSA, the housing market would probably crash too, rates would decrease, and your money would be safe and sound to make a big home purchase. 

yellowLantern

Hear a lot of recommendations for HYSA or CDs, but do you live in a state with state tax? If so a treasury etf like SGOV or buying treasuries themselves will give you a good interest rate while avoiding state taxes.

sunbeatsfog

HYSA and don’t do anything else.

Apollo506

This. I realized that home prices are a goalpost that moves faster than my savings/HYSA could keep up with, so I threw my time horizon out the window and invested the house fund.

DaemonTargaryen2024

Agreed on HYSA. But 3 years for any stock fund is is too short a time horizon

DaemonTargaryen2024

> in the next 3 years or so Cash. HYSA, money market fund, maybe CD but beware of locked terms and surrender fees

PuffSakura

There’s no perfect cash percentage, it’s more about purpose. If part of that cash is your opportunity fund and you’re genuinely ready to deploy it, that’s different from money just sitting there out of habit. Given your assets, holding extra liquidity isn’t crazy. I’d mostly focus on making sure the HYSA yield stays competitive. I usually check that with BankTruth.

Skydance98

I deeply regret all those years of having cash in HYSA rather than index funds. I missed out on big gains, thinking I didn’t have enough money to start investing, or that it was too risky. 

MrDayblaze

Shoulda tax loss harvested in 2025 , realized, any positions you lost faith in or dont want to wait multiple quaters or years to make back current unrealized losses... this might help This is for new guys just starting out at 16 years old, up to folks my parents age, 72, who have been retired since turning  50 years old, and jerks like myself that chose to retire at 31 and spend his time on his (small, only 6 acres) private island with hound dogs, son, and wife. If you see someone posting/asking for financial help, are confused/lost, or anything else that indicates they could use a guiding light, please copy n past this for them / others to read n benefit from. PLEASE SPREAD THIS MESSAGE: ITS A LOT MORE FUN WATCHING /HELPING PEOPLE INCREASE THEIR WEALTH/PORTFOLIOS/ABILITY TO BE FINANCIALLY INDEPENDENT N RETIRE EARLY THEN GETTING TO THE TOP OF THE MOUNTAIN, LOOKING AROUND, AND REALIZING YOUR ALL ALONE. This will be the best advice you get and best to get him on path to be financially independent.    Set him up with 3 or 4 Charles Schwab accts: 1 taxable brokerage, 1 ROTH IRA, 1 HYSA (currently 3.3% apy) , and free checking acct. Matched these with the FREE ($0 yearly fee) American Express Charles Schwab INVESTOR CARD that automatically deposits 1.5% his monthly spend into his new CS brokerage (do not the advise or tell him to get the platinum unless he can offset the $900 AF with a huge intro bonus, annual retention offers, travels at least 2 to 3 times a year, use all the mini credits on uber, hotel, etc the amex platinum schwab card grants holder to actually make it a smart financial decision : but I will say if it's close for the math to be a wash / slightly beneficial (aka saves him money on stuff/things/trips  that HE WOULD HAVE SPEND NO MATTER WHAT, or gift him the CS platinum for bday/x-mas, then get the platinum as it allows AMEX points to be redeemed for 1.1 cents per point, aka a 125k intro bonus point offer on a CS platinum is worth guaranteed $1375  for just the bonus and then all other points acquired adds up fast in addition to the 100 credits/other benefits. Finally, in the schwab brokerage acct all you need to do is deposit some cash and buy shares of JEPQ. As many as you can, and after buying them turn on the DRIP function (aka click button that enables DRIP on for the JEPQ holdings, DRIP = Automatic reinvestment of monthly dividend JEPQ pays to instantly purchase more shares of itself.) and each month add fresh $ into acct to buy more JEPQ, use the CS INVESTOR CARD's 1.5% that's deposited straight into the brokerage acct (or if went CS platinum route, exchange his AMEX reward points for $0.011 per point, aka 10,000 points = $110... follow this advice for all of 2026 n beyond and your grandchild will be set up to become financially independent / retire when he chooses not letting money make the decisions. If he follows that advise he'll make about 10-25% on investment via dividends and underlying ETF share price adding another 10-20%, yielding 20-45% gains by 2027. If hes interested in higher risk/reward or even adding some risk mitigation (if his research indicates negitive market outlook) to buy some calls on JEPQ if positive outlook, or buy some Puts to have downward protection of shares if he thinks were headed in that direction (word from the wise, 2026 is gonna be a BANGER year for most us companies, specifically NASDAQ / SP500 of which JEPQ is comprised of, so buying puts probably not smart unless you just want a couple Put contracts  with expiration dates 4-12 months in future, to offset main JEPQ shares he holding should market dip (aka if bought 500 shares going long n strong, but 5 Put options with At the money/just outside of the money with expiration dates between 6-12 months.  .. itll lessen risk, but lessen amount of potential gains as they will expire OTM (out of money) and lose all value BUT if WW3 starts and markets get crushed down 15-25% those Puts will not only offset losses from share price going down, but would actually make you money on your move.  If you already know all this stuff but wanna ask about more advanced plays, set ups, and opportunities (example: like how right now there is Major oppertunity in a supercycle of the oil/gas industry/companies that's going to resemble the sector gains realized in 2015 n 2016 (I booked about 300% on the plays back then, and its gonna repeat for those who hone in on specific company shares for super long maybe lifetime long holds but more importantly oppertunity in the derivatives of said companies,) just ask. Or if you wanna know how to deal with essentially just not having to pay taxes on ordinary (non-qualified) dividends legally/strategically, or even little life advise, send it over this way n let's get lots of people benefit to benefit from information/ideas/roadmaps for others to follow / join in on the ability to not have to do things you dont want to do just to pay Bill's Spread this whenever you see someone in need of help / people you want to watch be successful n actually succeed! -Cheers- "Saturn Valley"

carbsaredangerous

90% FSKAX and 10% FTIHX, after taking out the emergency fund and putting that into an HYSA.

bkpilot

That $6k is in a cash sweep account earning HYSA equivalent interest. Mine was running 3.71% on the last statement. It counts as part of the fixed income portion like bonds and the thesis is the dry powder is used to time investments and provide liquidity. People will complain that cash hurts growth… but the idea for IP is a _balanced_ and tax efficient portfolio. To maximize growth just buy VOO or SPY, and deal with the downsides.

bveb33

Investing is a very long term strategy. You shouldn't be investing in the hopes of buying a car this year but to live comfortably later in life. At 18, you should be focused on getting a job and paying your bills on time. Only invest money you don't intend touch in the next five years minimum. That should be small enough so its not a big deal if you mess it up and gives you a chance to learn before your income grows. The rest of your money is fine in a HYSA.

JohnnyBoyJr

Cash flow, my friend. GIS has paid uninterrupted dividends since the 1800's. Thru market panics, multiple pandemics and world wars. General Motors went bankrupt partially because people don't *need* to buy new cars. But people gotta eat. They don't necessarily need to eat organic, but they gotta eat.   Food companies in general are near 52-wk lows. Conagra, Kraft, Kellogg, etc. It's cyclical.    I've had a watch position in GIS since during the early days of Covid and believe my position will outperform the S&P 500 over the next 2-3 years. They'll find their footing. They're not going bankrupt. I could have cash sitting in a HYSA earning 3.5%, or I can have it sitting in GIS earning 5.2% and eventual share price appreciation.  I'm patient.

FialaIsMyDad

I'm not sure it matters quite that much. They either were able to all of that in a high COL area or they weren't. Either way, they have assets. They have multiple streams of income while having a nest egg of over half a mil in the brokerage. OP says they put a portion into a HYSA so I think its safe to assume its a good chunk. OP also said at one point they had about $1mil in this account too.

WhileNotLurking

Never thought about it that way and your framing might be setting you up for some grief later. You are investing long term - who cares if the principal dips below an arbitrary number during that period. It’s like asking to run a marathon, but being explicitly worried about if you are going to feel tired between mile 2 and 3. You know you are going to get tired somewhere, but you will power through it and make it to the end regardless of when and where. But generally, your answer is 3-5 years which is in line with most recommendations you see around short term needs/liquidity. “I’m saving for a house in 12 months, should I invest or use HYSA” type things.

UwU_MilkDrop

It’s a good strategy to look into REITs now, especially since you want to take money out of a HYSA that doesn’t yield much. Still, you’re right about tax efficiency, so you need to know exactly what you’re getting into before changing your strategy.

avabluueberriiiee

There’s no perfect number honestly. Past the emergency fund, it really comes down to psychology and flexibility. If having dry powder helps you sleep and act decisively when opportunities pop up, that has real value. At your income and age, 100k in cash doesn’t feel crazy, especially with an investment property in the mix. I’d just make sure that cash is earning something decent while it waits. I usually check BankTruth to make sure my HYSA is still competitive so reserves aren’t just sitting idle.

Peppertheredfox

Look at bonds, HYSA and your currency. Everyone has to be in the market to realize profit on savings. Bullish or bearish?

asramukaka

So… what I would do is .. 250, 150, 100. 250 - Roth, 150 - ETFs (Brokerage) and 100 - HYSA. HYSA will give you guaranteed 3.5%ish money, which then by year end you can withdraw and put in Roth, so that you can try and max out Roth. Again, that is what I do… Not necessarily it is the right thing.

pricelesspyramid

I would caution against HYSA. Inflation is sitting at 2.7% and set to rise while the fed funds rate is 3.75 and planned cuts announced. The US government is trying to avoid a debt crisis right now, and they've all but announced that they will inflate the debt away by running economy hot (i.e let inflation run wild) and growing faster than the interest rate in their debt. So in other word negative real rates(inflation is higher than the return u get from bonds/hysa so you essentially lost purchasing power). The better play would be scarce assets like precious metals (physical or etfs), real estate, and equities

FialaIsMyDad

> I’m glad to say I stayed the course and only trimmed after massive runs and splits using the money to buy my house, cars, investment properties and drop the rest in a HYSA Someone struggles with reading

_Jetto_

People always meme me but it’s insane cds were at 4-5% and people scoffed at them, I get most people here don’t give a fuck but it’s insane when peope said to just buy into Voo or HYSA/cd people just laughed saying 4% is nothing and they want to actually make money etc etc , just feel the 17-18yr olds are just completely fucked when it comes to investing because of this sub thinking 4-5% is nothing. And to be fair their whole life it’s been 10+% gains. I fucking hope I’m wrong In that the new norm is 10-20%+ gainz

nate800

6 months living costs in a HYSA plus $10k in the credit union; everything else is invested in various index funds.

DesignedIt

TL;DR: The amount to keep on reserve is a bit dependent on if the stock market/crypto/real estate is on a bull or bear run, if there's a mini or large crash, and which stocks/coins are currently dipping and how low. I'll keep almost $0 in cash if there's nothing I want to buy in the next month or two. But if I see something start to dip then I keep my eye on it and save up cash from my paychecks. I'll then either buy the asset I was looking at or will eventually DCA to get rid of the cash if I no longer want to buy the asset at this time. \---- Saving cash, just enough to cover the bills until my next paycheck, usually $2k-$3k if large bills are about to hit, or $200 - $500 if bills for the month have already been paid. Every dollar not being invested is wasting money. The $100k in your HYSA is okay to keep cash around if you want low risk but I want riskier investments for a chance of higher returns than a HYSA. If you invest 100% of everything in mutual funds/stock/crypto then you could always sell, but 99.9999% chance you will never have to because you will earn any cash that you need from your paycheck. You also have a high salary so you can take chances and invest in the S&P 500 or even slightly riskier investments since you have a better chance of getting more profit. If you lose a bit of money then it doesn't matter much because you have a high income to invest more next paycheck and are also young so you can just wait out if the market crashes and wait for the stock/crypto price to return + go even higher. If you lose your job then you can always sell some stock and you'll just be taxed a bit on capital gains. For reserves for buying stock/crypto, usually DCA is the way to go. If you get $1,000 from your paycheck, buy $1,000 that day. Don't wait until the price dips. What happens when you wait for a dip, the price has about a 70% chance of going up during this bull market and only a 30% chance of going down a tiny bit. So, it's more like gambling when it's not in your favor to wait. When crypto just crashed in October, I sold 2% of my assets (index funds taxed as long-term investments) plus another 2% from paychecks put into my crypto account. Then I set limits at different price ranges for each coin, buying a larger amount at each lower level. It ended up buying about 90% from the limit prices and I just had a little left in cash that I used to DCA 10 different stocks -- I bought the stocks when the stocks dipped and bought more from 2 that dipped a bit lower. If the stocks didn't dip then I probably would have set up extra limits for crypto at higher levels and would have started to DCA crypto. I didn't want to keep cash for too long and feel like crypto recovered for now and will wait for it to crash heavier next year.

RevolutionaryMove288

We have $450K in HYSA. Just over a million invested. Need the cash for renovations, college, wedding.

Various_Couple_764

When you HSY reaches 6 months of your work income there is no reason to keep using a HYSA. Anything above 6 moths would earn more if invested. Many use growth index funds. However many also like dividend funds. For example 100K invested in QQQI a tax efficient fund yielding 13% payed Putin monthly installments. So if you don't reinvest the dividends from QQQI you get $1000 for as long as you hold the shares of QQQI. So after 20years of holding QQQI you would still get $1000 a month. A cash emergency fund is nice but if you loose your jobe you would be basically out of cat after about 6 months. Now it takes longer to build up a dividned income stream but once you have it it is unbeatable if you cannot work for any reason. I only learned about dividend when I was 05. I converted excess growth in my taxable account to dividends and I now get 5K a month and retired at age 55. all my expense are covered buy my dividned income from my taxable acount. my 401k was full of growth and is not begin moved into a roth and invested for dividends. When done I will have tax free income for life.

thonda27

Both in financial sector so always unknown. We invest about 50k yrly in taxabale brokerage accounts and roths, so it’s not like we hold all our money in a HYSA. Not to mention we put in a 401k too. We just like the peace of mind that if we both get let go, we have time to look for a job without having the stress of no income. Plus we take about 2-3 big vacations a yr and just replenish from HYSA. Hate to have to pull out money from market when it’s down.

lioneaglegriffin

Emergency fund and lease buyout for car in personal HYSA. 1/3 of brokerage is MMF ETFs for emergency repairs on investment property in the reserve fund.

fallingdowndizzyvr

About $600K. Just enough for emergencies. It's split between HYSA and various money market ETFs.

gnrdmjfan247

I don’t hold cash beyond my immediate checking account. My emergency savings are in an ultra-short term bond fund. Which is comprised of mostly 3-6 months notes and absolutely nothing beyond 2 years. I like this in a bond fund because the underlying “share” of the fund is stable and isn’t susceptible to turnover; it’s mostly buying to maturity. The upside is a tad more juice than HYSA.

Altruistic_Emu_146

Personally I like having 5 to 10% cash on hand for buying opportunities, but the rest I keep invested. You are missing out on great returns if you are too fearful or if you try to time the market. It also depends on your time horizon. If you need it for a house down payment soon, then HYSA makes a lot of sense. Compounding interest does wonders. If you are risk averse, would suggest keeping it in ETFs and mutual funds like VOO (many will say VTI but it offers lower returns than VOO). If you have Fidelity, they have a tool that compares your risk appetite and time frame, and then it will provide you with a recommend allocation.

cjorgensen

You should start by getting your income up. Upskill, educate, get promoted, do whatever it takes to move onto the next level and make more money. Pay off all high interest debt. Next store up a pile of cash. Just park it in a HYSA. Have 3-6 months of expenses. Make sure you are getting your 401k match. Then get a Roth IRA for you, and one for your wife. Max them out for 2025 and 2026. You have to have earned income to contribute, so you have to be making at least $14,000. Invest in VT and be done.

siamonsez

"invested" doesn't just mean stocks and "cash" generally refers to short term government mods or products based on them like CD, HYSA, mmf. Your emergency fund should be all cash, but it doesn't make sense to talk about that as a percentage or even an amount. 100k might be a reasonable ef for someone making 250k, but not for someone making 70k. 50% might be reasonable for someone with little savings, but not for someone with a few hundred thousand in savings. This is why your ef is usually put in terms of months of expenses and not counted as investible savings, that normalizes for income and and savings goals and progress. What you're saving for also changes things, cash isn't great for goals more than like 2-3 years out but equities are risky for goals less than like 10 years out so there's a gap there that's filled with intermediate term bonds. Someone who has little retirement saving because they just started their career and are prioritizing saving for a down payment might be like 80% cash an a couple years later they might be 90% equities based on the same logic because they've spent the down payment and now their main savings goal is retirement. Generalizations are an ok benchmark, but you have to really understand the context and how to apply it to your situation. The bucket method is a decent way of generalizing because it puts it in terms of savings goals and timeline and investments that are appropriate for each, so like spending in the next 1-3 years would be cash, up to 7-10 years would be intermediate bonds and after that would be equities.

Suspicious-Fish7281

Mostly just my emergency fund, which is now 12 months of my expenses. I am older now and likely to experience some amount of ageism in my next job hunt. Combined with my more senior position and better compensation really limiting job prospects; I anticipate a longer than standard job search if I don't just flat out retire. As a younger more flexible person 3 to 6 likely makes sense. I also have a separate bucket for my property and school taxes that refills each month and then gets used annually. I have a separate smaller bucket for home maintenance at 1% of my home's value per year. These could in theory be used in an additional emergency and filled up later in dire need. I recognize that this is likely "too much" cash and not mathematically optimal. At this stage of my life I am willing to give up marginal inefficiencies for greater security and increased optionality. Also this late into the game my "cash" portion is a much smaller percent (<5%) of my total portfolio than it was when I was younger even if the amount there is larger. I do also utilize this "cash" to churn sign up bonuses, so I am getting a better return than the standard HYSA on some of it. Fun little hobby. I use the bond portion (20%) of my portfolio for buying (and selling) opportunities on rare occasions. With the recent bull market this has mostly been selling the stock portion to re-balance towards my desired bond allocation percent. I mostly just set it and forget it.

stealthlysprockets

40k which is in an HYSA. Then another 2,300 in a cash management account in fidelity that I’m building up as a second bucket of cash but with SPAXX as more core position

hovc

the only other investments i have is my ROTH IRA and 401k. Rest is just cash and HYSA. I was thinking of buying a house, but unsure of location has now got me thinking of putting money in the stock market to grow.

Kindly_Acanthaceae26

\~350k in CDs, HYSA, cash cash, etc.

bank_truth

I think you're kinda in the middle with this with that timeline. It's not quite long enough to go full risk, but not so short that you need to play it safe either. For individual stocks like RKLB, you don't want your down payment dropping 30% right when you're ready to buy. Maybe diversify that. Put some in VTI and or VOO, and 40 to 50% in a HYSA. Over 5 to 7 years, there's about a 10 to 15% chance the market is down when you actually need the money. With a house purchase, that timing matters. HYSAs are still paying decent returns. When you factor in the tax hit on short term gains and volatility, they look pretty reasonable for part of your savings. We built a comparison tool on our site (BankTruth) so you can check updated rates without hunting around. Rates can always rise or fall depending on the Fed. All in all, just don't put everything in one place when you've got a specific goal and timeline.

soultorndrummer

You’re in a great spot already. I’d keep 6 months of expenses in HYSA, then start a simple, boring DCA plan and stick to it. Something like VTI + VXUS (or just VT) is hard to beat long-term and keeps you from overthinking allocations. If you want to tilt later, do it small. the real win here is consistency and time, not getting fancy.

Heyhayheigh

Set your 401k to sp500, lowest internal cost option. And max that out. Get as much in the ere as early as possible. Open a Fidelity account and setup an auto weekly amount of either QQQM or VOO, doesn’t matter. And then work to increase whatever your weekly is over time. The hard part is: only sell when you have something urgent to pay for. And don’t use HYSA, use SGOV in your Fidelity account. Best of luck!!

ElowenHearts

Given your setup, the 457 feels more like an optional accelerator than a necessity. Pension plus Roth plus SS already puts you in a strong spot. The 457 really shines if you want optional early retirement or income smoothing between 50 and pension age. I wouldn’t stress about maxing it, just contribute enough that it feels useful, not restrictive. Also totally get the peace of mind HYSA approach, I keep a big one too and usually check BankTruth to make sure the rate is still worth it.

rebeccazone

I have $70K emergency fund in HYSA with a 3.90% APY. I have no debt but also am in between jobs and making very little at the moment. I also have $32K in a few ETFs. Can I do any better than this?

momijidream

You’re thinking about all the right things, but I’d be careful about adding complexity just because it sounds smart. VTI already has REIT exposure and you’re already getting EV and AI growth through the total market. Bonds don’t hurt, but they’re more about emotional stability than returns at your age. Before adding new investments, I’d honestly just fix the terrible HYSA situation. BankTruth makes it easy to see which ones are actually paying decent rates.

CasualConstituion619

Best place to put it is in your Roth or a HYSA . If you wanna feel like you’re still investing put it in an ETF. For christs sake you could’ve been living off the percentage yield with that kind of money lmao

crazybutthole

Im sorry but if you are worried about down side protection in pull backs - buy some bonds or treasury fund ETFs. If you are putting $500 a month in QQQI - you get what ? 9 shares. That's $5.10 a month in dividends.(Estimated) Do it for a year and by the 12th month, you get $65 a month in dividends. At that pace the QQQI stock price basically stays steady-ish (we hope) and your shares are worth the same amount as you bought them, more or less. So you did all that to make the dividend (13.7% gains in a year before taxes - less after you pay taxes on it) Meanwhile the underlying (QQQ) - is making 17-18% annual gains. If you don't sell you won't need to pay taxes except the miniscule little 0.5% dividend (estimated) If you want the dividend go for it. But i would always rather have the underlying (QQQ) in this case. I don't see the advantage in picking an underachieving dividend fund just in case the market drops. If you think the market is going to drop - buy bonds or just put your money in a HYSA and then, invest it all at cheaper prices when the market drops. I don't know when that will be. I hope it don't happen soon cause I am buying shares and ETFs as often as I can.

momijikaze

I don’t hate this at all. It’s simple, diversified, and not trying to be too clever. Just know that VTI already includes a lot of those stocks, so you’re kind of doubling down on tech, which is fine if you’re aware of it. The 10 percent auto investing is the real win here. And if you’re using a HYSA alongside this, I’d check BankTruth every now and then to make sure you’re getting a decent rate.

momijikaze

This feels like a classic point where investing starts getting complicated because everything sounds interesting. Nothing wrong with conviction plays, just don’t let them take over the plan. With a kid coming, flexibility matters more than squeezing every last percent. I’d keep HYSA as a real buffer and make sure it’s actually competitive. I usually use BankTruth to see which HYSAs are worth using so the cash isn’t quietly underperforming.

JelloPasta

You could get a marginally higher rate in a CD. I just moved half my HYSA into an 11 month cd. Went from 3.3 to 4.1 %

SerpentRoyalty

Just FYI, MO makes cigarettes, in case you don't want to support that. VZ's share price is lower than it was in 1999. Better off just putting that money in a HYSA. CVX is the king of growth dividend stocks. Clear winner.

b-dotz

Robinhood Gold lets me use my HYSA as a brokerage idk what you mean. I do plan on buying precious metals over time but these are my reoccurring investments I’m trying to grow until I’ve personally invested around 10k.

sunnbeta

>I’m playing with around 2 grand and I invest 10 percent of every check into the account which is a HYSA HYSA is usually referring to a high yield savings account, which stocks are not… (though something like SGOV can function that way)  I’d stick to just VTI/VXUS unless you’re looking for specific exposure not covered there (like precious metals) 

1burritoPOprn-hunger

Yeah… My HYSA is at 3.25% now, and I can barely nudge that needle if I get into bond ladders, even that is mostly just from state tax exemption. IMO, not worth the hassle for a few tenths of a percent.

stupidber

My HYSA is up $10

Peppertheredfox

We have the same perspective. 10 year at idle, 30 year mortgage rate held if not rising. Meanwhile HYSA and CD rates fall. Everyone is the market for any meaningful growth against the devaluation of the currency. It’s though provoking

dbandroid

When do you expect to need the money? If 5 years or less, money market fund or HYSA

Felonius_M0NK

Correct, if the market takes a dump you want time so your etf climbs back up. That’s why my emergency funds are in a HYSA.

kimchimerchant

General advice is that any money that you need within \~5 years should sit outside the market (e.g. HYSA).

SlimPolitician

📠 That's why I have been keeping it in an HYSA. But I might not flip another house for many years, so I'm gonna stash 50-100k in VOO, I think

SlimPolitician

But by no means am I an expert. Not even close to it. But I understand what stocks and mutual funds and ETFs are, and I understand what the S&P 500 is. I'm just trying to get an example of how stashing money in an SGOV would compare to HYSA or VOO, from someone's real life experience

FINRAdude766

Do you think he should own bonds to hedge investment risk Supplement income?  Bonds are not a good investment for this 18 year olds situation. The above risks/investment goal can be satisfied with a money market or HYSA. Bonds can lose principle if you sell early, btw. Having a reasonable portion of his total investments in a money market will provide him with principal protected income while providing him with sufficient liquidity to handle any emergencies without risking principal. 

Pale_Drink4455

Put it in a HYSA paying 3% or so if you are that risk adverse.

DematAccountsIndia

Congrats on the flip—nice work turning that into $500k cash! You're spot on prioritizing passive income, low risk, and principal protection (FDIC/NCUA insurance or government backing). With your need for liquidity until the next real estate deal, anything with market risk like S&P indexes (even passively managed) isn't ideal—volatility could wipe out 20-30%+ in a downturn, no collateral or insurance there. Rates have cooled a bit into early 2026 after the Fed's cuts (fed funds now around 3.5-3.75%), but you can still lock in solid 4-5% yields on fully protected options. That's ~$20-25k/year passive with zero principal risk. Top Principal-Protected Picks Right Now (Jan 2026): High-Yield Savings Accounts (HYSA) or Money Market Accounts Fully liquid, FDIC-insured up to $250k per bank (spread across a few for full $500k coverage—easy with ACH transfers). Current leaders: Up to 5.00% APY (e.g., Varo Bank, AdelFi Credit Union), with strong options at 4.3-4.35% (Newtek, Axos, Peak Bank around 4.2-4.3%). Check DoctorOfCredit or Investopedia daily rankings—these change fast. Perfect for your situation: Instant access for that next deal, no lockup. Short-Term Treasury Bills ~4-4.5% on 4-13 week T-Bills (state tax-exempt bonus). Government-backed (safest possible), buy via TreasuryDirect.gov. Ladder them for rolling liquidity. Super passive. Short-Term CDs Brokered or online CDs at 4-4.5% for 6-12 months (some credit unions pushing higher). FDIC-insured, fixed rate. If you can park part for a bit longer, ladder short ones. Quick Math on $500k: At a realistic 4.5% blended (HYSA/T-Bills mix), that's $22,500/year in passive interest—taxed ordinary, but effortless and protected. You're already ahead stashing in a money market—just shop the top rates (many online banks/credit unions beat big banks by miles). Avoid anything "actively managed" here; stick to plain vanilla insured stuff. r/personalfinance and r/Bogleheads folks in real estate often park flip proceeds exactly this way while hunting deals. You'll earn nicely while waiting, sleep easy on principal. Good luck on the next one!

Minimum_Tomato4324

Hmmm this is helpful to think about. I just don’t want to do it “wrong” or be late to something that was really obvious. I don’t have FOMO, just don’t want to be angry at myself in the future for not investing right. I think for the most part, I will keep most of my eggies in the HYSA since I am trying to save for a house, but I will also do regular contributions to the ETFs. I may dabble in some experimental investing here and there. I appreciate your input! Thank you kind Sir!

WordnFaith

You're overthinking it. VTI and VXUS is already perfect for your age n don't start chasing sector bets like silver mining or trying to time bonds because you think a downturn is coming. Nobody knows what the market will do n at 24 you've got decades, just keep dumping into your current setup. Keep 6 months expenses in the HYSA as your emergency fund, everything else goes to VTI and VXUS n I know it's kinda boring..

Heyhayheigh

At your age you can skip them. If you want emergency fund or large known expenses just use SGOV in a taxable account. It’s easier than hopping banks for HYSA. Use a Fidelity account to setup weekly auto buy of VOO. Sell only when you have an urgent expense to pay for. That is the foundation of everything. Set up auto. Don’t rely on self discipline. Work to increase that auto, don’t panic sell. That’s it. That’s really all anyone “needs to know”. There is a bunch more you will learn along the way. Roth. Budgeting. But it all is after the spend less, invest more, don’t panic sell basics. Best of luck!!

momijidream

You’re already ahead just thinking this way at 18. For a house in 5, 7 years, safety returns. Open a HYSA and let it grow steady, and once you hit your target, then shift focus to your brokerage for the long haul with something diversified like VOO I’d compare HYSA rates on BankTruth to make sure you’re not leaving interest on the table.

CTProper

HYSA would’ve been 60K 

clingbat

SGOV is an actual ETF that includes investments in short term US treasuries bills, whereas SPAXX l FZCXX are government bills/securities backed money market funds. You can easily use the latter too to park otherwise uninvested cash at a slightly higher rate than most HYSA's and pull from them to buy shares of actual stocks/ETFs whenever, of or shift and back into say a checking account if needed very easily.