Reddit Posts
What is the best way to invest 300k without significant risks?
What should I do with the money I have and what are the next steps in my financial journey?
What should I do with the money I have and what are the next steps in my financial journey?
Experience with Private Alternative Funds and P2P?
Assuming interest rates will come down in the 2024/2025 time frame
How do I convince my wife that she is keeping too much in HYSA?
HYSA Or REIT not sure which one is the better option. Please see description below.
I have an infant and two year old and want to take the family on some sort of awesome vacation when they are old enough to appreciate it, say 7 and 9. Would creating a brokerage account for a specific ~6 year goal make sense?
What to do with $300,000 just sitting in my checking account?
I feel like I’m leaving so much money on the table. Talk some sense into me.
Choosing between a CD or HYSA to allocate 15% of investments..
Thoughts on 31yo investment portfolio - big pay raise next year and questions
Is it worth holding money or paying off an auto loan?
Short term investment/ saving options to financially support parents
Maxed Roth IRA 2024.... invest or save money held for 2025 Roth IRA?
What "asset class" has the lowest IQ investors?
Where to invest 10k leveraged from CC cash advance (5% fee)?
400K investing advice with keeping it safe as only condition
Any HYSAs that are still offering 4.5-5.5% APY other than Marcus?
I have 60K sitting in my bank account and my salary is 60K. HYSA vs ETF vs ??
Reinvesting $30k in HYSA - are T-Bills my best option?
Reinvesting $30k from HYSA - are T-Bills the best low-risk option?
Looking into CDs, but I need an explanation on if I am understanding this correctly
Can a non-guardian set up a savings/brokerage/HYSA account for minor?
Possible opportunity of a lifetime that I'd like an opinion on.
42M - Seeking Insight on My Investment Strategy
British expat living in the US. Thoughts on my investing and saving strategy
Is my retirement outlook reasonable or is this out of sight?
Starting first "real" job after graduation soon and plan on maxing my Roth IRA Contributions and enough to get my employer's 401k match yearly. I'm looking at possibly buying a house around next spring and am contemplating whether to do something safer like a HYSA or throw it in index funds/etfs.
I am afraid to stop contributing towards my investments to build 6 month emergency fund because of my portfolio manager
British expat in the UK, want to run my logic past some 3rd party people
Where should invest $125,000 as a 25 year old in 2024?
Back in 12/31/1999, I was short YHOO.......then this happened
Back in 12/31/1999, I was short YHOO.......then this happened
Where to park money for a down payment for about 1-1.5 years?
SPAXX (MMF) vs Marcus by Goldman Sachs (HYSA) Which one should I use?
Investing When Young is Always Suggested, But How Do We Know Market Will Be Strong in The Future?
Dump in large amount or slowly add into holdings?
What are your views on moving out of cash investments and into bonds, etc. at this point in time?
Investing advice for moving around 100k into ETFs
Schwab vs E-Trade vs SoFi vs Robinhood for Trading Stock
Is maxing out my Roth IRA towards the end of this year worth it?
One Year Rolling “Escrow” Investment Strategy Feedback
Max out 401k, pay off debts or keep in HYSA for down payment on a house?
How to DCA a large sum of cash? How long is too long to space it out?
If you were gifted $50,000, how would you divide it up between S&P500 and HYSA?
If you were gifted $50,000, how would you divide it up between S&P500 and HYSA?
SGOV a good place to hold cash for liquidity?
Mentions
Idk man, i’m pretty sure that this is the life of a safe “investor”. I just stick all of my extra money in RH Gold, using it as a HYSA. You can see exactly where I messed around with options before realizing I should not be such a regard. Now it’s just slow and steady, until I grow big enough balls to put it in the stock market. Maybe after the current administration leaves and things are a little more stable…  https://preview.redd.it/os0mgczf118g1.jpeg?width=1275&format=pjpg&auto=webp&s=821ec0fafb05011861971a06de2d02e699f69607
Idk man, i’m pretty sure that this is the life of a safe “investor”. I just stick all of my extra money in RH Gold, using it as a HYSA. https://preview.redd.it/toonrfhx018g1.jpeg?width=1668&format=pjpg&auto=webp&s=d45543c410a4d3e95935de7b10d101d62e38099c
I sold a house in 2021, expecting I’d buy again within a year. I waited too long, and the door slammed shut. Instead of gambling that equity (which buying another house immediately in late 21 or early 22, on felt like gambling) I just stuffed it into HYSA. 5 years later now, almost, and it’s come in handy.
\> currently have about a 16-month emergency fund, which feels excessive given that my job feels very secure Ab emergency fund should be considered different than "cash". An emergency fund is for emergencies. Cash is a savings choice instead of making investments with risk. Set aside you emergency fund, then compare your cash to your invested assets. \> how much would you keep in cash (checking/HYSA) versus put into investments? Doesn't matter. I'm not you in your circumstances. The answer for everyone should be different.
>more liquidity outside of the market and always DCA your positions. So maintaining a chunk of money in cash equivalents like a HYSA or mmf which have short term bonds as their underlying assets? And when you say dca do you mean a consistent investment amount and rate or would you change based on market conditions? Having "liquidity outside of the market" is having a chunk of your portfolio in an uncorrelated asset class just like the other person's 10% bonds and 5% precious metals. The difference is the return you get on that portion and how you decide when to dump that liquidity into equities. If you're waiting for a dip you're relying on predicting the future, that you won't dump it all in at the very beginning of a downturn or hold back and miss the bottom. If you'd keep investments in equities consistent regardless of market conditions you're just maintaining that cash allocation that's whatever portion of your portfolio. It's delaying the timing of investments in equities with no predictable benefit but having a chunk in cash will obviously drag down your overall return. If you put it in term of a percentage of the total and rebalance regularly to maintain that percentage then you're taking a small amount of gains as equities outperform and safeguarding them in a low volatility asset and when equities underperform you're boosting your investments in equities and it's all proportional to the difference in performance between the asset classes so you're not relying on what you thing is going to happen. This has a negligible impact on average returns in absolute terms, but a significant difference in risk adjusted returns. Basically it flattens the peaks and valleys so you'd have a faster recovery in a downturn.
i’ve used wealthfront for a while too and totally get the appeal the ui, automation, and all that. as a stock though, i’d be cautious. fintech’s great until the market decides to punish it for slowing growth lol. i’d prob let it stabilize a bit post-IPO before buying heavy. also yeah, their HYSA is nice but not always the best rate i check BankTruth for that.
I had a bit over $100k in HYSA and just shifted it over to Fidelity in a premium govt MMF (FZCXX) and then put 70% of that into VT and left the remaining 30% in the MMF for now (it's still earning more than HYSA was).
At this rate HYSA will out preform
Keep it in an HYSA for your impending lay off
NVDA on track to underperform a HYSA
Love this plan honestly. A lot of parents overcomplicate it but just doing consistent S&P 500 investing will set him up so well. You could open a brokerage in your name and later gift it or add him as a beneficiary. And if you’re parking money short-term before investing, BankTruth is great for finding solid HYSA options.
You gambled, not invested. Nothing can be done. You took a risk and it didn’t go your way. I would take what $$$ you have and put it in a HYSA or Money market account for now and research what real investing is and not gambling.
It’s funny because SPY is up 16% YTD and a HYSA even beat them. But they learned something apparently.
Have no idea what you're rambling about. I was just refuting this dumbass statement which is objectively false: >Because HYSA have outperformed BTC if they bought the 2021 ATH and held through today. It literally hasn't. But if you're trash at math I can't help you, I'm sorry. Unless you say something substantial and not nonsense, my last response to you. I'll gift you the last comment, best of luck.
DCA into HYSA r/smolppinvesting
Because HYSA have outperformed BTC if they bought the 2021 ATH and held through today.
Hey everyone! I started up a brokerage account recently (21M). Along with a Roth IRA and HYSA. I’m still very new to investing, and specifically what to invest in. My goal is to use these investments for the long term, to just build wealth to my name for years to come. Some people I know invest in higher risk holdings to hit some home runs, but I want to shoot for singles and doubles. I have kind of a rough draft allocation setup based on my ideas. I really like the zero fee Fidelity funds. I’m going to use that as my core. I know overlapping isn’t necessarily bad? But I don’t know too much about it, or the specifics on how it could hurt/harm a portfolio. I know SPYG and FNILX, but I think it should be okay? Any advice or tips on my allocation or holdings would be greatly appreciated, thanks everyone! I’m thinking 55% FNILX 20% VXUS 15% SPYG 10% FSSNX
totally depends on your risk tolerance, but with a 1-year window I’d stick with something simple like a top HYSA or treasury ETF. BankTruth is great for comparing the latest savings and CD rates if you want to maximize yield without locking it all up. personally I’d skip the stock market one bad quarter could wipe out your gains before you’re ready to buy again.
1 year is HYSA. If you want to bet it all on black, I'd go with SOXX, QTUM, or RGTI.
Why work you life away for a house only to take a risk with the profit at all? SGOV or treasuries, higher yield than a HYSA, almost state tax free, about as low risk as it gets without just leaving it where it is.
Upskilling is a big one. If you’re sitting on so much cash you can easily pour some into yourself. Learning a language, swimming, life skills etc. Another one is automatic savings(HYSA) and ETF investing. Doing it without thinking about it was such a hack for me
Yup… in this environment a HYSA or treasuries are the best option
Wonder if he thinks about how much he'd have today, if he had just put it into a HYSA? https://preview.redd.it/uyqkwlts5f7g1.jpeg?width=32&format=pjpg&auto=webp&s=7469d7a098314845f53f3df3cb226cc36b7e3f66
Honestly with a 1–1.5 year timeline, I wouldn’t try to get fancy at all. Even a moderate risk portfolio can easily be down 10–15% in a bad year, and that’s not a position you want to be in with house money. HYSA, money market, T-bill,s or a short CD ladder make way more sense. The return won’t be exciting, but the goal here is capital preservation, not growth.
Moderate risk to me would be like 80-90% SGOV, 10-20% VOO. Maybe even a little BTC, because I personally wouldn't put all that equity into a new home, but depends on your plans in 1-2yrs. Low risk to me would be 100% SGOV. I wouldn't keep it all in HYSA, that sum is over the limit of FDIC protection and there's tax benefits to SGOV.
Alright so *low* risk not moderate. I mean realistically, just keep the $$ parked in a money market, HYSA, or lock in a CD for the next year or so.
For a period of time so short, there is no better solution than HYSA, treasuries etc
With a 1-1.5 year horizon I'd go with a HYSA, money market, CDs, or whatever other zero risk option you can find with the highest interest right now.
5 years is short. All-SPY is risky if the market dips when you need the cash. Better: a balanced mix (e.g. 40–60% stocks, rest bonds/T-bills/HYSA) or a target-date fund around 2030. De-risk as you get closer to purchase.
Emergency fund around 5-6 months of salary in HYSA yes
This is pretty solid advice - with 5 years you definitely don't want to get too aggressive since you'll be pissed if the market tanks right when you want to buy. Maybe even lean heavier on the HYSA side since car prices can be unpredictable too
What do you have the money that you need doing? Just sitting in HYSA?
How are they opportunities when you're 100% invested + emergency fund? Do you "buy the dip" with your E-fund? Do you have some % of your investment cash in HYSA just to buy the dip? If so, why? That cash would just be sitting there waiting, and missing out. Dips being buying opportunities are great for people who only spend <50% of their income and bankroll the rest, I guess, because you'd always have new money at the ready?
Are you definitely buying the car in the next 5 years and not willing to walk away from buying if the market tanks during that time? If so, put all of it in HYSA since you are spending it imminently. If you are willing to abandon the whole car idea if the market tanks, throw all your car money in VOO and hope it grows. More upside, more risk.
It’s in long term stocks and ETFs. Stuff that I wouldn’t touch for a very long time. I don’t carry much in HYSA just an emergency fund to cover expenses if I need to tap into it.
There is a principal in math called the "Central Limit Therom." It basically states that the more you average numbers, the more likely you are to get a bell curve result. We don't talk about it much in investing, but we do talk about the results frequently. For example, if you invest in an index fund for 3 months then, statistically speaking, it's a crap shoot if you'll get big gains or big losses. If you hold for a year then there's still a wide range of possible results of big loses or big gains. If you hold for 15 years, then you're practically guaranteed to get the average, give or take a couple percentage points because you're averaing so many different years. That's why conventional wisdom is to put short term savings in HYSA/bonds/etc and long term savings into stocks. If you DCA then you're doing even more averaging. A couple of other notes. Most people will DCA into retirement accounts, and DCA back out. (They don't pull out everything the day they retire.) So average returns are a fair metric for them. You mentioned the scenario of pulling out everything with a one day notice. Emergency funds are commonly recommended to avoid that very scenario.
I tend to think of gold as a different bucket than stocks, not a replacement for them. It’s not a cash-flow asset and I wouldn’t size it like equities, but it’s been useful for me as an alternative to excess cash sitting in an HYSA. When cash gets larger than I’m comfortable with and I’m not ready to deploy into stocks, real estate, or a specific opportunity, metals feel like a reasonable store of value with different tailwinds than risk assets. In that context, a **single-digit allocation within an otherwise productive, growth-oriented portfolio** makes sense to me at this stage. For me it’s about diversification and optionality, not trying to outperform equities.
The answer really depends on what you want from your brokerage account. In my case I wanted to retire early so I nested in the brokerage account to produce dividend income to provide income I can use now. I am not waiting until age 60 for my retirement accounts to become available. Others want dividend income to cover expenses case they loose their job or have to take extruded time off due to a medical issue. Others just want emergency savings earning returns significantly higher than HYSA. For this a growth index fund is a good choice. It also depends on how fast you want to build the brokerage account. If you want to build it fast it may make sense to reduce your 401k contributions and increase brokerage contributions.
I see. Yeah, SGOV is 4.4% YTD return and I don't know of a HYSA that's over 4.5% APY without some sort of temporary bonus. I've only seen JAAA suggested in other posts about SGOV. RN I only have under $20k in SGOV, so not enough to make a huge difference in return, and Im slowly teaching myself and asking kind folks like yourself about my options. I just need a reliable return for whatever cash I have saved
HYSA or CDs might be safer if you absolutely need that 20k available when season starts. Tbills are solid too but just make sure the timing lines up with when you need to pull it out
the point is that it is difficult to DCA for 10 years when you have seen no returns for years. With the power of hindsight, yes it's easy to say just DCA. People will start using HYSA and investing in RE or other investment strategies other than stocks. Its easy to say DCA with the power of hindsight. But in the moment, its tough to stay disciplined when you are making less than HYSAs.
I'm projecting onto OP, but I would also like to know if SGOV is a good "HYSA alternative" for 2026, or if JAAA or something else functions better? I wasn't going to chase APYs, so I switched to SGOV. I should have a 401k or more diverse investment portfolio, but work has been sporadic the last few years. I'm just trying make cash I have do some work too.
you know it was one of those days when the ticker $HYSA shows up on the board
A HYSA here only yields around 1.5% I believe, but not 100% I believe in the US it's more around 5% right?
Noob here. How liquid is SGOV if I wanna use it as a HYSA? Can I buy SGOV today and sell it in two days without any losses? I believe the interest accrues daily so if I sold it I’d just make a few cents right? Or do I need to time the sale of SGOV to make sure I don’t lose money?
This will print. Lower prime rate. Bond rate floats at 4.9 and HYSA pinned at 2.5.
Hello everyone! I am currently debating what to do for my investment portfolio in 2026, and am debating between 2 options. Sorry for the long post. To get this out of the way - yes, I expect a significant market downturn in 2026. Yes, I definitely also think it is very possible for there to be significant gains as well. I’m not trying to debate this point here, though it is fascinating it has been asked and debated a million times and nobody knows the answer. Instead I am looking for feedback on my thought process which I have outlined below. Are there any big flaws here? What have I not considered? Am I a raging idiot for forgetting something important? Probably. Thanks a lot for taking a look and any feedback! **General plan** * 10-20% immediate shift to HYSA (assuming 20% hereafter for simplicity) * Currently \~66% VTI, 7% VXUS, rest individual stocks. * Rebalance portfolio to even more heavily focus low-risk ETFs, deprioritize individual holdings, potentially increase VXUS(?) **Debate:** * **Note:** I previously harvested gains in 2024, and rebought on Dec 30th, so my window to harvest gains in 2025 is about as short as it can be * *Option A) Harvest all gains Dec 31st, immediately rebuy 80%* * Locks in 100% of gains, also minimizes advantageous sale opportunities through 2026 due to short term capital gains * *Option B) Harvest only 20% gains* Dec 31st * Maintains option to ladder sell further through 2026, keeping LTCG rates **Other Considerations:** * I do have a \~6 month emergency fund in a HYSA. * Assuming no layoff, I am putting money monthly into a retirement account that is 100% FXAIX. I plan no changes for this account. * I expect to make more $ in 2026 than 2025, and am right around the 0-15% transition income for long term capital gains (after factoring in all income sources and standard deduction). * This would indicate that harvesting all gains would be good to do this year. * However, layoffs are currently abundant and while I feel no personal current warning signs, I do not assume to be immune here. A layoff in the first half or even 3rd quarter of the year would strongly incentivize harvesting gains during the 2026 year instead.
Jerome stole your HYSA, gone are the days of making 5% on your savings account. You will make $3 a year now and you will like it. God forbid you have a safe place to make a decent return on your money, nooooo we have to make it easier for the AI bros to borrow half the US GDP and then waste it on nonsense.
FYI - yields are expressed as annualized. So - it's 3.6% per year - not per month. As for why it's no use for me - it's because I can generate a higher yield on cash using investments with similar risk profile. Also - my own personal financial situation allows me to ladder fixed income maturity along the yield curve. And I adjust the credit risk and interest rate risk based on my own personal risk tolerance and future expectations of the interest rate markets. These are more complicated cash management concepts which may not be worth the effort for everyone - but it works for me. Lastly - I am an active trader - so having my cash in a brokerage account allows me to use certain types of leveraged strategies. That said - for a non-trader - the benefit of using a brokerage account is access to a broad range of low risk fixed income products. For example - for an investor that lives in a state with income tax - interest from a HYSA is a state taxable income. But if the cash was invested in ultra-short duration treasuries, government money market funds, or government ETFs, the interest from those funds are state tax exempt. This provides a much higher post-tax yield. A simple example is having a Fidelity brokerage account. Fidelity has a feature where cash which is not invested is automatically swept into a money market fund - the money market fund currently has a yield of 3.62% and the interest is state tax exempt. Many investors may also simply park their cash into government funds like SGOV which currently has a yield of about 3.7% which is also state tax exempt. For high-income earners in high tax brackets - the investor can use state muni funds which may be both Federal and State tax exempt. This may provide a much higher yield than a HYSA, Lastly - interest rates change. And a bank can change the interest provided in an HYSA at any time. For example -you mentioned 3.6% - HYSA's were offering more than 4% in the recent past. If cash was in a brokerage account - an investor isn't locked into a specific bank savings account product. An investor can simply more the cash into a different fixed income investment easily. That doesn't mean that having a HYSA or bank savings account is useless. It has it's benefits. But it's tied to the services and features of the bank or credit union that is offering the account. A HYSA and brokerage account can generate interest on cash. But as financial products - they serve very different requirements. There are also very different regulatory and safety nets between banks and brokerages. That topic may be too complicated if you are inexperienced, but you can find a lot on this subreddit about disucssions about how safe it is to hold assets in a bank vs brokerage. There is a lot of misunderstandings about how it works - but there are legit differences.
Lord, why did I start investing. I’m just gonna cut my losses and put everything in a HYSA…. This market is BS
Next business day is liquid. Use HYSA, it is more convenient. Convenient money tends to be spent conveniently. Best of luck.
There's not a single investment on this planet I would make if I needed the money in a month for high interest debt. HYSA or money market fund.
this is super helpful! thank you so much!! Do you use brokering accounts mainly because the return is higher than HYSA? When you say it serves no purpose, I am trying to understand the ‘why’. Putting in 10k in a 3.60% HYSA, gives you $360 pay back in interest monthly. Why is that of no use? Maybe i’m just not understanding the benefits that are possible with brokerage accounts.
Now that they're going to be printing $40 billion/month, raising inflation in the process, it seems I should take most of our cash in HYSA and put it in VOO or something for now.
Sorry about not being clear and causing more confusion. Whether a HYSA is right for you or not is dependent on what type of financial services you need from a FI (financial institution) and your personal financial situation. I personally have no use for a HYSA and they offer no value to me and my families situation. A HYSA is a bank savings account. That is very different than a brokerage account. Both serve different purposes. And they work very differently and they are regulated differently in the US. Brokerage accounts are for investing. And you can invest in anything from safe risk-free interest rate products like US treasuries and money market funds to highly speculative and leveraged derivative products like options and futures. Bank savings accounts are just what it means. It's a way to put cash into a bank for safety and savings. In some cases, you can get interest at the prevailing risk-free rate. The term "risk-free rate" refers to the rate that considered risk-free for some measure of time. The hypothetical proxy for the "risk-free rate" is considered US sovereign debt. Most often - the 3-month US treasury rate is used. As of today it's about 3.74% but will vary daily. Or sometimes the SOFR (secured overnight financing rate) which as of today is 3.93%. Since the Fed cut the Fed overnight rate today by 25 basis points. Short term rates will likely adjust down. It's called "risk-free" because because the interest rate markets consider US sovereign debt as having a smallest risk of default for US domiciled investments. As for brokerages that are considered well respected - the usual ones are the big ones like Schwab and Fidelity. Look through the subreddit. However - many major bank holding companies that offer bank services also have brokerage businesses which can be convenient like Bank of America/Merrill, Morgan Stanley/ETrade, PNC, Wells Fargo, etc. etc. Your choices really depend on the type of services that you need. If you are inexperience, I recommend you stick with FI's that have very good customer service with phone services. And ideally with a branch that you can go to if you have issues. Hope that makes more sense. You can scroll up - look at the Getting Started link for investing resources.
also why are brokerage accounts risk free rates? Aren’t HYSA also risk free? Do you recommend getting a HYSA at all?
Search through the subreddit. Personally, using a HYSA which is a bank product doesn't really make sense for your use-case. It normally would be better to just keep your emergency fund in a brokerage account which can get you a better yield at the risk-free rate. If you need a checking account - look at brokerages that have bank subsidiaries or banking features with sweeps.
9 months is a pretty short time frame. Wouldn’t recommend you put that into stocks. If you wanted slightly more risk and return than a HYSA you could go with SGOV. Or you could put a fraction of the money into the stock market according to your risk appetite.
You can roll 529s into a Roth IRA if they don’t end up going to college. This is a great option for wealth building for their future since they can’t touch it until retirement. I would potentially create a separate account HYSA or brokerage so they can use funds in their earlier years to buy and house or pay for something important. I think have 2 different account with different purposes is the best way to diversify since you don’t know what their future will look like.
Why anyone compares AI to the [dot.com](http://dot.com) era is beyond me. AI is real. That aside, there is roughly 7-8T sitting on the sidelines right now in money market, HYSA’s etc. Where is that money going to go when interest rates get cut?
HYSA @ 3.85%. Safest option for now.
I did the same thing but mostly because I was sick of dealing with stocks and didn't trust the market and finally had enough money to afford some CDs so I put it all in there instead. I have some fluid money in a HYSA in case the market does crash any time soon and I want to move back into stocks and that's where I'll be putting future savings until I can afford CDs. But I also have zero interest in learning about the stock market, zero interest in dealing with this economy, and generally just don't want to think about my savings at all anymore. CDs felt like the best set it and forget it plan. Its probably not the "best" plan by any means but any better plan requires me to be wayyyy more involved in managing my money and way more risk aware than I'd like to deal with at the moment. I'm only 27 and have a fantastic 401k through my job so I figured I have time to worry about investments later. I just have no urge to make the wrong call and lose everything when I could just lock it up for awhile and come back in a few years to more money.
HYSA will get you 5% while you wait to get comfortable again
I know what a HYSA is, but didn't know what a MMF was until I Googled it. Now my boss wants to talk to me about my computer.
Hey All, I am looking to getting a High Yield Savings Account (HYDA) and wanted some help choosing the right one. Ideally, of course I would want one with the highest % APY, but also flexibility in allowing me to withdraw at least 6x/year in case of emergency’s. Also, another HYSA account to use as my household monthly mortgage to draft out of once a month for 12/year. Which banks/accounts do you all recommend? On a side note, I am just learning about Brokerage Accounts, Mutual Funds, CD’s, Stocks, bonds, REITS, etc, do you recommend that I look into these as well for investments and which one?
I always just assume that when people say cash they mean a MMF, HYSA or treasuries with a 4% interest rate. Are there people actually parking money in a checking account?
HYSA is a good choice better than making.3% a year on amazn
Ditto! Unless your risk appetite is huge, there's no point in running after individual stocks. For me it's more like 80% SPY, 10% HYSA, 10% individual stocks for fun :)
for your situation i’d avoid high risk. put the 5k in a solid HYSA for now. i always compare them on sites like banktruth since rates jump around a lot. later when things calm down you can start investing in VTI or VOO little by little. stability first, growth later.
Safe, liquid, high-yield: pick two. You’re asking for a risk-free premium that doesn’t exist. If it did, institutions would have already arbitraged it away. Stick to the HYSA; trying to beat 5% safely is a fantasy.
Money market funds often have comparable, or higher, returns than a HYSA.
Undoubtedly if you're full ported into something and it drops 30% youll lose more than youd have gained in a 4.5% account but, the whole trick is not being full port and actively managing these positions. Its 2 different things. You shouldn't be overleveraging to the point that SPY dropping 30% would kill your port. If you cant afford 60k for SPY csp, with that being a small percent of your port, I dont recommend it, yet I dont understand how that would make you lose if conditions are met? If you continue collection premium through a 30% dip, and continue selling on the rip, youll have more than youd have just sitting watching in a HYSA.
Again, you're calling out a bet that will work and has worked this year. Hindsight is 20-20. How confident are you of it repeating next year? HYSA will give fixed gains even if SPY falls by 30% next year. Everything has a risk reward profile. Saying something is inherently better is naive.
I just csp the stocks id be into buying anyways, rather than just DCA. If you can be bullish year long on the s&p I dont see any reason not to sell puts against it and come out greater than 10% yoy. Youre not getting 10% or even half that out of a HYSA, and thats with weekly / monthly csp rolling
If and when they expire OTM , sure. Keep trading them throughout the year and you'll get HYSA gains at the end of the year.
CSPs beat HYSA though
If people wanted assured limited gains, they'd put all the money in an HYSA
In-laws trying to hit me up for investing tips when all I have is "invest in the S&P 500 unless you think you'll need the money in the next decade....in which case just keep it in a HYSA....."
I know HYSA's have lower rates right now, but I'd much rather just add a new saving category to my HYSA and be done with it.
Before you invest make sure you have an emergency fund setup with 3-6 months of spending in a HYSA. If you do already just put it in VOO or VT
>Literally a high yield savings account has outperformed buttcoin this bull cycle This bull cycle started at 16k. It's currently 92k. that's like 475% (over 2 years) you have a HYSA that outperformed that? got a link?
I feel you are an emotional trader and if you invest and the market has a dip you will panic and sell everything and take a loss. You may want to put your money into a HYSA for the time being and do paper trading. It's basically real trading but you use play money. That way you can see what to expect. In your case, I would only invest in VTI (or VOO) because it seems your risk profile is extremely low.
Depends on your age I’d argue. Older = more conservative investments. Younger = just do stocks. I’m 33 and don’t plan to move towards bonds or anything besides my HYSA emergency fund until I’m 45 or so.
Aiming at risky investments for short term investment with the idea that profit is usually correlated to risk is a bad idea. Au contraire for something short term you should aim at very safe investments instead. Short term horizon means you can't afford a pullback because you can't wait for it to recover. So you should go with a money index or a HYSA. If you only have 50k its not an option but if we talk about the 200+k you can put it just in cash on IBKR and get a guarantee 3.8% per year. If you're ok with some crypto, try staking stable coins. But I think stable coins have been outlawed in europe because they think it's too risky and volatile. While meme coins are okay... Makes no sense. Other option is EURx on NEXO. Its fiat euros so it's a little more risky than euro because you need to trust nexo won't disappear with it over the next 10 months. But they give 13% per year. And its not crypto.
honestly i’d lump sum it unless watching the balance bounce around stresses you out. VOO is basically the default long term play for most folks. SPAXX is just cash, so it’s like the holding tank. if you swipe your HSA card, Fidelity automatically sells enough of the cash position to cover it. you don’t have to do anything. also if you keep your short term money in a HYSA, make sure it’s paying well… BankTruth is good for checking that.
Read my comment: I said HYSA if worried about a bubble
Gold/silver is usually the thing that holds its value and goes up with inflation. Real estate/homes as well. Grow by putting that money in an index fund or a HYSA if you’re worried about AI bubble
Hey, thanks for looking into this. Is there anything you can share from your analysis? I’ve been wanting to use this (similar situation to OP, albeit with a significantly lower sum of money!) but have avoided doing so because it sounded too much like a HYSA
Stupid question. In actual retirement, how would BRK.B be as a bonds replacement? So i really won't sell it unless a bear and to avoid sequence of returns, I could perhaps sell BRK.B for the 4% SWR instead of the typical broad markets which would be temporarily hammered (1-6 years) in a bad bear market. Such as 70% VT, 30% BRK.B instead of BND, then have some HYSA on the side for emergency.
What religion are you in? NY has a legal interest rate of 16% so usury wouldn't apply to this. So I'm sure any HYSA works for you.
Ah yeah but "profit sharing" of 4% (coincidentally equivalent to most HYSA rate) - totally halal!
If you are retired or paying bills from brokerage account assets, you should have a year's worth of money in a HYSA incase the market crashes. Otherwise you will sell in a down market.
yea I am starting to feel like the penny stock subs are very much an attack on retail traders probably best to just stick with bloomburg and do your research on stocks that have potential long term gains. I think looking for pumps like SMX is super tricky. They keep us all hooked with the wild rides from BYND and SGBX (already had a "squeeze play") but I am starting to realize just how scammy it all really is. Short plays are a fickle mistress. DCA in good stocks and it can become the best HYSA if you get lucky and put your eggs in the right basket. GL!
$50k is slightly over our emergency fund. And $25k is what we planned to just have to cover all bills / paychecks transfers. Kinda an arbitrary number and can decrease (put more in HYSA). I agree that monthly and quarterly are smart.
DCA into HYSA. Get that compounding interest. r/smolppinvesting
You can do better than a flexible account at 3.23%, and besides as the interest rates are continuing to drop. If you have a brokerage account, consider FDLXX or SGOV. They offer better rates than most HYSA and the dividends are tax exempt on a state level. If you want ever higher dividends, ultrashort bond funds like JPST or ICSH are very stable, but they do fluctuate a little and they have no tax exemption. Depending on your risk tolerance you could consider some equity based ETFs, but remember that stocks are not a safe replacement for savings, and ideally you should have 6 months savings with high interest credit paid off before considering investing in a brokerage account.