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
Worst case scenario you put it in a HYSA and get back $1250/month in compounding interest.
I don't personally DCA into individual stock positions, but that could work. I also wouldn't find a stock you like, then put money into a HYSA and wait for it to go out of favor. I have most of my money invested in stocks all the time. I sometimes have a little bit of cash, but I usually try to use it quickly. So I would have to sell something in order to buy the out of favor stock, or use new cash. If a stock I like enough goes out of favor and it's a good enough buy, I'll find something to sell and and use that money to buy it.
Ok but what if, in a few years, you decide you want to buy a house, but have used much of your discretionary saving to invest in a market that for whatever reason, is down? In a decade or two, your investment will almost certainly have turned around, but that doesnt help you on a 5 year or shorter time frame. Whereas cash in a money market fund or HYSA is almost certainly gonna keep up with inflation and be liquid enough to spend when you need it. But reading your responses, it sounds like saving for a house is not a high priority.
hmmmm if you might need the money anytime in the next year or two, stick to guaranteed stuff. CDs or short term bills give you known returns. HYSA if you want it fully liquid. the others are fine but not really ideal for “short term”. check current HYSA rates on banktruth and match whatever pays highest with your comfort.
Sorry, I misunderstood the source I used to look up the fund. So you're doing ok, but recall this is a big-time bull market. A turn could wipe out your gains in a way a HYSA or SGOV wouldn't.
Not a bad decision, no, but not the best decision. FNLIX is a stock mutual fund. So it's not the safest place for saving for a house. If the market crashes (not saying it will, but sometimes it does), you could be down a big chunk of your savings and have to wait for the market to rebound to recoup your principal. Also, FNLIX seems to have a low annual yield. You can do much better. House-saving money and the like should go into either a High Yield Savings Account (HYSA) (which Fidelity doesn't offer) or a bond fund like SGOV (which you should be able to buy through Fidelity).
First, you're not married. Don't have a joint savings account unless you're both putting in only about a month or so of expenses and are using that account to pay for joint things like rent, utilities, etc. Even then, I suggest splitting things. But if you're going to do it, just keep like <$5k in it and equally add as needed. Assume this money is gonzo if anything goes wonky. Next, you don't invest money in the market you plan to use in <5 years. The reason is the market can be volatile in the short term. So let's say you save up a good $20k for a car and some other things then boom, in a month it's $15k when the market drops 25% during a crash - which isn't uncommon. Use a HYSA or money market fund and get your 4% to combat inflation and call it a day. Trust me dude. I've been in plenty of longer term relationships I would have felt safe in all to find out 3-4 years down the line she's cheating or planning on breaking it off. Then poof, you're screwed, she's leaving with the money, buying things, or whatever. Never had anything financially happen, but relationships fail - even ones you think are fine. I've literally been dating my partner for 10 years and we keep everything separate. If you want to jointly save for a house down the road, save separately and combine then. Also most definitely don't buy a car or house as partners. If you do, have legal papers drafted up of how it's split or who gets what... in detail.
The problem with trying to time it is it could go up another 15% before it goes out of favor again, I feel like DCA is best because of this. Also, where would you suggest we keep the funds until it's out of favor? HYSA? Another stock? VOO?
Okay, boys. I am retiring from options play for the rest of the year. I set aside my short-term caps gain taxes in a HYSA and plowed the rest into GOOG and VOO. Enjoy the roller coaster. May you all enjoy massive volatility gains from here.
You can usually get a little bit better yield on short term t-bills & get a lower tax rate than HYSA, so its not a bad way to hold cash (emergency fund/downpayment savings). But it should be looked at as your cash savings and not investment savings when treated that way. Its not a low risk investment, its interest yielding parked cash.
Wait until those regards figure out the 2021 inflation adjusted ATH is now 83k. They would have been better off just putting their cash into a HYSA and wouldn't be taxed on spending it.
Maybe I'll just dump everything in a HYSA to protect my blood pressure.
2021 BTC inflation Adj ATH - 83k 2022 BTC inflation Adj ATH - 52k 2023 BTC inflation Adj ATH - 53k 2024 BTC inflation Adj ATH - 112k 2025 BTC Price - 82k You'd been better off just getting a HYSA and miss out on the volatility and risk and actually be ahead with money you can spend and not be taxed on https://preview.redd.it/wigm9yhlwm2g1.png?width=541&format=png&auto=webp&s=2064b676297c936ea0441653fbfee5067e80b26d
You’d make more money in a HYSA at this point
You’d make more dumping it all in a HYSA
CYPH down 20%, I’m quitting this game and just putting all my money in a HYSA, good luck everyone
Maybe try a HYSA for a little while...
Forget the index If you’re long on an etf (assuming you are) Then 1 down year or even 5 isn’t going to break you if you have a 20 year horizon. Just DCA and hope for the best. Or done, and do an HYSA and Bonds.
Exactly, like just get a HYSA and you beat your store of wealth by 1% currently
2021 BTC inflation Adj ATH - 83k 2022 BTC inflation Adj ATH - 52k 2023 BTC inflation Adj ATH - 53k 2024 BTC inflation Adj ATH - 83k 2025 BTC Price - 82k You'd been better off just getting a HYSA and miss out on the volatility and risk and actually be ahead with money you can spend and not be taxed on https://preview.redd.it/aspdygja1l2g1.png?width=541&format=png&auto=webp&s=637e844067f83c607b813307811769c7b35c2961
It almost makes no sense that bonds are subpar right now. We have 1. the inflation, 2. we have the interest rates dropping, 3. we have near hyper inflated safe assets peaking (gold). and we have the iminent sentiment of recession. So where is our flight to safety in investment? Not a HYSA thats being lowered... it should be bonds but nope.
If you're going to park a 'substantial amount of money' somewhere you should be able to look this stuff up and know what you're getting into. Else you're probably better off with SGOV or a HYSA instead of chasing a better yield. There's no such thing as risk-free, high return investments. PFRL is probably more risky than HFSI, but it's the type of risk that makes it interesting to me. The majority of their holdings are in senior secured loans from major institutional banks. My biggest concern is a 2008-style collapse and a wave of defaults. But relative to the market at large, it has not experienced wild price fluctuations. The biggest drop in price it has experienced in 3.5 years was Great American Tariff Day. While most of the market plunged, it dropped from about $50 to $46 and was back up within about 2 months. Otherwise it has been very steady - similar to funds like JAAA. The relative stability and utilization of senior-secured loans make it more attractive to me than something like PHYZX. But I am not a financial expert and you should do your own due diligence. I'm just sharing some funds to look into.
I’m about to go all in SoFi. Everyone will want to go in HYSA soon.
My reading up on inverse ETFs is that they only match the targeted fund for a single day, and then (somehow) rebalance each day, this and other articles: [https://www.investopedia.com/terms/i/inverse-etf.asp](https://www.investopedia.com/terms/i/inverse-etf.asp) So long term they don't give the performance you want - they won't hedge properly. I'm also of the view that the market is over-extended / in a bubble. Plus stock prices are so volatile that I really don't want to participate and I am nearing retirement age so I want stable investments. I've moved to money market like funds and (for funds not in a retirement account) HYSA. But trying to use other funds like bonds / treasuries / money market means you'll barely match inflation and if (when?) dollar devaluation occurs you could effectively lose a good amount of money, but so will everyone else if it happens in a short period of time. It's my opinion that part of this bubble is people are afraid of inflation / dollar devaluation and why gold prices have also skyrocketed. Plus it's also part of the hangover of easy money from COVID era policies and/or the wealthy having lots of money but no where to put it but in stocks.
The edge here is dissecting quality of earnings and traffic/customer concentration for GAMB, then sizing the bet like it’s fragile. Actionable checks I’d run: 1) Footnotes on revenue: split of CPA vs rev-share, receivables aging, and credit risk by customer; if two sportsbooks are >30% of revenue, that’s a red flag. 2) Traffic durability: pull Similarweb and Semrush trends, separate brand vs non-brand organic, and model a Google core update hit (say -20% organic) against EBITDA. 3) Cash conversion: OCF vs net income after SBC, earnout payments, capitalized content/intangibles, and amortization; see if “beats” rely on adjustments. 4) Regulatory sensitivity: state promo caps and UK/EU changes; note seasonality (NFL). 5) Dilution/insiders: shelf filings, RSU overhang, insider sales. Set tripwires (e.g., non-brand organic down 15% QoQ or any client >35% rev) to cut size. For idle cash while waiting, I use Fidelity T-bill ladders and Marcus for HYSA; I’ve also used Gainbridge for a fixed-term annuity when I wanted a multi-year guaranteed rate. Bottom line: judge earnings quality and traffic fragility first, then keep position small with clear exit triggers.
Better off buying a $2M house and investing the other $23M. The interest alone on a HYSA would be enough to effectively retire and do what you want.
If you're 100% invested and don't have income then yes it can take years to recover from a crash. However, if you're working during a crash you can keep buying shares at a discount. So it doesn't take as long to recover. Similarly, if part of your portfolio is in bonds or HYSA or a CD, then you can use the dividends you make to buy stocks during the crash. This is why having some bonds is recommended even if you're young.
Do you have much liquidity, cash, or a HYSA, or any emergency fund? IF not, you might want to build up an emergency fund to cover you for 6 to 12 months. Or, you could add to any IRA or Roth account that you have. Otherwise, prepay your mortgage a bit each month. Even 100 or 200 a month will make a difference down the road. Or, if your tax situation warrants it, you could assign funds to prepay the mortgage interest. Such a bonus is a great opportunity to build up additional savings for the future. And, if it’s cash that you can spare, don’t forget to treat yourselves every now and then.
If you really believe that then I think you would be better off saving your money and investing in a HYSA
3 mo of expenses in savings is low when you have 2 small kiddoes. Will this money get you close to 6 mo in your HYSA? Thats what I recommend
HYSA is at 85k which is more than a years worth of expenses for me. I have thought about boosting that HYSA for a down payment on another home but not sure.
Is slap that into a HYSA. Never know when you’re gonna need it.
Another strong play.... They have averaged 2.34%/year over the last 10 and projected the same over the next 5. Can't go wrong with a stock paying less than a HYSA
You’re probably right, lol. But that’s why you sell a lump sum and move that into a HYSA right before you retire to mitigate the effects of sequence of returns risk. I’ll likely have way more than I need anyway 🤞🏻
Wait... Huh... Erm... 0.50 scared you? Bro, you might want to like- find a HYSA or something. Of course, you do you but damn.
I'm sure you have moved all your funds out of the market into a HYSA to save yourself right
You can always pull your money out and go into a HYSA but obviously you won’t
That depends on your quant of "many". I personally know two people with double PHDs (one of em is being Molecular Biology) in their 60s that are living in the lower middle class. Without revealing too much, they both work in highly prestigious positions and are key note speakers at many events in the area. I haven't checked since covid but, and this falls in line with the history, they have made every stupid financial move I have ever seen. For starters they dabbled in inside trading; a popular medical company that both of them did "major business" with (by that I mean both of them just heard the name a lot in their workplaces). The company went tits up and they lost like 200k. What does one learn from this lesson? They didn't learn shit. Both double PHDs, surely if they couldn't figure it out no financial advisor could. So they just put their earnings into a bank account, not even a HYSA or bonds or anything ... I'm talking Wells Fargo checking acct circa 2015. One of them probably predicted covid being a big deal in 2019 before anyone knew about it. The kicker of this is that, and I haven't checked up on it recently, but their marriage was struggling due to this. One of them donated 1/3 of their income to the church, put 1/3 into the bank account with marginal interest, and the other 1/3 was for their use and their use only. The partner? Poor sob. Did the same exact thing except minus the donation but all of their household expenses were on him. Overseas trips? That's him paying, dinners out? Also him. A few regards here (praise nana) did some dumb shit and probably have more net worth than these two. P. S. They owned a property in my area and then, even though they didn't have to, sold it ... September 2019 ... for 30k revenue. Paper hands. Their profit would have been 10x that today, and more if they did the smart thing and rented it out.
Oh that’s good to hear. Consider moving from checking to a HYSA, so you can get some interest too. I personally have goldman sachs and it doesn’t have any limits on withdrawals and it gives one of the highest rates (currently 3.6 or something). Since you’re retired already, it might not matter too much
They should be in HYSA then. You don't get higher yields without higher volatility unless you run the business yourself.
Yes, you need to keep at least 6 months of your spending and some emergency funds that are readily available in either HYSA or buy SGOV ETFs which will save you on state taxes. After that keep investing whatever you can in the entire US market ETFs and may be the entire foreign market ETFs (so SCHB 80% and SCHF 20%), but make sure to understand that if the market doesn't do well, then you could "lose" a lot of money if not all. Always remember, you haven't made or lost any money unless you sell your shares.
At what point is it time to start investing? Like after 6 months of spending in HYSA?
Ive used PNC, Chase, and SoFi, I like sofi for the convenience and HYSA. Chase is nice to have but checking at chase has no yield. With SoFi you can keep all your money in the hysa and instant transfer some to checking whenever you need, and can auto pay bills out of the hysa.
Real talk to everyone on this sub. Your safety net is not your investments. A safety net is cash, hopefully in a HYSA. Second, if you have enough in investments for a down payment in a home that you plan on using, sell it so its cash! If you are jot sure when you are going to buy a home just stick the money in safer etfs.
Bro is about to stress test his marriage. I'd stick to HYSA next time, maybe money markets.
I say raise rates. Even at these levels HYSA outperforming RSP SCHD IWM.
Shoulda left it in the HYSA
This really depends on your time horizon for this money. SGOV has already been recommended. Know that it's super short duration (0-3 months), making very similar to a HYSA. You could go for some longer duration but still short-term ETFs: SPTS: Short-term treauries, average duration 2 years BSV: 75% treauries, 25% corporates, avg duration 3 years VTIP: short-term TIPS (inflation-linked Treauries), avg duration 2.5 years If you know both exactly how much you need in the future and when, individual bonds or a CD are fine. I strongly recommend individual investors stick to government (treasury, agency, muni) when buying individual bonds. Anything else requires extra research and the disclosed financials aren't always truthful (see: 2008).
I generally assume when people say they're holding cash they mean it's in a HYSA or bonds, not literally just sitting in a checking account or something.
Dial down risk near retirement: lock in cash flows and let a smaller equity sleeve work. Keep 2–3 years in HYSA/T-bills, a 3–7 year Treasury/CD ladder, 30–50% stocks, rebalance yearly. I’ve used Vanguard LifeStrategy Income and Schwab’s CD ladder; for a fixed multi-year rate slice I bought a small MYGA via Gainbridge. Secure near-term spending so markets don’t choose your retirement.
IMO. Rip the check up. If you're standing on your own and she wants to do something with the money to help the family, see if she will put it in a HYSA for your kids or open her own Roth IRA to grow while she's alive with your guidance. My dad keeps trying to spend his excess retirement on me and my family. I understand the desire to give to your loved ones. I do it myself. My view is that that is his money and he can set up his descendants in better ways than buying material things now. If he's dead set spending that money on the family, I'd rather he do it for the long term health of the family fortune instead of smiles today. That's my view and everyone has to make their choices but also, they have to own those choices.
Yea… I’m kicking myself for not taking my short term gains about a week and a half ago. This money used to be in my HYSA, I’m wondering if it might be worth it to just put it back in there and delete robinhood and never have to think about it again haha.
You’re missing the part where confidence in the dollar and faith in the government is waning. The market is the hedge against that. I really don’t know what else to tell you. Feel free to stay parked in a HYSA. HYSA isn’t bulletproof either. Plenty of wealthy have low faith in FDIC in the event of bank runs and QE inflates the dollar away. Trump’s been very open about wanting a weak dollar. There’s never a true safe bet, only diversification.
Keep in mind, people on here will advise as they invest their own money, despite being in a different situation. They'll tell you "bearish, great, SPY and chill" which makes absolutely no sense, but will be upvoted, because they all do it. A financial advisor will be no better because they're incentivized to take your money and invest within their scope of work. If you are truly bearish, and let's assume American, there's no risk-free avenue. Heading towards retirement, the safest way to go is a HYSA. You may lose some on inflation if they lower rates, but the return is guaranteed by contract. Anything else is runs the risk of losing value when you need the money. Your biggest risk would be rapid inflation (devaluation of the currency, debt crisis, government still prints, etc...). If you think that's on the table, you may invest some of that money in gold, which grow fast during inflationary periods.
I have about 3-6 month safety net in HYSA. What rate you get in CD?
If you want immediate liquidity to either transfer externally or buy some dramatic market downturn, I think a brokerage money market position is ideal, and should be at least as good as any HYSA rate. Personally I keep my emergency fund "cash" as a ladder of rolling T-bills, and my discretionary cash in money market. Owning T-bills directly squeezes out all the yield you can.
I never thought my HYSA would outperform HD and META YTD. I’m so tired of all this winning 🏆 😂🇺🇸
I borrowed from my 401(k) to buy my house. Best decision I ever made. If I would have saved that money in a HYSA, I would have immediately lost 22% per year compounding. Also, Mr money mustache, I think, or one of the FI guys, did an analysis years ago - it’s still wayyy better to max the 401(k) and take the 10% penalty pulling out than to put that money in a brokerage. Although, the best bang for your buck is to take a year without income to pull out the money, but then you lose the income if you don’t have a way to take delayed income, or can’t control your income through a business you own.
Just sell everything and buy sgov, if that's your outlook.. really, the markets continued to rally to ATHs until trump tweeted something stupid about china... his tweets impact the markets more than anything happening in congress, and honestly, you never know what he's going to say.. honestly, sgov is about the safest place to put your money to avoid volatility and the dividends are slightly better than a HYSA.
If you bought NVDA 6 months ago - you would have made more in a HYSA LMAO
Open a brokerage at the same time/place as the Roth IRA. No, you can't roll IRA money into your 401k. You wouldn't want to anyway. You'll just have both. Start by opening those accounts and depositing a little bit of money into both. Platform doesn't matter so much, but Fidelity, Schwab, Vanguard are the big three. Lots of other options are fine too, but I'd stick with those. Probably the real place to start is setting up an emergency fund in a HYSA, though a money fund in your brokerage would be fine too. Beyond that, I'd start with something stupid-easy like, just throw some money into an S&P 500 fund or a total market type fund.
This is what you should do. I experimented with a "managed account" of $5k on RH and it grew literally 1.1% from May through September. I set everything to high risk and high growth and I still would've made more just leaving it in my HYSA.
0.7% on a $2M+ portfolio AUM is normal market practice for top wealth management companies like UBS, Morgan Stanley, Merrill Lynch. I get full management and financial planning. I have 6 portfolios, 1 direct indexing S&P500, 1 direct indexing Russell 1000 growth, 1 back door roth IRA, multiple Private Equity funds, 1 custom core portfolio for growth, 1 portfolio for stability, 1 cash account with HYSA, T-bill, Muni Bonds. The wealth management firm is taking care of everything, investment of my RSU, rebalancing, cash transfer to my family, tax advices, advisory free for my 401K and more.
House - 325k (when we bought it) Equities - 700k Pension - 620k Bonds/Gold/Treasuries - 115k HYSA - 12k Debt - 0 Been kinda uneasy the last year but luckily I've got some baseball cards in the basement that my parents assured me would be worth a fortune one day. Still a big deal right?...right?...ah crap.
>bonds pay over 4% Awesome? HYSA pays 3.5%. It's pointless. > If you sat in bonds for 5 years, making nothing, 2015-2020 you got paid huge during COVID and could simply rotate in at the bottom. You would have made way more if you just continued to buy equities during COVID. It isn't even close. > stocks are expensive as hell and something will always come that makes a monster dip, it's just a matter of waiting Okay so you're a bear who wants to time the market, good luck. You do you, but it's historically the wrong decision. > like Apple is just pure trash. paying 0.38% yield? 7% growth? Again, ??? Apple is up 20% in the last year and 129% in the last five years. 25 year olds shouldn't be worrying about dips or short term corrections. They should be piling money into the market as much as possible.
This "deranged viewpoint" is the most consistent performer over a very long period of time, man. > boglehead advice is 100% useless unless you are already rich/wealthy. in the real world, people get laid off or wiped out regularly. there are people who were out of tech job for months with no income. Yes, which is why you don't invest money that you need for living. Low risk bonds pay a pittance over a HYSA, bonds are a method for wealth preservation, not wealth generation. You shouldn't be putting a red cent into any market until you have emergency savings built up. > stocks are very stretched and pay virtually nothing for the risk ??? We have been living through the most epic bull market in generations. Pay nothing for the risk? Stocks are up massively and anybody who wasn't in them lost money to inflation. You are clearly a bear, which means you've been wrong for basically ever. Telling a 25 year old to put money into bonds is just completely trash advice.
High yield savings accounts (HYSA). SOFI is currently paying 4.3%. A $300,000 deposit in a high-yield savings account with a 4.3% APY would yield approximately $1,075.00 a month in interest.
Pausing the 401k max to build a house fund is reasonable if you keep the match and keep saving in Roth/taxable. At 34 with $450k already in retirement, your constraint is liquidity. Do match-only in the 401k, then max the Roth (contributions are withdrawable anytime, so it doubles as backup), and funnel the rest to a dedicated house fund. You’ll likely add roughly $800–1,200/month to take‑home by throttling back, which is the difference you need for a down payment. Set a target: 20% down + 5% closing + 6–12 months of PITI reserves. Park the money in a HYSA and 6–12 month T‑Bills; if your timeline is >12 months, mix in I Bonds. The 4% rule is a rough guide decades out-don’t let it stop you from improving flexibility now. If Roth IRA income phases you out, use a backdoor. A 401k loan is a last‑resort bridge, not a plan. For 2–5 year funds, I’ve used TreasuryDirect T‑Bills and Ally/Marcus for cash; a small MYGA via Gainbridge helped lock a fixed rate without market risk. So no, you’re not wrong-keep the match, keep the Roth, and redirect the rest to a liquid house fund until you’re ready.
No it doesn't: at the bottom it asks if you have a more immediate goal to save towards (after maxing: employer match on 401k, IRA, HSA, etc). 401k beyond your employer match CAN have some downsides compared to IRA and HSA, so you should max those first (after employer match- which is generally the best free money you can get). As someone else mentioned to you already: anything not in a tax advantaged account means you'll pay more in taxes. If you have a goal and realistic target to hit it (including the taxes hit) then some kind of HYSA or other liquid account may be worth it.
Yes you should have 8 months of living expenses available in a liquid form (HYSA for example) if you anticipate being unemployed for the next 8 months. Also consider if you’ll need cash for a downpayment on an apartment or other big expenses when you move. If the job market weakens, will you still be okay? I’d set aside 8 months minimum, probably 12 months of living expenses to be sure.
Would having an HYSA count? I often use it to fund my brokerage account. Idk get why people mention lump sum. Doesn't LS imply that people invest a largr amount one time and forget? I prefer to DCA weekly even if it seema like I'm leaving money aside, which is not how I see it.
This is actually INSANE. I get to 1 mill trading, I'm closing the account and putting that in a HYSA
>why can’t some of that allocation be HYSA or CDs? Then if you see a significant correction >10% you move some of that bucket into equities. Because that's market timing which, statistically, underperforms "buy-and-hold" >Which may also be looked at as a rebalancing, given the drop in equities, to your preferred asset allocation. Then why weren't you in that asset allocation to begin with? Also if you are closing in on retirement Of course. That's adjusting your asset allocation based on your time horizon and risk tolerance. It's not timing the market. >not everyone is 100% equities always hence there is “dry powder” available. Is it timing the market? I don’t think it is in these scenarios No. "Time in the market" doesn't mean "be 100% equities". It means buy-and-hold according to your asset allocation, *irrespective of* market conditions or market perceptions.
Welp, today sucked less. Bought puts on TLT near the beginning of the day, sold them, and put the money into more shares. Only 73 more to go before I have a solid 300, and I can turn this into a "second HYSA".
I've only dabbled a bit in options and lost 15k on OPEN puts out of 110k I had for investing. Thought I could time the dump. I sat back for a while and reconsidered my entire life. I don't know why people would continue gambling after taking such huge losses. Blows my mind. The only thing that saved me was investing 10k in Advantest in April...if it wasn't for that, I would've just sworn off equities altogether and put everything in an HYSA. This sub is like a group-think for gamblers too, people seeing all the gain porn makes them think "just one more play bro next time I got this." smh
You had better chances with BYND shares. Take your $7k and just open a HYSA bro.
Broadly agree but if you can be in a different asset allocation than 100% equities, why can’t some of that allocation be HYSA or CDs? Then if you see a significant correction >10% you move some of that bucket into equities. Which may also be looked at as a rebalancing, given the drop in equities, to your preferred asset allocation. Also if you are closing in on retirement then holding cash is a good hedge for SORR, if a correction happens it’s potentially a good time to move some cash as to some extent you’ve experienced some SORR. Maybe a long way of saying that not everyone is 100% equities always hence there is “dry powder” available. Is it timing the market? I don’t think it is in these scenarios.
I haven't done a poll or anything but I would bet most people keep their emergency fund in a HYSA
It's a fixed income option and you toggle between when the principle is repaid (Call date), coupon interest rate and the ability to get the principle back with interest (ratings). Most bonds, A rated corporate bonds pays 5.75%, way better than HYSA. A CA muni bonds pays 4.85% tax free or more than 10.5% tax effected for me, way way way more than HYSA. Of course you don't want to hold long call date bonds when interest rates and inflation is out of control as was the case in 2022 to 2024
Idk if this is smart or not, but I essentially do both. I'm DCA and DRIP and I have 1 years worth of emergency funds in a HYSA ready to use if there is a market downturn. I increased my emergency fund because of the likelihood I will be laid off. If the market decreases, I also use it as an opportunity to tax loss harvest gains and reinvest into the market. So, when covid happened and liberation day, I lump summed into the market. And in parallel, I continue to DCA. As long as the math works out, I don't worry about if it's an ATL or whatever, if I think it will eventually work out, I'll go for it.
They might be just using part of their "safe" portfolio like bonds... Or dip into their emergency savings. I peronally like to keep around one year's expense in HYSA and will dip into it to buy the dip, and refill by delaying regular purchases.
Bonds are debt, you're loaning out money to some entity and getting paid back with intrest so there's no volatility and little risk of loss as long as the bond issuer has a good credit rating. Funds will generally have a mix of types of issuers with the federal government making up the biggest portion. Because there's essentially no risk of default, but there's also other stuff like businesses and mortgages with higher yields but higher risk of default. Saying bonds are superior is a strange way to put it. Having little to no volatility is important if you're within a few years of wanting to spend the money you're saving. If you're planning on spending 100k in a couple years, like a down payment, investing in equities would mean it could be worth anywhere between 70k and 150k at that time but investing in fixed income assets means it's a much narrower range, maybe 99k to 110k. Cash equivalents like a hysa are also fixed income with debt as the underlying asset. The difference is the duration. Cash equivalents are pretty much all based on 0-3 month treasuries so the yield can change relatively quickly. Longer duration bonds locks in the yield for a longer period. On average longer duration bonds will have a slightly higher yield than short duration bonds over the same period. A few months ago you might have been getting 5.25% in a HYSA but now it's down to like 4% and at that time you could have gotten something with a 3 year duration at like 4.8%. For those few months it had a lower yield, but for the next 2 1/2 years the HYSA will most likely have a lower yield. One way to look at why fixed income is important is that it locks in the gains you've already had by reducing volatility. If you're investing 10k today it might not seem like a big deal that it could be worth 20% less next year, that only 2k. If it's been 30 years and that 10k is now worth 100k and you need that money to pay for your expenses next year losing 20k would be a big problem. Reducing the growth potential on that money is worth eliminating the risk that it loses significant value.
Not sure if I read this correctly, but did you say 6-12 months is your time horizon for holding? If so that is extremely short and I would strongly suggest not investing in equities. Instead you should consider short-term cash savings vehicles i.e. short-term treasuries, a money market fund, or a HYSA. Feel free to correct me though, that’s just how I interpreted > I have a fairly long horizon so I’m happy to DCA and hold for 6-12ms whilst I carry on doing more research
Ah yes it is indeed Saturday, time to say the sky is falling once again. If you’re in the market for a long term investment then this is largely irrelevant. Could the market crash on Monday? Sure. It could crash any day for a number of reasons. But it always comes back, sometimes slower other times faster but you’ll eventually break even or, more likely, come out ahead with more gains that stuffing that money in a HYSA for 20 years.
It’s a bank that is growing like crazy and getting more customers into the product blender. How do you think I got here? You sign up for the HYSA and next thing you know you have a Roth, brokerage, student loan refinancing, mortgage, and a credit card.
Long term: VOO and real estate Short term: HYSA Gamble: Crypto
I also think having access to your money makes it easier to legitimize spending more than you probably should. I am Fed employee so I put money into G fund not because it pays any better than HYSA, but because I don't have access to it. There is also things like GOLD, which I only recently started investing in, at 3900 an ounce, which I think will NOT crash if the economy crashes. The dollar, and your HYSA might not have any value if hyper-inflation takes over.
What hoops? For my HYSA I just had to fill out an application like any new financial account and there's nothing complicated about using or maintaining it.
in addition to BaconJacobs answer, HYSA aren’t always giving the best / matching rate. Sometimes I rotate between SGOV and VGIT depending on what rates are doing, but the difference is minimal for the amount I have in bonds.
If you have so much anxiety and stress from automatically, passively investing in index funds, that you don't need to check more than once a year, or less frequently, that's a you problem. I don't think that's even close to universal. My wife can get stressed. I set her 401k to max into the index a decade ago. She's maybe checked it a few times. She has $700k now, at ~middle age. Pretty sure that will make her much more comfortable than having maybe 150k that's been eaten up by inflating in a HYSA.
what company is HYSA?
HYSA does not have zero risk. They're guaranteed 100% to loose to inflation.
You’re correct that corporate bonds can outperform a HYSA, and rates can change. But that misses the point: I recommend HYSAs because they are stress-free, liquid, and zero-risk. Corporate bonds require more attention, carry risk, and don’t give the same peace of mind. For regular people with jobs, families, and mental fatigue, simplicity matters more than squeezing out extra returns.
While I agree with most of what you said, I would also say it ignores certain investments like corporate bonds, that can definitely get better returns than HYSA. There is also the problem of banks constantly changing interest rates on savings. How many big banks call .01 precent interest HIGH YIELD.
I have yet to see a HYSA that doesn't have hoops to jump through SGOV you get paid monthly and the gains aren't taxed, or are hardly taxed
Emergency fund in HYSA if not already sorted, rest in VOO or VTI and forget you have it. Not sure of your living situation, but you may also want to leave some in a HYSA to go towards a home down payment as well. I would try to get at least $100k into the market however.
Probably would put 100k into something like QQQ to get the base. Then put a couple months rent in a HYSA. Then the rest into an ai, tech, or nuclear power. (NVDA NVTS OKLO)
I would put it in SGOV or a HYSA