HYSA
BondBloxx High Yield Income ETF
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I have about 600k in liquid cash that is just sitting in my checking account. I want to start distributing but im too afraid to mess it up. Our typical monthly expenses is 20k(mortgage - i put a bit More on the principal, bills, groceries, entertainment, misc expenses, etc). So thats 120k that i should put in HYSA right? What do i do with 480k? All to a brokerage?

1. Start with setting a savings goal every year. 2. Put money in the right accounts. If you are young and aren't earning as much as you will in the future, your order should be HSA if you have access, ROTH (401k if that is available), brokerage. I would just stay out of tax deferred until your income becuase a tax burden (into the 22+ brakets). 3. Start moving money into index funds, don't worry about it, leave it and let it build. I would shoot for total market, S&P, and other broad indexes. The key is low cost and leave it where it is. You can deverisfy this by having some international indexes. 4. As for the Brokerage this would be the same, just put it in a low cost index. You would want the brokerage for 5-10 year plus goals (you have to be able to leave it to come back if there is a drop). 5. Short term stuff like buying a home, I would put in your HYSA. The key here is to get to 10-15% savings rate and build the brokerage to a point where you could live on it for 5-10 years if you want to retire before SS. You have a good start, but it's time to buckle down and get to work saving, you can't get the compoinding years back, remember 7-10 years your balance should double, walk it backward from where you want to be. You can find more at ifisaved dot com. Good luck.

My wife and I each have separate brokerage accounts at Vanguard. We don’t currently have a joint account, but have considered creating one. She has no holdings in her brokerage and mine are all VTSAX and VTIAX. We want to start using VUSXX for two different purposes: 1) our preexisting emergency fund (currently in HYSA), and 2) down payment for future home purchase. I would prefer to segregate these two uses of VUSXX, so that the compounding growth occurs in each respective “bucket” of VUSXX and we can keep those separate. I’d think we can accomplish this by keeping the emergency fund VUSXX in her account and the down payment VUSXX in my account. Is there any reason, perhaps ease of tax preparation, that makes this a good or bad idea? Same question for keeping the VUSXX in the same account as the VTSAX and VTIAX—will that make DIY tax prep difficult? I vaguely remember hearing that you have to figure the VUSXX amount that’s state income tax exempt and separate that from other brokerage earnings when doing your taxes. Thanks for your thoughts.

One thing to factor in is how rarely the VIX actually gets above 30, so that 10% cash bucket can sit in the HYSA for long stretches between signals. In practice you are comparing a slightly lower equity allocation against an occasional dip purchase, and in a market that rises most years the drag from the cash can easily outweigh the timing gain.

Most folks here consider coins, specifically ASEs, easier to move. I hedge my hedge by getting some of everything. Tubes of ASEs and Maples and Brits. Bars and rounds from 1/4oz to 10oz. Constitutional dimes, quarters, and halves. Fancy proofs in OGP and limited edition art bars and rounds. At the end of the day it is a hobby as well as a way of preserving wealth. As long as you’ve got the rest of your financial situation covered (HYSA for emergencies, 401k, ROTH, little to no credit card debt) I say get what you like and have fun.

every decision is an opportunity to make a mistake. when the time comes, you may time it right, and maybe you won't, and in either case the return is unsure. I would divert the BND and HYSA allocations into something with small or negative correlations to equities, and the new rule would be: do nothing. what would I consider to replace BND and HYSA? DBMF, and if you want to explore something new (and essentially uncorrelated), ILS.

* 1) Yes you have the right ideas. 6month emergency fund and simple brokerage account. * 2) You probably want to do more on the 401k side of things (not roth IRA, as you want a 401k instead as a high earner) * 3) Don't just put the money in a brokerage account. Cash sitting in a brokerage account does nothing. You have to buy the right investments using the cash in the account. Specifically you want to buy the 3 things in a Boglehead 3 fund portfolio: https://www.bogleheads.org/wiki/Three-fund_portfolio * 4) Instead of a high yield savings account, put the emergency fund in the same brokerage account and buy a moneymarket fund. Each broker has their own general purpose fund. It has approximately the same investment return as a high yield savings account (the HYSA is buying that investment in the background) but you have one account instead of two. * 5) What's the interest rate on your house mortgage? That matters more than the actual total cost. In fact, if you have a fixed interest rate below inflation, then the bank is paying you to live in that house and it's a good idea to have as much house as possible. * 6) As a high earner your companies probably have stock purchase programs and retirement matching programs. Are you making use of those? It's more free money. * 7) How do you only have 240k in your IRA from a couple years ago if you have 500k coming in every year after tax and you don't spend a lot? The math isn't mathing. From your statements it seems like you should have hundreds of thousands piling up every year somewhere.

Hi all. I was wondering if a strategy like DCA with VIX was a good idea? For example every month investing 90% into VOO, VXUS, BND and saving that 10% into a HYSA. And when VIX goes to 30-50+ using that lump sum to invest more into the market? Wondering if the extra gains are worth the effort?

I’d separate your money by timeline before worrying about specific stocks. If you’ll need the money in the next few years for school, moving, a car, etc., I’d keep that portion somewhere safe and liquid like a HYSA, money market fund, or short-term Treasuries. Stocks can be down right when you need the cash. For retirement money, a Roth IRA is worth learning about if you have earned income. A broad low-cost index fund inside it is a simple place to start, and if your job offers a 401(k) match later, I’d make sure you understand that too. You don’t need to invest a huge percentage right away. Build an emergency fund, avoid high-interest debt, then automate an amount you can consistently afford. At 19, the biggest advantage you have is time. You’ll get more mileage out of starting simple and staying consistent than trying to find the perfect short-term stock.

If you’re in a high tax state, you should consider SGOV instead of an HYSA because the interest is not taxed by the state.

Re: the CDs, I don’t know! I’m not sure! The fidelity guy told me they were a good idea for accessible funds, but I totally hear you on tax-advantaged accounts. I will have to figure out how to cash those out without a tax hit and then do you recommend they just go in my HYSA? ZERO funds! Ok! I’ll look into this. I thought I was doing right by just splitting 80/20 domestic and intl, but I’ll do some research. Thank you for your knowledge!

If your timeline is only 5-7 years then you want SGOV, HYSA, bonds/treasuries. Why is your timeline so short?

The Fidelity Cash Management Account (with SPAXX as its core position) will always be my first choice as a HYSA account. I get high interest 3.5%\_ish, free checking, ATM/debit card that reimburses fees and a free Bill-pay function…..no other HYSA can offer that…..

HYSA is paying about 4%. Inflation is about 3%.

This may sound dumb, but should I keep contributing to the HYSA then? And when you say use the income to pay off the debt, what do you mean exactly?

The point of a Roth is that future withdrawals will be tax free. You should invest that aggressively for the long term and try to get as much growth from it as possible. Collecting basic interest off a cash position in something like SPAXX is a waste in an account like that. You need an HYSA for your emergency fund but you already have that bucket also. Debt is a wealth killer so use that income to attack that based on what has the highest interest rate (probably credit, then car, then student loans). When you retire debt use all that cash to invest, do not add it to your spending.

If you have 16K in a HYSA already, why do you need those CDs? In general, it's best to put as much fixed income into tax-advantaged accounts as possible if it works for you based on this wiki: [https://www.bogleheads.org/wiki/Placing\_cash\_needs\_in\_a\_tax-advantaged\_account](https://www.bogleheads.org/wiki/Placing_cash_needs_in_a_tax-advantaged_account) In your Roth, consider the ZERO funds. Not only do they not cost you anything, they provide separate exposure to your holdings if you choose to tax-loss harvest in your brokerage to avoid wash sales. More here: [https://www.bogleheads.org/wiki/Tax\_loss\_harvesting](https://www.bogleheads.org/wiki/Tax_loss_harvesting)

A HYSA doesn't compound enough to beat inflation so you are losing value either way. Considering that the interest is taxed where as bullion is not, might as well have a shiny trinket. If you consider a HYSA a worthwhile "investment", you belong in this sub.

I’m about to be 30 and haven’t really gotten into investing and not entirely sure of everything about it. I don’t necessarily want to invest in individual companies, just looking to have long term goals like retirement and possibly a house within the next 5 years. In terms of where I’m at right now, I’ve got about 40k in my 401k, 7k in a Roth IRA, and 7k in a HYSA. The Roth is with Fidelity and is self directed, but I haven’t really set anything up or traded. I guess it’s been more like its own HYSA. My finances aren’t really great, but I’m looking to get better with them. If anyone has any advice on what my next steps should be or even point in a direction that would be fantastic.

If wala ka pang emergency fund, I suggest having one first. Ideally, it should be 3-6 month's worth of living expenses. Park it on a HYSA para safe and liquid.

Thank you, I appreciate your input! Yeah I debated a bit on the bonds but the 5% helps me sleep at night. Who knows, maybe I change my mind down the road but I want to let it sit for a while before I consider trading the bonds for equities. And yes I have a good emergency fund in a HYSA to cover 6 months bills plus a slight cushion on top. Thankfully I also have 0 debt, paid off Toyota Tacoma that I plan to keep as long as possible and only debt is mortgage with $80k balance at 3.82%. Really trying to set me and my family up for our future.

Hey buddy, I see that your parents accidentally gave you their starter emergency fund. I think you should go give it back to them so they can put it into a high yield savings account. If they already have an emergency fund of 3-6 months of expenses, then they should consider what their next savings goal is. Retirement? Put that $1,000 into a roth ira and buy VTI and keep doing that until they retire. Home? Pile it into a HYSA for a down payment or into VTI if they won't be buying for 5 years. Paying off debt? Always a great option.

For background I’m in my mid 30’s married with 2 young children. I have a solid pension, and a seperate 457 plan that I put money into each pay check. My wife also has her own retirement account through her employer. I have a UTMA setup for both kids along with a 529 plan for both. I also have a solid HYSA. I opened a Robinhood brokerage account (not sure if I should be using that platform) pre covid to jump on the dodge coin fad with my buddies. Other than that I don’t know much about investing or brokerage accounts but am looking for advice on where to put left over cash to earn maybe passive income down the road. Should I be just dumping it into SCHD? I’m open to any direction or advice.

HYSA the cash so you're getting some interest while you figure it out. This is the type of account you should park your emergency fund in so it's not just withering away at 0.1% interest or something. If you want you can use my referral to get an extra percentage at Marcus (we both get +1% interest for 3 months if you use my link full disclosure): https://www.marcus.com/share/TRI-CFR-AR9F There are many options for these HYSA accounts right now though. Generally they are No minimums or fees (Marcus is like this) just park your cash there and get several percent interest paid monthly. Marcus is offering 3.5% right now. If you use my link you'll get 4.5% for 3 months then it will go back to 3.5%. This is close to the top market rate available for us today.... Feel free to find other HYSA offers though mainly just provided this so you can see what you're looking for in a HYSA (No minimums, No fees, Interest over 3.5%).

I’m researching right now. I have too much in equities. It’s like 84/16. So I need to rebalance next year. I also have too little in international. I have concentration in S&P 500, NASDAQ… which has had a good run. I have some decent HYSA, and SGOV which seems very important going into retirement. It seems some short term treasury bonds didn’t help in 2022. So I’m trying to be careful about how to handle that. Maybe TIPS? I’d like to hear some feedback on this too.