HYSA

brianxhopkins

For the average person, this is spot on. I would like to add: 1) when investing into the roth, for the love of god don't let the money sit in the money market account. That's why OP said put it in VT. Money market account is pretty fancy way for saying HYSA, so make sure to move it to an index fund (VTI/VT/VOO/etc). 2) if you're young enough, check what your 401k money is going to. Usually they set it up automatically to deposit into a lifecycle fund depending on when your projected retirement date is. I would look into the breakdown of that lifecycle fund and maybe consider switching to a stock fund that tracks the S+P. At a young age, you don't really need the diversification (bonds) yet.

zonk84

Empower used to be a lot better - but I agree it's become less useful. Fidelity's "FullView" - I notice one of your accounts is with Fidelity - isn't bad. It doesn't tend to do much with the discreet holdings in non-Fidelity accounts, but does at least track them and does let you incorporate balances/contributions for the planning options. But -- it does synch my non-Fidelity accounts (Wealthfront taxable brokerage + HYSA + Roth IRA; Chase checking + savings; Cap1 CC + MM; mortgage + CCs) pretty well without issue. It take a bit of time to set-up to use optimally -- i.e., you have to flag/allocate accounts to purpose -- but it's probably my most robust "Personal Finance Tracker".

lolyeahsure

HYSA

swishkabobbin

Why would you need help with money just because you have more of it in your account? It's more, but not any more complex. An advisor *might* make sense when you have a business or 2, a pension coming, a few homes in different states, a 401k, 403B, significant after tax pension, HSA, HYSA...you get the idea. But at that point what tou actually need is just a decent tax advisor

RagnarokWolves

You should have a 3-6 month emergency fund that is kept in a HYSA. Stocks should not be your "I need money on a Saturday night" funds.

OkSuccotash5330

Do you recommend a HYSA?

OkSuccotash5330

Thank you. I wish it was more but I’m proud of myself of actually earning that much. I wish I knew more about finances and investing. I think I need to start with a HYSA for sure.

OkSuccotash5330

Until I understand investing, would you recommend moving it to SoFi for their HYSA? Thank you!

keiye

How is that different from a HYSA?

BarefootMarauder

I recommend you start with the very basics and educate yourself before investing money into things you don't understand... Check out the wiki/prime directive in r/personalfinance. Then pick up a couple books, like "I Will Teach You to Be Rich" by Ramit Sethi, and "The Simple Path to Wealth" by JL Collins. Both of these guys are awesome. Ramit has lots of videos on YouTube and he has a mini-series on Netflix. JL has a free stock series on his website too which is excellent reading, and he's been interviewed on multiple podcasts if you search his name. As a mom responsible for 4 little ones, I would also recommend you figure out what your total living expenses are for at least one year, and keep that much set aside in safe "cash equivalents" such as a HYSA, a good money-market fund at a broker, or in an ETF like SGOV. This is your "emergency fund." If the 100K isn't currently earning at least 3.25% or more, get it moved immediately to somewhere that is at least keeping pace with inflation until you decide how/where to invest it. And that *should* be low-cost total market index funds at a reputable brokerage like Fidelity, Schwab, or Vanguard.

flyingtiger188

Any investing comes with inherent risks of loss. Some are infintesimal like US debt (eg SGOV which will be roughly similar returns to a HYSA) while others can be very high (long term holding of triple leveraged funds like TQQQ). Understand that the market has good days and bad days, and even good years and bad years but on the whole will increase over time. As long as your risk isn't too high (yolo 100% into a risky business) and your timeline is long enough to smooth out the ups and downs you will come out ahead. You mentioned that you have young children, have you considered 529s to help save some money for their education?

FlimsyPriority751

Honestly, go to Google Gemini AI. Explain your situation and your goals, and have it explain step by step what to do and to guide you with clarifying questions if needed. It will clearly lay out what you need to do.  The essence of it is to set up HYSA, then invest in broad market index funds and never pull the money out, ever. 

planes01

Well you would want to establish a an emergency fund first. At least 3 months but I'd recommend 6 months. That could be in a HYSA (Hugh yield savings account) and CD ladder. The remainder that you ideally don't touch for 10+ years can go to the brokerage. Its just an account where you can buy things to invest. In this case you would use your money to be a fund called VOO that tracks all the major companies. You can think of it as owning a small piece of all the common names (Microsoft, apple, Amazon, etc). As all of those companies grow, so does your money. When you want to access that money you sell the fund (hopefully for higher than you bought it originally).

OkSuccotash5330

Is there someone they helps with getting all This started? How do I find a good HYSA? Thank you!

aethermar

Investing in general doesn't always work. Even if you buy the most boring-ass ETFs. If someone is that risk-adverse they should stick their money in an HYSA instead

AshamedImagination50

I miss when I used to put my money into HYSA. But I had fun…. I think

hplp

Re read the original post that started this thread. The dude said you need a minimum of 10m and that is ‘seven zeros, two commas” implying that a you need all that money. Therefore he offered a HYSA as a better solution. Somehow you’ve changed all of that context to try and make your point.

Moist-Guava-732

my stock pick of the day; # SMA monthly payer 5% yield positive EPS storage never going out of business this is basically like a HYSA with upside

BlueGreenTanager

On further thought, I see several issues: You want tax-free. But nothing is tax-free. The retirement plans you refer to are tax-*deferred*. They are absolutely not going to give you a tax-free account to save for a home purchase; at best it would be tax-deferred. So you would deduct your contributions to the account when you put the money in, and you would have to pay the tax on the money when you take it out. That works for retirement savings, because most people have lower income in retirement than when they're working, so they actually pay less in taxes. But when you're still in your working years, you might well be in a higher tax bracket when you take the money out to buy your house. Even if you're not in a higher bracket based on your income, the money you withdraw to buy the house could well push you into a higher bracket. So you would very possibly be worse off financially than if you just paid the tax when you earned the money. Let's say you're in the 24% bracket right now. You sock away $1k a month in a tax-deferred "house account." You deduct the total $12k/year from your income. You save 24% in income tax, or $2,880 each year. You do that every year for the next 8 years. Let's say in year 6 your income has increased and you're now in the 32% bracket. For years 6, 7, and 8 you save 32% in income tax on the $12k you're socking away annually, or $3,840. So in years 1-5 you saved $2,880 annually, and in years 6, 7, and 8 you saved $3,840 annually. That adds up to $25,920 you saved in income taxes. Then, in year 9, you take all that money out to buy a house. Your contributions alone are $96,000. Let's say the total value of your account is $130k. You're in the 32% tax bracket, so you pay $41,600 in additional income tax the year you take the money out. Net cost: $15,680 in additional income tax. Oops. That plan kind of went sideways, didn't it? Compare that to simply investing $12k a year — let's say in a regular non-tax-advantaged brokerage account. In year 9, your account is worth the same $130k. When you take it out to buy a house, the majority of that will be long-term capital gains, and you're very very likely to be in the 15% LTCG tax bracket. Short-term capital gains tax will be whatever your regular income tax bracket is. So the first 7 years will be LTCG at 15%, and the last year will be STCG at 32%. Roughly $110k will be taxed at 15% and roughly $10k will be taxed at 32%. That's $16,500 + $3,200, or $19,700. Instead of paying $41,600 in additional income tax (on your tax-deferred account), you would pay $19,700 in capital gains tax. So, no. Your idea doesn't sound particularly great. Then there are other issues, too: It's generally not considered smart to "invest in the stock market" the money that you're saving for a house purchase in the next few years. There could be a major dip in the market when you're ready to buy, or an extended bear market, and you would lose money if you cashed it in to buy a house. Savings for a house purchase are usually recommended to be in a HYSA, not an investment account. So there's that. Even if your house-buying account were actually tax-free, not just tax-deferred, you wouldn't save all that much. The median house price right now is a little under $400k. The average down payment is 10%, or $40k. If you save $8k a year in a HYSA, you would have that $40k (plus interest) in 5 years. Add some to that for closing costs, etc., and you should still be able to save enough to buy a house 6-10 years. That's really not long enough for tax-deferred (or even tax-free) investing to really make that much of a difference. When saving for retirement, your investment horizon is 30+ years, not 10. It's not likely to be more than a few thousand dollars that you could save in taxes if it were actually tax-free. But, as I noted above, it would at best be tax-deferred, and you would be worse off than if you just saved the money up.

Evatend

If we're being honest this guy probably has much more money then he has in his play money, its just insane he would do such a thing. The reality is he could passively earn more then enough on that money regardless if he did HYSA or take out 3% annually.

crazy_akes

The problem is when bubbles pop everything sinks. People are leveraged like all hell to the megs caps so when we get inevitable recession/depression it will roller coaster hard up and down for years before settling down 20-70% from the peak and it’ll take a lot of patience to get there. Along the way people will be tempted to buy a dip and see it scream up 20% quick and pile I only or get ravaged again and again by trying to time the top.  It is a very difficult time which is why WB and those with patience just sit out. Taking less risky assets just means less upside when the balloon deflates it takes the world down though. For that reason I’m 10% speculative meme stocks 40% large caps and 50% mega cap. Rose the upside cash out at stop losses and buy in at a pre determined up amount. Can’t time the bottom and honestly if you aren’t willing to buy in during then expecting further downside you might as well stay fully invested, which would be what I’d advise most to do all along if I wasn’t so bearish myself. The biggest rising days and weeks are usually during bear market. So for me personally I’m just enjoying the rise while my “cash” is in assets that still appreciate. Even a HYSA at least will keep up around d inflation, worst thing you can do is just sit with your cash losing value. My personal view is we see a Great Recession within a month to two years that lasts a few years taking us to ‘08 type declines. Doesn’t mean I’m betting options on this. Just riding the wave cautiously and as things get stopped out they sit…it’s okay to see the cash pile grow for a bit. And I dive back in if it hits 20/30/40% from ATH and worst case I always have some sort of cash sitting sidelines till the end of time. I’m contrarian and I don’t have all the answers. That’s okay, neither does WB. My cash sitting out can still be pulled to pay off debt if 0% balance transfers go away during recession or if I want to start side hustles and in those ways it’s put to good use.

kconfire

0DTEs? Yeah don't spend money on stocks anymore. HYSA is probably more suitable for you.

mr_stupid_face

Work on your old man port and just DCA into an index etf such as SCHX Timing is hard, frequent timing is harder. Plan on holding index ETF for ever. Have a line of credit available or HYSA account money to not be forced to sell. Slow and boring may make you happier Your degen pile should be fun and not bring you so much stress. (Well sometimes it should stress you out)

No-Improvement3164

IBM yield is 3.10% now. Same as HYSA with potential upside. 😂

DoinIt4DaShorteez

SGOV is such short term treasuries that it's basically a money market fund, and about 95%+ of the distribution amounts are state-tax free (depending on the state). He might be able to get a few basis points more in a HYSA, but there's nothing wrong with using SGOV for an emergency fund except that when you sell, it takes a business day to settle before you can take out the cash.

Diablojota

Dollarsavingsdirect is at 3.35%. Apple’s HYSA is at 3.4%. There’s no shortage of HYSA options over 3%.

InvestingNerd2020

" I will Teach you how to be rich" by Ramit Sethi. Excellent book. Brokers: Either Fidelity or Charles Schwab. Investing operations for those earning less than $153k per year (including bonuses): - Contribute to your 401k/403B plan pre-tax up to the employer match. Usually 3-6%. - Build up to 3 months worth of your routine monthly survival income in a high yield savings account (HYSA) or Treasury fund within a taxable brokerage account. Make sure it has 3% or higher interest. This will be emergency savings. - After building up emergency savings, then open a Roth Individual Retirement Account (Roth IRA). It offers tax free retirement gains. Invest 80% Total USA fund and 20% International. For Fidelity that would be FZROX and FZILX. For Schwab that would be SWTSX and SWISX.

abeBroham-Linkin

SP500=if your retirement horizon is 10+ years Everything else: HYSA/SGOV/Money Market/CD=whichever has the better rates and most convenient for you.

nupper84

You're trolling. FNSXX requires a minimum of $10 million. That's seven zeros. Two commas. For 12 months put it in a HYSA or SGOV if you live in a state with high taxes.

thefalcons5912

FNSXX has about a 3.67% to 3.88% interest rate. HYSA, you will be lucky to find anything much more than 3%.

UnlikelyPriority812

If you know when you’ll need it, you can toss it in a CD so you have a guaranteed rate. HYSA or mutual fund can shift. So really breaks down to your risk tolerance.

WhirlWindBoy7

HYSA can barely keep up with inflation now. Your personal risk tolerance should decide.

owenmills04

1-5 years : HYSA or MM (possibly state tax exempt) 5+ : index fund (maybe a little allocated to individual stocks if you want to put in the extra work)

Arteqt

2 to 10 years is very wide. Will you actually need the 20k in 10 years? I assume you would save so much more in 10 years to the point 20k won't make a difference for whatever expense you are going to have? Do you have any other savings? How much % is this for your total portfolio? Hard to answer without knowing anything. If you wanna stay safe go for VTV or BRK.B . HYSA or Bonds would be safer but thats just losing money to inflation at these rates.

leaning_on_a_wheel

2-10 years is a weird range. For 2 I’d definitely just keep it in HYSA, but for 10 the S&P no doubt

Odd-Flower2744

You can always do a portion in HYSA/short term bonds, etc and a portion into stocks. Generally I’d say biggest drawdown is like 40%. Given flexibility with time I’d say more like 25%. Find the max draw down you’re comfortable with keeping in mind the higher it is the more you can make. Ex if 12.5% is stomachable do 50% cash 50% stocks.

Inviction_

You're gonna have a tough time finding something really low risk with good returns. Stick with t bills or a HYSA

Shrimpf

1+ years: HYSA 5+ years; bonds 10+ years: ETF

Revolutionary-Rip670

so strategy now holding 3 BILLION in cash, skipped buying BTC again you regards are buying an overpriced HYSA

FortifiedNeuro

1. Sell 70% 2. Set aside 20% of that to a HYSA for your capital gains you’ll pay 3. Take $1,000 out in cash, go to a really nice dinner or treat yourself and your family/friends over the weekend 4. Put the rest in $VOO and CHILLLLLLLLLLL to retirement

West_Lavishness6689

i agree i cant time the market, but i also went from 8k in my account and a 160k loan on a condo in 2020 to now owning a 715k house mortgage free, 1.1 million in my investment portfolio ready to slowly deploy back into the market, another 500k in a 4% HYSA just hanging out making a few bucks on the sidelines. no student debt. two paid off cars. 2nd kid on the way. no credit card debt. i mean right now i am just taking a breath to realize how far i've come. and pause the "fomo" cuz right now i dont have any.

Various_Couple_764

SGOV is basically the same as a Money market fund or HYSA. I would rather deposit money into a high yeild fund like QQQI 13% yield. and turnoff dividend reinvestment and and led the dividned fill a money market account. build that up to 5 most of cash Anything more than 6 month would be reinvested for more dividend income Eventually the dividned income may be enough to allow you to start funding the Roth. So now you have dividends funding your Roth and keeping your emergency fund full. Eventually you could start using the dividned income to also start covering some of your monthly bills. Which would indirectly allow you to increase your 401K invsitment. Eventually I added other dividned funds like SPYI 11% yield. EMO 9%, UTF 7%, UTG 6% and PFFD 6%. All these funds are taxed at ta lower rate than your work income and they pay montly dividends. My taxable account now generates enough inome to cover all of my living expenses. it won't fix your problems overnight. It take time to build up the divine income . And the more income you have the easier it is to invest for retirment.

ValueSeeker1

Congrats on getting sober - that's the hardest part and you did it. Your plan is basically the standard priority order (401k match > Roth > brokerage) so you're thinking about it right. Only thing I'd tweak: SGOV for an emergency fund is fine, but once it builds up consider a HYSA for quicker access. The rebuild is a slow grind but the framework is solid.

MacDiddy27

If I really need accessibility Chime/Bancorp has a savings account at 3.75% APY with no fees or access restrictions so it’s close enough to an HYSA for me

MedSPAZ

An emergency fund shouldn’t be in bonds, you want that as liquid as possible while earning some return like in a HYSA. Otherwise good on you and make sure to at least hit that 401k match. It’s a marathon. Do others disagree about the SGOV thing?

Apollo506

Anecdotally that's me for sure. They say "If you want to buy a house in the next year, keep your money in a HYSA." Well I've been wanting to buy a house "next year" for like five years but the prices rise faster than I can save, so the HYSA ain't cutting it. The only way I think I'll ever afford a house is to put most of my down payment on the market and throw my "timeline" out the window.

dies_irae-dies_illa

No affiliation, but e-trade doing a 4% deal for their HYSA, locks in your rate for a while & pays a bonus. 100k would be like $333 a month in interest, plus the cash bonus.

bam2350

I'm going to provide extra context, which I think this conversation needs. I opened my brokerage account in 2015 with the goal to get better gains than my checking account which had accumulated too much cash. Lesson/question/change #1: Why didn't I figure out HYSA??? At the time, my father was my coach. He was fully retired, 75 years old, and living on dividends, social security, and pension. His guidance, which made sense to me, was towards dividend paying reliable stocks of companies that we're going to fail. For example MMM or ATT. He told tales of stocks he "couldn't afford to sell due to gains/tax" and the neat companies he had invested in (BGS) that had done so well. It seemed he clearly had it figured out. In time, Dad has passed, I have taken control of his old accounts to provide for my mother. There is clear evidence of emotional investing, and choices he made clearly haven't all panned out. For example, the BGS shares he gifted me are now nearly worthless. Lesson/question/change #2: Dad wasn't a genius and didn't always get it right. Lesson#3: Emotional decision making is frequently not the best. However, my mother remains well provided for, even as her costs skyrocket in assisted living. Dad was a proponent of picking individual stocks. Through time I have largely moved away from this. I continue to hold individual stocks, which has generally been OK, but hasn't "beat the market". However, since my objective was to do better than my checking account, I'm doing very well. Lesson/change #4: Instead of focusing on picking individual stocks, using broad index funds is easier and quite successful. Lesson #5: Understand and remember your objectives. At this point, VOO, VTI, and DIA account for about 30% of my brokerage portfolio. A few big winner individual stocks and a few more funds (including SGOV) round out my top 10 holdings. Going forward, I will almost certainly continue to focus on adding to my VOO, VTI, and SGOV positions. I have benefited from and enjoyed my dividends. However, some of my worst moves have been "dividend chasing". At one point, rather than benefitting from the modest monthly dividend from VOO or the declining % yield from CAT I chased dividends in a bond fund RA. I'm about 25% down on that, and while it continues to pay well above 5%, fees will eat into that. I'd have been ahead to purchase VOO, CAT, or KO. Buffet has benefitted from dividend stocks, but doesn't pay a dividend... Lesson/change #6: Don't chase the high dividends, benefit from strong stocks that pay a modest yield. Time in the market....

Subaru1995

My HYSA keeps going down 0.1 every 2-3 months.

nicolas_06

To the financial investor defense, maybe it's what the guy had asked and CD-1% is quite comparable to what an HYSA gives you. I hope at least that it was not the financial advisor advice.

JDMonster

I'd tell them to at least invest it in a CD or a HYSA (something that's FDIC insured). But beyond that you can't and and probably shouldn't try to convince them

rippedmalenurse

Im saying an emergency fund is a boomer mindset. Just invest your money in the market it’ll outperform some crap yield HYSA any day of the week. I can access any amount of that money and have it in my bank account within like 3 days. Why do I need to have 6 months worth of cash earning 4% interest when I can just withdraw from my investments. Sure I’ll have to pay taxes on that income, but I don’t see how that’s a legitimate problem.

EpicDOgeMC

It’s genuinely true though. In most things learning will always improve your performance. In investing that’s really not the case. Any time spent learning is honestly waisted time. All you need until you retire to know is open a roth, fill up your 401k to match, 3-6 months of expenses in SGOV or a HYSA and the rest in VT. Literally all you need to know right there.

Particular-Topic-445

Won’t be long and we’re going to have to remove that H from HYSA

rippedmalenurse

Having 6-12 months of income in a HYSA at the age of 31 is a massive loss in potential compounding interest. If I need the money, I’ll take it out, and then some, to pay the taxes. This is entirely a non-issue

texasinv

HYSA is always going to be short term since interest is paid monthly, CDs are different of course. But yeah, you're right about always coming out ahead if there's a gain. I do think an efund is worth it still just to avoid selling in a downturn, but for some reason my brain was just looking for a reason to argue.

AssociationFit3009

You don’t pay taxes on your principal investment just the return. You literally cannot come out behind if the stock increased in value. You have to pay short term gains on your HYSA/SGOV if you pull it early too. They protect your downside it’s a risk/reward issue more than a tax issue.

Only-Professor7360

why do you assume cash doesn't earn interest? HYSA have existed for a long time now

texasinv

Nice to be able to avoid a large tax hit in a time of unemployment. Even if you have a secure job, having 6-12 months of salary in HYSA is a good idea. Brokerage account settlement fund works too.

EpicDOgeMC

If you are focused on wanting to make as much return as possible on your investments, don’t try to learn. People deeply deeply underestimate how competitive markets are, and to generate extra return, you have to have extensive skill and knowledge beyond anything someone not pursuing finance as a life passion can have. Just invest in the VT - total market equities fund, and a HYSA or TBIL fund for short term needs. If you are genuinely passionate about finance and are fine knowing that learning won’t actually increase your return, then go for it.

hatemakingnames1

Those are likely risk adverse people who will panic sell if there's a dip and blame you for their mistake Just make sure they're at least getting a competitive rate on their HYSA/MMA

jakub_02150

Keeping cash in a HYSA is safe. No real risk. This I believe is what motivated them to keep it in the bank without investing

Fission-235

"$1 you left in cash since 2020 is now worth \~78 cents in real terms. $1 invested in $VOO grew to \~$2.55 today." Most people are not actually leaving their money in their mattress. Cash is a loose definition. HYSA at 3.5% is cash. I also consider any of the physical trust I hold as cash. I wait and then deploy that cash when I see value in the market. Your cherry picked 6 year window with a very specific investment vehicle will not age well in the coming years if you are not diversified. Chart the S&P/ interest rates over the last 100 years. You will notice the the S&P losses half of those years compared to bonds. I’m not saying invest in bonds. Now chart the S&P compared to Gold, Silver, Oil, Copper, and the S&P is a loser for half of those years. Considering we are on a historical long run for the S&P for 16 years straight, and we are coming off the lowest interest rates ever during those 6 years, and commodities have been underfunded for exploration for the last 15-30 years, do you think there is possibly going to be a shift in where money gets invested over the next few years? Keep in mind, most of those companies in the S&P are at least indirectly related to said commodities. All the energy that is required to run those data centers and make those chips and mine those materials, all the silver and plastics and silicone and lithium, and helium etc… Prices have to go up to incentivize the exploration in these commodities at some point. And it’s at that point that money rotates out of the S&P and goes into commodities. Plus when these commodities go up in price the cost of business for Tech goes up. The S&P will eventually go through a stagnation period as the supporting infrastructures need a rotation of capital. At this point the S&P will be equivalent to keeping cash under the mattress for a few years. It’s just hard to tell when those years will happen and for exactly how long they will happen. All you can do is diversify out of the S&P and take some profits now, reinvest in some good valued areas, then rinse and repeat back into the S&P along the way.

Knarz97

Depends on percentage of your net worth. I’ve got basically 1 year of mortgage and bills in HYSA. It’s also probably only 5% of my total net worth that’s in retirement so it’s really not that much in the grand scheme of things. Not a bad hedge when you work in an industry that’s constantly laying people off.

leaning_on_a_wheel

Show them average inflation vs. average HYSA gains vs. average VOO gains. If they still don’t get it, don’t talk to them about money 🤷🏻‍♂️

captain_ahabb

SCHD seems about on par with HYSA rates to me

Classic_Chapter_1503

3-6 months expenses in tbills or an HYSA invest the rest

lee_suggs

Everyone has different risk tolerance. They might be very risk averse and okay with HYSA or MM funds

ZanzerFineSuits

On the r/retirement thread there are people proud that they have 2+ years of living expenses in cash or HYSA. I don’t know how old these folks are, but it seems like they’ve missed out on quite a bit. There’s being careful, and then there’s being too careful.

FinancialFreedom12

I honestly just keep DCAing index funds every paycheck and have 12 months of savings in a HYSA. No one can predict what the future holds and I don’t care what anyone’s take is on that subject.

dinnerthief

Only if interest is not charged while she is in school, which is the case with some federal loans but if you do that you would want to make sure its a very safe investment like HYSA.

GatorBo69

It’s all individual stocks, over 200+ stocks so that way there’s no expense ratio (since I’m obvs paying them, lol) I’m pretty impressed with their choices but have to admit I would NEVER have picked what they have.. They obvs have strong positions in the Mag7 stocks, but also BP, Amex, Lilly, ASML, CAT, Coca Cola, Citi, I mean I could go on.. Stocks from S&P, Dow, Nasdaq and spread fairly evenly across recognizable names, but they change their positions based on the market and trends… My portfolio isn’t heavy in any one sector, which I actually like, but I can’t deny the performance is astounding. Surprisingly I have no positions in RKLB or SpaceX as of now, but I did start my own brokerage account that only has like $115k in it where I try to “beat Fisher” but have never been able to come close. I basically follow the standard playbook that most people use: 50% VTI, 30% VXUS, 20% VOO, but I recently opened a $40k position in FSELX at the beginning of the year that has been performing amazingly, especially since I opened it in the middle of March, lol. I try to always have $100k in liquid cash in my HYSA so I can jump into a position during a market downturn. Trump made a pattern in his first term that I have been able to benefit greatly from, last year when he announced the tariffs I threw all of my $100k over to Fisher, and then this year when I saw he was getting ready to do the same thing in late January with the Iraq war I asked Fisher to exit my positions, gave them $60k and asked them to wait until March to reinvest, and that’s when I used the other $40k to open my own holding in FSELX.. But I’m not ballsy enough to do what you did!! And I gotta say, it will most def pay off, bc we have never had a President that has manipulated the market more, and I absolutely love it, lol

Particular_Maize6849

If you have any high interest debt (i.e. credit card debt), put it towards that first. If you don't have any savings at all, put it in an HYSA that you will try to build up to at least a months of expenses. If that's all taken care of, only then start to invest. Put it in VTI or VOO or something. Don't pick individual stocks.

InvestingNerd2020

First I want to congratulate you and your father for starting on this pathway. Too many people are scared to invest. Nowadays it is a lot easier to do so, and the way to grow wealth long-term (5+ years) has been well refined. 2 good books to read that helped me a lot are: - Millionaire Next Door by Thomas J Stanley. - I will teach you to be rich by Ramit Sethi. Lean about different retirement accounts (company sponsored and individual ones), active vs index funds, and ETFs vs mutual funds. Accept that investing into most individual stocks is far worse than a collection of stocks (index ETF or index mutual fund). The only exceptions are high growth stocks that are literally effecting an economy (Tesla, Google, or Nvidia). Also, the most popular funds are not always the best to apply in all situations. Mindlessly following VOO and VTI isn't the best thing to invest into in every account type. Some other investments have lower expense ratios, better automation, can be less difficult with brokers that don't offer fractional share investing, or better suited when turning on the breaks in retirement. Zero expense ratio funds with good performance are around. The only things I would have done differently, would have setup a HYSA sooner and invested into a Roth IRA sooner with my tax returns. However, the 2000s was a bad decade to start with far more limitations and fees. This generation has it far too easy, which I am happy for them. Just take full advantage of it. Avoid brokers with bad customer service (Robinhood and E*Trade). Fidelity, Charles Schwab, Vanguard, or SoFi are the best choices for long-term investing with good to decent customer service. At your age and using a custodial Taxable brokerage account, just get started with ETF SPYM. Lowest expense ratio for a good ETF and it follows the S&P 500 index. The S&P 500 index requires all the stocks in it to have 4 straight quarters of profits, so only winners.

Thick-Software-5878

Enjoy life. Stop worrying so much. People would chop their left nut to be where you are. I’m sacrificing now bi weekly to live free by 55 hopefully (I’ll lie to myself if I need to). HYSA, Roth IRA, personal trade account, 457b, city pension, private retirement acct. Next step is real estate but as a millennial… it’s hard to buy a house once you have your shit together unless your parents put the down payment. Not mad at it. But there’s always someone doing worse. Sit down, crack a beer and listen to the birds. It’s allllll gooooood

WorldlyWar2143

Sold my car, got 8k for it, threw it in a HYSA. cash pile secured ready for market death

phayhay

Could use a bit more details to really providing meaningful advice, but to start: * 100k cash is probably a lot (depending on your expenses). At a minimum make sure this is in a HYSA. * What is the 200k managed account invested in, and who is it managed with? * What is your 401k invested in? * Your mortgage is no problem. I would not worry about what other people may or may not be doing. * Do you have an IRA yet? If not, you'll want to open that and specifically plan to perform a "backdoor Roth IRA)" * Any excess funds that are not going to 401k and IRA should be invested in a brokerage account. Feel free to reach out if you want to discuss more of this in further detail.

CryptoSamia

first off sorry for your loss, and smart of you to not just blow it. keeping some in the HYSA as your emergency fund is actually the right call, dont invest all of it. for the rest, open a Roth IRA (Fidelity or Schwab are both easy) and put money into a total market index fund like VTI or a target date fund, then just leave it alone. you dont need to pick stocks or time anything at 20, time is your biggest advantage. set up auto investing monthly with whatever you can comfortably spare and let it ride. one more thing, if the inheritance is a bigger sum, it might be worth a one time chat with a fee-only fiduciary advisor (flat fee, not someone selling you stuff) just to get a plan that fits your situation.

GenFreeUSA

Hey everyone, I am a 20 year old college student seeking help as to where I should start investing. Recently a family member passed and left me a good sum of money in inheritance. Currently, I have it sitting in a HYSA, but want more. I know nothing about investing. I’ve listened to some podcasts, watched some videos, but none of it makes much sense. Does anyone have any advice for what I should invest in, where I should do it (brokerage), and how much (weekly/monthly)?

Lucky-Still-9322

Pull it all out, put 30k back into the account. Live off the rest sitting in MFF, T Bills, HYSA, (whatever floats your boat where you can gain interest) play with the 30k like you did in the first place.

slimdeucer

Please sir, put your money in a HYSA and leave it there sir

Broke4Life

Hey, incase so of you newer guys didn't know, you can use SGOV ticker like a HYSA. Check your tax implications but if your money is in your brokerage, might want to just park it there.

PantsMicGee

Wealthfront offers 3.35% on HYSA. 90 days at 3.95 to start. If you invest even $1 in their individual market accounts, i think they incentivize up to 4.2% for the HYSA.

abeBroham-Linkin

CD, HYSA and any other ones are meant for short term foreseeable future type purchases; within 3-5 years tops. If it's to stay there longer than that, it's better to put in a taxable brokerage account. Leave it in SP500 index and just leave it. It's up by near 10% this year, better than that 3%. I've split 50k(70/30) into brokerage/SGOV. Loooong way to go until retirement

UnfairDiscount8331

Yeah that makes sense! Our current emergency fund is in a HYSA.

Emergency_Cicada3119

CDs don’t really make sense unless unless you have an expense coming up on an exact date in a year or so. Then they maybe make sense if you are afraid of the stock market. I’d always put my money in a taxable brokerage because I know I can pull it out if something were to come up. If you want to keep it out of the markets, honestly just do a HYSA the percentage difference is only like .5 and it’s all liquid

Illustrious_Gift1609

Thank You. So buy and hold SGOV to avoid capital gains and the monthly divvy is state income tax free. Versus paying taxes on the 3.3% I’m getting in my HYSA. Now it makes sense. Thanks for clarifying!

Vast-Worry-4834

Not sure what your asking exactly. SGOV is about 3.8% currently. My state has income tax. You dont have to pay state income tax on SGOV, only federal. Pays monthly. Best ive found for the purpose of a liquidity. Most CDs and HYSA are in that % area without the tax benefit.

DuePomegranate

You will note also that the same person who is conjuring up the “all in at 2008” scenario also claims to have accumulated 300 pay checks and spent years saving in a HYSA. They put themselves into this position.

dr_eh

Effectively yes. I've spent many years saving in HYSA.

SheriffBartholomew

I sell when I no longer believe in the value of the investment. I also sell when something has massively outperformed and then drops a given percent (trailing stop loss). I'm also considering a change in strategy for long term losers. I've never sold at a loss which means sitting on losers for years sometimes. That creates substantial lost opportunity cost with those funds. I haven't decided on this strategy though. I don't sell to create cash. I keep a 6 month emergency fund in a HYSA and otherwise keep everything else invested. Most of my money is in a few index funds, with some in stock picks that rotate out based on the above strategies that I outlined.

GameOfThrownaws

I can't recall the exact numbers that I read about, but apparently money invested into Xbox by MSFT for the past number of years has been getting outperformed by a HYSA. Not exactly a big surprise that they're going to start cutting that type of thing after a few years of such performance.

sprout92

In Amazon's case, it'd be like getting 6.5% return on a HYSA and you have a CC with a 3% interest rate. You'd be dumb to pay it off. Or paying down principle on a mortgage with a 3% interest rate when your HYSA pays your 6.5%. Something like that.

RagnarokWolves

SCHD tracks the Dow Jones U.S. Dividend 100 Index. The dividend payouts are similar to what you'd get with a HYSA. Paired with the stock price appreciation, it just barely lags behind the S&P 500 in the long run. Generally, it doesn't suffer as much in bad markets but it doesn't go up as much in good markets. Though if you need some money now, it's a nice option to get some funds without needing to sell off anything. If it's in a taxable brokerage, you will pay taxes on the dividends for the year you get them.

MC1065

Robinhood, Schwab, Fidelity, etc are functionally free for normal buying and selling. They do technically charge a fee for every transaction, but it's like not even 0.1% of the size of the transaction. There are some things that cost money. Robinhood for example has Robinhood Gold which is a $5 that unlocks higher interest on cash for HYSA, among other things. More advanced forms of trading might have fees on various platforms, margin trading also has an interest rate tied to it because you're borrowing money to invest (Robinhood Gold for example lowers this interest by like 15%). So free brokerages make money off users with these methods, and of course they can do stuff with your money to make more money like a bank does. This is basically how they can afford to let people trade on margin, for instance. Stock lending is also a thing they can do if you have it enabled, they'll essentially rent out your stocks (though whole shares only I believe) to people who want to bet against them, and both you and the brokerage get a cut of the fees. They're making very thin margins on every user but when the volume is very high, it makes lots of money.

ThePurpleDongofTruth

6-12 months in HYSA

DSCN__034

What am I doing? I'm investing based on my risk tolerance, as everyone should be doing. A 10-30% pullback in stocks can occur at any time and may take 3-4 years to get back to even. Act your age (and circumstances). I'm a lot more risk averse now that I'm retired than I was 30 years ago. Capital preservation is achieved with a HYSA or BIL and other short duration bonds. Period. Have enough in those vehicles to get you through any rough patch. Emergency fund. For me, it's two years of expenses, but I'm retired with no other income. If you are a nervous or anxious person, then sell stocks down to your sleeping point. If you are concerned then lighten up on risk. The second worse thing you can do is be underinvested in a raging bull market, but it happens and you'll survive. The absolute worst thing you can do is sell into a crash. If you are going to puke at the bottom then you are too aggressively invested. The problem is that many (especially younger) investors don't know if they will panic until we are actually in the depths of a stock market meltdown. Investing is an adventure in self-discovery. Haha. It's all fun, good luck! Sleep well.

spcestonk

PLEASE PLEASE PLEASE, STOP NOW, so you don’t off yourself when you lose 2 to 2.3 million dollars. I’ve literally seen that happen 2+ times on this sub. 2 MILL IS ENOUGH, GO BUY YOUR DREAM HOUSE IN CASH, AND PUT 100k IN A HYSA AND THE REST IN THE MARKET IN WHATEVER SHARES YOU WOULD LIKE

NicDaddy1

What is that? Explain like I’m low IQ and had my savings in a HYSA for the past forever years.

Whole-Reserve-4773

Don’t invest unless you have income. 1 year is not a long enough time frame to invest in equities. Money market or HYSA