HYSA

DallasCreoleBoy

Go SGOV in a IRA if you don’t need the money. Earnings tax shielded with a HYSA 4%ish return

MilkFloods

Yes, but I am not in need of any of that right now. I have 3 months where I will have this extra 1k ( so about 3k in total), and even then, I will only need some money at the start of each semester. I will not need 1k each month. Hence why I am trying to figure out where I can put the money so it can grow over time but also still have the ability to pull it if needed. Hence why I was looking at SGOV or HYSA. But I also don't know what I'm talking about. Hence , I am here asking for help.

ElectricOne55

I took some of my money out of HYSA and just left it in checking because the taxes can be a pain on hysa.

DallasCreoleBoy

Losing out on a 10% gain is more palatable than a 40% loss. I am holding cash in BTC and HYSA.

Few_Ad_3557

I never buy individual stocks for 30 years, just index. But once Meta got below $600 and Google dropped I caved. Been buying both for the past month. All the monopoly stuff and tariff scares wont matter in 10 years when I need the $$. These two companies are earnings monsters. Nothing like them. And theyre very reasonable now. If you really dig into these two companies they’re insanely moated. Other than that HYSA aint killin ya.

Shot_Flan_2538

I have a small position in cash. But it is allocated on a HYSA. I buy etf, gold, crypto, and DCA with the rest of my investment money every paycheck.

ucbcawt

What HYSA do you use?

clemdane

Chill. You are doing amazing for your age. None of this will matter in future. You, like me, are an overthinker. Which is in many ways great because you've already analyzed and thought out every possibility and planned for it. But instead of relaxing and living your life now that you have a plan, your mind just keeps on going around in circles. Keep some cash on the sidelines.through a HYSA, i.e., when you pay your IRA and your bills every month, add something to the HYSA until you feel comfortable. Keep at least six months' worth of living expenses in the HYSA. If there's a big crash in future, you'll have money to buy low.

nicolas_06

Don't invest in stocks for whatever is in less than 5-10 years and if it isn't at least 10 years, better 20 years, don't go 100% on stocks. So if your vacations are for in less than 5 years, an HYSA is perfect.

lakas76

Do you plan on using this money within 3 years? Keep it in the HYSA. I’d probably just leave it in a HYSA if it was going to be used in a longer time frame since you actual plans for the money in the relatively near term.

JohnnySack45

I sold in February and I’m still up roughly $350K YTD (not counting distributions from SGOV and my HYSA). Still on the sidelines though. Maybe if a few more stocks breakout above the 200 SMA I’ll consider jumping back in.

KemShafu

I’m 90% cash HYSA right now and the rest in TBills with maybe 10k in EU ETFs and a sprinkling in Google and Pfeizer. I do have some stop buys on SVXY once the VIX settles down because I feel like that’s easy money, (BUT IS IT?!). I just want to see what the summer is like before I start buying back in. I just think the market is being driven by "buy the dip" retail investors and nothing underlying points towards a good stable rally.

mr-mysterium

Move everything into a Vanguard HYSA, delete robinhood, create a login for Vanguard that you won't remember and throw it in a safe

someguyonredd1t

$600k can yield a not-insignificant amount in a HYSA, bonds etc. Is it just parked or are you earning anything on it in the meantime?

hersons__penis

keep it in the HYSA. the best way to think of a savings account is that it's a necessary evil. You don't put money in a savings account to get rich from it. the point of a savings account is that it's a safe place to hold money and it's liquid: you can access it without any issues for an emergency or when you're going to spend it on the thing you're saving it for

AlwaysnextyearCLE

All or most of it? Could’ve been in VOO when it was in the $470s/share. Just threw about half of my SGOV balance in today, and I think it said I wouldn’t be able to sell it until May 6th for some reason. Maybe it’s because I transferred the cash from a HYSA to my brokerage account yesterday

Icy_Mushroom_425

Since it’s a vacation fund and you might need it soon, keeping it in the 4% HYSA is the safer play. Dividend stocks can be great long-term, but they still carry market risk...not ideal for short-term savings.

Ulthanon

Ah hello, fellow HYSA enjoyer! Lovely 3% we're making this year, no? \[sips tea\]

Danarri_Dolla

I sold off last week - i don’t want my investments to be controlled by a damn tweet. I’ll stack in hard assets or CDs HYSA until I get some sense in these markets

Vivid-Shelter-146

What a presumptuous and shitty reply. He didn’t say that’s his entire savings. He just said it’s a HYSA he uses for vacation funds. And mentioned nothing about his net worth. Get in a better head space.

ta1no

You didn't read my comment well... Do it slowly. Can you use the money you accumulated in your HYSA as collateral???.. No. But you can with your cash value. I save money in my insurance policy and never have to spend it. I use it as collateral. Your savings account can't do that. Brother... I'm not a sales man I'm just very financially smart and I love speculating to and love BTC and HEX and crypto too... I'm not against IRAs or 401k etc... My comment was to correct ignorance about the statement that whole-life insurance is a scam. Just do better research.

mindreader_131

I did read your comment, and you sound like an insurance salesman. You mention the benefits and none of the downsides. If someone was genuinely so risk averse that they can’t handle ANY volatility whatsoever, they’d still be better served by sticking all their money in a HYSA or money market account and paying taxes on the interest than they would paying thousands for the insurance company to do the exact same thing.

smartfon

It can't really collapse because there will always be hundreds of millions of people who use the big tech's products because unlike cryptocurrency, something like an AI agent or a graphics card are things you use and will continue to use every day to be productive. The big tech stock could continue to drop double digits but it should climb up if you're in this for 20+ years. Won't be the first or last time. My portfolio also heavily relies on the S&P 500 but most of the assets are in a HYSA right now.

NoWeb2576

Yeah I've been out of the S&P since Jan 20th and my money has been shitting in an HYSA.

smartfon

Commenter1: QQQ all in, bro, what are you doing with all that unused cash? Sell a quarter of QQQ if you need the broccoli cut this Saturday bro the market is up anyway Commenter2: nah, go with QQQM for lower expense Commenter3: rate my portfolio (VOO 49%, SPY 49%, BND 1%, HYSA 1%), all growth bro

trusty-koala

Can you at least put it in a HYSA? Let your money do some work!!! 4% is better than 0%

Dalewyn

Alright, I'll lay off on the snark since you didn't quite get it. Basically, you bought stocks because we all say stocks go up and you thought they were a good way to make money. Then you got spooked out of your mind when stocks went down and sold when they were down, realizing your losses. I am trying to tell you that investing is not for you; you clearly can't stand the mere thought of losing money at any point in time and will sell anything that goes down. That's fine, most people are actually like you. What I am recommending is that you keep your money in all-but-guaranteed safe assets like money market funds (ideally funds that primarily hold US Treasury bonds) and cash (ideally stored in an HYSA). You will never lose money to spook you so you can leave them alone to work the power of compound interest. It's true that stocks have annual gains in the realm of 10%+, but you will never enjoy that growth because you can't leave your stocks alone.

Weikoko

I don’t park my cash in 0.01% saving account. I park it mostly in SGOV or HYSA.

Echo-Possible

DCA assumes a long investing horizon on the assets in equities. If you're looking at short term investing horizons then you need to manage your risk more. And you should always have an emergency fund in HYSA or money market. The two things are not mutually exclusive. Normal advice is not to have all of your money in equities. Furthermore, if you're close to retirement you should be shifting to bonds and have 3-5 year bond ladder minimum so that you can weather a nasty bear market without having to pull from your stock portfolio while its down. Most bear markets recover in a few years.

Pataflaka

Someone is getting lied to, that's for sure. Either way, maybe park your money in a HYSA until we find out who.

Rib-I

12 months is my thinking. Most of it in diversified cash equivalents (SGOV, IGOV, FXF, IBIT, HYSA). If I’m wrong and the market rips then my 401k will benefit - I have made no change there. Taxable accounts are completely defensive right not. My only “play” currently is EUAD. Otherwise I’m out of equities entirely outside of retirement accounts.

Fragrant_Tutor_7368

Stop investing in GOOG and just put your money in a HYSA. Literally the same shit. 

Carbon-Base

Wild. You could own shares of ETFs and earn more in dividends while diversifying and exposing yourself to lesser risk. Or even a CD/HYSA.

Relevant-Asparagus-2

If that's your goal then just invest in a dividend-seeking ETF to avoid the risk of a single stock. Dividends are much higher in these too. Even an HYSA offers a better yield than MAA, and that is near zero risk.

greytoc

Chasing bank yields is kind of pointless and I have never believed in using HYSA unless the goal is actually for savings vs investing. If you want to invest - put your capital in a brokerage account. If you want to have the similar risk characteristics as a bank savings accounts - you can more easily generate "risk-free" yield based in a brokerage account than using bank products like non-marketable CDs and HYSA. Also - tax drag depending on your tax of residency and tax bracket will also erode post-tax yield. Your question gets asked a lot - see the wiki FAQ on risk-free and liquidity investment types. Someone asked the same question in this subreddit a few days ago - see the discussion here - [https://www.reddit.com/r/investing/comments/1k7qa21/is\_hysa\_the\_best\_option/](https://www.reddit.com/r/investing/comments/1k7qa21/is_hysa_the_best_option/)

sirebral

The algos are having a heyday with retail. It's mostly fomo, maybe good as a short stop trader, yet the tweet of the day driven market is not a place for most to play. It can switch on a dime and makes little sense. Me, pure risk off (HYSA), yet still losing due to the dollar. I'm not a sophisticated investor, yet I know this much, algos are raping retail daily.

meow_now_brown_cow

Nice to know HYSA's exist so when I'm done being a retard I can let my money grow 100 bucks a month like an adult.

Gene_McSween

Who needs the bottom? Sell at 100, stock dips to 70, buy at 85 = 15% discount plus whatever dividends you saw from your HYSA or short term bonds. Managing risk and timing the market are not the same thing. Reallocating investments between securities, cash, crypto, bonds, etc in response to changing risk is just normal prudent investing. I'd argue the buy every Friday crowd no matter what are the emotional ones.

kevbot029

I think money market/HYSA/short term treasuries are the way to go right now. The market is just too expensive and too many risks that aren’t priced in.

Next-Valuable6710

The former. I have some invested in SPY for now, I don’t have a 6-figure investment portfolio lol still starting out from scratch and building up slowly Just paid off my student loan and currently don’t have liabilities. Majority of my cash is in HYSA because I’m faint hearted to put all of it in investments 🫣

BlightedErgot32

My HYSA is beating the indices YTD, pretty neat. https://preview.redd.it/8qp1wlogqnxe1.jpeg?width=600&format=pjpg&auto=webp&s=46d53e4d7979d3859981ff7350459310c8c8e2a6

luzzi5luvmywatches

We have 2 401Ks, 1 IRA, and a HYSA for our down payment. We had this in pretty aggressive stocks, so we lost a lot. I am just trading more often now to catch up. We do not contribute to this anymore.

dchperemi

I'm going to seriously answer this question: yes. I know people who still don't understand they can get a HYSA at an online bank with a 3-4% interest rate for free. These have been available for 10+ years, and when I tell people their regular savings account at Chase or Wells Fargo could be getting 3-4% they don't believe me until they look it up for themselves. These are intelligent laypeople. Not finance people. But still. My point is: technology does, occasionally, offer us something that seems so good, that the more experienced, educated people in finance will immediately assume it's a scam. 90% of the time, the experienced people are right, thanks to, well, their experience. But not always. Sometimes something comes along that really is better. I'm just saying I don't think OP, a professed novice, is a dunce for asking this question.

Msqueefmaker

Would you please elaborate on HYSA, I don't know what that is

Key-Wasabi4503

This is so stupid. We're about to be in the biggest recession of a generation, maybe an actual depression, and people are acting like it's fine. It feels like we're living in a cartoon of capitalism that was written by student communists. I'm back in the green for this year so I sold almost all of our holdings and dumped them in our HYSA. That money is probably going to buy us a house in another country before the year is over.

curtaincaller20

Doing nothing is an option. Doing something boring is a better option. Toss that shit in a HYSA and collect your $10K in interest. We are yet to really feel the effects of fighting a trade war against the entire world at the same time. We are starting to see leading indicators of what is about to come, so just save your bullets for when you see people panic selling assets.

IHateHPPrinters

True it is a bit of mental gymnastics. But also a little hypothetical, Instead of a business it could also just be assumed to be personal expenses. I just did the rent figure to give a hard number instead of 'personal expenses' which could vary greatly. If we assume we invest 1.6 million into a HYSA at 3%, that'd have us reach out 4k a month goal or 48k a year. But is that feasible?

IHateHPPrinters

It certainly helps. We're kind of at a point of nievity, we don't want to just hold on to excess money when it could be bringing in returns. The 4k monthly expense is just an option that, if we could 'eleminate' would be nice. Even if our expense was 1k a year, and we had 100k to invest we were wondering methods that produce consistent returns that would easily clear that 1k and possibly even grow. Like a HYSA, we were kind of stuck in the mentality that this would be perfect since anything above 3% would be great but, once you reach 250k (which I know is higher than the 100k example) you are no longer FDIC ensured AND rates can't be expected to always be this high, so we were wondering if there was a better way to invest our funds we have stored.

IHateHPPrinters

Exactly. We're looking for steady and reliable cash flow. Instead of just letting the money sit were hoping to put it into one of the above. Which do you think is the most self managable? Can we just put it in a T bill or bond, and get cut the check when it's time? We also thought about HYSA and mutual funds

IHateHPPrinters

5% reliabily is more than enough, we're just wondering what methods are used. HYSA, Mutal funds, dividend paying stocks?

smartfon

How much do you spend per month? Open an Excel sheet and write down how much you spend on rent, food, leisure, transportation, everything. Multiply the sum by 10x. This will be your emergency reserve. You will not invest this money in the stock market under any circumstances. If you don't create this emergency reserve and instead put all your money in the stock market, imagine if something happens and you need money and you're forced to sell stocks to get money, and that period coincides with the market being down. You'll be forced to sell at a loss. This is how people lose money. To avoid losing money, you need that separate emergency reserve. But you don't want to keep that reserve in your bank account either because your bank doesn't pay an interest so your money gradually loses its value to inflation. Instead, you can move this reserve into another institution that provides a High Yield Savings Account (HYSA). Right now you can earn 4% just by keeping your money there. An alternative to HYSA would be purchasing a stock called SGOV that's not really a stock but more like a stable bond that guarantees you won't lose money. You will get the same 4% with SGOV. So why choose SGOV instead of HYSA? The interest you earn from SGOV will not be taxed by your state; you only pay federal tax. That was about your emergency reserve. The rest of the money can be invested in the stock market, specifically in ETFs. The fewer ETFs you buy, the less money you pay to companies that run those ETFs. You only need two ETFs: VTI and VXUS. VTI is the total U.S. stock market and already includes big tech and S&P 500. You do not need to buy SPY or VOO separately. Only VTI. VXUS is the rest of the world. If you lookup the past performance from the last 10 years it may seem like VXUS is a waste of resources because of lower returns but that's a trap. It's important to be diversified. You can go with the lump sum approach and spend all the money (minus the emergency reserve) to buy stocks now, or you can Dollar Cost Average (DCA) by scheduling regular purchases of small amounts. I do the latter for psychological reasons. If you're impulsive or hot headed or an emotional type of person, go with the DCA approach. Everything I told you is something that I personally do and it's not financial advice coming from a professional advisor. I am not an expert. Right now, due to market volatility, most of my money is parked in HYSA/SGOV. My portfolio is 60% cash (HYSA/SGOV), 30% VTI and 10% VXUS. I plan to buy more stocks toward the end of the year. Do not buy stocks of individual companies like Apple, Microsoft, Tesla, or some random company. There is a higher risk of losing money. Only buy ETFs. Do not buy gold. It's highly speculative and the price can dramatically crash at any moment. Do not buy cryptocurrency. Do not buy and sell stocks, you will waste time and in the end lose money. Only buy and hold. You are not day trading, you are investing long-term. Do not waste your time on YouTube videos or websites where smart-looking people show you complex charts with green and red lines and predict that this or that company's stock will go up or down. Ignore it all. You do not even need to read the news. You do not need to check your account every day. Open a Robinhood Gold account and move the funds there. Keep some cash in your regular bank account for day to day expenses. Keep the emergency reserve parked in Robinhood Gold and do not invest it in the stock market (but buying SGOV is okay). The non-reserve money you have just moved to Robinhood Gold can be used to purchase VTI and VXUS. At this point you'll choose your approach: lump sum (spend all at once, not recommended) or schedule an automatic small transaction every Tuesday (what I do). Your $200,000 is not enough to earn a regular passive income high enough to cover your rent and monthly expenses. It will earn you $9,000 per year at most. This is why people invest their money in the stock market. While a stable HYSA can give you an annual 4% return split into monthly installments, a stock market is usually double or triple that amount. But with stocks you don't get that money in monthly installments so it's more like a buy-and-hold retirement thing. Do not bother with "dividend" stocks, don't even Google it. I recommend doing more research. Again, I am not a licensed financial advisor. I recommend Robinhood Gold because of its simplicity. Only their Gold service pays 4% interest on parked cash. Good luck.

Ulthanon

There's no way to play it, man, its just luck (unless you're in the right Signals lol). Like, who would have guessed that Tesla shit? Who in their right mind would have predicted that? That's psychotic! I'm only in the market in my 401k, and I'm not withdrawing it but I'm not adding to it. Not with as unhinged as it is, and with the tariff shortages coming up in the next two weeks? Puh-leeze. HYSA for me and nothing more.

coolhate18

Taking my money out and putting it in a HYSA is the best idea ever

FomBBK

Park it in a HYSA. Look for 3.8% or better. You'll earn about $7,600/year without the risk of loss.

Alarming_Ad1746

HYSA. Not buying any equities until things stabilize. Could be a while.

adminsarecommienazis

With short term bond funds, you're basically just getting monthly payouts like a HYSA as those bonds mature, and that .3-.4% drop is from a dividend payout. With a short enough duration fund like sgov, interest rate changes won't really impact bond value, just future returns. If you are expecting a prolonged easing cycle and trying to profit off of it, you should go for longer duration bonds, as you'd already be locked in at 5% as interest rates are declining. But that implies that long-term rates will go down, which isn't 100% guaranteed to happen.

Ok-Technician-8817

If you truly think “this time is different” then you have a rare opportunity to use your Nostradamus-esque foresight and pull your money out of the market and put it in a boring HYSA until very-bad-orange-dictator-convicted rapist-orange-Hitler leaves office.

Scary-Ad5384

It’s really about having enough money to live comfortably which is the real definition of wealth. Since you’re close to retirement would a 10% sell off delay that? I’m retired for 15 years and could just shut it down and live off HYSA. That said I’m still about 89% in stocks. My fear gauge on tariffs is about a 3 out of 10. Do you have wealth? If not chill for a month or so.

fuzz11

There’s absolutely value in bonds and HYSA’s… because those actually generate value for you. A dividend in itself neither creates nor destroys any value.

24bean62

HYSA.

PatrioticPig007

25 years old. Continuing as normal. Broadly diversified mutual funds. Keeping large amount of cash in HYSA as an emergency fund in case job market gets rocky, but my industry/role is relatively secure.

burn_bridges

31 year old here. I have 70% remaining in market, and 30% on the sidelines in short-term CDs and HYSA

Madismas

Yeah, like why not put 20% into a HYSA and buy the dip your certain will happen?

FreeSoftwareServers

Don't listen to this person, My guess they don't even own a home or at least aren't a landlord. I regret becoming a landlord and want out, partly because life changed and I might move. Long story short, this guy doesn't know your story nor do I, but any blanket statement like "Don't sell your home" is bad advice. For example, I might ask where you live, are you still gainfully employed and could re-enter the market if you want? Is now an okay time to sell in your market? PS: I've been wheeling MSTR pretty successfully, just had my calls assigned due to recent jump. It's hard watching them get called away when I could have probably sold for more but I've been selling calls for a few weeks since going assignment and didn't get called away till the 3rd calls sold.. Definitely came out on top! I think a mistake I've made in the past is jumping right back into selling puts, this time I'm going to maybe wait for a dip and then sell a put. Another user mentioned SGOV, and while I wait for a dip I actually am moving my funds into SGOV. I like having as much of my capital as I can in my brokerage and you can treat SGOV as collateral for margin. So if I get assigned, I might sell some SGOV to cover margin vs paying interest. I would recommend this over HYSA as long as you have the ability to "look at those stocks as HYSA".. GL, That's a big move but, sounds like you've thought it through and big moves can have big rewards!

madrox1

HYSA

Chipofftheoldblock21

I have no crystal ball, but having gone through a few of these, and working in finance, the numbers for Q2 are going to be not good (at all). I don’t know how the markets will react to that - it might be priced in already, but I don’t think so. They might also pass another “tax reform” bill before then, which of course is a sugar rush to the market (and the prospect of that and deregulation is why markets went up when he was elected). But I feel pretty confident they’ll be lower mid to late August than they are now. Which is why I’m at my largest ever hold in cash in a HYSA. Though I still have plenty in the markets. My plan is to wait until then and then DCA back in. It may continue to go down after that, but I think the short term likelihood is much greater to be down, not up. And I’m getting a decent return in the HYSA for the time being. Just playing the odds.

GenMassilia13

I use a private wealth manager because I don’t have time to manage my portfolios, buy/sell on time, deal with private equity, make money transfer to family, manage the cash/HYSA/T-bill, manage the TLH… I pay 1% for it. The main point for me is also to not act on emotions and sell or put my portfolio in bond or something else every time there is an event like tariff or volatility.

Public-Baseball-6189

HYSA and money market for me. Occasional day trade but mostly keeping powder dry.

Mrvonblogger

50% HYSA (house down payment + emergency fund) 50% in the market. I sleep good at night.

Threatening-Silence-

I don't understand that if I have some Euros I can put them in a HYSA and earn interest on them? Holding fiat has a return, assuming the central bank interest rate is above zero. Are you a bot?

Pikajeeew

??? What are you even talking about. A HYSA account yield is beating inflation lmao. And beating equities. “Dollar at its lowest value” - you’re quoting the FX market for USD which is dumb as hell in this instance.

NYGiants181

My costs are fixed. My groceries are fixed. I buy what my budget dictates, and never spend over that amount no matter what. Worse comes to worst I eat less. The rest is in a HYSA. I'm stacking, regardless of what the dollar is right now. It was the same price (worth) as it is now less than a year ago, and then a year before that, and then a year before that, and then two years before that. For me (and prob alot of other people) the stress and anxiety ain't worth the possible gains of this insanely volatile market. The cost to benefit ratio right now just is too much.

Shoddy_Watercress_20

how The Dollar is at its lowest value. Your HYSA is getting destroyed by inflation. Houses in my area went up another 10% the past 2 months.

thonda27

So I have 2 accounts, I keep my cash in Marcus HYSA and Vanguard MMA VUSXX. Between the both gives about 4%. When I get a referral for Marcus, get a .25% for 3 months. They are also offering 14 months 4.4% CD. Just might do that too.

Ornery_Enthusiasm529

Made my IRA contribution for 2024 is this recent dip, I’ll make this year’s contribution in the next dip. And then I have about 15% of my investments in HYSA, and hoping for a big drop to plunk that into the market- half of that will be some vanguard mutual fund, half in big name stocks. Not sure how long I’m willing to wait for that big dip- that’s the gamble.

Train3rRed88

My HYSA is doing great lol

yodamastertampa

HYSA CIT bank 4.2 FDIC insured

Stitch426

The HYSA account is an okay example. They could also contribute to their 401k and if there is an employer match of any contribution at all- they’re making money. They could also put it in a Roth IRA for tax free growth. They could put it in a traditional IRA to lower their income tax levels. They could also put money in a HSA for medical expenses or in a 529 for college education. Paying 3% isn’t a big deal as far as interest is concerned when you can easily get 4% or greater that can start compounding and have tax free growth. A lot of times people throw out that they can double their money every 7 years on the stock market. So you could spend that 60k on a mortgage or risk it and potentially see 120k in 7 years. You could of course take the safer option and just do high yield dividend stocks with no NAV erosion, bonds, TIPS, etc. If you’re outdoing inflation and taxes above that 3% - it’s an easy choice. If you don’t think you can beat it make an extra payment towards principal and then use the same amount of money to get CDs, TIPS, or whatever. If you can beat the HYSA rate and feel good about risk level - go for it. Just don’t put all your eggs in one equity, bond, CD, country, sector, etc. People build CD ladders, bond ladders, and treasury ladders. They invest in growth stocks, value stocks, blend, small cap, international, etc. Right now in the volatility, every day I have some stocks and ETFs green and others red. I can invest more on red days to bring my cost basis down if I want to hold them long term or I can sell green stocks if I think they’ve run out of runway for much advancement in the future. But making $5-$250 a sale on a green stock is better than holding the bag for months or year if they tank after a tweet. So I’m going for stuff that can probably weather the tariffs okay, but if I can’t get out in time- they will most likely rebound and I’ll be okay. Won’t know for sure of course, but I have a lot of diversity to help.

CasualThomas3

I mean I understand to pay the cc off no brainer there and the car payment off but if you have the money in an HYSA why not pay it all off? At an investor stand point I understand don’t pay the mortgage off borrow more money if you see a potential good investment but if you’re just a regular Joe why not pay it all off?

yodamastertampa

CIT bank HYSA is at 4.2

aBloopAndaBlast33

Right now that HYSA is probably getting 4% annual return. That doesn’t look to change much in the near future. If for some reason that drops to 0-2% then sure, pay off the 3% mortgage. BUT, if the HYSA drops that low, there is a good chance you can refinance and get a 2.5% rate, like most of the country did in 2020-2021. It’s all just a math problem.

jpcarsmedia

I had about the same net worth at 29. You're fine, but in a few years, need to try and up your income to break six figures. Doesn't need to be right now.. Even with a higher salary, live exactly the same. Also, that's a lot of money in a HYSA vs. invested, but in these uncertain times might be fine. If your family has your back in an emergency, don't need to hold that much cash and invest a little more.

ajamirov

You're all forgetting one simple thing. If he managed to get to 2.5M using whatever the strategy he used, it's highly unlikely that he'll abandon it to live simply off of interest accruing in HYSA. People generally don't change their ways especially for no apparent reason

D_Wand

What to do with $350k in MM 37M, married with 2 kids under 3. Sold a rental property and left with $350k after tax which happens to coincide with amount remaining on primary mortgage. Currently sitting in FDRXX yielding a little over 4%. Have about $1.8M invested elsewhere across retirement and taxable brokerage accounts ($500k actively managed/$250 low cost index funds) and $100k emergency fund in HYSA. Moderate to high risk tolerance in general. Question - is it silly to keep the $350k in MM just to have peace of mind that I can pay off the house just in case I lose my job? No immediate issues with job, but tech sector is very volatile right now, so planning ahead.

Charming-Fig-2544

$2.5m in a 4% HYSA spits out $100k annually. Six figures in passive income.

__redruM

Taxes and inflation break the HYSA approach. Assuming 4% HYSA, with 3% inflation and taxed at 20%, before inflation, and it’s like 1%. Still better than TSLA.

Socrateeez

Even 5 year t bills have a lower return right not than a HYSA from some of the bigger players like Wealthfront. Unless I don’t understand those, they don’t seem like great investments

_pawnee_goddess

You have millions but don’t have a HYSA? Forgive me, but this sub is going to find that very suspicious. HYSA means High Yield Savings Account and it’s extremely basic. It’s a savings account that yields a higher percentage of interest, currently about 3.8%. It seems unlikely that someone with as much money as you say you have wouldn’t have stored it in a HYSA from the get go.

Hoplite99

You’re set for life and have the freedom to choose. Is peace of mind more what you’re looking for? Take your cash and throw it into a 4.+% yielding account and just live how you do now. You should never have an issue with money. If you’re more comfortable with risk, you can take the passive income that exceeds your expenses to build up assets. With your cash flow and starting cash you could afford advisors/managers to help and take the pressure off you and your husband. Will hopefully net you higher than a HYSA while still being low risk. I’d also look into getting some legal and financial help into what assets to put aside for your kids so that they can be set up for success in the future (trusts w/ investments or real estate, 529s, etc.)

Gleneroo

HYSA is here https://www.investopedia.com/articles/pf/09/high-yield-savings-account.asp I don't understand why people make fun of you and are not helpful.

Head-Recover-2920

Get a financial advisor. There are a lot of safe places you can put your money. If it were MY money; 60% MARKET etfs 30%safe bonds 10% HYSA for emergency or future investments

CryptoRaffi

What is HYSA? Sorry 😞

Santa__Christ

HYSA can't lose!!

reebokhightops

The memes you get from a HYSA aren’t half as good.

Danris

Next time can you just gice me the money? I'd be more than happy tobthrow 2 mil at a HYSA and retire.

EvilDavid0826

Bro its like 110k a year if you just throw it into a HYSA, dont even need to invest lmao

jonathansj

U got 2.5M and u just pissed it away like that? I don’t understand. HYSA 4% interest would’ve been more than enough for you. I don’t understand

enthusiast83809

5 x 5K in HYSA is solid. You could throw some in bonds or funds for a bit more return, but dont go too crazy with the risk

BeastM0de1155

$200k in a 4% HYSA yields $8k a year. Not too shabby

ZookeepergameFew8332

I have another question regarding this. I currently hold my cash in either SGOV and Schwab’s HYSA for various reasons. What if Powell does the projected 2-4 rate cuts this year? Would it be a wise strategy to put a big chunk in a one year CD at 4.x% to lock in that rate if I anticipate cuts coming? Anyone else looking at this? I live in a state with no state income tax as additional context.