HYSA

tocinoman

Brother don't trade when you're feeling like that. Park it in a HYSA and clear your head.

Various_Couple_764

Generally you want to have about 6 months of expense save up as cash. Anything more than that Recommend investing it in tax efficient dividned fund. HYSA are very similar to money market accounts that brokerages have So I would move the HYSA into a schwab government bond money market account and then anything else I would put into QQQI 13% yield. And turn off automatic dividend reinvestments. US the money market account for any unexpected expenses or emergencies. the dividends will show up as cash in the money market account. then if the money market account gets above the 6 moth level use the excess money to buy more shares of QQQI. IF you get a bonus at work or a money gift put that into QQQI. QQQI will refill your money market account slowly. But the more you add to QQQI the fast the money market account will fill. Eventually when QQQI is worth 100K it will produce 1K a month of income Every additional 100K in will add an additional 1K a month of income.

NatureStoof

5% maybe a year ago. HYSA are down to like 3.1% now

01Cloud01

I’m assuming you’re fairly healthy I would invest all of the HYSA if that option is available to you if you end up not using it it’s basically another retirement account your employer may also have options for additional contributions

Swred1100

Keep 6-12 months of expenses in HYSA, whatever makes you feel most comfortable. Rest should go in this order: 1. Max out HSA 2. Max out Roth IRA 3. Taxable brokerage

Inspiration_Bear

Figure out what your monthly expenses are. Keep 6 months of that in a HYSA. Keep anything else you know you are going to spend soon in the HYSA. Invest the rest. That’s conservative, you can likely invest a bit higher than that if you want.

mrellz

Sounds like you'll eventually need it so I suggest taking half and putting it into your HYSA and then taking the other half and investing it into an Index Fund that matches the S&P 500

DoinIt4DaShorteez

If you put it in an ETF like VOO, you can sell it when you need to and the cash would be available the next day. But you're subject to price risk of the market. Figure out how much you really need for an emergency fund and put that amount in a HYSA or money market fund, and put the rest in VOO.

GrnBlu

It's so tempting to put all my HYSA into MSFT leaps. Tell me one reason not to. I'm already holding heavy bags in msft.

ThouMayest69

Feels like you could put it in a money market like SPAXX etc if you are comfortable with comparatively slower annual growth. It's still like 3.5% though. It would essentially be an HYSA and you could pull money quicker than from an EFT if that really matters. 

brooklynschino

HYSA + ROTH ($VT, $SCHD) … is all you need. Thank me later.

indomike14

Your still young so keep investing. Little bits at a time and only what you can afford. Your entire life savings shouldn't be in stocks/ETFs. It's smart to have an emergency fund in a low risk bonds and HYSA and your growth fund to be in stocks and EFTs. No one knows what's going to happen but the stock market is a long-term play to longterm gains. The plus here is that you have time to make it up.

myviewfromoutside

Yes I am in Fidelity Money market which has sometimes outperformed HYSA

Weary_Boat

I just cashed out my personal account (not my retirement accounts) and put it into a HYSA, but I only had 3 different stocks and the ride was wild. I would have put the money into an index fund but I'm hoping to make a big purchase fairly soon, and I'm in my 60s and don't want to wait. Like your dad, I feel pretty sure there's going to be a crash, but like everyone else here I think your best bet is get back into spy and ride the ups and downs and don't try to time it

pandahustler

Hi everyone, I am 32y/o, live in the United States. I am employed, 62k pre-tax/annually My goals are for retirement, but taxable brokerage account for retirement + possible home/car purchases in the future. No strict time horizon, maybe 5-15 years for taxable brokerage account. Risk tolerance is med-high for taxable brokerage account, low-med for roth IRA. Plan to invest max roth IRA annually, plan to invest 10-20k into taxable brokerage account (at the beginning and will do small deposits throughout the year, I don't make much right now). No debt. Brand new to investing, currently no stock holdings. \------------------------------------------------------- I am aiming for a few things through fidelity: \- Roth IRA \- Taxable brokerage account For Roth IRA: I will max annually. Have narrowed down to FSKAX, and currently debating the weighting. Open to 100% FSKAX, but also 80-90% FSKAX and 10-20% FTIHX. I was wondering if you guys recommend doing a lumpsum of $7,500 for this year, and then monthly deposits from next year on? For 401k: Starting a new medical residency this fall, don't remember the 401k details right now but I think they match between 2-10%. For HYSA: Still shopping for one, but also considering CD due to fluctuations of APYs. Emergency fund will likely remain in my bank's MMA (\~2.0%). \*\*For taxable brokerage account\*\*: This is where I could really use some advice. I am aiming for a breakdown of -> 35% VOO/30% SCHD/20% QQQM/10% SMH/5% VXUS. I am open to a lot of advice, I haven't bit the bullet in any element of this plan yet, aside from opening a roth IRA account. Apologies if there are silly plans above, I am completely new to everything as I mentioned earlier. Super grateful in advance for any advice/guidance. Thank you!

paragonx29

Why don't you keep 25% in a HYSA and put the rest back into the market in broad-market index funds. My favorite combo is VTI 60 / AVNM 25 / QQQM 15. We keep hearing: "we're at ATH'S and it can't possible go up any more. But here we are...

CelticCladdagh

If you are seriously considering a house soon, I would keep enough out of the market in a HYSA to cover your down payment. That should make investing the remaining a bit more tolerable for you.

D0nk3yD0ngD0ug

If the market isn’t substantially higher 30 years from now, it would likely mean the end of civilization and we all will have bigger problems to worry about. Put your money in now and forget about it until you are in your 50s. Keep only the money you need in the next 10 years in a HYSA or safer assets.

BluesFlute

If you feel uncomfortable buying into stocks at this time, don’t. But you can take time to learn the basics, like reading a book, taking a course, subscribing to a reputable financial news product. Put your $ in a HYSA and collect some interest and see how you like it. Learn about DCA into an ETF. Don’t know which one? That’s a good place to start learning. Roth IRA?. But of course! Learn some basic technical analysis too. Reflect on the 20 year chart of SPY. FWIW, MSFT is setting up nicely right now.

FreshDiamond

Yeah OP dad doesn’t have a fucking clue what he’s doing. Pulling money out of index funds in your 20s is just flat out ignorant. You can get back in. The market might take a shit anyways, and the math says it doesn’t matter. You are you just keeping buying. Now if this money is your plan for buying a house that makes a little more sense but that’s not a plan. That’s a hope, if that’s the case you may not want to reenter. I would assume that it’s a legit amount, just put it in a HYSA if that’s the case. It’s not gonna generate a ton but it’s way better than thinking you’re gonna time the market. As for lifestyle spend amongst your peers, that doesn’t mean anything at all. People are just irresponsible with their money. Some make the conscious choice to enjoy every dollar and then some because they don’t believe the dream is attainable. Some are just complete fools and some are deeply indebted. Some don’t care at all I’m in my 30s I know people with great high paying jobs living at home for free, that just can’t seem to put a dent in their student loans. That doesn’t really add up.

hoenndex

You should only invest money you do not need in the short term, that way the ups and downs of the market will not freak you out. If you need the money now or think you will really soon, it is better to park it in a HYSA than investing it.  Also, your mistake was trying to time the market. Start thinking long term with your investment, don't pull it out just because it goes down a few percentage points. You are young enough that by the time you are in your 50s and 60s (perhaps even sooner) a few red days, even red months, should have no effect on your investment growth. 

RevolutionaryWeird33

Sell that gun and stop thinking like that. Yes, say goodbye to this thread and personal investing (more like betting) and once you get some capital, start with a HYSA and then hire a pro once you’ve arrived at an amount. You can’t invest money you need. You’re 30 and young. Dumb decisions are what your teens and twenties are for, now it’s time for responsibility and accountability bc no one is gonna get you there but you. It takes discipline and controlling your impulses. Start with not buying items by the register in stores and build up from there. You’ve got this. Of course it’s shitty but hopefully you’ve learned an expensive yet invaluable number of lessons in your journey. Time to step away from the table and focus on things you can control. I wish you the very best.

Ohlele

Which makes putting it in HYSA a better investment 

AssociationFit3009

I grew up poor. There was a point in time I would have literally killed for a few thousand dollars. I’m not rich $18k would be devastating but now that’s a quarterly bonus for me. The shit that seems life ruining now will be a funny story later if you learn from it. You have a gambling problem and you need to stay away from “investing.” Put your savings in a HYSA from now on and close your brokerage accounts.

GroovyYaYa

What is your source of income? Before investing in something that might make it difficult to get it out in cash, I would make sure that you have any credit cards paid off and at least six months worth of your monthly income available (so in a HYSA or other "can get the cash to pay bills today without taking a hit financially" ie - sell stocks at a loss) If you have credit card debt, it would be foolish to not get rid of that first.

Krusty_Double_Deluxe

an HYSA until things blow over

Ok-Barracuda39

If I had a million, I'd just chill with the HYSA interest.

Delicious_Fox3878

HYSA is fine for cash, but bonds mainly reduce portfolio volatility

RagingWillyz

Dumb advice. Bonds are barely beating inflation. Just keep in HYSA then if you want stability lol.

riceandrepeat

There’s honestly no guarantee in the stock market…so I would caution that mentality You’re asking for a 60% gain in less than a year, which is honestly absurd if you’re just value investing. Either your stock picks have to be perfect or you trade options, no other way. If I were you, I would just invest the money in a HYSA, and try to pick up some extra hours at work. That should cover your remaining 3K

InvestingNerd2020

Apps: Either Fidelity or Charles Schwab. Investing recommendations for "set it and for get it": An S&P 500 fund. Fidelity: FXAIX or SPYM (ETF) Charles Schwab: SWPPX or SPYM (ETF). If you are not working, open a taxable brokerage account and invest into ETF SPYM. ETFs are better for taxable brokerage accounts due to tax efficienct nature of their setup. Invest about $2,000 of the $7,000. Keep the other $5k in a HYSA of 3% or higher. If you are working, even part time, put $2000 in a Roth IRA instead. With Fidelity, invest into FXAIX. With Charles Schwab invest into SWPPX. Do the same with the $5k remaining (into a HYSA). Typical order of investing operation: 401k/403B company plan match > 3 moths worth emergency fund in a HYSA with 3% or higher yield > Roth IRA if you have a job > taxable brokerage last with ETFs.

Jive_Sloth

Yes, it's too late. Market is no longer accepting new bidders. You'll be relegated to CDs and HYSA for the rest of your life. It's the only option now.

kewli

Honestly… whenever I have this issue i do the following… what do I need for the next 6 month’s savings? Then subtract that and place in liquid HYSA. Then I determine my risk level. If low, invest 25% in market, 75% in stable bonds or tbills. If medium, 50/50 allocation. If high, then 100% to the stock market. Anything in the market is always an index, can’t beat S&P.

DesktopSurfer

Honestly not 100% sure. I'd like to take 100k and set it aside in an HYSA to cover the tax bill later on, and with the rest I'll pay off my student loan, get a new car (nothing too fancy), and with the rest I'll probably chuck 100k into safe long term diversified ETF/dividend stuffs and continue day trading/ options trading with a small fraction. I'd also like to buy a condo. Maybe I'll finance a condo, rent it out, and let the rest of my cash just compound up in the markets and such. I've come too far to screw it all up now.

Pat_Curring

Leave your UPS alone. The UPS and S&P gives you ample cushion to make mistakes, gamble, and withstand misfortune. If your HYSA is better than UPS dividend, then you could sell and move it over there, but you'll pay some amount of taxes for whatever profit might be made. To answer your actual question; split the 35k up. Set aside 1/3rd of it ($11.6k) on the things that give you FOMO so you can get it out of your system. Dont pick just one thing. Recognize you have 38k in pretty conservative areas already. Keep doing research like you have been. I dont know if you're ready for a house; on account of your original post. I think you deep down want to play the stocks lotto and see if you win. The house quest is a lifestyle admission of "I'm going to be slow and steady with several 100,000s of dollars".

PHL1365

At a minimum, get the cash into a HYSA until you decide how to invest it.

No_Feeling920

T-bill ETF, HYSA or CD. Everything else will likely sell off during a crash. Even the most defensive stuff will still see some price correction (just less than the tech sector).

Zrocker04

Take it, even if you sustained or even grew income it would take forever to catch up. Don’t invest tin AI bs, it’s a bubble. Keep an emergency fund HYSA, most into index fund (SPY, VOO), and maybe 10% to play around with if you really wanna pick AI stocks.

No-Pea-1711

Gold is a good historical safe haven but it’s just so expensive right now. You could also buy bonds. Anywhere from 1 month to 30 years. Guaranteed return and if interest rates fall relative to the rate you got then you can sell for a premium. High yield savings accounts also give you variable interest rates if you don’t want to lock the money up completely. One strategy to hedge against interest rate fluctuation is 50/50 between HYSA and bonds. But if you’re looking at multi-decade investing, I wouldn’t worry about trying to time a crash. S&P 500 ETFs and just let the money recover with the economy. The saying is that time in the market beats timing the market.

Ohhmama11

Cash/HYSA, Short term treasuries, gold and energy

ErikDHaag

What is your timeline to retirement? Is your core retirement funding already covered? Hard to answer your question without basic information. Given current valuations, what I'm doing with my recent windfall (and I'm early retired so feeling conservative) is a.mix of HYSA, ultra short term Treasury funds, cd ladder, high yield bonds, high dividend funds, REITS... More stable in a correction but averaging 6%, And every month moving some into a growth portfolio, and some into a lazy portfolio ETF basket.

adiabatic_storm

I've always thought it interesting that risk adverse people are willing to accept a guaranteed bad outcome, instead of taking some low to moderate risk on something else that at least has a historical track record of success with an expected value much higher than the "safe" alternative. Like, yeah I get it, volatility is hard to stomach at times, especially in crashes or prolonged bear markets, but the irony is that if you stay committed to the higher volatility yet also higher expected value strategy long term, the strategy still significantly outperforms the "safe" one even after adjusting for a significant crash or correction. I mean look, if all you have to your name is $5K then there's a good argument for stashing that in an emergency fund / HYSA, but the idea of committing any real amount to money to guaranteed demise (via slow but insidious and continuous devaluation resulting from inflation) is clinically insane. You want time on your side, not the other way around. $10K invested in BND on April 10, 2007 is now worth $17,700 today. $10K invested in VTI in April 10, 2007 is now worth $71,622 today. (And that's after riding out the 2008 crash and everything else that has happened since.) The stock market could crash 70% tomorrow and you'd still have more money from the original investment in VTI than BND. Which begs the question: What's really more risky, anyways? I think we have to measure risk not just as potential for sudden downside corrections, but also in terms of opportunity cost on the way up. Those losses are just as real, you just don't see them like you do a direct loss, so it's easier to miss.

QuirkyGlove3326

Put it in a HYSA while you DCA weekly.

1967C10

Do you have any debt? If so I'd recommend to pay all of it off first (other than the mortgage) then put 50% of what's left into a low cost index fund that tracks the S&P500 (FXAIX etc) , 25% in a HYSA, and 25% or less into a fun/lifestyle account for home/car/vacation or single/fun stocks you're passionate about (10% max)

Great-Guidance-6371

Look at your debt. Are you paying 6-8% or more? Pay it off. 2.5-4%? Probably better to keep the debt. I don’t know how old you are but it sounds like you’re relatively young. Put all in HYSA now. DCA up to 30% in SPY. 20% in bonds. Maybe buy some gold if you’re worried about gov debt and inflation and a crash. You need cash for a down payment or anything in next few years? Could keep rest in the HYSA. If now, put into SPY or other comparable vehicle.

crunchwrapsupreme4

you don't need a financial advisor, just stick it in a HYSA and then spend a few months doing some research and thinking about what you should do with it. You'll probably come to the conclusion that you should put it in a broad market index fund, but that isn't always the right answer.

Soberishhh

Robinhood offers a 3% roth match, 3% cash back all around credit card, 4.25% HYSA, free wire transfers, and much more i have millions in RH and never dealt with the same issues you described aside from delayed orders if the market is closed over the weekend.

FitContrarian

I found I have the opposite problem. I struggle to hold onto cash, even in a HYSA. Drives me crazy knowing that $ could be getting me 10% +. Im actively making an effort to hold on to more cash but get the itch everyday to dump it into an etf.

StegersaurusMark

I know another top comment was Roth. But I’ll say it. Roth. Roth. Roth. (Assuming you are in the US. Similar analogs exist elsewhere) Everything is always conditional. If you have a goal of buying a house within a few years, you should save the down payment in a HYSA. If you are already in a very high tax bracket, then probably traditional retirement. But since you are young, I’d strongly encourage Roth To first order, investing a dollar in Roth is equivalent to investing that dollar in traditional, ASSUMING you are in the same tax bracket today as when you withdraw. If you are in a higher bracket today than you expect to be in retirement, then better to use traditional. If you are in a low bracket today, then it’s good to use Roth Roth has a huge benefit once you are retired because it won’t contribute to your taxable income. Therefore, it’s great to have a mix of Roth and traditional so you can keep the gross taxable income low. Or use Roth for years of high withdrawal. Likely, you will be in a higher bracket in your later 30s and 40s. Therefore it makes sense to start contributing to Roth earlier, and let it grow I wish I understood that better when I got my first 401k at age 30. Instead I contributed a piddling split 50-50 between traditional and Roth. I’m doing OK retirement wise now, but that is probably my biggest financial regret

ToastSpangler

wym, broad moneymarket is 100% safe, i was talking ETFs/stocks but MM is just a better HYSA really I think only one MM fund has ever gone below $1 per share, and that was a real estate backed one in 2008. if something like SPAXX collapses the entire economy is fucked anyway and the government has to print huge amounts of money to bail everything out, so your dollar will be worthless anyway and you won't have a job

Asbelsp

That is relatively short term and no guarantee what happens in that time. Do your own due diligence. Don't just grab a list from anywhere for such a short period. Last year any firm had thought msft was safe. Honestly, even VOO is not safe for that time period and no good advice would tell you to invest there if you need that money in that time period. That is put it in a HYSA time period.

LabiaMajorasMask420

I don't have a huge amount in etfs, but I went ahead and took it and plugged it all into a HYSA this week. I'll put it back in after the dust settles. I don't want to be Elon's exit liquidity.

exradical

I feel like a simple HYSA is less of a pain in the ass

spacelad6969

What is sgov? I also have over 120k on a HYSA and I don’t know where to invest it.

WarmCan3034

meta being the same price as it was in late 2024.... U would have made more money in a HYSA...

CCWaterBug

With a 3-4 yr delay I'd totally be putting at least 50% in the market vs HYSA.  Ymmv

BigDipper0720

The key is when you will need to spend the money. If it is 7 years or less, I would keep it in HYSA. If longer, I'd move to stocks.

fhwc

Time in the market beats timing the market. You should be scared of having your money depreciate. Which it is. Good for having it in HYSA. But just use a HYSA for an emergency fund and some extra since you have such excess.

Beautiful_Benefit319

Money market or HYSA. You could do a short term treasury bond ladder but honestly…the difference is marginal

jerm2z

Sell your entire portfolio and put it in an HYSA if you’re freaking out about 2%

ksyoung17

So... Best suggestions I can give, because you're going to chase the adrenaline rush most likely.... Unless you can turn that completely off: Take out 90% of that and throw it in an HYSA for now. No dividend stocks, no bonds, just HYS. See the interest in a month. Like post nut clarity. If you need the adrenaline, take the remaining 10% and try this again, but do it with a tight stop loss. If it runs 50-100% in another short window, sell, take the profits + another percentage, and do whatever you want trading wise with the rest.

KMPItXHnKKItZ

For the average working class investor this kind of stuff may as well be an alien language. The safest and best thing is just to stick with low-cost broad market index funds, invest as much as you can spare into those ideally over about 25-35 years at least, and then keep any cash that you do not need immediately available in tax-efficient cash equivalents like SGOV, a HYSA, or MMF.

GovernorHarryLogan

There is a breaking news headline on cnbc that social security wil be depleted by 2032. Maybe its boomers pulling everything out to put in a HYSA.

weaselblackberry8

I really like the app Stash. I can decide what to invest in and how much at a time. Sometimes, I put $1 at a time into a particular stock or fund. Other times, I feel like I can spend more and put in $10 or $20 at once. They have hundreds of stocks, so you can choose several that work for you. With $40K, I'd put half that in a HYSA with a decent interest rate for emergencies and put the rest into a ton of investments. This is working on the assumption that you don't have a mortgage or other significant debt.

Autobahn97

HYSA like Ally bank. If you want the money accessible and also add to it easily (like direct deposit some of your pay check to add to it). If you are more focused on investing and can wait a couple of days to access it then brokerage accounts will have some lower cost ETF to buy into treasury bills. Something like [SWVXX](https://client.schwab.com/SymbolRouting.aspx?symbol=SWVXX) for Schwab. To access money in [SWVXX](https://client.schwab.com/SymbolRouting.aspx?symbol=SWVXX) (or similar) you first need to sell out of it the xfer the money out to a linked bank account. A solid investment to put money into long term is typically an SP500 index fund like VOO or SPY to buy into the SP500 - leave it there for decades.

Felix_Aterni

My money would have been better off in a HYSA

West_Lavishness6689

HYSA 3.8% yes that is what it is doing

rumpler117

lol. You didn’t even open an HYSA for free money??

randrand127

https://preview.redd.it/zkxx3zru3q5h1.jpeg?width=1179&format=pjpg&auto=webp&s=964c944b2b414872e6710cb05b737b591ff54ab3 Again, I use Robinhood as my HYSA. Also this is only my Robinhood brokerage.

West_Lavishness6689

cash sitting in 3.8% HYSA so 2 days transfer when ready to enter market

KSHMisc

Mid to late 2022, I remember my friends telling me to get into investing as a lot of companies and some ETFs plummeted during that time. Nearly all of them were telling me it is the best time to buy and hold. It was also when interest rates for HYSAs were climbing as high as 5.5% and they were clamoring about it, too. I still didn't listen lmao. Because I am very stingy with my money, even with my job at the time, I could have at least opened up a HYSA and let my money grow somewhat.

No_Feeling920

If you feel defeated from this, you should probably use only HYSA and CDs.

PHL1365

Yup, the way I look at it is that there is an \*average\* ROI on money that is invested, and there is an \*average\* ROI on money that is kept on the sideline. I think most people would agree that invested money will have a higher \*average\* ROI. Within that paradigm, there is very little reason to not invest whatever money you have available. Note: I consider a HYSA account as investing. It's just a more conservative investment than stocks. Optimal asset allocation is an entirely different discussion.

Trust_8067

Since OP mentioned inheritance, there's no taxes on that, but yeah, taxes first if they exist. The only time you should pay off your debt is if the interest rate on the debt is higher than the market gains or existing HYSA interest rates should you be extremely risk adverse. Completely agree, emergency fund. Then you should be investing the rest of your money, before taking a vacation.

escomenendez

Moved over 2K from the HYSA (not much I know) to dump into this Monday morning. Regarded? Maybe… but I believe in this.

PashasMom

1. Do you have an emergency fund? If not, that is priority no. 1. Save up three months of expenses in a HYSA. Next: figure out how much you are going to be contributing overall for retirement. Your minimum should be 15% of gross income, so $19,500. 2. Open a Roth IRA and begin contributing to that in order to max it out. Fidelity, Schwab, and Vanguard are all excellent choices for that. 3. The Roth IRA limit of $7500 will mean that you need to contribute $12,000 to your 401k. This would mean aiming for about 9% contribution to your 401k. If you feel like you can't afford that and maxing out your Roth IRA right now, then start at maybe 4 or 5% and set it to automatically increase by 1% every six months (or 2% annually if increasing every six months is not an option). Decide whether you want to contribute pre-tax, Roth, or a mixture of both to your 401k. That will depend a lot on your current tax bracket (federal + state) and whether you think your income/tax bracket will be increasing a lot in the future. I would skip the 457b for now -- if you get to the point of maxing out your 401k and still having more money to contribute, then you can worry about the 457b.

IMI4tth3w

On that salary with your husband assuming your mortgage you to be able to not only max a 401k but also a Roth, and maybe an HSA if you have access to that. Don’t forget an emergency fund in a HYSA. 6 months is good there.

Newbie_investing

Tesla has started offering a self managed savings account to its employees that pays 6% interest. I wonder if that’s connected to this SpaceX brokerage account? Forgot to ask my source if the employees are able to trade stocks in that account or if it’s just HYSA…

iAmTheWildCard

Put it in a HYSA if you’re that afraid of putting it in the market…

345islander

At this point, I consider HYSA as an investment strategy at least to hedge against inflation.

AntiqueProfessor5134

If they're only 5 years from retirement it be easier to just discuss HYSA or CDs if they're not doing those currently? Short of the US government disappearing there's really no risk, since they are FDIC insured, and rates are actually pretty decent currently compared to historical rates, and should roughly keep up with inflation at least. A lot of older people just keep their money in brick and mortar savings accounts where the interest rate is effectively 0%. I can definitely understand people being hesitant about buying stocks, especially if their time horizon is short, like your parents. It's unlikely but certainly not impossible they could see losses as they enter retirement, which can be problematic. I at least would be nervous about trying to talk them into stocks if they are not already inclined in that direction.

guhhhh_MU

A\* HYSA

RooneyToons_10

An HYSA would yield more profits than some of you regards

IMI4tth3w

It’s $50/year for the annual. And again the HYSA is more of a bonus on top of the extra Roth 3% match. So every cent and more of that $50 goes right into my Roth.

IMI4tth3w

I’m maxing out my Roth, which Robinhood gold gives me a 3% bonus on my contributions, which ends up being just under $100. So it’s effectively $50 free that will also grow. I also use the cash in my brokerage as a HYSA earning the bonus % with gold. That is especially worth it as it earns about $40/month. But not everyone has an emergency fund of that size. But everyone should be maxing a Roth and even then it’s worth it since it’s basically free money and your $50 gold subscription is effectively funneled into your Roth and will grow.

Ahamadrayasbaboon

Same. Coincidentally, I was basically logged off the internet then for like 3 months and didn’t even realize anything had happened. Downside is, I had $50k to deploy from my HYSA and only started averaging it in during the early summer. 

Ok-Count9781

Looking to invest $100000 57 years old couple with $300000 into different retirement accounts ( 2 dormant 401k around $200000 and rest 1 active 401k , 2 Roth IRA and and a Roth 403b) fully funded emergency fund (12 months living expenses into HYSA) and 130000 in a taxable brokerage account. We want to retire early at 62 years ( but not in US) the insurance would be too expensive. We have possibility to live aboard In any EU country. Looking for a safer option to invest $100000 to maximize our income before 62 ( only 5 years). We will appreciate any advice.

booobReviewer

You're in a better spot than you think. That $4k/mo pension covers baseline living expenses, so you actually have more risk capacity than most people your age. Here's what I'd do: 1) Set aside 6 months of MA rent in a HYSA (~$18-24k) as your emergency fund 2) Max the Roth IRA for this year and next ($14k total) — all in VTI or VOO 3) Pay off the truck ($9k) — frees up that payment every month 4) Put the remaining ~$120k in a taxable brokerage, mostly VTI with maybe 20% in VXUS for diversification The pension means you can afford to be aggressive with the stock allocation since you've already got a bond-like income stream. Don't overthink it — lump sum into broad indexes and let time do the work.

fn_gpsguy

Sure it *could* be in a HYSA, but at her level of net worth, the interest earned on it in a HYSA is just pocket change. $40k is just 1% of her $4M. If her annual returns on the $4M was a conservative $400k, the $1500 or so she might earn in the HYSA is just a drop n the bucket. I’m in the same age range as your mom. I don’t have your mom’s level of net worth, but I do have funds in an online HYSA and an emergency fund in a local bank earning a paltry 0.01%. Without going into details, I needed immediate access to my emergency funds. I am grateful to be able to live in my own home (with new limitations).

SeaworthinessFast161

Anyone else initially read this as “Needed this 21 million”? I was like that’s $21K not $21M, bro. So you’re 21 years old, have mom’s money, and are worried about one thousand dollars on a credit card? Soon you will learn about small potatoes, because that’s definitely what this is. Nice 4k->21k turnaround though, fwiw. Put 1k into your CC, put 30% into HYSA for the taxes, and have fun with the rest. But no, you didn’t need it lol

ksyoung17

Learn to cycle. Whenever I find i go on a short run of option success, I immediately put 50% of recent profit in HYSA, about 20% into dividend portfolio, buy something fun for the kids, or go stock the freezer, and the remainder I'll keep in the account.

Formal57

Literal meme line up of stocks. A HYSA would probably beat your portfolio long term lmao.

IceCreamforLunch

> Withdrawing $100k during a bull or bear market has no bearing on your future portfolio performance, it's just psychologically we feel better doing so when markets are doing well. You wanted to consider the worst-case scenario and called that a 70% decline. So let's say you need that $100k downpayment and the market has just crashed. You have $1M (total). Two scenarios: 1) You have that $100k in a HYSA and $900k in the markets. Your portfolio drops to $270k. You spend the $100k on the down payment. Five years later the market has recovered. You end up with $900k in your portfolio. 2) You have the whole $1M in the markets. The portfolio drops to $300k. You spend $100k of that on your down payment. The market recovers as-above. Your portfolio increases to $666.7k. Having to pull that money out during the crash has cost you 25% of your portfolio.

USC_BDaddy

Would it make a difference how that portfolio is invested? Say for example $600k of the total $800k is locked up in a 401k. Just curious because I've thought about the pros and cons of holding onto cash as well. Even though technically my cash in an HYSA is my "emergency fund," I actually think of it more as dry powder to deploy in a market pullback. Either way, I don't think I could sleep at night being 100% invested.

InvestingNerd2020

The order of operations for investing are: - Emergency saving up to 3 months of your routine expenses. Use a HYSA with 3% interest or higher currently. Alternative option in states with high taxes (California and NY state) are treasury Money market funds or Treasury ETFs (SGOV or VBIL). - Try to max out a Roth IRA if you are working and earn less than $153k in 2026. The max contribution is $7,500 for 2026 according to the IRS. Within in the Roth IRA, invest into ETFs. For ETFs only use SoFI, Fidelity, or Vanguard. With those brokers, you can invest into VTI and VGT. VTI is your core fund that covers the Total USA stock market. Make this 70% of your allocation. VGT is a sector fund covering information technology area. VGT has great returns over the past 10 years, but is limited to a sector. 30% allocation is fine. - Anything extra, put it into a taxable brokerage account. Buy the same ETFs. This is also the type of account to buy Treasury ETFs like SGOV or VBIL.

Autobahn97

HYSA has all the bennies of a typical bank account so its familiar to most people already. It's insured up to $250K by FDIC and pays the highest rates of any savings account (currently about 3.25%-3.5%) and being a bank account you can just ACH transfer your money in and out of it (typically next day) and even have your paychecks (or portions of them if your employer will do that) directly deposited for easy future savings. Money is available typically next day with ACH transfer just as it would be with any other account. In short: it's easy, safe, and familiar. If USAA pays over 3% then keep it there but if you have $100K+ sitting around for a year you may as well put it to work for you instead of the bank its sitting in. I am not a Robinhood user (never used it) but understand it offers a $5/month gold program that provides you a HYSA. The gold program apparently will match up to 3% of any of your contributions to a personal IRA you hold with them, up to about $250. You may want to look into that since you have the money its probably wise to establish an IRA for yourself, even if you only contribute $2K a year into it to get the 3% match that will cover the cost of the gold membership - but do your own research on that. Many new to investing can be overwhelmed with new language and concepts but I recommend you keep it simple, easy and most importantly consistent. Automated investing is a great way to move your $200 into the market into a low cost index fund with you being 100% hands off. Remember that time IN the market is key (decades) and never try to time the market (as tempting as it may be). My last advice is educate yourself. Unfortunately investing is not really taught in school enough (if at all) but there are plenty of good Youtube channels to learn fundamental from as well as free/cheap finance courses on platforms like Coursera. What I find most helpful and more personalized is to have a conversation with your favorite AI. Tell it you are new to investing and ask it to teach you fundamentals then ask lots of questions about investing (but don't share any personal financial info).

Historical-Pride-698

Max Roth IRA. Put 100k in VTI. Keep 60k in HYSA for emergencies.

Jibblet8478

Pay off all your debt and pledge to yourself you will never take a loan out on anything besides a house for the rest of your life. Put $7500 in a Roth IRA for you and another one for your wife, put 3 months of expenses saved into a HYSA, take the rest and invest it into a brokerage account.

Hogweenies

Greetings, I'm a 23 yo truck driver based out of California (Over the Road so I won't be paying rent) saving for a house in a LCOL state such as Nebraska or North Dakota and want some advice on what would be the better route for my timetable. I currently bank with Fidelity and have SPAXX as my core position. Have been debating whether to keep it there or let things like VOO work their magic? Or maybe put it in a HYSA? What would be the smarter move for my timetable? Basically anything I make will be going towards either this or any necessary bills/ food. Thanks for any and all replies.

RagingWillyz

Definitely listen to this guy who wears fake watches. This dude is broke. Put it into the market and let it grow. HYSA you lose to inflation. Don’t listen to broke redditors.